Next Wave acquires prime unrenovated 118-unit multifamily community in Pacific Northwest for $23.8 million

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Ashley Terrace
Next Wave Investors acquired Ashley Terrace, a 1993-vintage, 118-unit unrenovated apartment community in Vancouver, Washington

Next Wave Investors, LLC (Next Wave) a private equity firm focused on value-add multifamily investments, has acquired Ashley Terrace, a 1993-vintage, 118-unit unrenovated apartment community in the affluent Walnut Grove submarket of Vancouver, Washington for $23.85 million in an off-market transaction.

“This acquisition speaks volumes about current trends in the multifamily marketplace,” says Jordan Fisher, Principal at Next Wave. “In many cities, the velocity of multifamily sales continues to push pricing rapidly. Ashley Terrace provides an opportunity for Next Wave to acquire a property in a high-growth market at a basis almost unchanged from what similar properties sold for in 2019. The ability to secure an asset of this vintage with such tremendous value-add potential at this price point is extremely rare at this point in the investment cycle.”

Fisher points to recently released Yardi data that indicates rapid growth in the Walnut Grove submarket.

“Multifamily occupancy in the region has reached 97.5 percent, while rents have increased 7.3 percent year-over-year,” he says. “This is substantial momentum that will allow us to unlock deep value through our strategic renovation and management programs.”

This acquisition comes on the heels of the addition of 374 multifamily units to Next Wave’s Pacific Northwest portfolio earlier this year, demonstrating the firm’s ability to identify and secure competitive multifamily investments in markets poised for growth, according to Fisher.

“Ashley Terrace is well positioned to capitalize on the region’s robust population and employment growth,” explains Fisher. “The property had just one owner for the past 25 years and was designed to meet today’s resident lifestyle, offering large units with washer/dryers and attached garages—all of which are increasingly in demand among today’s renters. This, combined with in-migration trends driven by high quality of life and a relatively low cost of living, will support sustained rental demand for the foreseeable future.”

Ashley Terrace also benefits from its close proximity to downtown Vancouver and other shopping, dining, nature, and cultural destinations. The property is located within minutes of a new $1.5 billion Vancouver waterfront improvement project and close to the Columbia River, Vancouver Lake Renaissance Trial, and Lacamas Lake Heritage Trial. Residents have immediate access to State Route 500, Interstate 205, and Interstate 5, providing seamless connectivity to Portland International Airport, downtown Portland, and the Columbia Tech Center, a master-planned, mixed used development that has over 3.5 million square feet of high-quality office, flex/industrial, medical, and retail.

According to David Sloan, Principal at Next Wave, “We have a strong track record of identifying value opportunities in markets positioned for growth—including Phoenix, Salt Lake City, and Las Vegas—and successfully executing value-add multifamily investment strategies. Based on this experience, we know how to drive value through property-level improvements and will be able to leverage economies of scale to further streamline operational efficiencies among our Pacific Northwest assets.”

Next Wave’s interior renovation program will include new appliances, lighting fixtures, plumbing fixtures, solid surface flooring in common areas, new carpet in bedrooms, new quartz countertops, refaced cabinets with new doors, brushed nickel hardware, tile backsplash in kitchens, and new electrical plates. The exterior and common area enhancements and upgrades will include siding repairs, new paint, replacement of nearly all roofs, a new signage package, renovation of the clubhouse and fitness center, and esthetic upgrades to the pool area and landscaping.

Sloan adds: “Our ability to source this acquisition off market through our established broker relationships speaks to our unique ability to access to in-demand multifamily assets with strong upside potential.”

Ashley Terrace is located at 4500 Nicholson Road in Vancouver, Washington.