PORTLAND, OR—Berkadia has completed the sale of Burnside 26, a mixed-use property located in Portland. Managing director Phil Oester and director Joe Nydahl of the Portland office closed the $41.5 million sale on August 4. The sale price reflects a per-unit price of $307,407.
The buyer was an institutional investor. The seller was a joint venture of Capstone Partners and Green Light Development, both of Portland, and Premium Property USA, a subsidiary of Zurich-based MIAG Mutschler Immobilien AG.
“This was a diverse ownership group that really understood what renters were looking for. It's an excellent design,” stated Nydahl.
Developed in 2014 by the seller, Burnside 26 is currently 99% occupied. The 135-unit property offers studio, one- and two-bedroom floor plans. Unit amenities include fully equipped kitchens with stainless-steel Energy Star appliances, custom-built cabinetry and woodwork, oversized windows with a shade system, and nine- to eleven-foot ceilings. Select units feature walk-in closets, patios, built-in storage and bike hooks. Community amenities include a rooftop lounge with a fully equipped kitchen, barbeque area, outdoor fireplace and herb garden; a lobby lounge with a computer station, resident kegerator and fireplace with seating; and a bike room with Dero bike racks, commuter lockers and a fix-it repair station.
Located at 2625 E. Burnside St. next to the historic Laurelhurst Theater, Burnside 26 is near Interstates 84 and 5 on Portland's Inner Eastside. The property is within walking distance of Portland's top dining and retail locations, as well as two blocks from Whole Foods Market and Starbucks. Top employers in the immediate area include Providence Portland Medical Center, Kaiser Permanente Northwest, City of Portland, Oregon Health and Science University and Portland State University.
"Portland has some of the best multifamily metrics in the nation. This property is strategically located in Portland's inner eastside, a submarket that is experiencing incredible demand,” added Nydahl.
Metrowide vacancy in the Portland metro descended to 3.5%. At the halfway point in 2015, the average asking rent increased 9.1% year over year to an average of $1,250 per month.
Berkadia, a joint venture of Berkshire Hathaway and Leucadia National Corporation, is an industry leading commercial real estate company providing comprehensive capital solutions and investment sales advisory and research services for multifamily and commercial properties. Berkadia is among the largest, highest rated and most respected primary, master and special servicers in the industry.
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David Phillips
David Phillips is a Chicago-based freelance writer and consultant with more than 20 years experience in business and community news. He also has extensive reporting experience in the food manufacturing industry for national trade publications.
