X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(To read more on the multifamily market, click here.)

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.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.