Portland, OR – CBRE Capital Markets is pleased to announce that Kehoe Northwest Properties sold the 123-unit Tess O’Brien Apartments to a San Diego based buyer for $25.5 million.
Graham Taylor, First Vice President with CBRE’s Portland office, represented the seller and exclusively negotiated the transaction. The innovative community features an all-studio unit mix, making the price per unit an appealing $207,000 per door for new construction.
The Tess O’Brien was completed by Kehoe Northwest Properties in December 2016 and exceeded 95% occupancy by August, prior to the sale. Located at 1953 NW Overton, the community consists of two six-story buildings with 123 studio homes, featuring unique amenities, contemporary finishes throughout and efficient floor plans. The residents enjoy urban living combined with competitive rent.
While the lease-up was brisk, the attractive rental price point for the smaller unit types resulted in market-leading effective rents exceeding $3.50 per square foot, substantiating the $631 per square foot price. The buyer plans to undertake a value-add repositioning of the property, improving the unit interiors and common area amenities.
“The buyer and their associates were great to work with, and I know they will be great owners of the Tess O’Brien” said Kehoe Northwest Properties President, Marty Kehoe. The veteran developer added that he named the apartment project after his youngest daughter.
Kehoe Northwest Properties will continue to own and manage their existing portfolio of properties in Portland and Seattle, while pursuing additional acquisition opportunities in both cities. Kehoe recently entered into an agreement with Multnomah County to purchase the Wapato correctional facility in the Rivergate Industrial area of North Portland.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.