Bainbridge Island, Washington

Lynwood Commons

Posted In — Success Stories |
Sale Price
Cap rate
property type
residential units
commercial retail spaces

The Lynwood Commons offering consists of 30 residential units and 3 commercial retail spaces spanning over three mixed-use buildings.

Walking distance to Puget Sound, this beach front multifamily lives in the heart of Bainbridge Island’s Lynwood Center. In the summer of 2018, Ownership engaged Ted Sipila and Austin Kelley (Kidder Mathews Team) to price, market, and ultimately sell this unique Bainbridge Island offering.

The History

Constructed in 2002, Lynwood Commons was far from the ordinary multifamily complex. A diversified unit mix ranging from 670 SF 1-bedroom’s to 1,300 SF 2-bed 2-bath, this complex offered vaulted ceilings, hardwood floors, water views, resident amenities lounge, onsite leasing office, long term retail tenants and proximity to the Seattle – Bainbridge Island Ferry. Residents of Lynwood Commons ranged from Bainbridge locals to Seattle’s urban workforce seeking a more rural living. Ownership selected Kidder Mathews as its exclusive representation through the sale of this asset. The offering was presented as a stabilized trophy asset with upside available through upgraded high-end interior finishes and leasing remaining vacant commercial space.

The Challenge

With extremely limited sales comps on Bainbridge Island, both the listed cap rate and price per door would set new market standards if achieved. While tenants’ profile and location both called for high-end interior upgrades, the lack of rent comps created a situation in which a perspective buyer would be pioneering new market rents. With less than 10 years remaining on the current commercial tenants and a relatively quiet retail market, buyer feared reduced future income and expensive tenant improvements.

The Results

The Kidder Mathews team was successful in helping guide a smooth and seamless transaction from beginning to close. Lynwood Commons set new market standard for both Bainbridge Island and Kitsap County multifamily. Ownership was able to realize a 27% increase on price from original purchase just one year prior. Both Seller and Buyer are well positioned for continued success in the apartment industry.

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