Everett’s 336-Unit Canopy Apartments Sell for $82.75M

Originally published: 425business.com

Timberlane Partners, a Seattle-based alternative-investment manager focused on multifamily real estate, announced today that it has purchased a 336-unit garden-style apartment community in Everett for $82.75 million.

Timberlane acquired the Canopy Apartments, located at 923 112th St. SW, in partnership with EOS Residential Investors, a New York-based investment firm. Canopy is the sixth acquisition through Timberlane Acquisition Fund II and follows the firm's $37 million acquisition of Vista Ridge Apartments in Issaquah in August, Timberlane said in a news release.

"We spend a lot of time looking across the market for the best relative value, and we've been willing to remain patient when opportunities aren't there," Dave Enslow, co-founder and CEO at Timberlane Partners, said in the release. "Canopy stood out because we are acquiring a substantially renovated, well-located community at a basis that we believe makes sense for where the market is today."

Canopy was built in two phases in 1989 and 1991, and includes 20 residential buildings and two clubhouses across almost 16 acres. Residences include 91 one-bedroom, 169 two-bedroom, and 76 three-bedroom homes, with an average unit size of 878 square feet.

Almost 75% of the units have been fully renovated and the rest have received renovated kitchens. Community amenities include a renovated resort-style swimming pool, a fitness center, a community lounge and kitchen, game room, outdoor gathering areas, and a dog park, the release noted.

Timberlane co-founder John Chaffetz said the previous owner did a good job on renovations, adding the property's in great condition.

"Our opportunity is to manage it well, make targeted improvements where they matter, and position the property for long-term success," he said.

Seattle-based Avenue5 Residential will manage Canopy, with Timberlane focused on staffing, leasing, and operating efficiencies, plus capital improvements to building exteriors, landscaping, and community amenities.

Everett's employment base and limited pipeline of new multifamily housing were important factors in Timberlane's investment decision, the company said.

Added Enslow, "This market has aerospace, manufacturing, trade, the port, and the Navy supporting a deep employment base, while residents can still find considerably more housing value here than in areas closer to Seattle or Bellevue. Combined with limited new apartment supply, these factors create what we believe are strong long-term investment fundamentals."