Source: Security Properties / #Apartments #Multifamily
TRI-CITIES, WA - Security Properties and an institutional equity partner purchased Riverpointe Apartments, a 228-unit Class B multifamily property located in Richland, WA for $22,300,000 and Crosspointe Apartments, a 200-unit Class B Multifamily property located in Kennewick, WA for $19,000,000.
Both assets are 1996-vintage garden-style apartment communities. The well-located assets have been well maintained, but have had little in the way of aesthetic enhancements since they were built. By renovating the unit interiors and improving amenity areas and building exterior, Security Properties will elevate these properties to a higher class product while providing residents with a superior standard of living.
Barrett Sigmund, Sr. Director at Security Properties states that, "these acquisitions represent Security Properties continued effort of locating value in a competitive multifamily space. While the DOE's massive Hanford Site contributes significantly to the highly educated work force and high median incomes in Richland and Kennewick, Benton County has quietly seen growth in healthcare, education and agriculture as well. When combined with relatively low apartment supply, we expect this market to continue to perform well. At an average basis of $96,495/unit and highly favorable cap rates relative to our debt rates, these investments will enjoy excellent risk adjusted returns to our investors."
Riverpointe and Crosspointe were financed with assumed HUD mortgages at an attractive 3.42% average fixed rate. These assets will be managed by Security Properties-affiliate Madrona Ridge Residential.