A Seattle multifamily investment firm continued its march across the Portland metro region this week with the acquisition of a 243-unit apartment complex in Beaverton.
Security Properties, in a joint venture with PCCP LLC, has purchased Element 170 Apartments, a new construction, Class A, 243-unit multifamily property for $39 millionthrough its Security Properties Multifamily Fund II. The property is the latest of eight acquisitions in the fund.
HFO Investment Real Estate represented both Security Properties and the developer of Element 170, Metropolitan Land Group, in the transaction.
Element 170 Apartments was placed under contract in October 2013, began leasing in May of 2014, stabilized operations inJanuary 2015 and was acquired inFebruary 2015 by the joint venture. The location is immediately adjacent to the MAX Light Rail Station with access to downtown Portland and the airport. It is within two miles of the Nike World Headquarters and approximately five miles from the Intel campus.
"The property and the location are ideal, and we expect these factors to contribute to better-than-market revenue growth during our hold period," said Mark Hoyt, senior director of investments at Security Properties. "We were able to structure the purchase contract to lock in the price in the fourth quarter of 2013. This was an excellent outcome for our investors."
The 9.3-acre property consists of 10, four-story buildings and a leasing office/clubhouse building with amenities that include a pool, fitness center and conference room. The upgraded units offer custom cabinetry, in-unit washers and dryers, 9-foot ceilings and vaulted ceilings in all top floor units.
PCCP LLC is a real estate finance and investment management firm focused on commercial real estate debt and equity investments. It has approximately $6 billion in assets under management on behalf of institutional investors and has offices in New York,San Francisco and Los Angeles.
Security has been busy in Portland in recent years. In November, it broke ground on a four-building mixed-use development at North Williams Avenue and North Mason Street. It paid $11 million for the Honeyman Hardware Loft Apartments in the Pearl District in 2006, then sold them this past December for $37 million. Security also paid $34.3 million for three Beaverton apartment complexes in 2011 and $25.7 million for the Forest Creek Apartments in Portland in 2012.
In 2013, Security also purchased Block 136 in the Pearl District, which is the former home of the Pacific Northwest College of Art. PNCA moved into the historic former post office building at 511 N.W. Broadway in 2015.
Security is planning to build two buildings on Block 136: a 75-foot building with ground floor retail and either office or residential above and a 150-foot tower with retail at ground level and apartments above.
