Institutional Property Advisors Brokers $60 Million Seattle Area Multifamily Asset Sale
Institutional Property Advisors (IPA), a division of Marcus & Millichap (NYSE:MMI), announced the sale of Atrium on James, a 300-unit multifamily asset in Kent, Washington, for $60.5 million. The property was sold for $201,667 per unit. The buyer, FPA Multifamily LLC, purchased the asset on behalf of its Opportunity Fund VIII, which has acquired $1.5 billion of assets. Atrium on James was built in 1989 on 21.5 acres and offers various amenities, including a large clubhouse, outdoor swimming pool, leasing office, resident lounge, business center, fitness center, playground, and sports court. The property is strategically located near suburban amenities and employment hubs, making it an attractive investment opportunity.
The acquisition of Atrium on James for $60.5 million reflects a strategic move in the multifamily real estate sector. At a price of $201,667 per unit, the purchase by FPA Multifamily LLC aligns with the current trend of investing in properties with value-add potential. The multifamily asset class has been attractive due to its resilience in various economic cycles and this particular asset benefits from its location in Kent, Washington, an area with growing economic drivers.
Investors and stakeholders should note the significance of the property's amenities and unit features, which are likely to attract and retain tenants. The proximity to major employment hubs and transportation infrastructure enhances the property's appeal. As the asset was built in 1989, the 'value-add' aspect could involve modernizing units or improving communal facilities to boost rental income. The acquisition's impact on FPA Multifamily's portfolio diversification and income stability should be positive, considering the robust demand for rental housing in suburban areas.
The Kent, Washington area's demographic and economic trends are essential for understanding the potential success of this investment. The region's population growth, employment opportunities and infrastructure developments contribute to a strong rental market. The Kent Valley's proximity to Seattle, Bellevue and Renton, along with access to SEA International Airport, positions Atrium on James advantageously for professionals seeking suburban living with urban accessibility.
It's important to monitor the regional multifamily market's supply and demand dynamics. An oversupply could temper rent growth, while a limited supply can lead to increased rental rates. The investment by FPA Multifamily LLC's Opportunity Fund VIII, with $1.5 billion in assets, indicates confidence in the long-term growth of the area. The fund's strategy and performance are critical to evaluate, as they can influence investor sentiment and market trends.
The financial implications of this transaction are multifaceted. The per-unit price paid is a critical metric, as it benchmarks the deal against other transactions in the region and provides insight into the asset's valuation. The investment's financing structure, whether through equity or debt, will affect the return on investment and risk profile. FPA Multifamily LLC's use of an opportunity fund suggests a focus on higher-yield, potentially riskier investments.
Long-term fundamentals, such as rental income growth, occupancy rates and operating costs, will ultimately drive the asset's financial performance. Investors should assess the property's cash flow projections and the potential for capital appreciation. Given the age of the property, capital expenditures for renovations could impact short-term cash flows but may be necessary for achieving higher rents and long-term value creation.
01/23/2024 - 01:41 PM
KENT, Wash. --(BUSINESS WIRE)--
Institutional Property Advisors (IPA) , a division of Marcus & Millichap (NYSE:MMI) , announced today the sale of Atrium on James, a 300-unit multifamily asset in Kent, Washington . The property sold for $60.5 million $201,667
“Atrium on James is an institutional-quality asset with an attractive value-add investment strategy,” said Giovanni Napoli, IPA executive director. “The buyer recognized the long-term fundamentals and robust economic drivers in our market and took the opportunity to expand their portfolio in the region.” Napoli , and IPA’s Philip Assouad, Ryan Harmon, Nicholas Ruggiero, and Anthony Palladino represented the seller, a Tenants in Common managed by Open House Westwood LLC, and procured the buyer, FPA Multifamily LLC. FPA Multifamily LLC purchased the asset on behalf of its Opportunity Fund VIII, which has acquired $1.5 billion
Atrium on James was built in 1989 on 21.5 acres. Surrounded by greenspace, it is centrally located to Kent’s suburban amenities. The property has a large clubhouse, outdoor swimming pool, leasing office, resident lounge, business center, fitness center, playground, and a sports court. The complex’s one-, two- and three-bedroom homes average 835 square feet. All apartments feature wood-burning fireplaces, private decks or patios with storage closets, walk-in closets, and washers and dryers.
The property is a short drive from Downtown Seattle , Bellevue , and Eastside employment hubs. Kent Valley , Renton , and SEA International Airport are nearby and Kent Transit Center, which provides bus and rail access to Downtown Seattle , is within two miles. Kent Station, a 20-acre mixed-use development with open-air shopping, dining, and office space, is nearby.
About Marcus & Millichap, Inc. (NYSE: MMI)
Marcus & Millichap, Inc. is a leading brokerage firm specializing in commercial real estate investment sales, financing, research and advisory services with offices throughout the United States and Canada . As of December 31, 2022, the company had 1,904 investment sales and financing professionals in 81 offices who provide investment brokerage and financing services to sellers and buyers of commercial real estate. The company also offers market research, consulting and advisory services to clients. Marcus & Millichap closed 12,272 transactions in 2022, with a sales volume of approximately $86.3 billion www.MarcusMillichap.com .
About Institutional Property Advisors (IPA)
Institutional Property Advisors (IPA) is a division of Marcus & Millichap (NYSE: MMI), a leading commercial real estate services firm in North America . IPA’s combination of real estate investment and capital markets expertise, industry-leading technology, and acclaimed research offer customized solutions for the acquisition, disposition and financing of institutional properties and portfolios. For more information, please visit www.institutionalpropertyadvisors.com
About FPA Multifamily, LLC (FPA)
FPA Multifamily, LLC is a real estate operating company focused on the acquisition, renovation and management of both core plus and workforce housing apartment communities. Founded in 1985, FPA has owned over 148,000 apartment units valued at over $23 billion $4.6 billion $2 billion San Francisco , FPA also has offices in Atlanta , Chicago , Houston , Irvine and Washington, D.C. For more information, please visit www.fpamf.com .
View source version on businesswire.com: https://www.businesswire.com/news/home/20240123487552/en/
Gina Relva, VP of Public Relations
Gina.Relva@MarcusMillichap.com
Source: Marcus & Millichap, Inc.
What is the ticker symbol for Marcus & Millichap?
The ticker symbol for Marcus & Millichap is MMI.
How much was Atrium on James sold for?
Atrium on James was sold for $60.5 million.
Who purchased the asset on behalf of its Opportunity Fund VIII?
FPA Multifamily LLC purchased the asset on behalf of its Opportunity Fund VIII.
When was Atrium on James built?
Atrium on James was built in 1989.
What amenities does Atrium on James offer?
Atrium on James offers various amenities, including a large clubhouse, outdoor swimming pool, leasing office, resident lounge, business center, fitness center, playground, and sports court.
