Legacy Partners Completes New Res Project in Downtown Redmond, WA

Legacy Partners Completes New Res Project in Downtown Redmond, WA
The Triangle, a six-story, 195-unit apartment community in downtown Redmond, WA, has officially opened to the public. The residential project, a development of Legacy Parters, is located at 16450 Redmond Way.

Situated on a triangular lot at the intersection of Redmond Way, 166th Ave NE and NE 79th Street, this multifamily, mixed-use building designed by Tiscareno Associates will feature a mix of one- and two-bedroom apartments, lofts, and live/work units, plus 9.5k sf of amenities, 195 parking stalls, and 4.8k sf of retail space.

Situated between the neighborhoods of Old Town and Anderson Park, The Triangle is just blocks from Redmond Town Center and Trader Joe’s, as well as dozens of restaurants and cafés. The building is only three blocks from the future light rail station.

“Downtown Redmond has become a highly desired residential neighborhood, now combining the virtues of clean, abundant parks, excellent schools, and a safe environment with the energy and choices found in true city living,” said Kerry Nicholson, Senior Managing Director at Legacy. “And soon we will also be seeing the light rail service to Microsoft, Downtown Seattle, Sea-Tac Airport, and more.”

The Triangle is part of the City’s Downtown Couplet Conversion Project, which aims to create a more user-friendly downtown for cars, bikes, and pedestrians by converting Redmond Way and Cleveland Street to two-way streets, further enhancing the thoroughfare.

Decron buys 558 units in Bothell

Decron Properties Enters Pacific Northwest Multifamily Market with 558-Unit Acquisition
In one of the largest multifamily transactions in Seattle this year, Decron Properties has acquired Avana 522, a 558-unit multifamily property in Bothell, WA, for $173 mil ($310k/unit). The transaction marks the Los Angeles-based real estate firm’s entry into the Pacific Northwest real estate market.

The low-density, 56-acre community was built in 1988 and expanded in 1999. Avana’s high unit count allows Decron, which owns close to 7,500 apartment units in California, to immediately enter the Seattle market with scale through a single acquisition and paves the way for additional investments in the Seattle MSA. Decron plans to invest approximately $400 mil in the Seattle market over the next 36 months according to Daniel Nagel, Decron’s Chief Financial Officer.

“Seattle and its submarkets are a significant job creator market that benefits from a cluster of major employers with long-term growth prospects,” Nagel said. “In addition, our concerns about the current regulatory environment in California heightened our focus on investing outside of our home state. Avana is the result of several years of due diligence by our investment team to understand the nuances of the market.”

With immediate access to Highway 522 and Interstate 405, residents are within 20 miles of some of the area’s largest employers, including the Microsoft headquarters in Redmond, Boeing’s headquarters in Everett, and companies like Google, Facebook, and Amazon which have offices in Kirkland, Redmond, and Bellevue. The property is also located near two large business parks in Bothell, the North Creek Business Park and Canyon Park, which include tenants such as Google, AT&T, T-Mobile, and Philips Medical Systems.

An easy commute to hundreds of thousands of jobs and one of the best school systems in the state, Bothell has become one of the top apartment submarkets in Greater Seattle, attracting both millennials and dual income families. Current submarket occupancy is 94.7 percent and is projected to remain strong through the next several years, according to CoStar.

Decron is one of the largest privately owned real estate firms in California with 2017 revenues of $190 mil. From ground up development to value-add/rehab to asset repositioning, Decron’s investment strategy focuses on opportunities that are supported by long term growth drivers, specifically job creation, supply and demand imbalance, and strong public school systems. The discipline to focus on these three metrics has been a major contributing factor to Decron’s success in California. This same focus is the motivation behind Decron’s entry into the Seattle MSA.

The garden-style community features a mix of one, two- and three-bedroom units. Avana includes a wide variety of amenities including two outdoor pools and one indoor pool, two clubhouses and two fitness centers, four playgrounds, indoor and outdoor basketball courts, tennis courts, picnic and barbecue areas, two pet parks and an indoor movie theater.

Decron will undertake a significant capital improvement program, including upgrading all unit interiors including upgraded stainless steel appliances, new kitchen cabinet doors and quartz countertops, and upgraded plumbing and electrical fixtures. The common community areas will also be upgraded, with the renovation of the club houses and pool areas, adding fire pits, new playground equipment, as well as modernizing the two dog parks. The company also plans to expand the capacity of the package locker facility.

Canyon Park Business Center sold

PCCP LLC and SteelWave Pickup Seattle-Area Biz Campus
A joint venture between PCCP LLC and SteelWave has acquired Canyon Park Business Center, a 17-building, 632.6k sf property in Bothell, a city situated on Seattle’s Eastside. The property is 99% occupied and consists of 13 Class A flex/office buildings totaling 451k sf, and a collection of four net-leased, Class A, life science lab and data center buildings totaling 181.6k sf. The seller was a venture of SteelWave and Colony NorthStar.

Built between 1985 and 1997, Canyon Park Business Center is located at 1631, 1629, 1725, 1930, 1916 220th Street SE; 22121, 22125 17th Avenue SE; 22118, 22122, 22030, 22026, 22025, 22021 20th Avenue SE; 22522, 22333, 22515, 22422 29th Drive SE in Bothell, a main hub of life sciences and medical research in the greater Seattle area. The property is situated at the intersection of Interstate 405 and the Bothell-Everett Highway.

Eleven of the 17 buildings within the property are situated at the front of the business park at the interchange of I-405 and Highway 527 which is a highly desirable location due to the visibility and proximity to the surrounding area’s amenities. The property provides tenants with directly adjacent retail and hotel amenities, an adjacent park and ride, three on-site cafes and an on-site LA Fitness. In addition, the property is one mile from Centennial Park, a 54-acre wildlife park, and Thrashers Corner Shopping Center, a high traffic, grocery-anchored retail center with more than 35 retailers.

“PCCP was attracted to this asset due to its mix of long-term credit tenancy, including Microsoft and Seattle Genetics, and its smaller multi-tenant buildings that provide spaces with a depth of tenant demand in the market,” said Brendan Shanahan, a vice president with PCCP. “The seller made recent capital improvements that enhanced tenant identity and user spaces, and improved common areas. These improvements along with the increased market demand and growth over recent years will enable us to add value to this coveted flex asset through new leasing activity.”