SEATTLE, WA - Security Properties purchased Martingale, a Class A multifamily property located in Lacey, WA for $92,000,000. Security Properties now owns 27 assets totaling over 5,900 units in the Puget Sound marketplace.
Martingale was constructed in 2020 and consists of 240 units spread out across 10 residential buildings and 11.2 acres. The residential units are a mix of studio, one and two-bedroom floorplans with an average unit size of 849 SF.
Originally established as a suburb of Olympia, the City of Lacey is situated just five miles east of the state's capital at the southern tip of the Puget Sound. With more than 1,200 acres of public parkland, an adjoining 3,700-acre national wildlife refuge, five freshwater lakes and several championship golf courses, the city is best characterized by its virtually unlimited opportunities for outdoor recreation. The area also boasts a low crime rate, a healthy economy and proximity to major metropolitan areas (30 minutes south of Tacoma).
At the property level the site is ideally positioned just off Martin Way, an arterial thoroughfare that runs through Lacey and connects into downtown Olympia. While the entrance road to the site is directly off Martin Way, the clubhouse and residential buildings are tucked back roughly 400 feet, allowing for a private living environment free of traffic noise without sacrificing drive-by visibility. From a retail standpoint, directly across the street sits the Hawks Prairie Village Mall, a 154,000 sq. ft. shopping center anchored by Safeway. Several big box retailers also surround the mall including Costco, Home Depot, WinCo Foods and Best Buy. This is the primary retail hub for Lacey and functions as the town center. Walkable retail should provide long term differentiation as this is a material competitive advantage within the market.
The business plan is a long-term yield investment with light upgrade characteristics. While the asset currently offers a best-in-class amenity package and well-appointed living units, Security Properties has identified several opportunities to further emphasize this strength. They also plan to address a short list of minor immediate needs on the property as necessary.
According to Alex Gauper, Director at Security Properties, "Martingale fits our recent strategy of identifying well-located, new-construction assets in markets with strong drivers. We feel that we have the best asset in Lacey, a stable market with very limited historical supply resulting in pent up demand for high quality product. We are very excited to add Martingale to our Pacific Northwest portfolio and look forward to delivering strong returns to our investors over our hold."
The property will be managed by Security Properties-affiliate Security Properties Residential.