The new acquisitions total 300 apartments in Portland and North County San Diego, and for a portfolio of eight properties totaling 1,220 apartments out of the fund formed last year. The fund was initially launched with $114 million, giving it the ability to acquire more than $300 million in assets.
Both communities—Alta Vista in Escondido and Westview Heights near Portland’s “Silicon Forest”—have all the attributes of top-tier communities yet are categorized as class B-plus properties. Fund officials said each property fits the strategy to add value through renovation, repositioning and aggressive operation.
Interior upgrades will focus on modernizing kitchens and bathrooms at both properties with a goal achieving significantly higher rents. However, because of their newer age the communities will require less renovation than some of the first six communities acquired by the Fund, which were built in the 1980s and 90s.
Westview Heights townhomes has 46 three-story buildings, all townhomes, averaging 1,448 sq. ft. with 9-ft. ceilings and large kitchens with chef islands or breakfast bars. Apartments also feature attached garages, private decks, dining areas and natural gas heating, ranges and fireplaces. Developed in 2002, Westview Heights is in the highly desirable Beaverton School District, five minutes from major employers Intel, Nike, Tektronix and Columbia Sportswear and near light rail to downtown.
“Westview Heights, which was built with a condo conversion strategy in mind, recently underwent interior upgrades in selected townhomes, which are commanding rent premiums exceeding 12 percent above market rents,” said Ken Gladstein, the fund’s co-chief investment officer.
Upgrades included stainless appliances and refinished countertops, wood-laminate plank flooring, new fixtures and two-tone paint. The Fund intends to improve upon this renovation plan with the addition of new kitchen countertops as well as upgrading the pool area and leasing office.
Alta Vista offers one-, two- and three-bedroom units averaging 958 sq. ft. and featuring attached garages, 9-ft. ceilings and in-unit washers and dryers. With panoramic views of the valley, Alta Vista is a B-plus property that will be repositioned as one of the city’s premium apartment communities.
“Since being constructed in 2000, only 200 competing apartment units have been built and there is no new product under construction. Alta Vista is close to major employers along both the I-15 corridor and highway 78. Escondido is emerging as a regional economic leader in the forefront of job development and new industries,” said Bill Montgomery, the fund’s co-chief investment officer.
Interior renovation plans for Alta Vista include two-tone designer paint, stainless kitchen appliances, sinks and granite countertops. New euro cabinet doors with chrome pulls and upgraded lighting will be installed in kitchens and baths. Other scheduled upgrades are extended plank vinyl flooring, and upgraded horizontal blinds. Improvements will be made to the landscaping, fitness center equipment, pool, sun deck and a full leasing center makeover.
