RENTON, WA - Sequoia Equities announced the acquisition of The Carriages at Fairwood Downs, a 400-unit, apartment building in Renton, Washington. This marks the final piece of over $300MM in transactions beginning with the disposition of 556-units in Grand Terrace, CA in late-October and the purchases of Eddyline in Tualatin, OR and The Carriages via deferred tax exchange. This is ninth acquisition for the firm in the Pacific Northwest and second in the Seattle-metro market since 2015. The property was developed in 1986 and is comprised of 436,583 rentable square feet in 36, two and three-story residential buildings.
The Carriages is located in the Fairwood neighborhood of Renton which is approximately 20 minutes from Bellevue's central business district and relatively close to the I-405. Situated on +/- 30 acres, the property was originally built as condominiums providing a low-density feel, an above average unit size of 1,093 sq. ft., and a 50% mix of townhomes. Property amenities include a nature trail, two pools, fitness facility, leasing center, and clubhouse.
Sequoia will break ground on a $4+ million renovation in January to modernize the building's apartment interiors and amenities. Sequoia Equities' General Partner and Vice-President of Acquisitions, Pat Reilly, explains, "The Carriages presents an excellent opportunity for our investors to yield a strong return as a result of value-added renovations. Our plan is to reposition the building through interior improvements, as well as, amenity enhancements." Interior improvements will include high-function, low-maintenance features like open kitchen concepts, mudrooms, and wood-plank style flooring. Amenity enhancements will include the addition of a theater, outdoor pavilion, resident lodge, and package lockers.
The acquisition was facilitated by Jon Hallgrimson, Eli Hanacek, Frank Bosl and Josh McDonald of CBRE. Eli Hanacek of CBRE explains, "Resident and investor demand for well-located, low-density suburban communities in the Pacific Northwest continues to expand with limited new supply, and even more so, for assets such as Carriages, with large floor plans and further value-add upside. Sequoia's renovation plans for Carriages are a perfect fit for resident preferences and will certainly generate great returns for all."