Cumberland Holdings acquired the 55 unit Sunset Station Apartments located in SeaTac, Washington on June 1st, 2012. It represents Cumberland’s third acquisition in 2012.
The property was renamed Avion Apartments. Constructed in 2007, the community consists of one 4 story residential building over a one story concrete podium parking structure. The building is controlled access with a diverse unit mix of studio, one, two, and three bedroom floor plans. Consistent with Cumberland’s investment strategy, it is located in close proximity to employment centers that include the SeaTac International Airport, Westfield Shopping Center, Kent Industrial Valley, and the Boeing Renton Plant. Also, Avion residents can walk to the SeaTac Light Rail Station, providing convenient access to Seattle’s 24 hour downtown.
“Avion is a unique opportunity to acquire a high quality, modern building in a submarket at the beginning of a rent recovery. Coupled with the great financing we obtained, we expect the investment to generate great cash flow,” said Graham Chernoff, President of Cumberland Holdings, at the time of acquisition.
In July 2015, Cumberland closed on the refinance of Avion. Built in 2007 as condominiums, Cumberland acquired the property as a loan foreclosure. During the refinance the third party appraiser valued the property at $10.3M. The Freddie Mac mortgage placed by Cumberland had a fixed interest rate of 3.77% with interest only payments due during the 7 year loan term. The refinance returned 18% of investors' equity and provided enhanced cash distributions.