Pacific Oak Capital LLC has announced it will fund the $33 million development of Wood Village Apartments, a mixed-use multifamily and retail project with 172 homes in the Portland suburb of Wood Village, Ore. Construction of the project, which is located within a federal Opportunity Zone, is scheduled to begin later this year, with completion targeted for the summer of 2021.
Seven separate buildings rising three and four stories at the intersection of NE Halsey and NE 238th Drive will provide apartment units with studio, one-, two- and three-bedroom layouts. The apartment homes will range in size from 361 to 1,325 square feet. The development will feature a neighborhood retail center measuring more than 10,000 square feet across two buildings. Community amenities will include a clubhouse and pool.
Multifamily supply is tight in Wood Village, which has one of the lowest vacancy rates in the Portland metropolitan area and has seen very limited multifamily construction since 2010, according to Keith Hall, co-founder of Pacific Oak in a prepared statement.
Wood Village, technically a city, occupies less than one square mile roughly 13 miles east of Portland, and had fewer than 4,000 residents as of 2010. In the Portland metro overall, consistent growth in supply has led to sluggish rent growth of 1.2 percent year-over-year through May, less than half of the national average, according to a recent Yardi Matrix report.
Pacific Oak, which sponsors commercial real estate-focused alternative investment programs, was spun off from KBS Holdings last year by Hall and co-founder Peter McMillan.