Talus Apartments TalusApartments is a 288-unit property that was constructed in twophases from 2015 to 2018.

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SEATTLE—Located at 2100 26th St. S, a 288-unit multifamily assetin Great Falls, MT, was constructed in two phases from 2015 to2018. Given investors' attraction to Northwest properties with theright amenity packages, financing of $30.3 million was recentlysecured for the garden-style community, Talus Apartments.

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

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The property features studio, one- and two-bedroom floor planswith in-unit washers and dryers, stainless-steel energy-efficientappliances, walk-in closets, 9-foot ceilings and private patios orbalconies. Community amenities include a heated swimming pool, anexpansive sun deck, a 24-hour fitness center and several barbecuestations. The property provides access to the largest privateemployers in the Great Falls MSA including the Benefits HealthSystem, Malmstrom Air Force Base and Centene Corporation.

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"Lending trends in the Pacific Northwest and nationally showthat as capitalization rates continue to drift down and PE ratiosdrift up, the lending metrics remain tied to existing cash flow orfunds from operations. So, buyers in cap rate-compressed marketsare raising more equity to make their deals work and leverage istrending to 65% loan to value or much lower," Stuart tellsGlobeSt.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 allfunction to make an asset desirable to current and futureresidents."

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According to ULI's Emerging Trends in Real Estate report,multifamily and single-family housing are highly favored as housingneeds continue to change for Millennials and Baby Boomers. Ingeneral, demand is rising for communities in which a sense of placeis created organically through sharing common interests and valuesrather than concocted through prescribed programming and businessgoals. Moreover, as Stuart indicates, a community's key to successis transit/walkability, and abundant retail, restaurant andrecreation options.

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

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Lisa Brown

Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.