Commercial Ventures acquired the 155-unit Mirror Wood at 31700 3rd Place SW for $8.94 million and The Colony, a 180-unit complex at 31912 3rd Place SW, for $10.38 million. The complexes were built in the middle 1980s. The seller of both properties was Amstar Group, Ltd. of Denver, Colo.
Kenny Dudunakis and David Young of the Seattle office of Hendricks & Partners handled both sides of both transactions. Dudunakis tells GlobeSt.com the blended cap rate for Commercial Ventures is 7.25% based on existing occupancy, which is below 10%. At 10%, he says the cap rate would be "a little north of 8%."
Of the current market, Dudunakis says "there are an active group of buyers and not enough sellers. We're spending 90% of our time trying to find inventory. Folks are just holding back."
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