Bascom Northwest acquired Washington State’s second largest apartment community in 2004 when it was listed by a large public REIT. Built in the late 1980’s, the 36 acre community was under maintained and capital starved. Bascom Northwest executed a renovation with emphasis on improving the curb appeal and amenities. Nearly $2 million was spent on landscaping, community re-branding and expansion of the amenity package. A dramatic two story leasing facility was created, including a state of the art fitness center, internet café, 50 seat theater, tanning booths and spa. Now the community offers an unmatched amenity package in King County. In the midst of a dramatic market upswing, the original equity partner wished to capture a substantial gain (net profit of $26 Million), so Bascom Northwest recapitalized the project in 2007 with new debt and equity partners. The second renovation focused on unit interiors, as the community still lacked upscale apartments consistent with its location and amenities. The upper portion of the site was designated “The Heights at Club Palisades,” and its units were upgraded with brand new cabinets, appliances, countertops, floor coverings and other contemporary finishes.

City
Federal Way, Washington
Units
750
Renovation Budget
$4.4M ($5850/ unit)
Debt Partner

Wells Fargo Bank, Babson Capital

Equity Partner

Lehman Brothers, Rockpoint Group