Multifamily Sales Remain Strong in Portland Market

Multifamily Sales Remain Strong in Portland Market

PORTLAND, OR - HFO Investment Real Estate announced recent sales of apartment investment properties in excess of $23 million. HFO recently sold The Meridian in Salem for $8.5 million, Hawthorne 44 in SE Portland for $5.5 million, Tamarack Village in Vancouver for $2.875 million, Griffin Court on SE Division for $1.589 million and Brackney Estates in Beaverton for $4.975 million.

The Meridian, a 6 story mixed-use project in Salem Oregon (45 miles south of Portland), was substantially completed in 2009. The sale of this bank-owned property involved 85 of the 89 residential units (4 condo units were not sold) and six commercial condos spaces totaling 15,000 square feet for $8.5 million. The Meridian was built to a standard unparalleled in the Salem marketplace. Its exceptional construction and spectacular front entrance waterfall are reflective of the high quality materials used throughout the building. HFO's experience in the Salem market and relationships with investors capable of completing construction on the upper three residential floors of this project enabled the firm to generate a substantial amount of interest from potential buyers. The bank was not interested in staying in the project longer than necessary and HFO was able to find a buyer who could close a sale quickly. “This is an example of HFO sourcing a local buyer with the construction background to complete the project,” said HFO Partner Rob Marton. “The new owner has experience in multifamily, commercial and retail and will finish the interiors and stabilize the property to bring this stunning property to completion.” The Meridian was purchased by Meridian Investors of Vancouver, Washington.

HFO represented the parties in the $5.5 million all-cash sale of Hawthorne 44, a 27-unit property built in 2009. These unique apartments offer condo-quality construction with over-sized units and high-end finishes in the desirable close-in SE Hawthorne District. Unit amenities include Gas fireplaces, Cherry hardwood floors, Granite countertops, oversized walk-in closets and in-unit washers and dryers. HFO's ability to source both institutional and private capital helped bring an excellent price for the seller -- a 5.5% cap rate and a price-per-unit of $203,704. The seller was a San Diego investment fund and the buyer was The Willamette Company of Eugene.

Tamarack Village in Vancouver consists of 41 apartments, a mix of one, two and three-bedroom units. This property was in need of a massive management upgrade and capital improvements. The average unit price was $70,122. HFO was able to source a buyer through our extensive network of relationships who understood the value add component of this transaction. HFO told the story of the Vancouver marketplace and the upside available on this underperforming asset. The seller was Day Hilborn and the buyer was T. G LLC out of the Seattle area. HFO Investment Real Estate represented the buyer. Tamarack Village sold for $2,875,000.

Brackney Estates in Beaverton is a 1998, 39-unit townhouse style property made up almost entirely of 3-bed 2.5 bath units of approximately 1,500 sq. ft. The average unit price was $127,564. Built to condo-quality standards, the seller was a local developer and the buyer was an investor from California interested in high quality product. Using its network of client investors, HFO positioned the property to show the value to investors, sourcing out-of-state money able to satisfy the unique needs of the seller. HFO represented the parties in this $4.975 million transaction.

HFO represented parties to the sale of Griffin Court, on SE Division Street in Portland. This 27-unit property, mostly 2 and 3-bedroom units, sold for $1,589,000 or $58,852 per unit. The seller was a Palm Springs, CA investor and the buyer was Comfort Origin LLC of Vancouver, Washington. The HFO team was able to find a buyer who understood the nuances of a 1970s apartment complex and who could adhere to the sellers’ tight time frames due to their 1031 exchange requirements.

Source: HFO Investment Real Estate / #Multifamily #Apartments

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