On June 9, 2017 Cumberland acquired the Grande Terrace Apartments (55 units) in Tukwila, WA for $8,250,000. It is a compelling value add opportunity located directly adjacent to the SeaTac Airport with convenient access to employment at the Renton Boeing plant, the Kent Valley, and Westfield Southcenter Shopping Center. Transportation options are plentiful with easy access to highways I-5, I-405, or 518, 519, and minutes to the Link Light Rail Station which provides a stress-free 35 minute commute to downtown Seattle.
The asset was previously acquired in the early 1990’s by a family that self-managed the property. Management practices were substandard and the exterior showed visible deferred maintenance. Rents were $95 to $400 below professionally owned and managed communities.
On behalf of its investors, Cumberland is executing a $1.2MM “Value Add” plan which included: select exterior siding replacement and new exterior paint, new leasing office, and landscape renovation. The units will benefited from: updating kitchen cabinetry, resurfacing countertops, new appliances, and contemporary flooring and paint. The community was rebranded Cielo Apartments.
Management services are provided by Affinity Management. Acquisition financing was provided by Umpqua Bank with equity from Cumberland Investors. In March 2019, Cumberland closed on the refinance of Cielo Apartments. The Freddie Mac mortgage had a fixed interest rate of 4.50% with 2 years of interest-only payments due during the 5 year loan term. The refinance funded additional property renovations.