Security Properties Invests $400.8 Million in Strategic Seattle Multifamily Portfolio Acquisition
Security Properties, a vanguard real estate investment firm based in the Pacific Northwest, has recently executed a significant multifamily portfolio acquisition in Seattle, valued at $400.8 million. This strategic procurement involves five properties totaling 903 units: Liza Eastlake, The Hemlock, Hayes on Stone Way, Carter on the Park, and Heron Flats & Lofts. These assets are positioned in Seattle’s highly sought-after neighborhoods, known for their strong connectivity to major regional employers.
The firm’s Chief Executive Officer, Dan Byrnes, articulated the importance of this transaction, reinforcing Security Properties’ commitment to the region. “These communities are in neighborhoods where our team members live, where we have deep local knowledge, and where we see exceptional long-term value,” Byrnes remarked. His vision echoes the firm’s dedication to cultivating vibrant communities and sustaining high-quality living standards for Seattle’s residents.
In tandem with maintaining strategic portfolio growth, the acquisition aligns with Seattle’s resilient multifamily market landscape. The city continues to experience limited new construction, amplifying the potential for these newly-acquired assets due to lesser competition and the revitalization of urban centers through return-to-office trends.
Mark Bates, stepping up as the new Chief Investment Officer, highlighted the strategic acumen of Security Properties, recognizing the complexity of this transaction. “This acquisition not only strengthens our Seattle portfolio but also demonstrates our ability to execute complex transactions that require creative capital structures and trusted capital relationships,” said Bates.
The company’s vision transcends beyond immediate investment success. A prior disinvestment, the final asset of Security Properties Multifamily Fund II, exemplifies their robust, diversified, value-add strategy. With an impressive IRR of 27.2% and an equity multiple of about 3.3x, they have showcased the fruits of meticulous underwriting and locational intelligence.
Looking ahead, Security Properties aims to leverage their proven strategy and local market acumen as they continue to branch out nationally. Focusing on strategic markets such as Denver, Nashville, and the Bay Area, Bates emphasized a precise, data-driven method: “Whether in Seattle or in other target metros, we are committed to finding the right investments for our partners, assets that can outperform through thoughtful acquisition, strong operations, and a long-term view.”
At the intersection of scale and expertise, Security Properties aspires to maintain its influential standing in multifamily investing. By upholding strong institutional relationships and striving for best-in-class opportunities, the firm stands ready to navigate and capitalize on the multifamily apartment industry’s dynamic landscape.