NSE Makes $38M Seattle Acquisition
The 276-unit property marks the company's second acquisition in the area in less than two months.
Seattle—New Standard Equities (NSE), a Los Angeles-based real estate investment and management company, has partnered with an affiliate of Brixton Capital to acquire Arbor Terrace, a 276-unit community in Port Orchard, Wash., for $38.2 million. The acquisition was leveraged with a $30.2 million loan from Freddie Mac, which was arranged by CBRE’s Capital Markets Group led by Vice Chairman Brian Eisendrath.
The two- and three-story community marks NSE’s second acquisition in the area in less than two months and the third in Kitsap County in the past year. The company plans a $3 million renovation of the asset’s vintage unit interiors, as well as improvements to the fitness center, leasing facility and general curb appeal of the property.
According to Yardi Matrix, the community features amenities such as a business center, a clubhouse, a swimming pool and a total of 325 parking spaces. Arbor Terrace was 93.5 percent occupied as of January 2017.
Andrew Kirsh, co-founder & head of the real estate practice at Los Angeles-based law firm, Sklar Kirsh LLP, represented the buyer in this transaction, and was instrumental in bringing together NSE and Brixton Capital Group.
“We love the value-creation opportunity at Arbor Terrace,” CEO & Founder Edward Ring, said in a statement. “When we initially looked at this asset we immediately saw a tremendous potential to improve the property’s cash flow through renovation. Given that the US Navy is such a huge economic driver in the County, we became even more excited about the prospects for continued long-term growth in this submarket.”
Image courtesy of Yardi Matrix