(To read more on the multifamily market, click here.)
PORTLAND, OR-Scott Mountain by the Brook Apartments, a well leased 262-unit complex in outer southeast Portland, has changed hands for $22.75 million, or $86,832 per unit, the second highest price for a multifamily complex in the Portland area this year, according to Cushman & Wakefield, the brokerage firm in the transaction.
Scott Mountain Apartments LLC sold the 262-unit complex for $22.75 million. According to the Oregon Secretary of State's office, the registered agent of the LLC is J. Blaine Hoggard, who owns locally-based JBH Development.
The new owner is a group of tenant-in-common buyers represented by Salt Lake City-based investor and manager Cottonwood Capital. The asset marks Cottonwood Capital's first apartment acquisition in Oregon.
The complex was built in 1997 on 14.35 acres at 7828 SE Aspen Summit Dr., adjacent to Clackamas. The units range in size from 695 sf to 1095 sf; monthly rents range from $600 to $900. The property is about 95% occupied. It is managed by HSC Real Estate.
Greg Laycock of Cushman & Wakefield in Seattle handled both sides of the transaction with help from Gary Griff of C&W in Portland. Laycock tells GlobeSt.com that the going-in capitalization rate on the transaction is a little under 6.5%, but that the new owner expects to be able to raise that percentage by raising lease rates.
"The apartment community's high-quality construction, unique architecture and excellent location in an affluent neighborhood make [it] a prized rental growth opportunity," says Laycock, a senior director of multifamily investment sales. "The buyer raised the necessary equity for the transaction within a day and a half."
JBH acquired the property for Scott Mountain by the Brook and other developments out of receivership. JBH still owns Redtail Canyon, a 100-unit apartment complex located near Scott Mountain by the Brook, as well as a retail development.
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