Admiral Capital Group and Security Properties on Thursday announced the sale of Waters Edge Apartments, a 304-unit multifamily property in Kent.
The identity of the buyer and purchase price were not disclosed in a media release from the companies.
Admiral and Security Properties acquired the apartment community, 6305 S. 238th Pl., in February 2015 through a joint venture. The investment provided an opportunity to purchase a well-located asset in the fourth largest manufacturing and distribution center market in the United States at a discount to replacement cost.
During its ownership, the joint venture re-positioned the property by curing deferred maintenance, enhancing the exterior and upgrading unit interiors, according to a media release. Select exterior improvements included re-siding the entire property, replacing wooden decks and installing a new playground amenity. Interior renovations included modernizing kitchen cabinets, appliances and flooring and renovating bathrooms. Overall, the upgrades re-positioned the property to compete with higher quality assets with higher overall rents.
"Our strategy is to identify capital-deprived assets in markets with a supply and demand imbalance," said Dan Bassichis, co-founder of Admiral Capital Group. "Waters Edge was an ideal fit and provided the opportunity for our partnership to invest the necessary capital to improve the property and experience for the residents and capture a share of the growing demand and rent growth in the submarket."
"Waters Edge is representative of the opportunities we like to target. By executing an extensive renovation plan, including a complete re-side, the partnership was able to enhance the asset's physical condition to accurately align with its submarket-leading location," said Barrett Sigmund, senior director of investments at Security Properties.
"The investment in Waters Edge was the continuation of a long-term relationship with SPI," said Jarett Kaplus, principal at Admiral. "We continue to proactively seek additional value-add multifamily investments nationwide, including in the Pacific Northwest."
Philip Assouad and Giovanni Napoli, commercial real estate brokers with Kidder Mathews, handled the Waters Edge sale.
Admiral Capital Group is a real estate and private equity investment firm with offices in New York, San Antonio and Seattle. Admiral was co-founded by David Robinson, US Naval Academy graduate, philanthropist and NBA Hall of Famer, and Daniel Bassichis, formerly of Goldman Sachs. Admiral Primarily invests in real estate through a partnership with USAA Real Estate Company and targets value-add opportunities in office, multifamily, hotel and retail properties.
Admiral has acquired over $500 million of real estate assets since 2008. Admiral's founders also have pledged 10 percent of their profits to philanthropic causes in certain areas where Admiral invests, building on Robinson's lifetime commitment to support education and lower-income communities. For more information, visit admiralcg.com.
Security Properties is a national real estate investment and operating company headquartered in Seattle. For more than 47 years, Security Properties has provided quality housing. Since its founding, Security Properties has acquired or developed over 80,000 residential units at a cost of more than $4 billion.