TRI-CITIES, Wash., Nov. 8, 2016 /PRNewswire/ -- On October 25, 2016, Security Properties and an institutional equity partner purchased Riverpointe Apartments, a 228-unit Class B multifamily property located in Richland, WA for $22,300,000 and Crosspointe Apartments, a 200-unit Class B Multifamily property located in Kennewick, WA for $19,000,000.00.
Both assets are 1996-vintage garden-style apartment communities. The well-located assets have been well maintained, but have had little in the way of aesthetic enhancements since they were built. By renovating the unit interiors and improving amenity areas and building exterior, Security Properties will elevate these properties to a higher class product while providing residents with a superior standard of living.
Barrett Sigmund, Sr. Director at Security Properties states that, "these acquisitions represent Security Properties continued effort of locating value in a competitive multifamily space. While the DOE's massive Hanford Site contributes significantly to the highly educated work force and high median incomes in Richland and Kennewick, Benton County has quietly seen growth in healthcare, education and agriculture as well. When combined with relatively low apartment supply, we expect this market to continue to perform well. At an average basis of $96,495/unit and highly favorable cap rates relative to our debt rates, these investments will enjoy excellent risk adjusted returns to our investors."
Riverpointe and Crosspointe were financed with assumed HUD mortgages at an attractive 3.42% average fixed rate. These assets will be managed by Security Properties-affiliate Madrona Ridge Residential.
About Security Properties
Security Properties is a national real estate investment, development, and operating company headquartered in Seattle, Washington. For more than 45 years, Security Properties has provided quality housing to its residents as well as excellent financial performance for its investors. Since its founding, Security Properties has acquired or developed over 66,500 residential units at a cost of over $3.35 billion. Security Properties maintains a focused multi-family strategy supported by integrated teams of professional acquisition, development, construction, investment, and property management specialists. For more information, visit www.securityproperties.com
About Madrona Ridge Residential
Madrona Ridge Residential is the affiliated property management firm of Security Properties, created to increase the value of its real estate holdings by more closely managing its assets. Operating throughout the Western U.S., Madrona Ridge Residential is committed to delivering exceptional service to its apartment communities and residents. Services include property, construction and compliance management services that create positive living environments for residents and build value for clients.
News media contact:
Ed McGovern, 202.622.9900
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SOURCE Security Properties