The Orchard Hills apartment complex in south Richland has been sold to a California buyer for $7.95 million, announced Hendricks & Partners on Tuesday.
It's the third apartment sale in the Tri-Cities to California buyers that Hendricks & Partners has negotiated this year, said Phil Oester of the company's Portland office.
Built in 1994, Orchard Hills has 142 apartments, ranging in size from one-bedroom to four-bedroom units. It was developed as low-income housing and continues to be restricted to renters who meet income qualifications.
The unit was sold by Orchard Hills ICG, a Washington limited liability company of Seattle, to Strata Orchard of San Diego, Calif., after being on the market for about two months.
The complex fit the size the buyers were looking for and offered attractive income potential and cash flow, he said. Most of the buyer's assets are in California, and Orchard Hills, at 1845 Leslie Road, is its only asset in the Tri-Cities.
Although the sale occurred at the same time as Hanford layoffs due to the end of federal economic stimulus spending, the layoffs have little effect on low-income housing.
Hendricks & Partners also negotiated the sale of The Villas at Meadow Springs at 250 Gage Blvd., Richland, in July, and the Tapteal Apartments on Columbia Park Trail in Richland in February to California companies.
The complexes offered excellent cash flow and a higher return on investment than can be found in many areas of the West Coast, Oester said. The Villas and Tapteal Apartments offered a combination of reasonable sale prices plus the potential for high occupancy and rents, in exchange for a somewhat riskier rental market than in large cities.
The Tri-City apartment market tends to be counter-cyclical to much of the West Coast. For instance, in July rents were higher in the Tri-Cities than in the Portland suburbs, Oester said.
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