Owner’s vast Lakewood property selloff over 2 years clears way for housing near transit
It took a few years, but a real-estate firm representing a Lakewood landowner recently announced the sale of remaining parcels among nearly 30 acquired over the years with an eye toward multifamily development.
Commercial property broker Berkadia said the five separate transactions of bundled parcels to different owners generated more than $9.1 million in sales.
The seller represented by Berkadia is an LLC affiliated with Steve Borman, CEO of Keystone Masonry, Inc.
The properties are all close to Lakewood Station and had been purchased through the years as prime sites for apartments and townhomes.
“Even though the development market has been slow the last few years, we see that well-located sites near transit stations continue to drive a premium in the marketplace,” said Mitchell Belcher, managing director at Berkadia, in a statement.
As a result, the separate sites are set to see hundreds of units across 8.8 acres, according to available project details from Berkadia and the City of Lakewood. They are:
▪ Lakewood Station Apartments: 11419 Kendrick St. SW. Site sold in July 2022 for just over half-million dollars to an LLC affiliated with private developers. Project includes 15 units — a mix ranging from studios to three-bedrooms.
▪ Lakewood Apartments (formerly known as Kendrick Landing): 4610 114th St. SW. The more-than 4-acre property sold in November 2023 for $5 million to LLC affiliated with Devco Residential, based in Washington, D.C. The project calls for 245 units with 100% rent-restricted at 60% AMI; currently under development.
▪ Kendrick Townhomes: 11110 Kline St. SW. Site sold in June 2024 for $1.6 million. The owner LLC is affiliated with the same development team that has announced plans for new townhomes in Tacoma’s West End (Harman Construction in partnership with Fulcrum Development). Project includes 44 market-rate townhome units in a campus-style development across nine separate buildings. The project in October was approved for an 8-year multifamily tax exemption.
▪ Kendrick Street Apartments: 11014 Kendrick St. SW (as indicated in county sales records). Site sold in May 2022 for $829,000 to a local builder’s LLC. Berkadia says the proposed project would include 11 townhome-style units across two three-story buildings and is undergoing a design review. No formal application has been filed, according to the city.
The final set of four parcels, 4400 111th Street SW., was recorded being sold at the end of October for $1.2 million to a local investor/developer. According to Berkadia’s project details, no pre-applications have been submitted for the site, though zoning does allow for development of more than 50 units. The property currently is home to existing multifamily properties, according to Berkadia.
Collection of sites took decades
In statements sent to The News Tribune accompanying Berkadia’s portfolio information sheet, Borman explained that his business first set up shop in 1992 on a leased parcel at Kendrick Street Southwest in Lakewood.
He further explained that he eventually purchased the property “with a vision of the Lakewood Station being across the tracks on Pacific Highway south, which would create the opportunity for a new residential development on Kendrick Street.”
He added that for the past 27 years, he purchased a total of 28 parcels “within several blocks of Kendrick Street, all with the idea of developing it into a multifamily community.”
Ultimately, Borman said, he decided to sell “when the time was right” and to move his business to Puyallup.
The Berkadia team, led by Belcher, Jay Timpani and Brandon Lawler, handled the Lakewood portfolio and broke the parcels into smaller groups “to help maximize the total value and make a bigger impact on the neighborhood,” Borman stated.
“I am excited to see the long-term transformation near the Lakewood transit center in the years to come,” he added.
Lawler, Berkadia senior director, was optimistic about the number of new units.
“We expect over 300 units to be delivered to the market in the form of apartments, townhomes, and affordable multifamily units,” he stated.
This story was originally published December 5, 2024 at 1:56 PM.
