400-Unit Property trades for $63M

RENTON, WA-Berkshire Property Advisors of Boston has purchased the Carriages at Fairwood Downs, a 400-unit, class B apartment complex here that is 95% occupied. The seller was BlackRock Inc. of New York City. The sale price was $63.3 million or $158,000 per unit.

While the specific cap rate on this transaction was not available, cap rates for class B apartment loan product in the region has been in the low- to mid-5% range. Although deal flow has slowed, cap rates haven’t risen much in the Puget Sound because apartment fundamentals are still strong, with 10% rent growth in 2006 and 11% growth so far this year.

Please contact Matt McLeod of Steelhead Investment Advisors regarding B & C class apartments in the Renton, Washington submarket.