PORTLAND, OR — Atlanta-headquartered ARA, the largest privately-held, full-service investment advisory brokerage firm in the nation focusing exclusively on the multihousing industry, is pleased to announce the sale of The Preserve, a 135-unit class B community located in Oregon City, Oregon.
ARA Portland-based Principal, Gail Neuburg, represented the seller, FPA MultiFamily, LLC, a real estate investment firm headquartered in San Francisco, California, in the transaction. The property was acquired by a joint venture between Objective Real Estate Partners, LLC, a private investment firm, based in Mill Valley and Los Angeles, California, and OpenPath Investments, based in Kentfield, California. Both firms focus on the multifamily sector in Western U.S. markets. The asset sold for $16,025,000, $118,704 per unit, or $136 per NRSF and was 98% occupied at the time of sale.
Constructed in two phases and completed in 2004, The Preserve is situated in Oregon City, Oregon, just 13 miles southeast of downtown Portland, offering residents easy access to both employment and recreation. The highly visible community sits directly on Highway 213, one block from Clackamas Community College, which has a current enrollment of over 37,500 students and approximately 400 employees.
“The Preserve’s Oregon City location has a significant undersupply of quality housing and has experienced some of the highest rent growth and lowest vacancy in the Portland MSA. This factor, combined with FPA’s exceptional management of the property, contributed to the property’s high-occupancy and extremely stable operating history, making this a very desirable investment,” commented Gail Neuburg.
The acquisition was financed through ARA’s debt platform via Freddie Mac and by ARA Finance’s Seattle Office.
To schedule an interview with an ARA executive regarding this transaction or for more information about ARA, nationally please contact Lisa Robinson at lrobinson@ARAusa.com, 404.990.4900 or Amy Morris at amorris@ARAusa.com, 404.990.4902; locally, Gail Neuburg, at gneuburg@ARAusa.com or 503.575.9550.
To reach Objective Real Estate Partners please contact Rich Ross at 415.888.8039 or rich@objectiverep.com. To reach OpenPath Investments, please contact Peter Slaugh at 415.454.8002 or peter@openpathinvestments.com.
About ARA: Atlanta-headquartered ARA is the largest privately held, full-service investment advisory firm in the nation that focuses exclusively on the brokerage, financing and capital sourcing of multihousing properties including conventional, affordable, distressed assets, notes sales, seniors, student & manufactured housing and multihousing land. ARA is comprised of the country’s top investment professionals who leverage a unique and fully integrated cooperative business platform of shared information, relationships and technology driven solutions. ARA’s unified enterprise approach ensures that clients are delivered the broadest asset exposure, effective matching of buyers and sellers, and the shortest transaction timeframes in the industry. The combination of resources, unparalleled market expertise and nationwide presence in the multihousing marketplace has resulted in an annual production volume of more than $10.2 billion in real estate transactions in 2013. For detailed information on ARA’s extensive multihousing investment services, visit www.arausa.com.
About FPA Multifamily: FPA Multifamily is a private equity real estate firm focused on the acquisition, renovation and management of both core plus and work force housing apartment communities. Founded in 1985, FPA has owned over 70,000 apartment units valued at over $5 billion. FPA is currently investing its fully discretionary Multifamily Fund IV that will acquire approximately $1.3 billion in apartment properties. Headquartered in San Francisco, FPA also has offices in Newport Beach, Portland, OR, Denver, Dallas and Atlanta. For more information please visit www.fpamf.com.
About Objective Real Estate Partners: Objective Real Estate Partners, LLC capitalizes on private market real estate investment opportunities in California and other west coast markets, primarily in the multifamily sector. OREP’s founding principals, Rich Ross and Frank Iaffaldano, each bring over 25 years of direct industry experience to the venture. The hallmark of OREP is integrity. OREP believes that multifamily investments offer excellent risk-adjusted returns and a relatively-safe haven in the current macro-economic environment while providing hedging opportunities against both inflation and deflation. OREP was founded to provide an experienced and skilled multifamily investment platform that presents the opportunity for institutions and high net worth individuals to invest in quality, value-added real estate. For more information please visit www.objectiverep.com.
About OpenPath Investments: OPI has actively invested in multifamily acquisitions for more than a decade and promotes a “whole property stewardship” approach to its investing that has the added benefit of increasing the bottom line. Having traded in and out of more than 2,100 apartment units, with a total acquisition value of $164 million and a historical IRR of 15%-20%+, OPI’s current apartment complex investments are valued at more than $170 million. OPI currently focuses on multifamily assets in the $15-75 million range in Western U.S. markets and targets 15%-20% returns for investors. For more information, please visit www.openpathinvestments.com.