By Property Management Systems – Portland’s leading resource for rental news.
There’s no denying that 2015 was a big year for the Portland Oregon Real Estate market since we saw some of the fastest rent increases across the United States but besides rent increases we also saw many institutional investors pour their money into Portland so they could get a piece of the Real Estate market.
In this post we will look back at 2015 and some of the biggest transactions to take place in Portland then look forward to see what we can expect for 2016.
$2.3 Billion in Multi-Family Sales
Last summer was busy for the Portland Oregon Real Estate market and by the end of summer we had already seen over $1 billion in multi-family sales. Shockingly there were still 3 months left to go in the year and by the end of 2015 we have over $2 billion in sales for the multi-family market.
What can we expect for 2016? Many Real Estate investors any analysts feel that we can expect more of the same in the multi-family market for this year as institutional investors will continue to put their money into Portland Oregon multi-family properties in spite of recent changes which include the city council requiring landlords to give their tenants a 90 day notice that their rents will be increases.
Biggest Multifamily deals for 2015:
Sofi apartments, Lake Oswego
Address:15000 Davis Lane
Sale price: $15.5 million, up from a previous sale price of $7.4 million in 2012, according to Clackamas County
Number of units: 82
Price per square foot: $209.23
Current owner, according to Clackamas County: A limited liability company associated with Pacific Urban Residential, a California- and Seattle-based apartment investor
Previous owner, according to the county: A limited liability company associated with another California-based real estate investment firm, Fowler Property Acquisitions
Year built: 1987
The Parker apartments, Portland
Address:1447 N.W. 12th Ave.
Sale price: $63.5 million
Number of units: 177
Price per square foot: $309.72
Buyer: Undisclosed
Previous owner, according to public records: A limited liability company associated with the building’s developer, Robert Ball
Year built: 2014
Mint Urban River place apartments, Portland
Address:2083 S.W. River Drive
Sale price: $97.2 million (this was the largest single multifamily sale of the year on this list)
Number of units: 290
Price per square foot: $324.13
Buyer, according to the Portland Business Journal: Portland-based NBP Capital
Previous owner: Riverplace Apartments LLC and Cardinal Group Investments, a Denver-based real estate investor
Year built: 1998
Museum Place apartments, Portland
Address:1010-1030 S.W. Jefferson St.
Sale price: $59.5 million
Number of units: 140
Price per square foot: $385.57
Buyer, according to public records: A limited liability company linked, via a New York-based subsidiary, to Switzerland’s Zurich Insurance Group
Seller, according to public records: A limited liability company linked to Boston-based AEW Capital Management
Year built: 2003
Burnside 26 apartments, Portland
Address:2625 E. Burnside St.
Sale price: $41.5 million
Number of units: 135
Price per square foot: $436.84
Buyer, according to public records: A limited liability company associated with BlackRock, a New York-based investment firm
Seller, according to a previous story in The Oregonian/OregonLive: A joint venture of Capstone Partners and Green Light Development, both of Portland, and Premium Property USA, a subsidiary of a Swiss company
Year built: 2014
Cordelia apartments, Portland
Address:777-808 N.W. 19th Ave.
Sale price: $47.8 million
Number of units: 135
Price per square foot: $442.13
Buyer, according to a previous story in The Oregonian/OregonLive: Retirement provider TIAA-CREF
Seller: Texas-based developer Mill Creek Residential
Year built: 2014
The Janey/Oakwood Portland Pearl District apartments, Portland
Address:1155 N.W. Everett St.
Sale price: $45 million
Number of units: 112
Price per square foot: $647 (a Portland record)
Buyer, according to a previous story in The Oregonian/OregonLive: Singapore-based Mapletree Group, a real estate investment firm that is in partnership with Los Angeles-based Oakwood Worldwide
Seller: Portland’s Columbia Investments and Washougal-based Lone Wolf Investments
Year built: 2012 (second phase completed in 2015)
Source – Oregon Live
Portland Oregon Office Market
Besides the busy year the Portland Oregon Multi-Family market saw we also experienced considerable action in the office market where many of the most well-known buildings and office towers in Portland including KOIN Center and the U.S. Bancorp Tower were sold.
In 2016 many analysts predict that the office market will continue to favor owners because of low inventory and rising rents across Portland.
Here’s a synopsis of some of the biggest multi-family deals we saw across Portland Oregon in 2015:
The Overton Pearl
Address: 1455 N.W. Overton St.
Sale price: $30.9 million
Price per square foot: $498.60 (this is the largest price paid per square foot on this list)
Buyer: Empire Square Group, a New York private equity firm
Seller: WDC Properties
Year built: 20112100 River Parkway
Address:2100 S.W. River Parkway
Sale price: $35.4 million
Price per square foot: $367.21
Buyer: BDC Advisors
Seller: CalSTRS (the California teachers’ retirement system) and Clarion
Year built: 1995White Stag Block
Address: 24 N.W. First Ave.
Sale price: $42.6 million
Price per square foot: $309.69
Buyer: University of Oregon Foundation
Seller: Venerable Properties
Year built: 2008The Everett Building
Address:121 N.W. Everett St.
Sale price: $47.3 million
Price per square foot: $442.06
Buyer: Northwest Evaluation Association
Seller: Washington Holdings
Year built: 1999One Pacific Square
Address:220 N.W. Second Ave.
Sale price: $48.5 million
Price per square foot: $202
Buyer: Menlo Equities
Seller: Ashforth Pacific/GE Capital
Year built: 1983CH2M Hill Center (formerly the Parkside Center)
Address:2020 S.W. Fourth Ave.
Sale price: $55 million
Price per square foot: $248.83
Buyer: Goldman Sachs & Co.
Seller: Parkside Center Associates/Wayzata Capital
Year built: 1982KOIN Center
Address:222 S.W. Columbia St.
Sale price: $88 million
Price per square foot: $247.40
Buyer: ScanlanKemperBard/Prudential
Seller: APIC
Year built: 1984Block 300
Address:308 S.W. Second Ave.
Sale price: $155.3 million
Price per square foot: $424.70
Buyer: Prudential
Seller: Starwood & Kaufman Jacobs
Year built: 1991U.S. Bancorp Tower (“Big Pink”)
Address: 111 S.W. Sixth Ave.
Sale price: $372.5 million (a Portland record)
Price per square foot: $338.42
Buyer: TPF Equity REIT – a real estate investment trust associated with UBS Global Real Estate, a Connecticut-based institutional real estate manager
Seller: LaSalle Income & Growth Fund V
Year built: 1983
Source – Oregonlive
Learn More about the Portland Oregon Real Estate Market
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