As core urban prices swell, investors turn to the nonurban Puget Sound market for multifamily properties that nevertheless promise solid returns. Recently JRK Property Holdings acquired the 225-unit Trillium Heights in Silverdale, which is in Kitsap County.

“Despite its distance from downtown Seattle and Tacoma, the Silverdale market still commands rents exceeding comparable product in South King County,” says JRK SVP James Bloomingdale, who's head of acquisitions for the LA-based company. Multifamily fundamentals in Silverdale are very robust due to a rare combination of strong job and income growth, along with a lack of new supply, he says.

At 12240 Daphne Road, Trillium Heights was built in 1989 and renovated in 2011; currently it's 96% occupied. James says Trillium Heights will be a strong long-term performer, especially as the Harrison Medical Center expansion is completed and retail offerings are enhanced around the Kitsap Mall. The deal is JRK’s second investment in the Puget Sound. Earlier it acquired Boulders at Puget Sound, a 714-unit community in Tacoma.