RISE Properties Trust Expands Holdings with $102M Purchase

Salix. Image courtesy of RISE Properties Trust
Salix. Image courtesy of RISE Properties Trust

RISE Properties Trust, a Canadian REIT that focuses on the multifamily sector in the Pacific Northwest, has expanded its Washington portfolio with the acquisition of the 211-unit Salix Juanita Village in Kirkland, Wash., for $101.5 million.

The seller was Guardian Life Insurance Co., which acquired the property from Barings in January 2013 for $72.5 million, according to Yardi Matrix data. Guardian funded part of the acquisition with a $39.5 million 10-year, fixed-rate loan from Fannie Mae that was originated by NorthMarq Capital, Yardi Matrix reported. The transaction was brokered by JLL. Thrive Communities, a Seattle-based property management firm, will be the property manager.

The property is part of the Juanita Village master-planned community with dozens of shops and restaurants and easy access to beaches and pools. It is also close to downtown Kirkland and is located within the highly-rated Lake Washington School District.

Situated on nearly 3 acres, the asset features studios, one-bedroom, two-bedroom and three-bedroom apartments and townhomes. Rents range from $1,459 to $3,179 with an average of $2,131, according to Yardi Matrix data. Unit amenities include washers and dryers. The property has a fitness center, clubhouse and 320 parking spaces, including garage parking for additional rent. It also has about 21,000 square feet of retail space.

Jason Murray, RISE investment manager, said in a prepared statement the property, built in 2005, will be repositioned as a premier product to take advantage of the 9-foot ceilings, large windows, urban townhomes and micro-urban location. The REIT plans to renovate unit interiors and common areas.

Recent Purchases        

The Kirkland purchase is the ninth by RISE this year for a total capitalization of about $588 million. The REIT, which has operations based in Seattle, owns approximately 4,150 units across 23 multifamily properties in the Pacific Northwest. In addition to Salix Juanita Village, the REIT owns the 80-unit Starboard Apartments in Kirkland.

In August, RISE teamed with Aegon Real Assets US to purchase Waterbury Park Apartments, a 236-unit residential community in Federal Way, Wash., for $56 million. The seller was not disclosed but Yardi Matrix data indicated the property had been owned by Weidner Investment Services, which bought the asset in 2007 for $25.2 million.

RISE and Aegon RA, a subsidiary of Netherlands-based life insurance firm Aegon N.V., also bought Bryson Square Apartments, a 198-unit property in Kent, Wash., for $43.3 million in June.

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