KENT, WA - Admiral Capital Group and Security Properties acquired the 304-unit Waters Edge Apartments through a joint venture of Admiral Capital Real Estate Fund LP and Security Properties Multifamily Fund II. The property, located within the Lakes Master Planned Community in Kent, Washington, represents Admiral's first and Security Properties' nineteenth investment, respectively, in the Puget Sound region.
The location of Waters Edge was one of the primary reasons this property was compelling. Kent is the fourth largest manufacturing and distribution center in the United States and Amazon is quickly becoming a large employer in the area with the construction of a 1.3 million square foot fulfillment center. The demand from Amazon is augmented by a very robust industrial market driven by increasing demand for e-commerce distribution centers. Future multi-family supply is also limited in the area, with approximately 300 units under construction in South King County.
Waters Edge, a garden-style multi-family community, was built in 1987. While select unit renovations were undertaken by previous ownership, additional interior upgrades will be completed. Significant improvements will also be made to the exteriors and amenities, including deck replacement, landscaping and the installation of a playground, among others.
According to Barrett Sigmund, Senior Director of Investments at Security Properties, several factors prompted the pursuit of this property. "Waters Edge has a desirable location, with excellent supply/demand dynamics that will translate into strong rent growth. This, combined with our value-add renovation strategy, should enable us to boost rents, while still providing a great value to our residents."
"We are looking forward to building a long-term partnership with Admiral. Admiral has a successful track record of executing value-add investments, while also improving the local areas through its community initiatives," Sigmund added.
"We are very excited to make our first investment in the Seattle region, a strong and rapidly growing target market for Admiral," said David Robinson, Admiral Co-Founder. "Waters Edge is a well-located residential community with great amenities and we see immediate opportunity to improve the living experience for its residents, while creating value for our investors."
"Waters Edge allows Admiral to further grow our diverse portfolio of properties in strong, job-growth markets with opportunities to execute on clearly defined value-add strategies," stated Dan Bassichis, Admiral Co-Founder. "We are thrilled to continue to build the Admiral platform and expand into new markets with SPI, a partner with a successful track record in this market," added Bassichis.
Waters Edge was acquired from Holland Residential and Dick Keller. The sale was brokered by Philip Assouad and Giovanni Napoli of Kidder Mathews. Barrett Sigmund of SPI and Jarett Kaplus, Principal at Admiral, led the transaction teams.