(Brian Miller is on vacation.)
PORTLAND, OR-In what is being tauted as the highest price ever paid for an apartment complex in the state of Oregon, AvalonBay Communities of Alexandria, VA has sold the 497-unit Avalon Palladia Apartments in Hillsboro for $51.25 million.
Having acquired the property only a year ago--in a transaction reportedly valued at $46.3 million--the sale to Chicago-based Equity Residential Properties Trust was for a price equal to the income value of the property, according to Kirk Taylor, SVP of CB Richard Ellis' Portland office.
"We've done higher on a per-unit basis, but this is the largest surburban property on a per unit basis and the largest apartment sale in the state on a gross basis," Taylor reports.
Located at 2615 N.W. 194th Terrace, the complex, featuring one- to four-bedroom apartments and townhomes averaging 1,188 sf per unit, sold for $103,118 per unit. At the low end, the complex has 60 one-bedroom, 755-sf units currently renting for $748 a month. At the high end the complex has a number of four-bedroom, 1,768-sf townhomes renting for $1,575 a month.
The office and industrial sectors of the Portland market are suffering some setbacks, but the multifamily sector is healthy since no new product is set to come on stream anytime soon. And with rents continuing to rise, Taylor believes that although this record-setting sales price is a large jump from where the rest of the market has been, records are made to be broken and this one will be not exception.
"This is the best building Trammel Crow has built," Taylor says. "It's considered an A building in an A location."
With this acquisition EQR has a portfolio in Oregon consisting of 4,313 units at 12 properties. Nationally, the company has more than 1,000 properties with 225,000 units in 35 states. In pursing potential properties for acquision, Equity seeks complexes typically with 200 units or more in large metropolitan areas and growing markets. The company prefers buildings built in 1980 or newer and prefers all-cash transactions.
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