New Standard Equities has acquired Majestic Bay Townhomes, an 81-unit apartment property in Des Moines, Wash., for $18 million, according to Yardi Matrix. The seller was Weidner Investment Services, which acquired the asset for $7.1 million in 2013.
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Built in 1980, the community is located at 2459 S. 216th St. in the Seattle suburb. The one-building property offers one- and two-bedroom units and is roughly 99 percent occupied. The recent sale was subject to a $15.3 million low-interest loan from Freddie Mac, sourced by CBRE.
New Standard Equities plans to spend about $1.7 million on a renovation program that will bring a new exterior design, landscaping additions and fresh signage. The company will also fully renovate the unit interiors, from countertops and flooring to lighting and appliances.
The multifamily investment and management firm noted in a statement that it saw opportunity in the asset given that most of the floorplans are townhome-style units, which are believed to be a good alternative to single-family homes. The deal marks the eighth project in the Pacific Northwest for New Standard Equities and builds on a portfolio of 11 properties in California and Washington.
Des Moines is located about 15 miles south of downtown Seattle. In February, Madison Residential bought a 77-unit community just down the street from Majestic Bay Townhomes for $15.7 million. Randolph Street Realty Capital sold the property, Marina Club Apartments, which is located at 2445 S. 222nd St.