L5 Investments Buys Suburban Seattle Property for $15M
- May 02, 2018
L5 Investments has acquired Montrose Apartment Community for $15.4 million. The 97-unit property is at 220 S. 152nd Street in Burien, Wash., a suburb of Seattle in south King County. Originally built in 1963, the community is on nearly three acres and includes seven three-story buildings.
The unit mix includes one-, two- and three-bedroom units that range from 728 square feet to 1,130 square feet. Common amenities include a fitness center, pool and playground. All units contain fully equipped kitchens, appliances and private patios/balconies, and some of the units include vaulted ceilings and fireplaces.
The buyer, based in El Dorado Hills, Calif., is no stranger to Burien. In late 2017, L5 acquired the Raleigh Apartments, a 52-unit apartment community at 12415 Ambaum Blvd. SW in that suburb for $8.2 million. The Raleigh, on 1.3 acres, is currently undergoing an improvement program totaling nearly $700,000.
L5 is treating the Montrose deal as a value-add play as well. According to Michael Flaherty, founder and managing partner of L5, the company will invest about $1.1 million for improvements over the next 12 months. The renovations will focus on updating the Montrose’s flooring, cabinets, lighting, appliances, and adding in-unit washers and dryers in all two and three-bedroom units.
“L5 is focused on acquiring value-add apartment communities in markets across the nation by identifying densely populated areas experiencing strong job growth with good access to mass transit,” said Flaherty. “Montrose is currently stabilized with strong occupancy, and once we have completed our improvement program, we expect to see significant upside.”
The acquisition marks L5’s fourth community in the greater Seattle region. L5 now owns a total of 220 units here, and a total of 3,700 units nationwide. Ben Johnson of Berkadia brokered the Montrose transaction on behalf of L5 and the seller, an FPA Multifamily LLC entity.