On October 25, 2022, Security Properties purchased Toscana Apartments, a Class-A multifamily property located in Lacey, WA. Security Properties now owns 31 assets totaling over 6,800 units in the Puget Sound marketplace.
Toscana is a Class-A, garden-style community that was delivered in two phases between 2019 and 2021. The asset consists of 393 apartment homes spread across 6 four-story and 5 three-story residential buildings and one two-story clubhouse. The unit mix features an attractive range of floor plans with an average unit size of 797 square feet. Unit interiors consist of quartz countertops, custom cabinets, stainless steel or black appliances, hard-surface flooring with carpet in bedrooms, full-sized washer/dryers, 9-foot ceilings (vaulted top floor), and private patios or decks in select units. From an amenity perspective, the gated property offers a clubhouse lounge, outdoor pool and hot tub, fitness center and on-property walking trail.
Originally established as a suburb of Olympia, the City of Lacey is situated just five miles east of the state's capital at the southern tip of the Puget Sound. With more than 1,200 acres of public parkland, an adjoining 3,700-acre national wildlife refuge, five freshwater lakes and several championship golf courses, the city is best characterized by its virtually unlimited opportunities for outdoor recreation. The area also boasts a low crime rate, a healthy economy and proximity to major metropolitan areas (~30 minutes south of Tacoma).
At the property level, access to Interstate 5 is just one mile southeast, providing residents direct access south to the neighboring cities of Olympia and Tumwater, as well as north to Joint Base Lewis McChord and the City of Tacoma. From a retail standpoint, Hawks Prairie Village Mall, a 154,000 sq. ft. shopping center anchored by Safeway, is located less than 2 miles away. Several big box retailers also surround the mall including Costco, Walmart, Home Depot, and Best Buy. Additionally, Cabela's sporting goods is only 2 minutes south on Gateway Blvd.
The business plan is a long-term yield investment with light upgrade characteristics. While the asset currently offers a best-in-class amenity package and well-appointed living units, Security Properties has identified several opportunities to further emphasize this strength. They also plan to address a short list of minor immediate needs on the property as necessary.
According to Alex Gauper, Director at Security Properties, "Toscana represented a unique opportunity to acquire a high-quality asset at a basis well below current replacement cost and in a submarket with excellent long-term fundamentals. We have been actively focused on growing our South Sound portfolio and specifically Lacey, a stable submarket with a diverse mix of demand drivers and very limited historical supply. We are very excited to add Toscana to our Pacific Northwest portfolio and look forward to delivering strong returns to our investors over our hold."
The property will be managed by Security Properties-affiliate Security Properties Residential.