WA Affordable Community Changes Hands for $19M

The 164-unit College Glen Apartments is an affordable community located in Thurston County, an area experiencing one of the highest rent growths in the region.
College Glen Apartments in of Lacey, Wash.

Shelter Resources Inc. has acquired the 164-unit College Glen Apartments in Lacey, Wash., for $19.3 million. Kidder Mathews brokered the sale of the low-income housing tax credit property less than a month after announcing it mediated the $8 million disposal of a luxury Orange County community.

Shelter Resources, along with their equity partner, Enterprise Community Investment Inc., assumed the existing HUD loan on the asset and supplemented with a new subordinate cash flow loan from Enterprise Community Loan Fund. The partnership is planning a resyndication of the tax credits.

The property is located at 4870 55th Lane S.E., adjacent to a Walmart-anchored retail, dining and entertainment center, which includes Starbucks, Domino’s Pizza and Lowe’s Home Improvement as tenants. The Capitol City Golf Club and William Bush Park are also near the site, while Centennial Station, connecting Lacey to Seattle by train, is 2.6 miles away.

Low-density affordable community

According to Yardi Matrix, the 8.8-acre parcel comprises 16 buildings. The new owner is planning interior and exterior renovations of the low-density, garden-style community, which dates back to 1996. Current common-area amenities include:

  • playground
  • community center
  • indoor sports court
  • laundry facilities

Kidder Mathews’ team for this deal included Senior Associate Sid Warsinske and Senior Vice Presidents Giovanni Napoli, Philip Assouad and Ryan Dinius. According to Warsinske, some of the larger sponsors are seeking out areas such as Lacey and Bellingham that were mostly dominated by local investors. “As cap rates have compressed in the core markets such as King and Snohomish counties, these investors are choosing to seek yield in these locations and play off the phenomenal employment and rent growth in Western Washington,” Warsinske said, in a prepared statement.

“We’ve seen continued investor interest acquiring multifamily assets in the South End over the last few years, particularly in Pierce and Thurston Counties over the past 24 months, as rent growth on a percentage basis is amongst the highest in the region,” added Napoli, in prepared remarks.

Image courtesy of Kidder Mathews