Is this what the Wizer Block developers have in mind? The number of units and amenities (including location and city parks) are akin to properties favored by institutional buyers. This has been the speculation all along since the economics of the project seem to be too rich for what and where it is.
The market may be ripe for out of state investors who see the project as a good investment compared to other, larger West Coast markets (Seattle, SF Bay Area, Los Angeles) where multifamily prices are extremely high. The apartment building boom is still going strong, mostly in Portland downtown and close-in neighborhoods, but a bubble may be in the works for this and other markets
If this is the case - that a completed Wizer Big-Block development is built and sold to an outside investor group, what would that mean for Lake Oswego? The property management firm, acting on orders from the owner, would be the public face for the property, and their responsiveness to public concerns would vary depending upon their business model. Would our municipal codes be strong enough to curb unwanted practices or tenant behavior? How much could a property management firm or institutional owner be held responsible when things go wrong?
Question: How is it that a downtown apartment complex, where rent per sf is highest in the metro area, is priced per unit at just over what the Wizer development is being built for? I'd like to see the pro forma on this business model, but who knows what I am missing here.
Is this what the Wizer Block developers have in mind? The number of units and amenities (including location and city parks) are akin to properties favored by institutional buyers. This has been the speculation all along since the economics of the project seem to be too rich for what and where it is.
The market may be ripe for out of state investors who see the project as a good investment compared to other, larger West Coast markets (Seattle, SF Bay Area, Los Angeles) where multifamily prices are extremely high. The apartment building boom is still going strong, mostly in Portland downtown and close-in neighborhoods, but a bubble may be in the works for this and other markets
If this is the case - that a completed Wizer Big-Block development is built and sold to an outside investor group, what would that mean for Lake Oswego? The property management firm, acting on orders from the owner, would be the public face for the property, and their responsiveness to public concerns would vary depending upon their business model. Would our municipal codes be strong enough to curb unwanted practices or tenant behavior? How much could a property management firm or institutional owner be held responsible when things go wrong?
Question: How is it that a downtown apartment complex, where rent per sf is highest in the metro area, is priced per unit at just over what the Wizer development is being built for? I'd like to see the pro forma on this business model, but who knows what I am missing here.
Pearl District multifamily building sells for $105.5 million
An Atlanta-based investor last month closed on a $105.5 million purchase of the Asa Flats + Loftsat 1200 N.W. Marshall St. in the Pearl District.
Invesco Advisers, which purchased the 16-story, 231-unit complex from Seattle-based Unico Properties and its partner, Cigna Investments, declined to comment on the transaction.
The cost per unit was the highest ever in Portland and reflects a trend of institutional investors looking for high-yielding and well-located apartment assets, said Greg Frick, a partner and founder of HFO Investment Real Estate, which specializes in multifamily housing in Oregon and Washington.
“Pricing has been very aggressive,” he said. “The markets have been aggressive because a large amount of institutional capital is chasing yield.”
Numerous Portland apartment buildings have been acquired by institutional-size investors over the past year. For instance, Savier Street Flats sold for $64.1 million in December 2013.
“This is further solidifying the fact that Portland is on the map,” said Debbie Thomas, owner and principal broker of Debbie Thomas Real Estate. “It’s not Seattle’s stepchild. It’s a viable market that everybody wants to be in.”
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