SEATTLE-Pacifica Cos. has acquired another apartment property here from Fairfield Residential with plans to convert it to condominiums. Both companies are based in San Diego.
In the latest deal, Pacifica Hospitality Group Inc. paid $11.7 million for the Lake Place Apartments located at 19800 Pacific Highway South. The 153-unit property is the only apartment complex on Angle Lake near the Seattle-Tacoma International Airport. The low-rise, garden-style property was built in the late 1970s and is about 95% leased.
Greg Laycock and Steffanie Birkeland of Cushman & Wakefield had the disposition assignment. The property has yet to be mapped for conversion, but the process in Washington is merely administrative, says Laycock, C&W's senior director of multifamily investment sales.
This is the second time Laycock has sold a Fairfield property in Seattle to Pacifica for conversion in the past two months. In October, Pacifica paid $14.5 million for the 105-unit Centerpointe Apartments near Amazon's headquarters on Beacon Hill.
Generally speaking, converters try to acquire apartment for conversion at a price equal to 50% or 60% of what it can generate in unit sales. After costs, such as unit and site upgrades, sales commissions and insurance, the goal is generally for at least a 25% return and as much as a 50% return.
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