PCCP, LLC has provided a senior loan to a joint venture between funds managed by Oaktree Capital Management, L.P. and Security Properties for the acquisition and renovation of River Ridge Apartments located at 17865 SW Pacific Highway in Tualatin, Oregon. Situated ten miles southwest of downtown Portland, the 180-unit, garden-style property was built in 2017 and was 98 percent occupied as of May 2022.
Located directly off of Pacific Highway West and backed by the Tualatin River, River Ridge Apartments is on a nine-acre site and consists of 14 three-story residential buildings and a community center with a leasing office. Property amenities include a resort-style pool, clubhouse, fitness facility, basketball court, bocce ball court, playground, and a riverside walking trail. Units are finished with washers/dryers, walk-in closets private balconies or patios, 9’ ceilings, quartz countertops and energy-efficient appliances. A capital improvement plan is expected to upgrade common amenities and refresh unit interiors, including updates to the bathrooms and kitchens.
“In our view, this loan provides PCCP with the opportunity to finance a desirable suburban multifamily asset with historically low vacancy in a thriving location that has been experiencing business expansion and population growth,” said Matthew Cochran, a Senior Vice President with PCCP. “By improving the units and common areas, the borrower has a sound strategy to add value and help meet renter demand for quality, well-managed residential living in this Portland suburb that is short on new-vintage supply.”
The City of Tualatin is situated at the intersection of Interstates 5 and 205 and has been one of the Portland MSA’s fastest growing cities over the past decade. It is known for its quality of suburban living with accessibility to the metro’s major employment nodes. Tualatin’s highway junction access has helped catalyze the development of the Tualatin-Tigard industrial corridor which contains operations for advanced manufacturing and healthcare tenants such as Lam Research Corporation, Legacy Meridian Park Hospital, and General Electric. Tualatin also provides immediate highway access to downtown Portland and Portland’s Silicon Forest, a tech and hardware-focused employment center that houses Nike’s headquarters and campuses for IBM and Intel.
Security Properties is an institutional owner of real estate with a portfolio of 114 assets and more than 23,000 multifamily units. Oaktree’s real estate arm has $16 billion in assets under management across its opportunistic, debt, and income strategies.