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Acquisitions

Timberlane Partners Acquires 143-Unit ‘Little Tuscany’ Apartment Building in Olympia for $37MM

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Originally published: news.theregistryps.com

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Acquisition of 143-Unit Apartment Building in South Westside Neighborhood Marks Company’s First Purchase for New Timberlane Acquisition Fund

Seattle, WA, June 1, 2023 — Timberlane Partners, a leading real estate investment manager based in Seattle, today announced their purchase of Little Tuscany apartments from Fern Street Partners LLC dba Commercial Property Services Inc. The purchase price of $37,000,000 (~$259,000 a unit), represents a significant discount to comparable trades in the market.

Situated in Olympia’s charming South Westside neighborhood, the three-story multifamily building occupies a 5.8+ acre plot at 1000 Fern St SW. The property has a total of 143 units, and provides a diverse range of living options, including studios, one, two, and three-bedroom apartments, as well as townhome-style units. Residents enjoy a wide array of amenities, including a pool, a state-of-the-art clubhouse, a well-equipped gym, and a dog park.

Timberlane utilized a Fannie Mae assumable loan with a 4.27% fixed rate mortgage with 5 years of term remaining to finance the purchase.

“The property is in phenomenal condition, and we see an opportunity to increase revenue by implementing new management strategies, making light renovations to the interiors of the units, and enhancing the exterior and common areas,” said Tad Johnson, who led the acquisition. “We estimate that our purchase price reflects over a 25% discount to comparable sales of similar assets in this market. We believe the low basis along with the below market assumable debt will generate an attractive risk-adjusted return for our fund investors.”

The purchase marks the first asset that will go in the firms new Timberlane Acquisition Fund (TAF), an investment vehicle that will acquire well-priced multi-family assets throughout the western U.S.

As part of its business growth, the company also recently announced the significant expansion of its leadership team with the addition of three key hires, including a new firm Partner (Jake Leibsohn) and two New Directors of Acquisition (Jon Hallgrimson and Tad Johnson).

Jordan Louie with JLL represented both the buyer and the seller on the transaction.

About Timberlane Partners. Timberlane Partners is a Seattle-based alternative investment manager with a focus on multi-family real estate. Since its founding in 2011 by Dave Enslow and John Chaffetz, the firm has acquired and built more than $1 billion worth of real estate across 40 unique investments throughout the west coast and mountain west regions of the U.S., and now has offices in both Seattle and Los Angeles. Timberlane prides itself on being a responsible steward of investor capital.