In a series of multifamily real estate purchases Interstate Equities Corporation (IEC) is pleased to announce that it has finalized three acquisitions totaling about $68 million.
“All three of these communities have the potential to be high-quality assets but right now are trading at a discount due market forces and deferred maintenance,” said Brendan Gibney, Director of Investments at IEC. “Our institutional funds allow us to be opportunistic in such scenarios and invest in the renovations necessary to add tremendous value to the assets while improving the qualities of life for the residents who call them ‘home.’”
Additionally, each neighborhood is near a large employment center and has experienced surging rents that priced out much of the local workforce. These projects undertaken by IEC will address that head on by preserving attainable homes for the local workforce.
“Working families in the Bay Area and Seattle have been squeezed over the years, and the local housing supplies need to be adjusted to meet this dynamic,” Gibney said. “At IEC, we are very proud to offer renters a safe, modern standard of living people deserve and can afford.”
The following communities were acquired by IEC and marked for value-adding renovations:
Appletree in Campbell, California
Built in 1971, the 72-unit Appletree property was bought by IEC for $26.4 million ($342,000 per unit) from Cambridge Management Company, a Bay Area family ownership group. Sitting in the West Campbell neighborhood within walking distance to retail and grocery, the garden-style community’s location provides access to the Silicon Valley employment hub and is five miles to Apple HQ and seven miles to downtown San Jose.
Augusta Glen in Lynnwood, Washington
IEC purchased the 121-unit Augusta Glen community through an off-market process for $28.25 million ($233,000 per unit). Built in 1990, the property is adjacent to Route 99 and proximate to the I-5 / I-405 intersection, the main North-South artery in the Seattle MSA.
Summerhill Place in Union City, California
The 60-unit Summerhill Place, a 2.55-acre garden-style community that was built in 1986, was acquired by IEC for $15 million ($250,000 per unit) through an off-market process. Situated in a workforce East Bay location with significant upside, its proximity to other IEC holdings offers operational efficiencies that the company plans to capitalize on.
“These markets are very strategic for us over both the short- and long-terms,” Gibney said. “We are very excited to be solidifying our position, expanding our footprint and creating new value in locations that have been neglected for too long.”
