VANCOUVER, WA-A portfolio of five Puget Sound-area apartment properties containing 1,059 units has changed hands for $74 million. An LLC led by locally based investor Clyde Holland acquired the portfolio from an LLC of Brentwood, CA-based Commercial Ventures.
The portfolio includes Jonathan's Landing, a 576-unit development in Kent, WA; Kingsbrook, a 136-unit property in Lynnwood, WA, and; three properties in Everett, WA: Pacific Bay Club, a 121-unit complex; Brentwood, a 117-unit complex, and; Forest Park, a 107-unit complex. All of the properties were built in the mid 1980s.
Holland tells GlobeSt.com that as part of the deal he took over management of the properties six months ago, shortly after putting them under contract. At the time, vacancy was close to 20%. "We've upgraded approximately 300 units and moved overall occupancy from the low 80s to 97 percent," says Holland, who prior to forming Holland Partners was the group managing partner of Trammell Crow Co.'s West Coast operations.
The listing broker, Kenny Dudunakis of Hendricks & Partners, tells GlobeSt.com that the portfolio attracted 14 offers from institutions, pension funds and private companies. In the end, only five made offers for the entire portfolio. Holland's group was the most aggressive, he says, and has already added value to the portfolio. "It's been a very quick turnaround," says Dudunakis.
Holland's equity partner in the acquisition was Boston-based BayNorth Capital, the asset manager for all of Charlesbank Capital Partners' $600 million of real estate investments. BayNorth in March held its final closing for its $430-million BayNorth Realty Fund VI--the first since BayNorth Capital spun out from Charlesbank Capital Partners LLC in July 2004.
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