Palo Alto, CA – December 12, 2012 – Pacific Urban Residential continues to be among the most active west coast investors, announcing today it has acquired the Totem Lake Apartments, located in Kirkland, Washington. The seller was Security Properties of Seattle. Kenny Dudunakis of Hendricks & Partners brokered the transaction.
Pacific Urban Residential purchased the asset for its own account with debt financing sourced by Jake Roberts of M&M Capital and provided by Mesa West Capital of Los Angeles, CA. Totem Lake represents Pacific’s fourth recent Seattle acquisition and sixth transaction this year. Additionally, the firm is scheduled to close another apartment community by the end of December.
“We are delighted to add this community to our west coast apartment portfolio of over 6,000 homes. In conjunction with our imminent Los Angeles acquisition, PUR and our strategic partners have closed over $250M of new investments, making for a busy calendar 2012,” states Al Pace, CEO and co-founder of Pacific Urban Residential. “We remain very enthused about Kirkland, WA investment fundamentals. Totem Lake Apartments offers our residents an attractive rent value proposition, particularly when compared to new luxury apartments in the area. From an investment perspective, Totem Lake is an exciting cash flow investment with solid value add upside and returns.”
The 200-unit Totem Lake Apartments was constructed in 1977 and sits on over 18 acres adjacent to Kirkland’s largest employer, Evergreen Hospital. The community is situated along a natural stream and features a pool, clubhouse and a fitness center. Additionally, the Totem Lake site is mapped and platted for over 400 new apartment homes. This is Pacific’s second transaction this year in Totem Lake submarket of Kirkland; in July, Pacific sold the nearby Montebello Apartments to a publicly treated multifamily REIT.
According to Pacific Urban Residential Director Jesse Mack, “Our vision for the property includes upgrades to interior finishes and washer/dryer additions. Additionally, Pacific will seek to better understand any development potential that might exist on the site where zoning now allows densities of over 50 units per acre. We are extremely bullish on this opportunity given the dense employment and adjacent transit options.” He added, ”To the extent the owners Totem Lake Mall move forward with their redevelopment goals, residents of this community will gain another significant walk-able amenity.”
Pacific Urban Residential is among the most active multifamily investors in the west and as acquired nearly $3 billion of multifamily investments since its founding in 1998. In the past two years, Pacific and its strategic institutional partners have acquired or sold approximately $600,000,000 in west coast apartment communities. Today, Pacific’s west coast multifamily portfolio totals over 6,000 apartment homes and $1.5 billion.
The firm is actively seeking additional multifamily investments in the San Francisco Bay Area, Southern California and the Seattle MSA.