Behringer, PGGM Close on 352-Unit Cyan Apts.

PORTLAND, OR-Behringer Harvard has closed on its $65-million JV acquisition of the new Cyan residential tower in downtown Portland in a joint venture with Stichting Pensioenfonds Zorg en Welijn, a Netherlands-based social-work sector pension fund better known as PGGM. Developed by locally-based Gerding/Edlen, the 32-story, 352-unit property was as a luxury condominium development when it broke ground in 2007 but opened earlier this year as a rental property.

Cyan Apartments is located at 1420 SW 4th Ave., which is near Portland State University and Pettygrove Park at the south end of the Downtown core. Most of the units measure less than 600 square feet, which made it ideal for the conversion. Amenities include a business center, a fitness center and 5,700 square feet of retail space, and an anticipated LEED Gold rating from the US Green Building Council. Gerding Edlen publicly made the switch from condos to apartments in October 2008. It was the sixth condo project in Portland to switch to apartments since spring 2007.

With this latest acquisition, Behringer Harvard Multifamily REIT I has investments 5,289 units in 18 properties in 11 states. When Behringer put the property under contract in November, it did not disclose vacancy or rental rate data for the project, or its cap rate expectations. Upon closing this week, Behringer said the project is still in lease-up but did not divulge any additional details in that regard.