SEATTLE—Located at 2100 26th St. S, a 288-unit multifamily asset in Great Falls, MT, was constructed in two phases from 2015 to 2018. Given investors' attraction to Northwest properties with the right amenity packages, financing of $30.3 million was recently secured for the garden-style community, Talus Apartments.

The 10-year Freddie Mac loan features a full-leverage loan with partial-term interest-only. Managing director Jeff Stuart of Berkadia's Seattle office originated the acquisition mortgage on behalf of Investors Capital Group LLC, also based in Seattle.

The property features studio, one- and two-bedroom floor plans with in-unit washers and dryers, stainless-steel energy-efficient appliances, walk-in closets, 9-foot ceilings and private patios or balconies. Community amenities include a heated swimming pool, an expansive sun deck, a 24-hour fitness center and several barbecue stations. The property provides access to the largest private employers in the Great Falls MSA including the Benefits Health System, Malmstrom Air Force Base and Centene Corporation.

"Lending trends in the Pacific Northwest and nationally show that as capitalization rates continue to drift down and PE ratios drift up, the lending metrics remain tied to existing cash flow or funds from operations. So, buyers in cap rate-compressed markets are raising more equity to make their deals work and leverage is trending to 65% loan to value or much lower," Stuart tells GlobeSt.com. "Assets are desirable due to location walkability, quality of schools, quality of the interior flow and finish, quality of the amenities and quality of management. These all function to make an asset desirable to current and future residents."

According to ULI's Emerging Trends in Real Estate report, multifamily and single-family housing are highly favored as housing needs continue to change for Millennials and Baby Boomers. In general, demand is rising for communities in which a sense of place is created organically through sharing common interests and values rather than concocted through prescribed programming and business goals. Moreover, as Stuart indicates, a community's key to success is transit/walkability, and abundant retail, restaurant and recreation options.

The report notes that there are several Northwest treasures ripe for discovery including Salt Lake City, Boise, Spokane and Tacoma. All have populations exceeding 1 million (the litmus test for some national investors) and double-digit growth rates, says ULI.

Instant Insights /

Multifamily's Success is Tied to Walkability Near Retail, Recreation

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