Archstone Partnerships Buy Two Communities Totaling $110M

By Natalie Dolce

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The 131-unit Carillon
Heights here in Kirkland, WA,
traded for $47.5 million.

KIRKLAND, WA-In just two days, it was revealed that two Archstone sponsored partnerships made big apartment community acquisitions out west. One partnership acquired Carillon Heights, a 131-unit apartment community here for $47.5 million, while another purchased Parkside Apartment Homes, a 192-unit community in the heart of Silicon Valley, CA for $63.2 million.

In Washinton, the property will be renamed Archstone Kirkland at Carillon Point. The community is located at 5604 Lakeview Dr.on a hillside overlooking Lake Washington and Carillon Point. Many apartment homes at the community offer sweeping views of Lake Washington and the downtown Seattle skyline.

“We own apartment communities in some of the very best locations in the Seattle metropolitan area,” says R. Scot Sellers, Archstone's chief executive officer. “Archstone Kirkland at Carillon Point is an excellent addition to the 11 apartment communities and 3,347 units we own and operate nearby. We believe it will be an outstanding investment for us.”

The apartment homes that were not upgraded during a previous partial renovation will be fitted with new kitchen cabinets and countertops, new light fixtures, upgraded fireplaces and mantels and more. Carillon Point is centrally located near a number of popular employment, dining, shopping and entertainment destinations. Nearby professional employment centers within a short drive include downtown Bellevue Central Business District and the downtown Seattle CBD. In addition, Microsoft's Redmond campus, which employs more than 30,000 people, is within six miles of the community.

“Archstone Kirkland at Carillon Point is in the midst of one of the most prestigious neighborhoods in the Seattle metropolitan area,” says Charles E. Mueller Jr., Archstone's COO. "Our operations team is excited about this opportunity and is looking forward to adding even more value to the residents and the neighborhood through its commitment to world-class customer service."

The seller is an affiliate of Continental Properties LLC and was represented in the sale by Jon Hallgrimson and Frank Bosl with CBRE. CBRE’s multifamily finance team led by Brian Eisendrath, executive vice president, arranged the financing. 

In Sunnyvale, CA, which is a Bay Area community located in the heart of Silicon Valley, the community purchased by an Archstone sponsored partnership will be renamed Archstone Sunnyvale. Archstone Sunnyvale is located at the corner of North Wolfe Road and Stewart Drive.

The corporate headquarters for Apple, Google, Cisco and Intel are all within five miles of Archstone Sunnyvale. Other major employers within a short drive of the community include Lockheed Martin, Yahoo, eBay, Netflix, Hewlett Packard and Adobe Systems.

In addition, the Sunnyvale apartments are surrounded by a number of high-end retail and entertainment centers. Vallco Square Mall, which features Macy’s and JCPenney, and the Westfield Valley Fair Mall, which is home to Nordstrom and Tiffany, are both within a few miles of Archstone Sunnyvale. Also nearby is Santana Row, an outdoor retail town center featuring luxury retailers like Gucci, Cole Haan and Urban Outfitters. 

According to Mueller, “Sunnyvale is one of the most desirable places to live in the Bay Area and demand for upscale apartment housing is increasing.” Institutional Property Advisors, a division of Marcus & Millichap, brokered the transaction. Stan Jones, an executive vice president of investments, along with vice president of investments Phil Saglimbeni and Sal Saglimbeni, arranged the sale.

Jones tells GlobeSt.com that “Due to the extremely favorable employment fundamentals and housing supply constraints in the Bay Area, acquisition opportunities such as Parkside Apartments are particularly rare.” He adds that “Furthermore, there is very little motivation for owners to exit these types of properties, a phenomenon that will likely continue through 2012.”

Categories: West, Multifamily, Acquisitions/Dispositions, San Francisco, Seattle