Silicon Forest Apartments Change Hands for $7M
- Oct 25, 2016
Beaverton, Ore.—Trion Properties has acquired Hidden Villa Apartments, a 61-unit, value-add community in the Portland submarket of Beaverton, Ore., from a private family investor for approximately $7 million.
“We are focused on offering our investors assets in long-term economic centers, with immediate upside through a full renovation,” Max Sharkansky, Trion Properties’ managing partner, told MHN. “The major appeal here is the location—in close proximity to some of Oregon’s largest employers, Nike, Intel, Tektronix—as well as the opportunity to upgrade the property immediately, achieving upside that is abundantly clear.”
Originally constructed in 1968, the property includes two separate parcels, a 56-unit apartment community known as Hidden Villas and an additional five-unit property adjacent to the main Farmington Road.
Located at 14620 SW Farmington Road, Hidden Villas offers a leasing office, swimming pool, dog park and bike room. Renovation plans call for the modernization of units with modern finishes and high-end appliances, creating some of the nicest renovated units in the city of Beaverton.
“We plan to increase and improve the asset’s visibility by adjoining the front five units with the back 56 units,” Sharkansky said. “We plan to upgrade units, with trendy grey vinyl plank flooring, high-end cabinetry, stainless steel appliances and upgraded fixtures throughout.”
The Portland metro, also known as the “Silicon Forest,” is one of the most dynamic tech employment markets in the Pacific Northwest, and is home to a cluster of high-tech companies, including Intel, the largest for-profit employer in the state with over 17,000 employees. Nike is currently undergoing a 3.2 million-square-foot, $380 million expansion of its headquarters, which is set for completion in 2018.
According to Sharkansky, the location and immediate upside offer potential for strong returns and protection against downside risk.
“With the expansion of major employers, especially Nike, will come more demand in housing,” Sharkansky said. “In addition, the lifestyle retailers in the neighborhood are also continuing to expand, adding neighborhood amenities to future residents.”
Trion Properties’ multifamily portfolio in the area now consists of 215 units, following this deal and the recent $3.8 million acquisition of Tigardville Apartments, a distressed, 36-unit garden-style asset located in Tigard.
Image courtesy of Yardi Matrix