JLL Capital Markets announced it closed the $28.2 million sale of the Preserve at Sunnyside, a 108-unit value-add multihousing community located in the sought-after Clacakamas submarket of Portland, Oregon.
JLL marketed the property exclusively on behalf of the seller, Hamilton Zanze, to complete the sale to the buyer, RISE Properties Trust.
“We are glad to pass along this community to another owner who will benefit from the thriving submarket, desirable location, and the substantial improvements we made to units and amenities over our seven years of ownership,” said Anthony Ly, Director of Dispositions for Hamilton Zanze.
Built in 1991, the Preserve at Sunnyside comprises nine garden-style residential buildings with a mix of one-, two-, and three-bedroom units averaging 1,025 square feet. The pet-friendly community features an outdoor pool and spa, clubhouse with full kitchen, covered parking, a dog park and a playground. The property has been partially renovated, leaving an opportunity for new ownership to complete renovations and capitalize on the submarket’s substantial rent growth.
Situated on six acres at 13300 SE 122nd Ave., the community is located a short distance from Interstate 205, Highway 224 and Clackamas Town Center Transit Station, which provides numerous public transit options including a MAX light rail line connecting residents to downtown Portland and Portland International Airport. The apartments are also proximate to over six million square feet of retail and recreational amenities as well as Kaiser Permanente and other expanding employers.
The Preserve at Sunnyside has benefitted from strong suburban migration patterns engendered by the COVID-19 pandemic, which has accelerated population growth in an already supply-constrained market. As a result, Clackamas is projected to experience 4.7% year-over-year rent growth through 2026.
The JLL Capital Markets team representing the seller was led by Senior Managing Director Ira Virden, Senior Director Carrie Kahn and Associate Frank Solorzano.
“The Preserve at Sunnyside’s location in Happy Valley and recent capital improvements to the property’s exterior make it ideal for a value-add strategy,” said Virden. “It is no surprise that Happy Valley and Clackamas are seeing high levels of investor demand. The submarket has been a strong performer, even throughout the pandemic. Population growth surpassed 32 percent over the past five years, while apartment supply increased only 8 percent.”
Virden continues, “Investors will continue to see Happy Valley and Clackamas as top submarkets with a high quality of living thanks to access to employers such as Kaiser Permanente, several premier grocers and retailers, and world-class outdoor recreation nearby. The sales process was highly competitive, with significant interest from private and institutional capital looking to either expand or establish a presence within the Portland MSA.”
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge deliver best-in-class solutions for clients—whether investment sales advisory, debt placement, equity placement, or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.