Urban Value-Add Opportunities Get Quickly Snapped Up
Investment opportunities don’t come around often, especially in the case of Tupelo Alley, a mixed-use site on 1.44 acres at 3850 N. Mississippi Ave., the retail hub of the Boise-Elliot neighborhood.
PORTLAND, OR—Tupelo Alley, a mixed-use community with 188 apartments units and 10,000 square feet of retail, has sold to a joint venture between Holland Partner Group and Pacific Life Insurance Company. The purchase price was $58 million.
Tupelo Alley is situated on 1.44 acres at 3850 N. Mississippi Ave., the retail hub of the Boise-Elliot neighborhood. Completed in 2009, the three-building LEED Gold-certified property includes 10,000 square feet of ground-level retail and 188 apartment units featuring a mix of studios, one- and two-bedroom units averaging 770 square feet. The community includes indoor and outdoor gathering spaces for residents for an abundance of activities including billiards, ping-pong, barbecues and fitness.
JLL marketed the property on behalf of institutional investors advised by JP Morgan Asset Management and procured the buyer. Additionally, JLL worked on the new owner’s behalf to secure acquisition financing of $37.7 million.
The JLL capital markets team representing the seller was led by senior managing director Ira Virden and senior director Carrie Kahn. The JLL team representing the new owner was led by senior managing director Charles Halladay, and directors Rick Salinas and Charlie Watson.
“Portland continues to be an attractive market for institutional investors,” Virden tells GlobeSt.com. “Well located, urban value-add opportunities don’t come around often, especially in this location. The asset was very well received in the market and will continue to perform well.”
Between 2012 and 2017, Portland’s Millennial population increased by 22.8%, the highest increase in the country, taking the total percentage of the population that are Millennials to 18.6%, according to US Census data. Portland also ranked third in the number of Millennials moving into the city, according to Smart Asset, with 6,586 net new Millennials moving to Portland in 2017.
The increase in migration is being driven by mostly out-of-staters, with 15,533 of the 25,405 Millennials who moved to Portland in 2017 coming from a state other than Oregon, according to the Bureau of Labor Statistics.
Haven Life says the lure of the city’s craft breweries, bike lanes and quirky reputation are big draws for Millennials. While not cheap at 2% above the average cost of living, the outdoorsy region is a great place to raise a family, boasting plenty of parks, beaches and mountains that are easily accessible. This lifestyle lands Portland fourth in WalletHub’s’ healthiest cities in America’ rankings. Portland has the healthiest restaurants per capita and the third highest percentage of physically active adults in the country.