Seattle-based Goodman Real Estate sold a pair of apartment complexes in South Tacoma on Friday for a total of $25 million.
This is the first Puget Sound area acquisition for the buyer, Southern California-based Next Wave Investors. Next Wave’s portfolio includes an apartment property in Spokane and another in Tualatin, Oregon, but most of its properties are Utah, Phoenix, Arizona, Nevada and Texas.
The Tacoma complexes, Coventry Court IV and Coventry Court IV Annex, have a total of about 120 units ranging from 730 to 1,130 square feet, with one to three bedrooms. Coventry Court IV is located at 908 76th St. Court. E.; the annex is roughly a block away at 7412 Golden Given Road E.
Coventry Court IV sold for $218 per square foot and the annex sold for $236 per square foot.
“The property had been dealing with ‘Covid hangover,’ but was starting to achieve some extremely strong rents during our marketing process,” said Brandon Lawler, a Kidder Mathews broker who represented Goodman. “If you take those achieved rents and amortize them across the board it is a much stronger return without any additional renovations.”
Dylan Simon and Jerrid Anderson were also on the Kidder Mathews team. Next Wave was not represented by a broker.
Goodman is developing the 408-unit Tacoma Marketplace at the site of a former Kmart building at 5132 Sixth Ave. in Tacoma. The 461,700-square-foot complex will include 17 three-story residential buildings and a two-level clubhouse leasing center. A through-block road connection, playground and dog park will also be added.
Last summer, George Petrie, Goodman Real Estate’s president, told the Business Journal that he expects the Tacoma area to gain development momentum.
“Tacoma is one the main growth areas,” he said. “It has an overall good economy. The city is well-run. And finally rents have come up.”