Source: Security Properties / #Apartments #Multifamily
NEWCASTLE, WA - Security Properties Inc., one of the largest multifamily real estate owners in the country, announced that Security Properties Multifamily Fund has sold Newport Crossing, a 192-unit apartment property located in the city of Newcastle, Washington. The Property, which was acquired in 2012 at a purchase price of $30.35 million, was sold for $38.8 million, following a substantial value add renovation program implemented by Security Properties and its affiliated property management firm, Madrona Ridge Residential. As part of the renovation of Newport Crossing, Security Properties and its joint venture partner, an east coast insurance company, invested $1.5 million to repaint and reroof buildings, redesign the community pool, improve landscaping and upgrade unit interiors.
Newport Crossing was built in 1990 and is situated in a prime town-center location adjacent to efficient transit service. The Property was the fifth investment for Fund I, which acquired a total of 17 properties in multiple states and submarkets. These assets were acquired either directly or in institutional joint ventures with a variety of partners. Newport Crossing was owned in a joint venture with an east coast insurance company. With the conclusion of this sale, Fund I will have 15 multifamily properties remaining in its portfolio.
The Security Properties Multifamily Fund was launched in June 2011. Security Properties partnered with its investors to create a private equity real estate fund that would provide a diversified alternative to stocks and bonds. Security Properties has been actively renovating or repositioning the assets in Fund I to unlock value and provide a better resident experience. As these renovations are completed, it typically sells properties to maximize investor returns.
"The purchase, renovation and sale of Newport Crossing reflects our overall strategy of pursuing multifamily real estate investment opportunities in high-growth western markets characterized by sustainable job and population growth, significant barriers to development and high homeownership costs," said Security Properties CEO David Dufenhorst. "In this property, we saw substantial opportunity to add value and the surrounding submarket had all of the traits we look for: a dynamic economy, solid demographics, attractive amenities and excellent transit access."