Intercontinental Real Estate Corporation (“Intercontinental”) in joint venture with Security Properties have acquired Broadleaf Apartments, a 244-unit Class B+ garden-style apartment community located in the Pocket neighborhood of Sacramento, CA. 

The off-market transaction represents a recapitalization of the 11-acre gated community which was originally acquired in 2019 by Security Properties, a Seattle-based multifamily development and investment firm, which will continue as operating partner in the new joint venture with Intercontinental. 

For Intercontinental, whose portfolio includes 29 million square feet of commercial and industrial space and more than 12,000 multifamily units across the United States, Broadleaf represents the firm’s entry into the Sacramento market, according to Jessica Levin, Senior Director, Acquisitions with Intercontinental.  

“Sacramento has been the beneficiary of renter migration from the more expensive Bay Area markets and while new, more expensive product is being delivered to the market, it is not keeping up with demand,” said Levin.   

Constructed in 2006, Broadleaf’s one- and two-bedroom apartment homes are housed in 11 two- and three-story residential buildings that surround a 5,200 square-foot clubhouse and resort style pool and spa.   Apartment homes range in size from 790 – 1,240 square feet and boast an above-market average unit size of 1,041 square feet.  Each unit features nine-foot ceilings and dedicated in-unit laundry rooms. Common area amenities include a fitness center, game room, fireside lounge, picnic area with grill, children’s playground and community garden. 

“Sacramento has been on our radar for quite some time,” added Intercontinental’s Director of Acquisitions, Allen Logue. “Broadleaf is located in the desirable infill Pocket neighborhood of Sacramento. The location’s proximity to employment nodes, transportation arterials and amenities make this investment an ideal fit for our investment strategy.” 

“Sacramento continues to be a target market for us and so it was important that we keep an asset with the quality of Broadleaf in the portfolio,” said Davis Vaughn, Senior Director at Security Properties.  “By partnering with Intercontinental, we were able to successfully realize gains for our existing investors, while still maintaining our footprint in a growth market.” 

The property was 96 percent leased at the time of closing.

SEATTLE – JLL announced today that it has closed the $98.1 million sale and arranged acquisition financing for Augusta Apartments, a 209-unit apartment community in Seattle, Washington.

JLL marketed the property on behalf of the seller, Vulcan Real Estate, and procured the buyer, a joint venture between Security Properties and STARS REI. In addition, JLL worked on the new owner’s behalf to arrange acquisition financing.

The seven-story Augusta Apartments features 209 rental units and 3,470 square feet of ground-floor retail space. The property features a variety of shared indoor and outdoor spaces including a roof deck and courtyard, each with adjoining community lounges. Additional amenities include a guest suite, study area, fitness center, dog grooming room and a sports court. Completed in 2017, Augusta was designed by Runberg Architecture Group and constructed by Exxel Pacific, Inc. The project is LEED Platinum-certified.

Augusta Apartments is located at 4041 Roosevelt Way NE within walking distance of the University of Washington campus, Burke Gilman Trail and the new University District light rail station, which will open in 2021 at the corner of 43rd and Brooklyn.

The JLL Capital Markets investment advisory team representing the seller was led by Managing Directors David Young and Corey Marx.

JLL’s Capital Markets debt placement team representing the new owner included Senior Managing Director Charles Halladay and Director Scott Gilson.

“Augusta Apartments’ strategic location near the University of Washington in the heart of Seattle’s start-up and technology hub provides appeal to both students and staff at the University as well as residents seeking proximity to the area’s numerous employers,” Marx said.

On September 18, 2019, Admiral Capital Real Estate Fund II, LP ("ACRE II"), an affiliate of Admiral Capital Group ("Admiral"), and Security Properties ("SP") purchased Cambridge at Hickory Hollow, a 360-unit multifamily property located in Nashville, Tenn. 

Cambridge at Hickory Hollow is a garden-style apartment community constructed in 1997 and is located 15 miles southeast of downtown Nashville in Antioch, one of Nashville's fastest growing submarkets.

Nashville has roughly 1.9 million residents, and approximately 100 people move to the MSA daily. Rapid job growth, evidenced by Nashville ranking in the top 10 metros in job growth in the country for six straight years, is boosting apartment demand. "Nashville's impressive job growth and strong multifamily fundamentals make it an attractive investment target for Admiral," said Admiral co-founder Dan Bassichis. "This opportunity continues our defensive focus on identifying well located assets that provide a value alternative to the newer, higher end product in the fastest growing cities."

The property is within a 25-minute drive of more than 610,000 jobs. Antioch's proximity to major employment centers has been a major draw to renters, and as a result, the population has grown by 37,000 people (over 70%) since 2000. Over the past five years, Antioch has attracted several blue-chip employers, including Bridgestone, Asurion, CHS, HCA Health, SmileDirectClub and LKQ.

Tad Johnson, director of acquisitions at Security Properties, said, "The venture acquired this property because it was an attractive opportunity to apply our proven value-add expertise in a 1990's vintage asset located in a high-growth market. We are excited about the growing employment drivers and investment that is occurring in Antioch and firmly believe in the long-term viability of the submarket, and greater Nashville."

"The investment in Cambridge at Hickory Hollow will continue our longstanding, successful relationship with Security Properties," said James Maher, principal at Admiral. "We have previously invested with them in this market and hope to continue to build our presence in Nashville and other high growth cities throughout the country."

Security Properties now owns 121 assets totaling approximately 24,000 units across its portfolio. This includes over 1,500 units in the Nashville marketplace. The property will be managed by Security Properties affiliate Security Properties Residential.

The acquisition represents Admiral's second investment in Nashville and brings its units currently under management to 5,500 nationwide.

PORTLAND, OR – November 1, 2018 – Holliday Fenoglio Fowler, L.P. (HFF) announces the $84.3 million sale of and acquisition financing for Arbor Creek, a 440-unit, garden-style apartment community in Beaverton, Oregon.

The HFF team marketed the asset exclusively on behalf of the seller, Jackson Square Properties, and procured the buyer, Security Properties.  Additionally, HFF’s debt placement team worked on behalf of the new owner to secure a seven-year, floating-rate loan through Freddie Mac’s CME Program.  The securitized loan will be serviced by HFF, a Freddie Mac Multifamily Approved Seller/Servicer for Conventional Loans.  HFF originally marketed the property to Jackson Square Properties upon its acquisition of the asset in 2014.

Arbor Creek is situated on 22 acres at 3280 SW 170th Avenue approximately 1.5 miles from Nike World Headquarters and within 10 minutes of the Intel Ronler Acres Campus and other major area employers.  Additionally, the property is adjacent to the 222-acre Tualatin Hills Nature Park and offers nearby access to some of the MSA’s top retail centers, major transportation arteries and public transit options.  Originally completed in 1984, Arbor Creek includes one- and two-bedroom units averaging 768 square feet each, 360 of which have been renovated since 2012.  Community amenities include a swimming pool, spa, fitness center, basketball/sport court, indoor racquetball court, playground, clubhouse and business center.

The HFF investment advisory team representing the seller included senior managing director Ira Virden and director Carrie Kahn.

HFF’s debt placement team representing the new owner consisted of senior managing director Charles Halladay, directors Scott Gilson and Charlie Watson.

SEATTLE, WA – July 26, 2018 – Holliday Fenoglio Fowler, L.P. (HFF) announces acquisition financing for The MARQ on Martin, a newly completed, 248-unit garden-style multi-housing community in Lacey, Washington.

The HFF team worked on behalf of Security Properties to secure the 10-year, fixed-rate loan with five years of interest only through Freddie Mac’s CME – Lease-Up Program.  The securitized loan will be serviced by HFF, a Freddie Mac Multifamily Approved Seller/Servicer for Conventional Loans.  Loan proceeds were used to acquire the property.

The MARQ on Martin comprises studio, one- and two-bedroom apartment homes featuring modern finishes and amenities, including stainless steel appliances, in-unit washers and dryers, and walk-in closets.  In addition, common area amenities include a swimming pool, spa, sundeck and lounging area, courtyard with fire pit and ping pong, outdoor dining and grilling area, 24-hour fitness center, clubhouse with fireplace and billiards and entertainment kitchen.  Completed earlier this year, the community is located at 8545 Litt Drive SE to the south of Interstate 5 and approximately eight miles northeast of Olympia’s CBD.

The HFF debt placement team representing the borrower included senior managing director Charles Halladay, director Scott Gilson and analyst Robert Bova.

“This deal qualified for Freddie Mac’s Lease-Up Program, which is a very competitive product in the market,” Gilson said.  “This loan structure allowed the borrower to close on the acquisition with an aggressive rate prior to the property reaching stabilization.”

On October 14, 2016, Security Properties and Pacific Life Insurance Company purchased One Jefferson, a 347-unit, Class A multifamily property located in Lake Oswego, OR, for $78,000,000.

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The property is located in one of Portland's most prominent suburbs, Lake Oswego. Lake Oswegoresidents boast an average household income in excess of $84k/year and is also home to some of the area's most expensive single-family real estate (average home price of $585k). The area is also characterized by limited future supply of multifamily units, and access to top-performing schools.

One Jefferson Apartments is a garden-style apartment community that was constructed in 1987 and 1990.  Unit interiors currently contain a variety of interior finishes.  Due to this inconsistency, Security Properties will be focusing on establishing a uniform spec level.  By combining the renovation of unit interiors with greatly improving amenity areas and overall aesthetics, Security Properties will re-establishOne Jefferson as the area's premiere multifamily community.

Barrett Sigmund, Sr. Director at Security Properties says they acquired this property because, "This deal epitomizes what we look for in value-add projects.  Lake Oswego boasts some of the best schools, demographics and proximity to jobs of any suburban Portland submarket.  Additionally, given the barriers to entry and limited future supply, there should be little new product in the submarket for the foreseeable future.  This dynamic allows us to reposition the property and provide residents a best-in-class physical asset on par with the A+ location."

The property will be managed by Security Properties-affiliate Madrona Ridge Residential.