Hunt Sells $139M in Institutional Apartment Properties
By Keith Loria, Contributing Editor
Hunt Investment Management, L.L.C., an affiliate of Hunt Companies, Inc., has sold three apartment properties from its institutional portfolios for a total of $139 million, on behalf of various clients.
“Hunt Investment Management sold the investment to capitalize on successfully implemented value-add programs significantly ahead of schedule,” Ed Oprindick, Hunt Investment Management’s executive vice president, told Commercial Property Executive. “Multi-family and residential supply remains well below historic averages, which is creating strong demand, even in a slow-growing economy.”
The three properties are: Waterstone Santa Clara, a 156-unit complex in Santa Clara, Calif.; Montebello, a 248-unit property in the Seattle suburb of Kirkland, Wash., and Axcess 15, a 202-unit complex with 18,000 square feet of retail space, near downtown Portland, Ore.
“The Santa Clara and Kirkland deals were bought by the same buyer, which was a major publicly traded West Coast REIT,” Oprindick said. “The deal in Portland was bought by a value-add multi-family fund, which, we believe, will renovate the interior units of the property.”
Waterstone Santa Clara is located in the heart of Silicon Valley, ideally situated in close proximity to thriving employers including Apple Inc., Google, Intel, Facebook, Cisco Systems, Advanced Micro Devices, eBay and Netflix.
Montebello offers a market-leading amenity package, large sophisticated floor plans and mature landscaping, setting itself apart from neighboring properties.
“Investor interest in Seattle is all about the jobs and the above average population growth of those in the apartment-renting cohort (20–34 years old). Over 50,000 jobs were created over the past 12 months,” Oprindick said. “King County’s population growth is outpacing the national average and is expected to expand.”
Axcess 15 is situated next to Oregon’s largest regional mall, the Lloyd Center and is just five minutes from Portland’s CBD which is home to more than 21 million square feet of office space. The property is within walking distance to restaurants, coffee shops, Safeway, bakeries, bike stores, parks and movie theaters.
The three apartment investments were each originally acquired by Hunt Investment Management in 2010.
A SEC registered investment advisor, the company has $3.2 billion of assets under management in the United States and Europe in non-core investments, including more than 20,000 apartment units. Since 2010, the firm has acquired 14 multi-family investments with 4,806 units, totaling $640.8 million in total capitalization.
“We believe supply will not be able to go back to historical levels until 2014-2015. By that time, we believe the economy should begin to accelerate leading to additional demand for rental housing,” Oprindick added. “The particular fund these assets were sold from still maintains an overweight to apartments with its largest holdings concentrated throughout northern California, Seattle and suburban Chicago.”