Tacoma Urbanist

Jun. 24, 2011 at 1:18am

163 Unit Jackson (Downtown) Apartment Building Renovations to Be Completed by 2012


There is a bit in the News Tribune about this issue, but the raw press release I located has many more details:

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URDANG, Randolph Street Announce Acquisition of Tacoma Apartment Building

BNY Mellon Investment Manager and Randolph Street to Complete Construction

PLYMOUTH MEETING, PA, June 23, 2011  URDANG, the real estate investment manager and part of BNY Mellon Asset Management, and its joint venture partner Randolph Street Realty Capital have announced the acquisition of a partially completed 163-unit Class A apartment building in Tacoma, Washington.

URDANG made its portion of the acquisition through Urdang Value-Added Fund II L.P. (Fund II), a closed-end private real estate fund managed by Urdang Capital Management, Inc. The property was purchased from a private seller. Terms of the transaction were not disclosed.  

The apartment building, located prominently on a hill at 2368 South Yakima Avenue, overlooks downtown Tacoma. Jeffrey B. Reder, senior vice president, acquisitions, Urdang Capital Management, said the building is approximately 50 percent finished and that he expects it to be completed by the summer of 2012. "We expect this building will have among the best interior finishes and amenity packages in the market, including a state-of-the-art fitness center, theater room and outdoor courtyards."

The completed apartment building is expected to benefit from favorable local market conditions, including a low vacancy rate, a limited supply of Class A rental units and its desirable location for those seeking to live near large employers including four hospitals within a four-mile radius, the Port of Tacoma, a large U.S. Army military base and the University of Washington Tacoma, University of Puget Sound and Tacoma Community College.

"This represents the type of investment that Urdang actively is pursuing," said Reder. "We are excited about the opportunity to acquire quality real estate that has gone back to the banks at an attractive price. We now have the ability to deliver housing that is among the highest quality in the market at a compelling value. With limited near-term supply and strong current demand, we feel this project is poised to benefit."

"This is an excellent opportunity to acquire a lender-owned distressed asset where we can utilize our local experience to create significant value for our investors," said Robert Tanaka, principal of Randolph Street Realty Capital. "We have been tracking the project for over a year and we are excited to get the deal closed with an excellent partner like Urdang. We continue to focus on acquiring lender-owned and value-added opportunities in the multi-family space."

Randolph Street Realty Capital, based in Chicago, is an entrepreneurial real estate investment firm specializing in the acquisition of and management of both distressed and stabilized multifamily properties. Randolph Street structures its acquisitions as joint ventures with equity partners and focuses on opportunistic investments within the multifamily space. To date Randolph Street has completed acquisitions in Washington, Illinois, Florida and California.

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Commentary: 

Downtown Tacoma has huge swatchs of dead zones in and above downtown.  Many of the desires of Tacomans depend on more humans being located in and around downtown.  While the Pierce County suburbs exploded in the last 10 years, Tacoma only grew by 2.5 percent.If the Jackson Building had sat much longer, it could have become a permanent blight, nuisance and magnet for crime in the City of Tacoma.

Sure would be nice if Randolph Street Realty would purchase and renovate the troubled Winthrop Hotel.

comments [10]  |  posted under tacoma

Comments

by Erik on 6/24/2011 @ 1:45am
Nice to see that someone other than Tacoma boosters, well outside the city, have a positive view of Tacoma as a place someone would want to live in the future.

by Jesse on 6/24/2011 @ 8:48am
This is good to hear. All Tacoma needs is a few big players to notice the vacancy rates in downtown Tacoma coupled with an affordable apartment construction plan.

Hmm... how could that happen? Eliminate the parking requirements for developers. Make downtown streetcar expansion and beautification projects a priority so people can live dt and eliminate their cars (adding big $ to their wallets to afford more expensive appartments/condos) while feeling comfortable walking or public commuting.

by Jesse on 6/24/2011 @ 8:50am
Where is that streetcar petition? Has there been any movement from the city at all? Studies? Budgets? Anything that was promised?

by NineInchNachos on 6/24/2011 @ 9:00am
city lawyers who take the word of psychotic child murderers as fact convinced the streetcar petitioners the city would sue them if they kept up with the petition.

by NineInchNachos on 6/24/2011 @ 9:00am
thus no more petitions

by NineInchNachos on 6/24/2011 @ 9:00am
BUT HEY! NEW TRAM STOP!

by tacoma1 on 6/24/2011 @ 2:48pm
It's good to see this project moving forward. Sounds like the new owner got the place at half off. Not a bad deal. Sometimes it takes an outsider to appreciate Tacoma's inner charms. Familiarty can breed contempt.


by Erik on 6/24/2011 @ 3:06pm
It's good to see this project moving forward. Sounds like the new owner got the place at half off. Not a bad deal. Sometimes it takes an outsider to appreciate Tacoma's inner charms. Familiarty can breed contempt.


The Villa on Market Street is pretty well occupied and seems to be doing pretty well with a great restaurant below.

www.facebook.com/pages/The-Villa-Caffe-a...

by Erik on 6/24/2011 @ 3:09pm
Eliminate the parking requirements for developers. Make downtown streetcar expansion and beautification projects a priority so people can live dt and eliminate their cars (adding big $ to their wallets to afford more expensive appartments/condos) while feeling comfortable walking or public commuting.

Yep. That could create a great deal of affordable market rate housing.

The 1960s era parking requirement that Tacoma is still trying to rid downtown of has thwarted development and pocked downtown Tacoma with parking lots. Now there are so many parking lots downtown in many places that the buildings have been spread apart requiring one to almost needs a car to drive between them.

by Jesse on 6/24/2011 @ 3:11pm
@RR: Anything is possible in Tacoma if you have a big enough attorney budget!
(See also; Clear Channel)