SEATTLE, WA - Security Properties and Pacific Life Insurance Company purchased Overlook at Lakemont, a 400-unit, Class B multifamily property located in Bellevue, WA, for $118,000,000. This was Security Properties' first joint venture with Pacific Life.
Overlook is located in the prestigious Lakemont community where the average home price is nearly $900K and the average income within three miles of the subject is $130K. Lakemont is part of the Issaquah school district which is repeatedly ranked as one of the top districts in the state. Living at Overlake allows residents access to both the schools and the reputation associated with Lakemont at an affordable price point.
The location is fantastic as it has a low density, suburban feel, but offers walkable retail including Starbucks and a high end local grocery store, Town and Country, that will be undergoing renovations. To the northeast of the subject is Lakemont Park and to the southwest is Lewis Creek Park. Additionally, less than one mile east is Cougar Mountain Park a 5,000 acre protected wildland area designated for hiking and horseback riding. Transportation is great as well with an I-90 entrance just over a mile away. Major employers that operate their corporate headquarters within 6 miles of Overlook include Microsoft, Costco, Expedia, T-Mobile, Paccar and Puget Sound Energy.
The subject was built in 1992 and, with a few exceptions, is in original condition. The business plan is to renovate all of the units as well as update the clubhouse, replace the roof, re-side the property, and paint the exterior. The end result will be a core asset in an A+ location. This is the only property in Bellevue of over 250 units built in the 90's so it does not have some of the functional obsolescence of 80's construction product, but it has an in-fill location that is irreplaceable.
Davis Vaughn, Investment Manager at Security Properties says they acquired this property because, "this was a rare opportunity for us to buy in one of the best residential neighborhoods in the Seattle metro. The quick I-90 access provides convenient commuting to some of the top employers in our region and the area demographics are outstanding. We think our renovation program will absolutely transform the asset and provide the high quality product that Lakemont expects."
The property will be managed by Security Properties-affiliate Madrona Ridge Residential.
Overlook at Lakemont was purchased from Heitman. The sale was led by Jeff Williams, Chris Ross and Tim Brown of Moran & Company.