Seattle, Wash. (January 4, 2023) – A three-property apartment portfolio that includes Evergreen Court, Colonial Court, and Garden Park in Lakewood, Washington sold for $20,490,000 in an off-market sale by Kidder Mathews. The seller is a private local owner.

Brandon Lawler, Jerrid Anderson, and Dylan Simon of the Simon and Anderson team — a multifamily investment team based in Kidder Mathews’ Seattle headquarters — represented the buyer, Sage Homes Northwest, a large single family home builder and owner that is expanding its multifamily footprint in the Puget Sound.

The garden-style portfolio is made up of the following communities:

Garden Park Apartments: 49 units at 12802-12878 Lincoln Avenue SW
Colonial Court Apartments: 41 total units at 9120 Lawndale Avenue SW, 9104 Newgrove Avenue SW, and 9119 Kenwood Avenue SW
Evergreen Court Apartments: 40 units at 12805-12809 47th Avenue SW

The properties are a combination of 1960s and 1970s construction — the majority with original finishes. The buyer is planning to perform a value-add and bring rents up to market value.

“We want to thank the buyer for sticking with this transaction,” said Lawler. “From July when we went under contract to closing in January, a lot has changed in the financial markets. Having a very experienced and capable buyer was vital for this transaction to close given current volatile market conditions. We were excited to play a role in this sale and continue our footprint in the South Puget Sound.”

About the Dylan Simon and Jerrid Anderson apartment brokerage team
The apartment brokerage team led by Dylan Simon and Jerrid Anderson of Kidder Mathews represents investors in the sale, purchase, and financing of apartment buildings and development land across the greater Seattle and Puget Sound region. The team of 10 brokerage professionals specializes in sale and financing of apartment buildings and development land from $1 million to more than $100 million.

About Kidder Mathews
Kidder Mathews is the largest independent commercial real estate firm on the West Coast, with 900 real estate professionals and staff in 20 offices in Washington, Oregon, California, Nevada, and Arizona. Kidder Mathews offers a complete range of brokerage, appraisal, asset services, consulting, project and construction management, and debt & equity finance services for all property types. The firm performs $10.9 billion in transactions, manages 52 million square feet of space, and conducts over 2,600 appraisals annually.

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Over the course of the year, the Puget Sound has seen a significant increase in investment activity, recording numerous transactions in the first half of the year. In a recent transaction that closed this month, Palm Beach, Florida-based investment group Sterling Organization acquired the Lakewood Diamond Plaza, a fully occupied shopping center. Property records show that the property was previously owned by West & Wheeler, which sold the asset for $17.7 million.

The property consists of several buildings, located at 10901, 11011, 11013 & 11021 Pacific Highway in Lakewood. According to MaKensay Real Estate Services, which manages leasing at the property, the Lakewood Diamond Plaza is currently occupied by tenants like O’Reilly Auto Parts, Grocery Outlet, Lee’s Fashions and more.

Located just south of Tacoma in the community of Lakewood, the property is conveniently located along the Pacific Coast Highway and near Interstate 5. The property is also within close proximity to a number of other retail assets, with nearby tenants including The Home Depot, Honda, Target and more.

Overall, the area has been subject to a large number of retail transactions over the past several months. According to a first quarter market report from Kidder Mathews, investment activity has significantly picked up, reporting 114 retail sales over $1 million. At the same time, net absorption is up at slightly over 1 million square feet. Vacancy rates across the Puget Sound region also remain relatively low, with Pierce County showing a decrease of six basis points to 2.8 percent.

With the increase in activity, rental rates are also expected to see continued growth moving forward. According to the report, rental rates increased about 2.4 percent year-over-year, and are likely to continue increasing over the next several years, with a 3.7 percent rental growth rate anticipated in 2022 alone.