Archstone Communities Trust Sells Two Apartment Properties for $34.8 Mil

RENTON, WA-Archstone Communities Trust has sold two institutional-grade apartment complexes here for a combined $34.8 million. Archstone, a Denver-based REIT, focuses on apartment communities in 31 markets across the US. During the third quarter, Archstone completed $215.9 million of new developments in markets that include Seattle. As of September 30th, its portfolio was comprised of 235 properties, representing 72,318 units, with 8,872 units still under construction.

In the first transaction, Lend Lease purchased Pebble Cove Apartments on behalf of an institutional client. The 288-unit complex at 17600 134th Ave. SE sold for $22.5M million. Built in 1996, the complex consists of 18, two- and three-story garden style buildings on 17.9 acres and is currently 98% leased. The second property, Fairwood Landing at 14121 SE 177th St., was acquired by Sherron & Associates of Bellevue, WA. The 194-unit complex, also 98% occupied, is a low-rise garden style community. The 18-year-old property sold for $12.3 million.

Greg Laycock and Marc D. Renard of Cushman & Wakefield’s Bellevue, WA office represented Archstone in the transactions. Renard says “Seattle, like other markets whose economies are driven in large part by technology and the Internet, represent tremendous potential for multifamily housing investment” because the explosive growth and expansion of firms has created a tight housing market in the Seattle Metro area. Indeed, according to C&W research, the apartment vacancy rate for the market is currently at a 10-year low of 3.7%, with average rents growing at annual increases of 7% over the past 10 years.