Philadelphia—Resource Real Estate is further expanding into the Portland, Ore., market with the purchase of Breckenridge Apartment Homes, a 357-unit apartment community that it plans to renovate for the first time. Resource Real Estate Opportunity REIT II, a non-traded REIT sponsored by Resource Real Estate acquired the 19-building property.
“Breckenridge is an ideal asset that fits our investment strategy well,” Kevin Finkel, president & COO of Opportunity REIT II, told MHN. “We focus on properties that are in affluent, infill locations with access to top-tier schools and civic services in cities with strong job growth. We seek properties in need of our unique value-add capabilities…”
Originally built in 1985, Breckenridge has never been renovated, giving Opportunity REIT II the chance to implement an extensive value-add strategy at the property and earn rent increases, Finkel said. The REIT plans to add new capital to improve the buildings’ exteriors and upgrade the common areas and individual units, including new cabinetry and appliances, granite countertops, wall removal for more open living spaces and new paint schemes, among other improvements. The property’s current amenities include a clubhouse, business center, fitness center, swimming pool and private balconies and patios.
The REIT also owns the 188-unit Montclair Terrace community in Portland, for which it received $21.3 million in mortgage financing earlier this month.
“Portland is a market that really fits our acquisitions criteria,” Finkel told MHN. “Portland is attracting young, creative people as well as any city in America and businesses take notice of that. As a result, businesses of all kinds are locating in Portland which means job growth and economic activity. All of this put together creates an ideal environment for owning and operating apartments in Portland. I wouldn’t be surprised if we continue to look for similar assets in Portland going forward.”
He added that Portland ranks third in the nation for effective rent growth in 2015.
Earlier this year, Opportunity REIT II also received $40.2 million in financing for two Colorado apartment communities it had previously purchased on an all-cash basis. Other markets that the company is interested in include Atlanta, Austin, Dallas, and Raleigh, N.C.