A recently constructed 30-unit apartment complex in Spokane changed hands last month, indicating growing investor demand for completed multifamily projects, says Bryan Walker, land development and investment specialist at Spokane-based NAI Black.

River City Apartments, located north of the Spokane River and about a mile southeast of Gonzaga Preparatory School, at 2513 N. Regal, was purchased by 2513 N Regal Apartments LLC, of Spokane, for $5.95 million in April, Walker says.

Ryan Towner and Dallas Lightner, co-owners of Spokane-based LT Real Estate LLC and LT Property Management LLC, are the purchasing company’s managing members, Walker says.

LT Property Management is managing the property, according to the River City Apartments website.

Walker represented the seller, River City Homes 1 LLC, in the transaction. The company is governed by Spokane Valley-based Kodiak Management LLC, which also governs Kodiak General Contracting. Kodiak Management and Kodiak General Contracting both are owned by Conrad Manfred, the Journal previously reported. 

Kodiak General Contracting developed the apartments in 2022, Walker says.

Multifamily investors are increasingly interested in newly constructed properties that require less work to rent out, Walker contends.

“Buyers are being a little bit more cautious, so they're looking for properties that are a little bit nicer, that don't require a lot of work, don't require a lot of upkeep there, and that are full or near full,” he says. “Buyers are looking for all that, and they're looking for a good cap rate and a good return.”

Walker says construction has become more expensive in Spokane over time so he expects to see less new starts and more existing property sales in the future. 

“The longer-term players are looking at (multifamily housing) as long-term investments, and they'll look at it as going through the cycle of the political environment, because it ebbs and flows in favor of landlords or tenants,” he explains. “You’ll see the solid investment buyers buy at a good cap rate that they need in order to see a good return.”

River City Homes 1 currently owns a 3-acre vacant parcel of land directly west of the apartment complex, according to Spokane County Assessor’s Office records.