Trecap JV Buys Into 248 Units in $39M Deal

KIRKLAND, WA-Trecap Partners LLC of Horsham, PA has formed a joint venture with Palo Alto, CA-based Pacific Property Co. to buy a majority interest in the 248-unit Montebello Apartments at 12000 131st Ln. Northeast. The JV bought the interest from San Francisco-based BRE Properties Inc. on behalf a Trecap value-add investment vehicle.

Terms of the acquisition were not disclosed. According to an SEC filing by publicly held BRE Properties on March 31, the apartment complex went under contract in January at a price of $39 million.

Montebello Apartments, built in 1997 and 1998, consists of 18 three- and four-story buildings with some of the largest floor plans in the market, averaging 1,100 square feet. Amenities include pool with toddler area, a business center, fitness center, a spa and sauna set across a 19-acre site that includes seven acres of wooded area. Montebello is situated on a hill overlooking the Totem Lake areas in northeast Kirkland, with easy access to I-405, approximately 10 miles northeast of Downtown Seattle and six miles north of Downtown Bellevue.

Michael McNamara, managing director and head of acquisitions for Trecap, said that the fund’s investment in the property provided a unique opportunity to benefit from a cyclical recovery in the Seattle market over the next few years. “Given the high quality of this property, coupled with lack of new supply and population growth trends in the market, we see upside potential” he said. Berkadia Commercial Mortgage’s San Francisco office originated the long-term, fixed-rate acquisition financing through its Freddie Mac program.

Trecap Partners’ portfolio as of Dec. 31 included 21,621 multifamily units 5.4 million square feet of office, 3.6 million square feet of retail, 1.9 million square feet of mixed-use and 1.2 million square feet of industrial.