Seattle investor adds Issaquah complex to expanding portfolio

Originally published: bizjournals.com

Seattle-based real estate investment firm Timberlane Partners is expanding its Puget Sound multifamily portfolio with the $37 million acquisition of Vista Ridge in Issaquah.

The 91-unit apartment complex at 201 Mountain Park Blvd. SW sold in a deal recorded Aug. 27. The sale price comes out to around $406,600 per unit, below the $432,000 average in East King County last quarter, according to Kidder Mathews (though that average was based on the submarket's lone sale).

The acquisition is the latest move by Timberlane to take advantage of deals in the multifamily market, where higher interest rates have put pressure on property owners and created more openings for buyers.

"The interest rate is creating some great opportunities," Dave Enslow, co-founder and CEO of Timberlane Partners, told the Business Journal. "We are also seeing more sellers willing to come to the table."

The 107,077-square-foot Vista Ridge was built in 1992. The eight-building, garden-style complex sits on 7 acres and includes two- and three-bedroom apartments averaging 1,106 square feet, as well as a pool, spa, fitness center and clubhouse. Available units start at $3,000 a month.

The seller was Vancouver, British Columbia-based Belkorp Holdings. An entity tied to Belkorp had owned the property since 1996, when it acquired the complex for $7.3 million. The property has an assessed value of about $31.4 million.

Timberlane acquired Vista Ridge through its closed-end Timberlane Acquisition Fund II. It is the third acquisition for the fund, following the purchases of Wonderland Creek Townhomes in Colorado and 532-unit Jackson Apartments in Seattle.

Timberlane plans to renovate Vista Ridge as units turn over, while also updating the clubhouse and other common areas.

Enslow said the property's location was a major factor in the acquisition, offering residents access to outdoor amenities and proximity to major employers such as Costco, Microsoft and T-Mobile. It's is also within walking distance of retail and restaurants in downtown Issaquah.

The purchase comes as Timberlane continues to build its development pipeline in the Seattle area. In August, the company filed early plans to redevelop the Ballard Goodwill property at 6400 Eighth Ave. NW into a six-story, 300-unit mixed-use development with ground-floor retail and two levels of underground parking. Timberlane also has plans for a 189-unit apartment project in Fremont.

Over the past two years, Timberlane has completed more than $625 million in acquisitions totaling 1,783 units. The firm now owns and operates 25 apartment communities with about 4,000 units across Washington, Colorado and California.