PORTLAND, OR – Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has closed the $6.633 million sale of and secured $5.3 million in financing for Woodland Park Estates, a 74-unit multi-housing community located in Portland’s Gateway neighborhood.
HFF marketed the property on behalf of the seller, Rael Development Corporation (“Raelcorp”). Trion Properties purchased the asset free and clear of existing debt and plans to perform an extensive renovation and repositioning strategy with the property. HFF also worked on behalf of the buyer to secure an 80 percent LTV, seven-year, floating-rate loan through Freddie Mac’s (Federal Home Loan Mortgage Corporation) CME Program. The securitized loan will be serviced by HFF through its Freddie Mac Program Plus® Seller/Servicer program. HFF previously worked with Raelcorp to secure a fixed- rate loan to purchase the property in 2011.
Woodland Park Estates is located at 1820 NE 104th Avenue, approximately one half of a mile from the entrances to Interstates 205 and 84 and eight miles northeast of downtown Portland. Situated on three acres, the property has two- and three-bedroom units averaging 962 square feet each. Property amenities include a swimming pool, community common area, resident parking and on-site laundry facilities. The property is currently 98 percent leased.
The HFF investment sales team representing Raelcorp was led by associate directors Nick Klein and Tyler Linn.
HFF’s debt placement team representing Trion Properties was led by managing director Mark Wintner.
“This process started with a complicated loan assumption but with the help of our experienced debt team, along with the cooperation of both the buyer and the seller, we were able to source new financing and execute a smooth and successful transaction with results that met the needs of both parties,” said Wintner.
About Rael Development Corporation: Rael Development Corporation (“Raelcorp”) is a privately-held real estate company specializing in the development, investment and management of commercial real estate. Founded in 1977, the firm has acquired and developed an array of trophy properties in select markets across the country. The company is guided by its experienced senior leadership along with a dedicated staff of veteran real estate professionals. Raelcorp targets properties in the student housing, multifamily, hospitality and retail sectors and maintains offices in Newport Beach, California and Dallas, Texas.
About Trion Properties: Trion Properties focuses on maximizing investor returns by increasing net operating income throughout the holding period through a hands-on management style of heavy renovation and aggressive lease-up. Since its inception in 2005, Trion has generated an average internal rate of return in excess of 30 percent. Trion Properties is a private equity investment company, which acquires opportunistic real estate investments that need moderate to heavy rehab on a mid- to long-term investment horizon. Founded in 2005, Trion has successfully closed more than $100 million in transactions through either the purchase of the fee-simple interest or taking ownership of the asset through acquiring the nonperforming debt. Trion Properties is managed by principals whose combined experience spans over 20 years in West Coast real estate markets and in excess of $1 billion in transactions.
About HFF: HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 22 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.