PORTLAND – 2016 is off to a fast start for the Portland Oregon Apartment market, a real estate investment group based in Singapore recently purchased an apartment complex in the Pearl district for a record-setting price.
Mapletree Group, based out of Singapore, purchased The Janey, located at 1155 NW Everett St, Portland, OR 97209 for over $40 million dollars, a price of close to $650 per square foot.
Mapletree Investments Pte Ltd (Mapletree) is focused on delivering value to its stakeholders through its asset-light business model that maximises capital efficiency. In executing a business strategy that combines the roles of real estate development, investment and capital management, Mapletree has generated consistently high returns to its stakeholders, and established a track record for building award-winning development projects across various real estate classes.
To date, Mapletree’s assets under management which is in excess of S$30 billion span office, logistics, industrial, residential, corporate lodging/serviced apartments and retail properties. Presently, Mapletree manages four Singapore-listed real estate investment trusts (REITs) and six private real estate funds, which hold a diverse portfolio of assets in Singapore and Asia. Outside of Asia, Mapletree is strengthening its global presence in markets such as Australia, Europe and the US.
Source – Mapletree.com
About The Purchase
The Janey has over 100 studio, and one-bedroom apartment units, close to 70 parking spaces and up to 5000 square feet of retail space on the ground floor.
There’s no doubt that this building is considered to be prime Portland Oregon real estate because, it enjoys a mixture of residential and commercial space in a thriving neighborhood and will without a doubt be a Portland Oregon apartment complex that’s going to be a thriving investment for the buyer for many years to come.
Fast Moving Apartment Market
Portland Oregon apartments have been highly desired by investors over the last year and by October 2015 the Portland multifamily market had already surpassed the all-time high of over $1 billion in acquisitions and was set to reach a pace of $2.1 billion in sales on over 200 properties for 2015.
What’s been driving the fast-moving Portland Oregon apartment market? The mad push in sales can be traced back to increasing rents and historically low inventory of vacant apartments across Portland, both of these factors have made Portland almost irresistible for investors to not jump at the chance to buy Portland Oregon Apartment buildings whenever they come up for sale.
Not Wanting To Sell, But….
In Real Estate there’s no denying that cash is king and, when the former owners of The Janey apartment complex in Portland saw that an office building in the Pearl District recently sold for $500 per square foot, they decided to change their mind on holding onto the property and sold it to Mapletree Group.
What’s next for the Portland Oregon Apartment Market?
2015 was a record setting year for the Portland Oregon apartment market and one of the consistent things we saw was month over month rent increases. 2016 is expected to be a similar year where rent increases are predicted to continue accelerating at a similar pace but without the “froth” that we saw in 2015 thanks to recent action by the city Council which requires landlords to give their tenants a 90 day notice that their rents are going to be increased.
Portland Oregon is predicted to continue being one of the top cities in the nation for rent increases with an increase of at least 5% predicted for this year while the rest of the nation is expected to see an increase in rents of at least 6.5%.
Will the current housing crisis continue and rental properties be more unaffordable than ever before and harder to come by?
Yes Portland is taking some measures right now to slow the housing crisis but with a recent lawsuit from a local company to stop the city’s 90 day notice for no cause requires landlords to provide their tenants with at least 90 day notice and tell their rent is going up it’s increasingly more likely by the day that big business will when in the end over the consumer unless State lawmakers tackle the issue of before the housing crisis in upcoming 2016 legislative session.
With the state of Oregon surpassing 4 million people in the month in November alone, and more people relocating to Oregon every day the 2016 legislative session couldn’t come fast enough as real solutions need to start being put into place now to stop the housing crisis or it’s looking increasing likely that we can expect more of the same in 2016.
Source – rentportlandhomes.com
Why Do Renters Continue To Choose Portland Oregon?
There are many reasons why renters, especially millennials, continue to choose Portland Oregon as their top relocation destination.
Some of the reasons why people continue relocating to Portland include the fact that Portland is still considered to be one of the top technology and intellectual “hubs” for people of all ages in the United States while other cities including Sacramento and Austin are considered to be comparable relocation destinations for people who are looking for the best jobs and areas to raise their families
Vancouver WA Tops Portland in Rent Growth
The growth of Portland Oregon’s rental market over the last year has been shocking for sure but, Portland is certainly not alone when it comes to rent increases because, Vancouver Washington is actually leading the nation in rent increases because the city saw in increasing rents of close to 17% in the last year.
Two-bedroom apartments in Portland now rent for an average of $1,530, according to Apartment List, a fast-growing company based in San Francisco. Two-bedroom units in Vancouver, Wash. rent for an average of $1,100.
The average national rent increase in the last year was 3.6 percent for one-bedroom units and 2.6 percent for two-bedroom units, according to the report.
San Francisco had the highest rents in the nation in December, with two-bedroom units averaging $4,610.
Seattle had the eighth-highest rents in the nation, at $2,200.
Source – Portland Tribune
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