SEATTLE, WA - Security Properties purchased Bordeaux Apartments, a 124-unit multifamily property built in 1989 and located in Bothell, WA for $26,000,000. Security Properties now owns a total of 17 assets in the Seattle marketplace.
The property is located at the northern end of Bothell, WA near Martha Lake. Being minutes from the I-5/I-405 interchange, Bordeaux offers residents convenient access to all three of the region's largest employment centers with Seattle and Bellevue both 20 miles south while Everett is just 10 miles north.
Martha Lake is home to approximately 17,000 residents with an average household income of approximately $93k/year. The property's unique central location provides easy access to numerous job centers and outstanding access to area retail. Ten minutes southwest of Bordeaux is Alderwood Mall, a 1.3 million square foot regional shopping center. Alderwood hosts a total of 166 retailers, including Apple, H&M, Nordstrom, and REI. Additionally, Mill Creek Town Center is just five minutes northeast of the property and offers more than 80 retail stores, boutiques, restaurants, and services, including three grocery stores.
The business plan is a moderate value-add. Common areas will all be updated and all deferred maintenance will be repaired. Security Properties intends to modestly renovate the 96 original units. The renovated spec will include black appliances, cabinet doors / painted boxes, flooring, lighting and plumbing fixtures, baseboard, sprayed countertops, door hardware, interior paint, mirror surrounds, blinds, and curved shower rods.
According to Davis Vaughn, Director at Security Properties, the acquisition was made because, "Bordeaux offered us an asset priced significantly below replacement cost in an area with convenient access to both jobs and retail. Bordeaux has value-add potential we will unlock with our renovation program and enhanced management. As the Seattle MSA continues to grow, we expect this location to thrive resulting in excellent returns for our investors."
The property will be managed by Security Properties-affiliate Madrona Ridge Residential.