TACOMA, WA-Security Properties of Seattle has acquired the 78-unit class A Chelsea Heights apartments in Downtown Tacoma from a Seattle area bank for $15 million in a JV with New York City's Real Estate Capital Partners. The REO sale of the recently built complex was an off-market deal that sold at a 6.5% cap rate on a stabilized basis for the property, which was 56% occupied at the time of closing. The complex initially was planned as condominiums, according to a web site describing the project.

Completed in 2010, Chelsea Heights Apartments is a four-story complex of 66 two-bedroom/one-bath units, and 12 two-bedroom/two-bath units at the corner of Sixth and J streets. The property includes underground parking, plus 19,000 square feet of street-level commercial space fully leased and occupied by Multicare, a healthcare provider and the largest private employer in Pierce County. Security Properties’ affiliated property management firm, Madrona Ridge Residential, will provide property management services for Chelsea Heights Apartments.

David Dufenhorst, chief investment officer of for Security Properties, said that the company is aggressively pursuing opportunities like Chelsea Heights, which he described as in a prime location close to major employers, retail and entertainment venues in downtown Tacoma. The acquisition represents Security Properties’ most recent Tacoma market deal since purchasing the 241-unit Rainier Point Apartments in December 2007.