Security Properties Acquires Villas at Kennedy Creek Apartment Community in Puget Sound Marketplace

SEATTLE, WA -Security Properties purchased Villas at Kennedy Creek, a Class A townhome-style multifamily property located in Tumwater, WA for $28,150,000. Security Properties now owns 120 assets totaling approximately 24,000 units across its portfolio. This includes over 5,000 units in the Puget Sound marketplace.

Villas at Kennedy Creek was originally constructed in 2008 and consists of 118 units spread out across 16 residential buildings and approximately 12 acres. The community boasts some of the largest townhome-style floorplans in the entire submarket with an average unit size of 1,156 square feet. Additionally, 98% of units include a private garage, either single space or tandem. Unique to a property of this size, the community also offers a market leading amenity package complete with a 5,000 square foot resident clubhouse.   

The community is located in Tumwater, a highly desirable suburb of Olympia. The site fronts Trosper Road SW, a primary arterial that offers tenants direct access to downtown Tumwater along with Interstate 5 on-ramps, both within one mile of the site. From there, tenants are able to conveniently access downtown Olympia and neighboring Lacey within a 10-minute drive. The submarket continues to benefit from sustained growth and tenant demand due to its diverse group of stable employment drivers, affordable cost of living, proximity to area amenities/recreation and overall high quality of life. While state and local government continue to anchor the area's employment landscape, Thurston County is also experiencing an expanding employment base in the healthcare, distribution, military and education sectors.  

The business plan is a longer-term yield investment with light upgrade characteristics. Security Properties will be renovating unit interiors with upgraded flooring and appliances, among other items, along with making strategic improvements to the community's amenity package. 

According to Alex Gauper, Investment Manager at Security Properties, "the acquisition of Villas at Kennedy Creek represented a unique opportunity for our firm to buy the top asset in a submarket with excellent fundamentals. With very limited future apartment supply planned, we expect Villas to maintain its market position for the foreseeable future, especially once our value-add enhancements are completed. Given the asset's distinct competitive advantage in terms of its low-density site plan, townhome-style floorplans, private garages and extensive amenity package, we look forward to generating strong returns for our investors." 

The property will be managed by Security Properties-affiliate Security Properties Residential.