TUALATIN, OR - Security Properties purchased River Ridge, a Class A multifamily property located in Tualatin, OR for $70,000,000. Security Properties now owns 11 assets totaling over 2,800 units in the Greater Portland MSA.
River Ridge was delivered in two phases from 2015 – 2017 and consists of 180 units spread out across 14 residential buildings and approximately 9 acres. The residential units are a mix of one, two and three-bedroom floorplans with an average unit size of 977 SF.
The property is located within the outlying suburbs of the Portland Metro in the highly desirable suburb of Tualatin, OR. Throughout the last 10 years, the City of Tualatin has been one of the fastest growing cities in Oregon. However, unlike many other sprawling regions, Tualatin continues to maintain a high standard of living, yet remains an affordable place to locate a family. Additionally, families are drawn to live within the highly ranked Tigard-Tualatin School District.
Tualatin rests amid the Tigard, Beaverton and Lake Oswego submarkets, each offering unique drivers pulling people out of the city and into the suburbs. Tualatin offers a host of attractive retail options, notably Bridgeport Village, an open-air, high-end fashion and lifestyle shopping center consisting of ~500k SF. Beaverton is nationally recognized as the home to Nike's Global Headquarters (~12k employees) and a large portion of the region's STEM (science, technology, engineering, math) employers. Lake Oswego is arguably the most sought after suburb in the Portland MSA with median household income exceeding $109k and home values in excess of $930k.
The business plan is a core-plus investment with moderate upgrade characteristics. While the asset currently offers a best-in-class amenity package and well-appointed living units, Security Properties has identified several opportunities to further emphasize these strengths.
According to Alex Gauper, Director at Security Properties, "River Ridge is a strong example of our investment thesis of identifying well-located, new-construction assets in markets with a diverse mix of stable drivers. We feel that we have the best asset in a submarket with very limited historical supply and strong demand for high quality product. We are very excited to add River Ridge to our greater Portland portfolio and look forward to delivering strong returns to our investors over our hold."
Jared Lazarus, Managing Director at Oaktree, added, "We are excited to continue our strong partnership with Security Properties through the acquisition of River Ridge. We believe the property presents an attractive opportunity for Oaktree to acquire a Class-A, newly-built multifamily asset in an extremely supply-constrained submarket of Portland where the continued migration towards suburban locations will greatly benefit the asset."