Outside the Region: IPA sells RedHill Pines for $34.5m; IPA Capital Mkts. arranges $23.391 million

November 05, 2019 - Front Section

Kent, WA Institutional Property Advisors (IPA), a division of Marcus & Millichap, completed the sale of RedHill Pines, a 168-unit garden-style apartment complex. The property sold for $34.5 million or $205,357 per unit. IPA Capital Markets arranged $23.391 million in acquisition financing.

Philip Assouad, IPA senior managing director; Giovanni Napoli, IPA senior managing director; and Ryan Dinius and Sidney Warsinske, IPA vice presidents, represented the seller, RedHill Realty Investors and procured the buyer. Ray Allen, first vice president IPA capital markets and Seth Heikkila, vice president IPA capital markets, arranged the financing with an agency lender. The 10-year loan is fixed at 3.845% with five years of interest-only. The loan-to-value is 68%.

“Situated within one of the most sought-after multifamily markets in the nation, RedHill Pines is a well-maintained asset that has received recent interior renovations and offers the ability to add further value through a multitude of avenues,” said Assouad. “Just 30 minutes from downtown Seattle, the property is centrally located to the Eastside tech hub, downtown Tacoma, Kent Valley, Renton, and Sea-Tac International Airport.” 

“We’re very pleased with the loan terms we negotiated in the marketplace for our longstanding client, and thrilled that the IPA team listed the perfect asset to help them strengthen their portfolio,” said Allen. 

RedHill Pines is located on more than seven acres just off Canyon Drive in Kent at the confluence of the Puget Sound’s main freeways and close to a Sounder commuter railway station. Residents have easy access to the region’s major employers, which include Alaska Airlines, Amazon, Boeing, Sea-Tac Airport, and Valley Medical Center. The region’s tech giants, Amazon, Facebook, Google, and Microsoft are 25 to 35 minutes away and Kent Station, a contemporary open-air urban village and shopping center is close by.

“The Puget Sound region has experienced record growth over the past decade and shows little sign of slowing down as the technology, e-commerce, and internet industries that have led much of the growth continue to expand,” said Dinius. “In the past eight years, as more residents have moved to the area to fill high-paying positions, King County’s population has grown by 243,435.”

The 10-building multifamily complex is made up of the 98-unit RedHill Pines, which was built in 1980, and RedHill Pines North; 70 units constructed in 1988. The two communities are adjacent to one another and share a centralized clubhouse and leasing office in RedHill Pines. The average floorplan size is 796 square feet and all apartments have private patios or balconies.

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