Located directly across the street from Microsoft’s seven million square foot campus, Bascom Northwest targeted the property for an unsolicited offer after research indicated the site had double the submarket’s vacancy rate and very low rents. The property’s original Canadian development company had been self-managing the asset for 27 years with virtually no capital improvements. Through professional third party management, Bascom quickly leased the property to full occupancy and instituted a redevelopment plan focused on changing to a higher income tenant profile. Major renovations were completed to the leasing center and resident clubhouses, including a new fitness center, resident activity room, spa and a pool deck expansion. Apartment units were gutted and upgraded with new cabinets, appliances, fixtures and each received a washer/dryer combo. After holding for just over two years, Bascom Northwest sold Stonecreek to a large REIT for a net profit of almost $10 million.
- City
- Bellevue, Washington
- Units
- 206
- Renovation Budget
- $3.1M ($15,100/ unit)
- Debt Partner
- Babson Capital
- Equity Partner
- Wilson Investment Associates





Additional Details
Highlights
- Acquired with high vacancy (20%) and low rents.
- Increased rents by 32%, increased occupancy to 95%.
- Strong location directly across from Microsoft world headquarters.
- Rebranded community and added new amenities to increase marketability to higher income Microsoft employees.
Summary
- Year Built
- 1978
- Acres
- 9.5
- Avg Unit Size
- 754 sf
- Amenities
- Pool, Spa, Fitness Center, Tot-Lot, Business Center
IRR (Leveraged) 54.4%
Acquisition
- Price:
$19,400,000 - Price/Unit:
$94,174 - NOI:
$1,132,233 - Cap Rate:
4.95% - Purchase Date:
January 2005 - Avg Rent at Close:
$720 – $.96/ft
IRR (Unleveraged) 7.5%
Value‐Add
- Capital Expense:
$3,100,000 - Cap Ex / Unit:
$15,100 - Total Cost:
$23,832,000 - Total Cost / Unit:
$115,692
Equity Multiple 2.8x
Exit
- Exit Value:
$35,700,000 - Value / Unit:
$173,301 - NOI @ Market :
$1,665,000 - Cap Rate:
4.7% - Exit Date:
May 2007 - Mkt Rent at Close
$1,088 – $1.44/ft