SEATTLE, WA - Security Properties Inc., one of the largest multifamily real estate owners in the country, today announced that one of its sponsored funds, Security Properties Multifamily Fund, recently acquired interests in four West Coast properties, totaling nearly 400 units. Over the next two to three years, the fund will continue to invest in a total of seven to 10 properties, creating a portfolio that should eventually total between 1,500-2,000 apartments across multiple markets.
“It’s no secret that multi-family investments are the subject of much attention by investors and the media,” said Ed McGovern, managing director of capital markets for Security Properties. “There are strong arguments from a supply-and-demand perspective, which are backed up by solid demographics, indicating that the trend toward renting should continue in the coming years. However, we’ve seen many market cycles over Security Properties’ 42-year history and realize these trends come and go. As a result, we will keep the fund focused in size and strategy, which allows us to judiciously invest our investors’ capital.”
The acquired fund properties are the mixed-use Chelsea Heights in Tacoma, Wash., and a portfolio of three apartment assets in Beaverton, Ore., together totaling 380 units.
Chelsea Heights, a 2010 apartment/retail building on the corner of Sixth Avenue and South J Street in downtown Tacoma, is a 78-unit condo-turned-apartment complex atop 19,000 square feet of commercial space, which is currently leased to MultiCare Health System. Located across the street from two thriving health care centers, Tacoma General Hospital and Mary Bridge Children’s Hospital, the property was acquired with nearly half of the residential units empty in partnership with Real Estate Capital Partners, a U.S. real estate investment advisor. Since acquiring the asset, Security Properties has fully leased the project and successfully secured a 10-year property tax abatement for its residential component under a City of Tacoma economic incentive for market-rate apartments.
In Beaverton, Security Properties partnered with The Praedium Group to acquire a 302-unit portfolio of three apartment communities. The three communities, Richmond Park, Richland Terrace and Willow Grove, are located in one of the strongest apartment submarkets in the Portland metropolitan region. The mid- to late-1980s vintage properties, which will likely be upgraded, benefit from convenient locations in an affluent suburb, with excellent access to Nike’s global headquarters, the Hillsboro campus of Intel - the area’s largest employer - and an expanding Kaiser Medical Center.
Seattle-based Security Properties is a national real estate investment and operating company with more than 40 years of expertise in affordable and market-rate multifamily rental housing. The company’s broad range of capabilities includes acquisitions, development, financing, asset and property management, dispositions and advisory services. As one of the largest owners of multifamily real estate in the country, Security Properties has acquired or developed more than 64,000 market-rate and affordable housing units in more than 40 states.