Matteson Companies Acquires 134-Unit Langara Apartments in Suburban Seattle for $28.2 Million

Matteson Companies Acquires 134-Unit Langara Apartments in Suburban Seattle for $28.2 Million

SAN MATEO, CA - Matteson Companies announced the close of acquisition of the Langara, the final of six West Coast multi-family properties at a total cost of over $240 million. Now with one additional purchase pending, over a 15-month period, Matteson expects to close over $300 million in apartment investments in major West Coast markets.

Langara, purchased from Polygon for $28,200,000, is a 134-unit apartment property in Issaquah, Wash.

Pursuing a strategy to update and improve its apartment portfolio, the new acquisitions were developed within the last 10 years, and contain modern features such as 9 foot ceilings, in-unit washers and dryers, and updated amenities. The properties are located in infill locations in major coastal markets from Southern California to Seattle. They include five in California: 119-unit Cielo in Los Angeles; 384-unit Granite Point in Sacramento; 93-unit Tustin Cottages in Orange County; and, 124-unit Millworks in Marin County; as well as 256-unit Deer Creek in Puyallup, Wash.

"Our investment strategy is focused on properties built in the 2000s or newer, with 100 units or greater, located in vibrant West Coast markets with strong employment drivers and demographic characteristics," said John Bellack , president of JB Matteson, Inc. "We are acquiring modern properties that appeal to the growing renter segments and that have lower ongoing capital requirements."

Matteson has capitalized on the low interest rate environment by financing the acquisitions with 10-year fixed rate loans in the high 3% range, with predominantly full term interest only. Leverage has been modest, typically around 60%.

Matteson targets 5.5% or greater cash flow returns, which are enhanced by significant tax shelter from depreciation. Multifamily investments demonstrate compelling long-term performance characteristics. The strategy is to take full advantage of the positive leverage available in the capital markets. With revenue appreciating and a fixed cost of the long-term debt, the returns become more attractive over time.

"The investment performance of our existing multifamily portfolio has been excellent, and we expect solid investment performance from these new investments over the long term," added Matt Matteson, president of Matteson Realty Services.

Founded in 1965, Matteson is a 45-year-old privately held company engaged in real estate investment and management, with assets throughout the Western United States.

Source: Matteson Companies / #Multifamily #Apartments

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