Waterton’s Newest Acquisition Benefits from Hot Rental Area
- Sep 24, 2015
Chicago—U.S. real estate investor and operator Waterton Associates LLC has acquired Taluswood Apartments in Mountlake Terrace, Wash., 15 miles north of downtown Seattle. The 512-apartment, 24-building garden-style property is nestled in a wooded enclave and offers one- to three-bedroom floor plans.
”Seattle is one of 15 target markets for Waterton,” Rick Hurd, chief investment officer, Waterton Associates, told MHN. “It is our second acquisition in the area. We like this area, being at the north end of Lake Washington, just a mile east of I-5 and five miles west of I-405. It provides our residents convenient access to the major employment centers. In 2020, there will also be a light rail expansion to the area, with a new transit center located one mile from our property. A trip from Lynnwood to downtown Seattle will take 28 minutes.”
In addition to ferrying passengers downtown, the pending light rail system will also offer riders direct rail service to other top destinations, including the University of Washington and Seattle-Tacoma International Airport.
Robust job growth sparked by Seattle’s booming tech community is resulting in unprecedented demand for rental housing in and around the Emerald City, said Peter Kuzma, vice president of acquisitions at Waterton Associates. In King and Snohomish Counties alone, thousands of units are under construction.
“Yet despite the supply added, the vacancy rate has continued to fall, allowing many landlords to push rents and obtain attractive yields,” he noted.
Taluswood Apartments consists of 360 one-bedroom units, 120 two-bedroom units and 32 three-bedroom units, according to Hurd. Waterton’s investment strategy includes a capital improvement plan to upgrade all the unit interiors as well as the common areas, he said.
Select residences at Taluswood Apartments will receive upgrades that will include updated kitchens, baths and new flooring. The property’s amenity spaces will also benefit from the modernization plan. Improvements to the clubhouse, fitness center, basketball and tennis courts, outdoor pools and indoor spa with sauna are among the common area amenities slated for improvement.
“As rents continue to climb in neighborhoods like South Lake Union, renters are seeking value in alternative locations,” Kuzma said. “Mountlake Terrace is a natural landing spot, with access to jobs, retail and transportation.”
Taluswood is a short drive from major regional job hubs featuring employers such as Google, Microsoft and Boeing. It also is situated close to shopping and dining venues, such as Alderwood Mall and Mill Creek Town Center.
Taluswood is the sixth property acquired by Waterton Associates in 2015. It expands the Chicago-based company’s portfolio of nearly 18,000 rental units nationwide. Taluswood is one of two apartment communities in the Seattle area owned by Waterton Associates.