On October 13, 2017, Cumberland Holdings acquired the Hawaiian Village Apartments (192 units) in Kennewick, WA for $15,000,000. It is a value add opportunity with convenient access to shopping, employment, and amenities.
Kennewick is located in Southeastern Washington’s Tri-Cities region, which consists of the cities of: Kennewick, Richland, & Pasco. The Tri-Cities region is the State of Washington’s 4th largest metropolitan area totaling 283,000 residents.
In 2016, Tri-Cities led the Washington State in job growth at 3.6%. In five years, the population is expected to grow by 7.5%. Economic activity is driven by the research & cleanup operations at Hanford Nuclear Reservation as well agriculture, manufacturing, healthcare, transportation and tourism. Kennewick boasts more than 200 wineries within a 50- mile radius. It also serves as a regional retail hub since it is centrally located amongst Seattle, Portland, Spokane, and Boise.
The garden style apartment community was developed in 1980 on a low density 10 acre site with mature landscaping. After the acquisition, the community was rebranded Arlo Apartments. On behalf of it’s investors, Cumberland executed a $1MM renovation plan which was used to redevelop the clubhouse and pool, install comprehensive landscaping improvements, and modernize the residential units. Since completion, the property now competes at the upper end of the rental market.
Affinity Management provides property management services. The acquisition of Hawaiian Village included the assumption of a Freddie Mac fixed rate term mortgage with 7 years remaining until maturity. Equity was provided by a group of Cumberland’s private investors.