SEATTLE, WA - Phoenix Realty Group (PRG), a national multifamily real estate fund manager, investor, and operator, and joint venture partner Hanover Real Estate Investors (HREI), purchased two multifamily apartment communities in Kent, Washington, called Lake Meridian and Royal Firs through an affiliated entity, at a combined purchase price of $79 million. Located in the Seattle metro area, the two properties were owned by the same individual and were purchased as a portfolio. PRG will operate the rental communities and plans to renovate, upgrade, and modernize the properties to offer an attractive option for tenants in the area.
“Seattle is an important target market for growth for PRG,” said Keith Rosenthal, PRG’s president and co-founder. “Given the strength of the local economy, wide-ranging outdoor activities and the presence of employers such as Boeing, Amazon and Microsoft, it is a compelling region for renters of all ages. We expect to acquire additional properties in the Seattle market over time.”
Totaling a combined 361 units, both communities offer amenities which include a leasing center, fitness center, pool, tot lot and covered parking. In addition to seeking to generate a rental premium by renovating units and common areas, the venture believes there is substantial upside in operational efficiencies. The properties will be rebranded under PRG’s proprietary brand, Alvista Communities®, with Lake Meridian being renamed Alvista Lake Meridian and Royal Firs being renamed Alvista 240.
Located approximately 30 minutes from downtown Seattle, Kent has a population of more than 125,000 people and upwards of 60,000 employers. Both communities are accessible to highways, acting as a commuter suburb to the Sound Region’s largest employers, like Boeing in Renton, and tech hubs in downtown Seattle and Bellevue, all approximately 20 miles from the properties.
“The strong population growth of the Seattle market coupled with limited supply in the Kent submarket solidified our decision to partner with PRG,” said Ash Baraghoush, senior director with HREI. “PRG’s experience in renovating and repositioning assets will create significant risk-adjusted returns for the venture.”
Lake Meridian is located five miles east of Kent Station, an open-air urban village in the heart of downtown Kent. It contains a transit station, retail, shopping and dining options across the street from Lake Meridian Park, which features a 150-acre lake with swimming, boating, fishing and picnic areas. Royal Firs is located two miles east of Kent Station and less than one mile from the Clark Lake Park, which offers a wide range of outdoor amenities.
“We are excited to acquire our first two properties in the Seattle area,” said Alex Saunders, managing director and head of west coast acquisitions. “The units and common areas are in original condition which means that PRG has a blank canvas to transform the properties, improve the overall experience for residents and generate value for our investors.”