LYNNWOOD, WA - Apex Properties Group LLC announced its recent acquisition of the 107-unit Heather Ridge Apartments in Lynnwood, Washington from long time local developer Weidner Apartment Homes. The deal marks Apex’s second acquisition in the Greater Seattle market.
“We continue to identify attractive assets in line with our acquisition strategy. Heather Ridge was no exception. For our investors, this was a strong demonstration of our resolve to deliver,” said Ilya Gamel, managing member for the recently created Apex Properties Group.
Apex Properties Group plans to invest over one million dollars in additional capital to revitalize the property, which will include updates to the clubhouse and amenities, along with modern appointments to the unit interiors. The well-maintained, seventies-vintage property is located across the street from Edmunds Community College and is minutes from scores of retail and service establishments, including the Alderwood Mall.
Gamel and his partners formed the real estate venture this year with an array of equity investors from the U.S. and Europe attracted to Seattle’s strong multifamily market and the group’s credentials.
“Finding the right deal in a tertiary market around the Seattle core can be tricky, especially given the number of new units planned over the next couple of years”, added Gamel. “Heather Ridge’s immediate proximity to thousands of good jobs was key to our analysis.”
Investor interest in older multifamily deals may be on the rise, too. John Sebree, national director of Marcus & Millichap’s National Multi Housing Group, remarked at the recent 2014 Apartment Market Outlook, “Class B and C product likely provides some of the best opportunity in the coming year.”
Hendricks-Berkadia brought the asset to market on behalf of the seller this past fall. Notwithstanding Apex’s relatively short history, Weidner moved forward with the group and put the deal under contract in mid-December.
“Apex performed like rock stars, the transaction closed flawlessly, and they were a pleasure to work with,” said Kenny Dudanakis, senior partner for Hendricks-Berkadia, Apartment Real Estate Advisors.
The property traded for $12,150,000 ($113,550/door). Freddie Mac provided the debt which was arranged by Berkadia Commercial Mortgage in Seattle.