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BEAVERTON, OR-Equity Residential has sold one of its two apartment properties here for $32.8 million. The Chicago-based multifamily REIT sold the 440-unit Woodcreek Apartments to a joint venture led by Kennedy Wilson Multifamily Management Group, a unit of Beverly Hills-based Kennedy Wilson Inc.
The 337,920-sf garden-style apartment community was built in 1984. It sits on 20 acres at 3280 SW 170th Avenue and is surrounded by a 222-acre nature reserve. KW Multifamily intends to spend approximately $3 million in renovations and upgrades in an attempt to bring the community back to its former class A standard.
KW Multifamily's JV partner in the acquisition was Wachovia Securities. The JV, which has acquired some 1,246 units in recent weeks, focuses on properties in supply-constrained in-fill submarkets and others located in markets it believes are poised for substantial recovery. Gail Neuburg of Tilbury, Ferguson & Neuburg Inc. represented KW Multifamily in this acquisition.
Equity Residential has owned the property for a long time. Its initial investment in the property was $17.5 million in the property. Subsequent to that, it invested another $3.62 million and at the end of 2005 the total carry cost to Equity was $21.2 million. When the $8.66 million in depreciation is factored in, the sale price nets Equity a little over $20 million.
Equity owns four other properties in Beaverton and two more in the adjoining city of Hillsboro. It owns a total of nine properties in Oregon with a combined 3,000 units. Average occupancy in its Oregon portfolio was 94.5% at the end of 2005, according to its latest annual report.
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