Over the last 30 days, HFO Investment Real Estate brokered the sale of Westview Heights Apartments in Beaverton for $29.5 million, the Riverside Villa Apartments in Milwaukie for $2,495,000 and the Cinnamon Lakes Apartments in Salem for $3,445,000.
Westview Heights is an “A” quality institutional grade community built in 2002 and consisting of 198 units. This garden-style apartment complex located along the Sunset Corridor is a condo quality complex with an average unit size of over 1,400 square feet with attached garages and full-size washers/ dryers. Westview Heights sold for $29,500,000 or $149,000/door with a cap rate of 6%. The seller was Westview Keys Pacific LLC of Portland; the buyer was California real estate firm Kennedy Wilson. The Buyer assumed an above-market interest rate loan with low leverage. The Buyer plans to remodel unit interiors on turnover and capitalize on the rent growth in this market. “This is a unique opportunity for the buyer to acquire a solid condo quality project in a location which will capitalize on the continued increased demand for rental units,” said HFO partner Cody Hagerman.
The Cinnamon Lakes Apartments in Salem were built in 2005 and consists of 42 units on a low-density 4.25 acre parcel – most with lake views. Units include washers/dryers, bamboo hardwood floors, private decks and patios, a park-like walkway along the lake and assigned carport parking. The sale price of $3,445,000 represents $82,024 per unit and a cap rate of 6.27%. The seller was QA Enterprises Inc. of Salem and the buyer was LB LLC of Portland. This sale was another example of investors looking for quality assets to place their investment dollars.
Riverside Villa Apartments in Milwaukie is 37-unit apartment community built in 1975 on almost two acres. These 15-townhouses and 22 flats have easy access to I-205. The Milwaukie area was pegged with an average 2.9% vacancy rate in last month’s Metro Multifamily Housing Association survey. The Riverside Apartments has a pool, picnic and BBQ areas and sold for $2,495,000 or $67,432 per unit at a cap rate of 7.31%. The Buyer is planning on putting in new windows and doors at the property. P. Rorex and J. Sandoval of Los Angeles sold the property to a Portland area buyer for all cash.