Cumberland Holdings acquired the 60-unit Carriage Square Apartments in Pasco, WA on June 28th, 2018 for $3,400,000 (57,000 per unit). The property was renamed Sedona Apartments. This represents Cumberland’s second apartment acquisition in the Tri-Cities area following the purchase of Arlo on 10th in late 2017.
Sedona is walking distance to many retail amenities, including an Albertson’s grocery story and a Walgreens. It is also under 10 minutes to the Tri-Cities Airport and downtown Pasco. The property was self-managed by an out of town private individual for 15 years and represents a compelling value added opportunity to rebrand, renovate units, build out a new leasing office, upgrade the pool, improve the curb appeal, and install professional management. The in-place rents ($723 per month) were $95 per month below competitive properties at the time of acquisition and the property lacked a utility recovery program.
Affinity Property Management will provide third party property management services. A Fannie Mae loan was placed on the property at closing and arranged by Melvin Mark Capital and Greystone. Cumberland’s private investors provided the equity.