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9/19/19
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Decron Properties made its second significant investment in the Seattle MSA within the past 10 months, paying $78.75 mil for Indigo Springs, a 302-unit multifamily community in the Seattle submarket of Bothell WA. The transaction works out to just over $260k per unit.
Featuring a mix of one-, two- and three-bedroom homes, the property has already undergone partial upgrades on 50% of the community, allowing for a strong value-add opportunity at the property. Decron will institute a capital improvement plan to upgrade all units with even more modern finishes, as well as renovating and refurbishing common area amenities by constructing outdoor social areas and upgrading the indoor facilities.
David Young and Corey Marx from JLL’s Seattle office, marketed the property on behalf of the seller, Kennedy Wilson.
The purchase of Indigo Springs increases Decron’s Pacific Northwest portfolio to 860 units. In November 2018, Decron made its initial investment in the market by acquiring Avana 522, a 558-unit multifamily community in Bothel, WA for $173 mil. The Los Angeles-based real estate development company plans to increase its portfolio to 2500 units in the greater Seattle metro market over the next three to five years according to Decron Properties President and CEO David Nagel.
“Like Avana, Indigo Springs checks all the boxes when it comes to demand drivers we look for in a new market. Close proximity to jobs, close proximity to transportation corridors and limited supply. Seattle and its adjacent submarkets benefit from having a growing group of major employers with long-term growth prospects coming into the area. It’s the major reason we’ve focused so much of our attention on this market,” Nagel said.
Data from the Washington Employment Security Department show the Seattle metro unemployment rate at just 3%t and shows annual job growth of 3.2%, more than a percent higher than the national average of 1.7%. Indigo Springs offers easy access to three major roadways, putting residents within a 20-25-minute commute from major employers like Amazon, Google, Microsoft, Facebook, Expedia, T-Mobile, Starbucks and Costco.
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