Fundamentals Bloom in Rose City

A joint venture takes advantage of Portland fundamentals with a $41.5 million apartment sale.

8327Portland, Ore. — A 2014-built, 135-unit mixed-use apartment and retail asset has traded hands for $41.5 million in Portland, Ore. That’s $307,407 per unit if your calculator isn’t handy.

Burnside 26 was 99 percent occupied when the joint venture between Capstone Partners, Greenlight Development and a subsidiary of Zurich-based MIAG Mutschler Immobilien sold the asset to an undisclosed institutional investor. Berkadia’s managing director Phil Oester and director Joe Nydahl closed the sale.

“This was a diverse ownership group that really understood what renters were looking for,” Nydahl said. “It’s an excellent design.”

The property is located at 2625 E. Burnside St., adjacent to the historic Laurelhurst Theater and two blocks from a Whole Foods Market. Community amenities include a rooftop lounge with kitchen, barbecue area, outdoor fireplace, and herb garden; a lobby with a computer station, resident kegerator, fireplace, as well as a bike room with racks, commuter lockers and a repair station.

Portland metro vacancy has descended to 3.5 percent, according to Berkadia. As of June 2015, average asking rents were up 9.1 percent year-over-year at an average rate of $1,250 per month.