SEATTLE, WA – CBRE hosted the $ 10,975,000 sale of Providence Landing Apartments, a 51 unit multi-family property located at 31220 28th Avenue South in Federal Way, Washington. Jay Timpani, Mitchell Belcher, Steven Chattin and Chad Blenz with CBRE’s Seattle office represented the seller, Kaz Enterprises, Inc. of San Diego, Calif., Vesta Property Management LLC purchased the property in a sale which ended on August 31.
“This transaction was completed in less than 90 days in a difficult economic environment thanks to the transparent cooperation of the buyer, seller, brokers and lender. The acquisition, operation and divestiture of Providence Landing was a classic execution of Kaz Enterprises’ multi-family, value-added investment strategy in the Pacific Northwest. Kudos 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 of CBRE’s Debt and Structured Finance group arranged the existing loan on the property through the Freddie Mac Small Balance Loan program and made it easier for the buyer to take over the loan.
“To fulfill the hypothesis, we completed the refinancing of two of the buyer’s other properties. It was a team effort that led to the closure of Providence Landing within two weeks of the refinancing, ”added Mr. Doxsee, Executive Vice President of 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 of Steel Lake Park and has covered parking, garages for rent, 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, the demand for apartment housing in Puget Sound is being driven by the tech industry and abundant job creation. Over the past three years, more than 30,000 apartments have been completed and an additional 15,000 are expected to be delivered through 2021. As the pressures of the recession have lowered rents for multi-family housing in the wake of COVID-19, peripheral submarkets outperformed the core in Q2 2020 CBRE Econometric Advisors reports that the average asking rent for multi-family housing per unit in peripheral submarkets, such as Federal Way, fell only 0.8 % quarter over quarter, compared to a decrease of 2.4% in major submarkets. Peripheral submarkets also recorded 600 positive net absorption units, while core submarkets fell to 620 negative units in the quarter.