SEATTLE, WA - Security Properties purchased Brookstone at Edgewater, a Class A townhome-style multifamily property located in Puyallup, WA for $41.5 Million. Security Properties now owns 21 assets totaling over 4,700 units in the Puget Sound marketplace.
Brookstone at Edgewater was originally constructed in 2013 and consists of 147 units spread out across 37 residential buildings and 6.09 acres. The community boasts some of the largest townhome-style floorplans in the entire submarket with an average unit size of 1,466 square feet. In fact, nearly 50% of units have a footprint in excess of 1,700 square feet. Additionally, each unit includes three-stories of living space along with a two car direct access garage.
The community is located within the city of Puyallup, WA, in the South Hill/Fredrickson area. The third largest city in Pierce County, Puyallup is home to approximately 40,000 residents with a median household income of ~$65k/year. Puyallupis situated on just over 12 square miles at the base of Mount Rainier and is approximately 15 minutes from Downtown Tacoma, 25 minutes from Sea-Tac International Airport and 45 minutes from Seattle. At the property level the site fronts 176th Street East, a primary arterial. The site is within 2 miles of Highway 161, a major north-south connector and 4 miles of Highway 512, a major east-west connector. This location offers residents quick access to Puyallup and downtown Tacoma employers, retailers, and local public transportation.
The business plan is a longer-term yield investment with light upgrade characteristics. Security Properties will be converting the bonus rooms, found in all 3-bedroom units, into fourth bedrooms. Additionally, they will be upgrading the flooring throughout the main level of all units as well as moderately improving the community's amenity package.
According to Alex Gauper, Investment Manager at Security Properties, "Brookstone at Edgewater represents our firm's continued effort of locating high-quality assets in submarkets with strong employment infrastructure and limited future apartment supply. The unique blend of three-story townhome floorplans with direct access garages set within a low density park-like environment results in a rental offering unmatched in the area. By combining a favorable cap rate with today's low interest rates, we look forward to generating strong cash-on-cash returns for our investors."
The property will be managed by Security Properties-affiliate Security Properties Residential.