Seattle-Area Community Sold for $173M
- Nov 07, 2018
Decron Properties has entered the Pacific Northwest real estate market with the purchase of Avana 522, a 558-unit apartment community in Bothell, Wash., for $173 million in one of the largest multifamily transactions. The company plans to invest an additional $400 million in the region over the next three years.
The low-density, 56-acre multifamily community was built in 1988 and expanded in 1999. The property has immediate access to Highway 522 and Interstate 405, and is situated it within 20 miles of some of the area’s largest employers, including Microsoft, Boeing, Google, Facebook and Amazon. Avana is also near two large business parks in Bothell—the North Creek Business Park and Canyon Park, which include tenants such as Google, AT&T, T-Mobile and Philips Medical Systems.
Frank Bosl, Eli Hanecek and Jon Hallgrimson from CBRE’s Seattle office represented the seller, LivCor, in the transaction.
The garden-style community features a mix of one-, two- and three-bedroom units. Decron is planning a significant capital improvement plan that will give all units interior upgrades including stainless steel appliances, new kitchen cabinet doors and quartz countertops, and upgraded plumbing and electrical fixtures. The common areas, including the club house and pools, will be renovated. New fire pits will be added along with new playground equipment and improved dog parks. The company also plans to expand the capacity of the package locker facility.
Community amenities include:
- two outdoor pools and one indoor pool
- two clubhouses and two fitness centers
- four playgrounds
- indoor and outdoor basketball courts
- tennis courts
- picnic and barbecue areas
- two pet parks
- indoor movie theater
Monthly rents at Avana 522 range between $1,561 for a one-bedroom and $2,275 for a three-bedroom unit, according to Yardi Matrix. The property is currently 94 percent occupied.
Hot Multifamily Market
The large number of units at Avana 522 gives Decron—which owns about 7,500 apartment units in California—scale in the Seattle market in a single acquisition. From ground-up development to value-add/rehab to asset repositioning, Decron focuses on investment opportunities supported by long-term growth drivers, particularly job creation, supply and demand imbalance and strong public school systems. The firm’s portfolio also includes 1.5 million square feet of office and retail centers in California.
Bothell has become one of the top apartment submarkets in the Seattle region due to its easy commute to major employers and its well-regarded public school system.
“Seattle and its submarkets are a significant job creator market that benefits from a cluster of major employers with long-term growth prospects,” Daniel Nagel, Decron’s CFO, said in a prepared statement. “In addition, our concerns about the current regulatory environment in California heightened our focus on investing outside of our home state. Avana is the result of several years of due diligence by our investment team to understand the nuances of the market.”
In February, Decron acquired Bridgecourt, a 220-unit apartment community in Emeryville, Calif., for $87.4 million from a joint venture between Bascom Group and Carlyle Group.
Image courtesy of Decron Properties