HFO Announces Sale of Apartment Complex for $17M or $77,273/Unit
- Aug 19, 2010
Clackamas, Ore.– HFO Investment Real Estate, a Northwest real estate investment firm with headquarters in Portland, Ore., brokered the sale of the Twin Creeks Apartments, a 220-unit apartment complex built in phases starting in 1996 and completed in 1999.
Twin Creeks is a garden-style apartment complex situated on nearly 12 acres in the Sunnyside corridor in Southeast Portland. The complex consists of (66) 1-bed 1-bath, (54) 2-bed 1-bath, (63) 2-bed 2-bath, and (37) 3-bed 2-bath apartments. The complex sold for $17,000,000, or $77,273 per unit.
The seller was Twin Creeks Apartments LLC of Portland and the buyer was Twin Creeks LLC, a private equity firm based in the San Francisco Bay area. The seller developed and built the property and had meticulously cared for the buildings and grounds. The property includes a fitness center, clubhouse, basketball court, two swimming pools, and tile roofs and covered parking. Unit amenities include fireplaces and air conditioning. The purchaser of the property assumed the existing CMBS loan which had a 65 percent LTV and an above-market interest rate.
“Twin Creeks represented a unique opportunity to acquire a solid Class B property that had been well maintained. We had a lot of interest,” said HFO partner Greg Frick, “even with the requirement that the loan be assumed with an interest rate above what is currently available in the market.”
Twin Creeks was built adjacent to the 183-acre Mt. Talbert Nature Park. Many of the apartments offer views of the surrounding trees and creeks. HFO Investment Real Estate represented the parties in the transaction.