Exclusive: Bridge Investment Buys Portland Asset
A $34.6 million Fannie Mae loan backed the deal.
Bridge Investment Group has purchased River Ridge, an 180-unit asset in Tualatin, Ore., for $50.1 million, Yardi Matrix data shows. CBRE Capital Markets originated a $34.6 million Fannie Mae loan.
Security Properties sold the property after buying it for $70 million in 2022, the same source reveals.
“Like many assets acquired at 2021 and 2022 pricing, its exit value reflects the interest rate reset and cap rate expansion that followed, rather than the property’s performance,” Security Properties Chief Investment Officer Mark Bates told Multi-Housing News.
“River Ridge performed well operationally, with steady occupancy and healthy rent growth throughout our hold,” he continued. In-place rents grew more than 20 percent during Security Properties’ four-year hold period.
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The community came online in 2017, consisting of 14 three-story buildings that encompass one- to three-bedroom layouts averaging 976 square feet. Amenities include a swimming pool, gym and playground, among other features.
Located at 17865 SW Pacific Highway, the property is near Portland’s southern industrial corridor along Interstate 5, which includes regional labor markets such as the ones in Tualatin and Sherwood, Ore. River Ridge is 13 miles southwest of Portland’s central business district.
While the southwest and downtown submarkets typically exhibit a heightened vacancy rate, there are still pockets of overperforming assets, according to Bates. “It’s a good reminder that real estate is a local business. Relying on large, aggregated datasets alone won’t always lead to expected results,” he added.
New supply largely absorbed amid investment restart
Security Properties owns 10 communities totaling more than 2,700 units across Portland, which has been one of the best-performing metros throughout the company’s portfolio, Bates stated. “The market has largely absorbed the oversupply that followed the rush for permits ahead of the city’s 2017 inclusionary zoning implementation,” he claimed.
“We’re seeing positive trade-outs on both new leases and renewals, and concessions continue to burn off market-wide. On the capital markets side, institutional capital has begun returning to Portland, though transaction volume remains well below pre-pandemic levels,” Bates reasoned.
The multifamily transaction volume clocked in at $338.9 million across metro Portland during the second quarter of the year, according to a Colliers report. This marked a 7 percent improvement over the previous comparable period, but also a 29 percent year-over-year decline.
The average price per unit softened 5 percent quarterly and 10.6 percent annually to $181,435 between April and June, the report shows. River Ridge commanded $278,333 per unit, surpassing last quarter’s figure by more than 50 percent.
