With strong yields from its current Washington portfolio, S. Lew & Associates has expanded its Northwest presence with the acquisition of Avery at the Reserve. The apartment community in Federal Way, Wash., was sold for $90 million by The ConAm Group.
According to Yardi Matrix data, the property that will be rebranded to Encore Apartment Homes was purchased with the help of a $60.3 million Fannie Mae loan that was arranged by Prudential Financial.
Located at 125 SW. Campus Drive, Encore features 401 units in one-, two- and three-bedroom floorplans that average 887 square feet. According to Yardi Matrix, the property is 91.8 percent occupied with tenants paying an average of $1,497. The property is located on a 39.2-acre site that’s roughly half an hour away from Seattle and includes amenities such as two indoor pools, an indoor spa, an outdoor pool, a fitness center and yoga studio, a children’s playground, a dog run and a business center.
ConAm purchased the property in September 2016 from Kennedy Wilson for $63.8 million, according to Yardi Matrix data. An affiliate of ConAm also recently sold another Northwest property, the 132-unit Creekside Village Apartments that was purchased by Pathfinder Partners.
With new ownership, Encore will undergo upgrades to the appliance package, countertops, fixtures, plumbing and cabinetry to bring a modern aesthetic to the units according to Stephen Lew, president of S. Lew & Associates.
JLL’s David Young, Corey Max and Chris Ross brokered the deal and Epic Asset Management will take over management responsibilities for Encore.
NOT JUST THE NORTHWEST
With Encore, S. Lew & Associates now has five Northwest properties in its portfolio that total more than 1,200 units. The company portfolio also includes Park at Dashpoint, another Federal Way property, and two properties in Puyallup, Wash., and one community in Kent, Wash.
“We believe that The Northwest region continues to show great economic potential and superior job growth,” Lew told Multi-Housing News. “We have had tremendous yields in our current portfolio and are very comfortable in the market.”
Lew also told MHN that they will continue looking into the Northwest, including Oregon, for more opportunities, but are also open to any U.S. markets with strong economic growth and diverse industries.