Next Wave Investors, LLC (Next Wave), a private equity firm focused on value-add multifamily investments, has acquired two multifamily assets in the Portland metro submarket of Beaverton, Oregon for a total of $30.5 million: The Huntley, a 62-unit community and Parker Apartments, a 48-unit community.
The assets are aligned with the firm’s strategy of acquiring multifamily communities in secondary markets poised to benefit from strong area fundamentals and property-level improvements, according to Jordan Fisher, Principal at Next Wave.
“The Huntley and Parker are well positioned to capitalize on the growing population and robust employment opportunities provided by the greater Portland metro area,” says Fisher. “The Beaverton submarket, in particular, is expected to see average annual rent growth of 7.39 percent through 2024, as it offers attractive suburban living in close proximity to the urban core. Beaverton is also home to the Nike World Headquarters, which recently opened additional facilities, and will provide opportunistic job prospects for many young professionals. Additionally, Intel is set out to build a $700 million data center, or ‘mega lab,’ in neighboring Hillsboro.”
While both assets were extensively renovated under previous ownership, they also present an opportunity for further upside through modernizing remaining units and additional strategic upgrades. Fisher also notes that the strategic timing of these acquisitions allowed Next Wave to secure attractive debt that will provide additional value to investors.
“Drawing upon existing relationships, we not only secured these properties off market in a highly competitive landscape, but we were able to further minimize risk through locking in fixed-term interest rates of 3.27 percent and 3.75 percent with moderate leverage, non-recourse loans,” continues Fisher.
David Sloan, Principal at Next Wave, adds: “These acquisitions come on the heels of the addition of 492 multifamily units to our Pacific Northwest portfolio last year, exemplifying our expansion into high-growth submarkets in areas like the Portland Metro, where a booming culinary and active outdoor culture continues to attract renters drawn to a high quality of life at lower costs than other West Coast markets.”
The Huntley was purchased for $18 million and has nine remaining unrenovated units offering the opportunity to create value through premium-level finishes.
Parker Apartments, which is located approximately three miles from The Huntley, was acquired for $12.5 million and features 12 classic units that Next Wave will modernize.
The firm also plans to install HVAC systems in all units at both properties, as heat waves in the region in recent years have amplified demand for the amenity, notes Sloan.
The communities are surrounded by attractions like the Tualatin Hills Nature Park, and the Oregon Zoo, as well as 500,000 square feet of nationally and regionally anchored retail. Residents of both properties will enjoy access to U.S. Route 26, and Interstate 5 providing seamless connectivity to downtown Portland, and easy access to the Max Light Rail and TriMet public transit system.
The Huntley is located at 12310 SW Center Street in Beaverton, Oregon and Parker Apartments is located at 17135 SW Heritage Court in Beaverton, Oregon.