#United States #Seattle #Security Properties #Multifamily Acquisition #Seattle Real Estate

Security Properties Completes $400.8 Million Acquisition

The Pacific Northwest's leading real estate investment company, Security Properties, has successfully concluded one of the most substantial multifamily acquisitions in Seattle's real estate market this year. The firm purchased a portfolio comprising five properties and 903 units from Washington Holdings for a staggering $400.8 million.

Acquisition Highlights
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The deal features several notable properties, including Liza Eastlake, The Hemlock, The Hayes on Stone Way, Carter on the Park, and Heron Flats Lofts. All these assets are strategically located in some of Seattle's most coveted neighborhoods, providing immediate access to major regional employers. The proximity to employment hubs significantly enhances the attractiveness of these properties.

Dan Byrnes, the Chief Executive Officer of Security Properties, stated, "This acquisition underscores our long-term commitment to Seattle and the Pacific Northwest. Our team members live in these communities, and we have deep local knowledge, which reveals exceptional long-term value."

Market Context
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This acquisition comes at a time when Seattle's multifamily market fundamentals remain robust, despite challenges faced on a national level. The inventory of new units under construction in the metropolitan area is on a downward trend. As supply tightens and areas target trends in returning to office work, Security Properties recognizes a clear opportunity to secure high-quality properties designed for sustained performance.

Strategic Insights
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Mark Bates, the newly appointed Chief Investment Officer of Security Properties, emphasized the strategic importance of this deal. He remarked, "This acquisition not only strengthens our footprint in Seattle but also showcases our team's ability to navigate complex transactions requiring innovative financial strategies and trusted partnerships."

This acquisition marks a significant milestone and represents the second one with Washington Holdings this year. Washington Holdings is known for delivering and maintaining high-quality assets, which aligns with Security Properties' investment philosophy.

Bates, who has recently stepped into his role, aims to optimize Security Properties' product offers for potential investors. His vision is to create a framework that interlinks various types of investments — including market rate, affordable, and developmental opportunities — in order to bridge the gap between capital and suitable investment prospects efficiently.

Recent Performance
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Building on a dynamic first half of the year, Security Properties recently divested its last asset from the Security Properties Multifamily Fund II, an investment vehicle launched in late 2013, yielding robust returns with an Internal Rate of Return (IRR) of 27.2% and an equity multiple of approximately 3.3x. This performance exemplifies the diverse and value-driven investment strategies adopted by the Security Properties platform.

The firm has demonstrated a strong ability to accurately assess value through careful underwriting, evaluating aspects like incoming supply, historical performance, and asset-specific demand factors that support long-term wealth creation.

Future Expansion Plans
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As Security Properties looks to the future, the company intends to replicate its successful strategy nationally, focusing on key markets such as Denver, Nashville, and the Bay Area. The company's plan is to deepen its presence in locations where it already has a competitive advantage, utilizing its extensive network and local expertise to tap into off-market opportunities.

"Our approach is precise and relies heavily on data. Regardless of whether the investments are in Seattle or other key markets, our commitment to identifying quality assets for our partners remains steadfast," Bates affirmed.

CEO Dan Byrnes added that this evolution within the company is crucial for maintaining Security Properties' position as a leader in multifamily investments. “With investors that include some of the world’s largest institutions, we welcome the challenge of providing exceptional opportunities and results. This transaction is a testament to our ability to deliver top-notch service and performance,” he concluded.

About Security Properties
Based in Seattle, Security Properties is a national real estate investment, development, and operations firm that has offered quality housing for over 50 years while ensuring exceptional financial results for its investors. To date, the firm has acquired or developed over 109,000 residential units with a cumulative investment exceeding $12 billion across more than 660 assets. For further details, visit SecurityProperties.com.