Bremerton Gardens apartments sell for $13M

A Los Angeles-based real estate company purchased the Bremerton Gardens apartments for $13 million, according to a Friday news release.

The 20-acre, 182-unit Parkside Drive complex was listed for sale two years ago. The transaction closed Monday, according to public documents.

The buyer, New Standard Equities, plans to spend $3.5 million upgrading the grounds and World War II-era buildings.

Planned improvements include new paths, signage, landscaping and gazebos. New façades will “evoke the vibe of a 1940s village,” according to the release. Interior updates will include hardwood flooring, new cabinetry, appliances, paint and countertops.

New Standard Equities executives were attracted to Bremerton’s strong military employment base.

“Furthermore, this property is in a prime, irreplaceable location, offering residents beautiful, unobstructed views of Puget Sound,” CEO Edward Ring said in the release. “It is also near great dining and entertainment, and a short walk to the ferry.”

Bremerton Gardens includes 113 one-bedroom apartments, 63 two-bedroom apartments, five three-bedroom apartments. The complex is served by 242 parking spaces and features a laundry center and dog park.

Redwood-Kairos Real Estate Partners supplied joint venture equity for the transaction, according to the release. Freddie Mac provided financing through CBRE, and Jim Jensen and Kenny Dudunakis of Berkadia represented both buyer and seller in the sale.

Bremerton landlords are enjoying a hot rental market this year. The apartment vacancy rate for Bremerton was about 2.6 percent at the end of 2015. The average apartment rent in Kitsap increased 15 percent in 2015, according to Apartment Insights Washington.

Bremerton Gardens wasn’t the first major apartment complex to change hands this year. In January a Seattle real estate firm bought Bremerton’s Admiral Manor apartments for $5.83 million.