SEATTLE, WA - CBRE has arranged the $10,975,000 sale of Providence Landing Apartments, a 51-unit multifamily property located at 31220 28th Avenue South in Federal Way, Wash. Jay Timpani, Mitchell Belcher, Steven Chattin and Chad Blenz with CBRE’s Seattle office represented the seller, Kaz Enterprises, Inc. from San Diego, Calif. Vesta Property Management LLC purchased the property in a sale that closed Aug. 31.
“This transaction closed in less than 90 days during a challenging economic environment as a result of seamless cooperation by the buyer, seller, brokers and lender. The acquisition, operation and disposition of Providence Landing was a classic execution of Kaz Enterprises' value-add, multifamily investment strategy in the Pacific Northwest. Congratulations to the buyer and to CBRE – it was a pleasure working with all parties involved in this transaction,” said Ali Kazemzadeh, President of Kaz Enterprises, Inc.
Robert Doxsee and Michael Manolides with CBRE’s Debt and Structured Finance group arranged the existing loan on the property through the Freddie Mac Small Balance Loan program and facilitated the assumption of the loan for the buyer.
“To accomplish the assumption, we completed the refinancing of two of the buyer’s other properties. It was a team effort all around that led to a closing on Providence Landing within two weeks of the refinancings,” added Mr. Doxsee, Executive Vice President, CBRE.
Built in 1989, Providence Landing consists of two- and three-bedroom units on 2.8 acres just off Interstate 5. The community is within walking distance to Steel Lake Park and features covered parking, rentable garages, a pet station and walking trails. The property is also near the future Federal Way Transit Center, which plans to open with light rail service to Sea-Tac Airport and downtown Seattle in 2024.
According to CBRE Research, demand for apartment living in the Puget Sound is driven by the tech industry and abundant job creation. During the past three years, over 30,000 apartment units have been completed with an additional 15,000 expected to deliver through 2021. While recessionary pressures have driven multifamily rents down in the wake of COVID-19, outlying submarkets outperformed the core in the second quarter of 2020. CBRE Econometric Advisors reports that average multifamily asking rent per unit in outlying submarkets, such as Federal Way, declined only 0.8% quarter-over-quarter compared with a 2.4% decline in core submarkets. Outlying submarkets also had 600 units of positive net absorption while core submarkets fell to negative 620 units during the quarter.