SEATTLE, WA – In one of the largest multifamily transactions in Seattle this year, Decron Properties has bought Avana 522 (Avana), a 558-unit multifamily property in Bothell, WA for $173 million. The transaction marks the Los Angeles-based real estate firm’s entry into the Pacific Northwest real estate market.

The low-density 56-acre community was built in 1988 and expanded in 1999. Avana’s high unit count allows Decron, which owns close to 7,500 apartment units in California, to immediately enter the Seattle market with scale through a single acquisition and paves the way for additional investments in the Seattle MSA. Decron plans to invest approximately $400 million in the Seattle market over the next 36 months according to Daniel Nagel, Decron’s Chief Financial Officer.

“Seattle and its submarkets are a significant job creator market that benefits from a cluster of major employers with long-term growth prospects,” Nagel said. “In addition, our concerns about the current regulatory environment in California heightened our focus on investing outside of our home state. Avana is the result of several years of due diligence by our investment team to know the nuances of the market.”

With immediate access to Highway 522 and Interstate 405, residents are within 20 miles of some of the area’s largest employers, including the Microsoft headquarters in Redmond, Boeing’s headquarters in Everett, and companies like Google, Facebook, and Amazon which have offices in Kirkland, Redmond, and Bellevue. The property is also located near two large business parks in Bothell, the North Creek Business Park and Canyon Park, which include tenants such as Google, AT&T, T-Mobile, and Philips Medical Systems.

An simple commute to hundreds of thousands of jobs and one of the best school systems in the state, Bothell has become one of the top apartment submarkets in Greater Seattle, attracting both millennials and dual income families. Current submarket occupancy is 94.7 percent and is projected to remain strong through the next several years, according to CoStar.

Decron is one of the largest privately owned real estate firms in California with 2017 revenues of $190 million. From ground up development to value-add/rehab to asset repositioning, Decron’s investment strategy focuses on opportunities that are supported by long term growth drivers, specifically job creation, supply and demand imbalance, and strong public school systems. The discipline to focus on these three metrics has been a major contributing factor to Decron’s success in California. This same focus is the motivation behind Decron’s entry into the Seattle MSA.  

The garden-style community features a mix of one, two- and three-bedroom units. Avana includes a wide variety of amenities including two outdoor pools and one indoor pool, two clubhouses and two fitness centers, four playgrounds, indoor and outdoor basketball courts, tennis courts, picnic and barbecue areas, two pet parks and an indoor movie theater.

Decron will undertake a significant capital improvement program, including upgrading all unit interiors including upgraded stainless steel appliances, new kitchen cabinet doors and quartz countertops, and upgraded plumbing and electrical fixtures. The common community areas will also be upgraded, with the renovation of the club houses and pool areas, adding fire pits, new playground equipment, as well as modernizing the two dog parks. The company also plans to expand the capacity of the package locker facility.

Frank Bosl, Eli Hanecek, and Jon Hallgrimson from CBRE’s Seattle office represented the seller in the transaction.

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ROYAL PALM BEACH, FL – American Landmark, one of the fastest-growing multifamily owner-operators in the country, has bought two garden-style apartment communities in South Florida. The sellers were represented by ARA Newmark in a privately negotiated transaction. New ownership intends to conduct a multi-million dollar renovation program on both properties.

The communities bought are Siena Apartments, a 292-unit apartment community located at 8080 NW 10th Court in Plantation; and Hidden Harbor Apartments, a 200-unit community located at 222 Kingfisher Way in Royal Palm Beach.

With these acquisitions, American Landmark now owns and manages six apartment communities in South Florida and over 24,000 units across the Southeast U.S or “Sun Belt” region.

American Landmark, and its equity partner Electra America, continue to selectively buy properties in brilliant locations across the Southeast and Southwest. The company has completed 22 property acquisitions worth $1.4 billion since the beginning of 2018, adding 9,242 apartment units to its portfolio.

“We were attracted to the extraordinary location of these two assets, and with our improvements, they will rise to ‘best in class’ properties in their respective neighborhoods,” said Christine DeFilippis, Chief Investment Officer at American Landmark.

Siena Apartments is a garden-style apartment community located close to the city of Fort Lauderdale, and within miles of large national employers including Magic Leap, Westside Regional Hospital, Plantation General Hospital and Nova Southwestern University. The property has 292 one- and two-bedroom units overlooking a scenic lake. Amenities include a resort-style swimming pool, fitness center, car care center, handball court and playground.

American Landmark will invest $3.54 million in upgrades to the interior units, including installation of granite countertops and stainless steel appliances, and will renovate upgrade common areas. They will add a new small dog park, barbecue grill station and package locker system. Average in-place effective rent is $1,517/unit. The property is 97 percent occupied.

Hidden Harbor is situated between the affluent towns of Wellington and West Palm Beach, and comprises 200 two-bedroom, two-bath units. Community amenities include a fitness center, dog park, playground, resort-style pool, waterfront grills and cooking stations, car wash stations, a lighted tennis court and a fishing pier.

American Landmark will invest $2.7 million in upgrades to units, including granite countertops in kitchens and bathrooms, new cabinets and hardware, and stainless steel appliances. The company will also expand the existing clubhouse, renovate the fitness center and add valet trash and a package locker system. The property is 94 percent occupied with an average in-place effective rent of $1,425/unit.

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LOS ANGELES, CA – Walker & Dunlop, Inc. announced that it arranged construction financing in the amount of $153,750,000 for Rise Koreatown, a seven-tale, Class A multifamily property located just off iconic Wilshire Boulevard in Los Angeles, California. The project is being developed by repeat-client Rescore Property Corp., a private real estate investment trust founded by Arthur Falcone, Tony Avila, and Bill Powers that is based in Boca Raton, Florida. Their local development partner is Los Angeles-based Cal-Coast.

Rise Koreatown will comprise 364 luxury studio and one-bedroom apartments averaging 649 square feet, catering directly to the young professional demographic who desires a luxury product in a highly walkable urban location. The property will also feature 52,000 square feet of ground floor retail anchored by Zion Market, a Korean grocery chain. 

The project is one of many new developments in the Koreatown area, which is currently experiencing an unprecedented amount of investment activity. In addition to this multifamily offering, several office, retail, and hotel deliveries are scheduled for the coming years. The neighborhood’s rise in popularity is thanks to its centralized location near downtown, proximity to multiple metro stops, and access to trendy restaurants, businesses, and a forthcoming museum. 

Led by Miami, Florida-based Kevin O’Grady and Eric McGlynn, both Managing Directors in Walker & Dunlop’s Capital Markets group, the team structured both senior and mezzanine financing for the project. They leveraged their broad network of capital providers, identifying Barings LLC as the developer’s ideal partner for the nonrecourse financing. 

O’Grady and McGlynn have been active in structuring nonrecourse construction loans for apartments and other property types nationwide. They also focus on identifying providers of equity, structured debt, and portfolio financing for developers and value-add owners and operators. Together, they have closed in excess of $16 billion in debt and equity transactions.

Said McGlynn, “This project represents another in a series of highly walkable, urban infill communities that is Rescore’s focus. Barings provided a higher leverage, nonrecourse loan which achieved Rescore’s objectives.”

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