Homestead, a 134-unit apartment complex in Federal Way, recently changed hands for $26.5M. Institutional Property Advisors, a division of Marcus & Millichap, arranged for nearly $19.9M in acquisition financing.

Formerly known as Rainier Meadows, Homestead was built in 1987 and was recently rebranded. Seventy percent of the homes have been renovated. The property includes a newly renovated clubhouse with leasing office, a new fitness center, a new outdoor lounge, a dog park and a children’s playground. It also has an outdoor pool.

“Investors have continued to be interested in multifamily assets in Federal Way because of strong rent growth and affordability compared with core properties in Seattle,” IPA Senior Managing Director Philip Assouad said in a statement. “Federal Way has experienced 9.6% year-over-year rent growth and the in-place rents have remained 50% to 60% more affordable than the core. Additionally, the anticipation of Federal Way light rail service beginning in 2024 has many investors looking at the area.”

Assouad, IPA Senior Managing Director Giovanni Napoli and IPA Vice Presidents Ryan Dinius and Sidney Warsinske represented the seller, Thayer Manca Residential. They also procured the buyer, Fast Lane Investments, which is a private investor that owns 571 units in the South Puget Sound region.