(To read more on the multifamily market, click here.)
LAKE OSWEGO, OR-The 120-unit Terraces of Lake Oswego apartment complex here will convert to condominiums over the course of the next 18 months. Designed for older adults, the four-building complex overlooks the Willamette River. The street address is 16250 South Pacific Highway.
Local developer Marty Kehoe recently acquired the complex for $15.5 million, or about $130,000 per unit. After about $5 million in renovations to the complex, Kehoe tells GlobeSt.com he expects to sell the units off individually for gross proceeds of approximately $40 million, which averages out to about $333,000 per unit.
Kehoe acquired the complex from a partnership that includes local investor Walt Bowen. Current tenants will have the first right to acquire their unit. Unsold units will be made available to the general public in March. Realty Trust Group has the marketing assignment.
Kirk Taylor and Ann Blume of CB Richard Ellis brokered the acquisition for Kehoe. In May, the duo also brokered Kehoe's acquisition of a 1.62-acre development site on Northwest Westover Road where a ground-up condominium development is now under way.
The five-building, 73-unit luxury for-sale complex will be delivered in early 2007. The brick buildings will be about five stories high with underground parking and very high finishes. The units are 80% sold at an average of $650 per sf.
The estimated hard construction cost for the Northwest Westover project is $30 million, not including entitlements, design, insurance and sales commissions, among other things. The expected sellout is about $50 million, Kehoe told GlobeSt.com earlier this year.
Prior to that, Kehoe acquired the 108-unit Uptown Heights apartments on Northwest Uptown Terrace, which sits above Westover Road. Kehoe paid $141,666 per unit for the complex and sold them off as condos in a year for gross proceeds of $25 million, which works out to an average of $231,500 per unit.
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