Fourth Avenue Capital Snaps Up Seattle-Area Community
Terrene Homes sold the suburban property, which was completed in 2022.
Fourth Avenue Capital has purchased Alder Walk Apartments, a 78-unit Class A community in Puyallup, Wash. Terrene Homes sold the asset for $21.3 million, while the Simon | Anderson team, a Kidder Mathews multifamily investment group, brokered the deal.
Completed in 2022, the community consists of three buildings encompassing one- and two-bedroom floorplans that average 843 square feet. Units feature walk-in closets, quartz countertops, as well as 10-foot ceilings.
Amenity-wise, the community includes a clubhouse, a gym, a playground, walking and exercise trails, in addition to a dog run and outdoor grilling spaces.
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Located on a 5.1-acre site at 7722 176th St. E., Alder Walk is some 16 miles southeast of downtown Tacoma, Wash., while downtown Frederickson is less than 2 miles away. Companies such as Amazon, Boeing and Ikea operate in Frederickson, not far from the community.
Kidder Mathews Executive Vice Presidents Dylan Simon and Jerrid Anderson, alongside Associate JD Fuller, represented the seller and sourced the buyer.
This acquisition brings Fourth Avenue Capital’s portfolio to 19 assets, having had acquired north of 1,000 units and beds to date across the Pacific Northwest. In late 2023, the company purchased The Ridge, an 80-unit community in Vancouver, Wash., for nearly $14.8 million.
Seattle-Tacoma’s steady investment environment
According to preliminary data from a Marcus & Millichap report, assets traded at an average price per unit of some $276,000 across the Seattle-Tacoma area during 2024’s first quarter. Cap rates were slightly above the 5.0 percent mark during the same period, the report shows.
A significant transaction that closed nearby earlier this year involved Atrium on James, a 300-unit asset in Kent, Wash. FPA Multifamily purchased the community for $60.5 million on behalf of its Opportunity Fund VII, a $950 million investment vehicle.
