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7/07/17
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Trion Properties has acquired Bel Aire Court, a 67-unit apartment community in the Portland submarket of Beaverton, OR, for $9.2 mil ($137.3k/unit). This purchase brings the firm’s multifamily portfolio in the area to a total of 282 units.
Built in 1961, Bel Aire Court is located at 12020-12275 Why Worry Lane. The garden-style community encompasses 15 buildings on 16 parcels, located within close proximity to the OR-217 freeway.
Trion Properties plans to implement light value-add renovations as units turnover and address deferred maintenance items. Exterior renovations will include fresh paint, and interior upgrades will include new cabinetry, stainless steel kitchen appliances, and new Formica counters.
This acquisition reflects Trion’s strategy of building a portfolio along the 217 Fwy, which many residents take to commute to work throughout the Portland metro. The property is also just 1.5 miles away from several MAX Blue Line stations, providing residents with easy access to Downtown Portland, East Portland and Hillsboro.
At nearly full-occupancy, Bel Aire Court benefits from immediate cash flow and significant upside on recent leases and renewals, according to Max Sharkansky, Managing Partner of Trion Properties, who notes that the asset’s in-place upside will mitigate downside risk. The property boasts historically high retention rates exceeding 90 percent, delivering long-term stability and strong net operating income.
Jordan Carter, Clay Newton, and Tyler Linn of Kidder Matthews represented the buyer, while Brian Dirks of Nicolan represented the seller in the deal. Continental Partners arranged a $6.4 million loan to finance the acquisition. The five-year, fixed-rate loan was priced at 3.95%.
“The Portland metropolitan area is one of the strongest and fastest-growing multifamily markets in the nation right now,” says Sharkansky. “The region’s rapid job growth, solid economic fundamentals, and high quality of life are driving resident demand for housing in this market, resulting in long-term growth potential for multifamily investments.”
Sharkansky notes that Portland, also known as the “Silicon Forest,” boasts one of the most dynamic tech employment centers in the Pacific Northwest, with major tech giants such as Yahoo!, Salesforce, and Squarespace taking up residence here. In addition, the Portland metro has solidified its reputation as the sports apparel capital of the nation, with major brands such as Nike and Columbia Sportswear headquartered in this market.
“We continue to view Beaverton, located just seven miles outside of downtown Portland, as a submarket with strong growth fundamentals,” explains Sharkansky. “Nike is currently undergoing a 3.2 msf, $380 mil expansion of its headquarters, and is anticipated to add thousands of new jobs over the next few years. Further, Beaverton’s strong history of rent growth, coupled with pent-up demand, translates to tremendous upside potential for this asset over time.”
Despite an uptick in new multifamily construction, Beaverton remains a supply-constrained market, with sub-2.8% vacancies indicating sustained resident demand. Beaverton’s solid economic drivers, affordability, and income growth have created favorable fundamentals, making it one of the strongest performing submarkets in the Portland metro.
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