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.
Wilson Investment Associates
Pool, Spa, Fitness Center, Tot-Lot, Business Center
IRR (Leveraged) 54.4%
IRR (Unleveraged) 7.5%
Equity Multiple 2.8x