The Meridian Green offering consisted of two phases: a brand new 22-unit building (Meridian Greens I) and the adjacent permit-ready 28-unit development site (Meridian Greens II).
Positioned in the heart of Puyallup, this apartment complex sits directly off Meridian and 136th. After the original developer failed to complete construction of both phases, hard money lenders regained control of the project (Ownership). In 2018, Ownership engaged Ted Sipila and Austin Kelley (Kidder Mathews Team) on how best to price, market, and eventually sell this extremely unique two-part offering.
The History
With construction of Meridian Green I finished in July 2018 (and certificates of occupancy issued shortly after) Kidder Mathews placed the listing live during the buildings’ first round of lease-ups. Meridian Greens I consisted of a four-story platform construction, holding 20 1-bedroom 1-bath and two 2-bedroom 2-bath units, ranging from 625SF – 986SF. All units have top on the market interior finishes; hardwood flooring, granite counter tops, stainless steel appliances and in-unit washer and dryers. Adjacent to phase one, Meridian Greens II was a shovel ready 28-unit site sitting on over 28,000SF of developable land. The Meridian Greens complex offering was presented to investors as both a joint deal with stable cashflow and tremendous development upside, or as individual investments of two separate buying entities.
The Challenge
Meridian Green’s unique two phase offering combined with extremely limited proven cashflow created questions of uncertainty among investors. With no historic financials, the majority of income/expense data were projections from market studies and KM brokers expertise. Deal size; the Meridian Greens offering proved slightly too large for a private individual and slightly too small for institutional firms.
The Challenge
The Kidder Mathews team worked to overcome every issue that arose. In order to maximize sales, the KM team sold off each phase to individual investors. Meridian Greens I traded at over 200k/door, a 5% cap rate and income/expense numbers that mirror that of initial projections. Meridian Green II was purchased by a well-qualified investor/client of the KM team, and in turn ownership saw both phases of the Meridian Greens sell successfully. Throughout this process, close ties were forged between KM team and Ownership—a professional relationship that exists today, due in large part to the complexity and hard work accomplished through the sale of these assets.
