PORTLAND, OR - Investors Management Group, Inc. (IMG) today announced the sale of The Orion, a 15-story, 168-unit multifamily high-rise in downtown Tacoma, Washington for $30.24M.
Prior to IMG’s acquisition in 2014, the property suffered from decades of deferred maintenance and poor management; occupancy and rents were substantially below market as a result. During its ownership period, IMG’s Asset Management group directed renovations of all unit interiors, incorporated water and energy-saving features, and substantially enhanced the community amenities set.
Orion was elevated from a value-add to a core-plus asset under IMG’s ownership. Today’s sale marks an asset value substantially above all-in cost as the strategic purchase, expert management, eye for design, and favorable market resulted in attractive returns to IMG investors.
“The success of this project was driven by IMG’s signature ‘IPA’ multifamily acquisition strategy,” said IMG President & CEO, Neil Schimmel. “That is, we purchased the property at an attractive price point in a dynamic location—Tacoma is undergoing an impressive renaissance—and we offered competitive leasing rates for Stadium District renters.”
IMG owns and operates a $75M portfolio of multifamily properties in the Pacific Northwest. Investors Management Group purchased The Orion [formerly Commencement Terrace] in 2014 as the sponsor of a tenancy in common syndication with three co-investors.
“Orion’s multimillion-dollar face-lift received positive attention from the local news and Tacoma Police Department,” said Schimmel. “We modernized apartment and penthouse interiors and added a 1,500-square-foot luxury community lounge, a rooftop terrace, state-of-the-art fitness center, yoga room, movie theater, barbecue and fire pit area and distinguishable rooftop LED lighting. Our ultimate goal here was to improve the sense of community, and we succeeded.”
The sale was brokered by Kenny Dudunakis, Ben Johnson, and David Sorensen of Berkadia.