Multifamily investors continue to have a strong interest in assets across the greater Pacific Northwest region. In a recent transaction, Cumberland Holdings, the Rolling Hills and San Francisco, Calif.-based real estate investment firm spent $14.7 million, or around $229,687 per unit, to acquire the Lenox Apartments in Portland, Ore. The property, located at 5151 SE Holgate Blvd., is one of the newest assets for the privately-held firm.
Cumberland also secured a $9.1 million floating rate bridge loan structured with a 5-year interest-only term and with a hold back to enable the new owners to execute a value-add strategy for the 64-unit multifamily property that was built in 2018. According to a statement from NorthMarq, who worked with Cumberland to secure the loan, the new owners plan to repurpose 2,600 square feet of retail space into four additional live/work apartments units, increasing the revenue earning potential for the asset.
The NorthMarq financing team consisted of Managing Director Dennis Williams, Vice President Tom Wight, Analyst Jackie Goldsmith and Closer Soraya Rios, all of whom work in the firm’s San Francisco office.
Cumberland is a multifamily investment firm focused on acquiring assets in Northern California, Oregon and Washington. The firm is only about ten years old, and it was founded by the Chernoff family to invest its capital alongside investors in income-producing real estate strategies, according to the firm’s web site. The company targets investments in value-added, multi-family and mixed-use commercial real estate. It generally acquires properties that suffer from absentee ownership and poor management with a strategy to develop a capital improvement plan to enhance the curb appeal and marketability of properties’ preexisting conditions.
The Portland multifamily market has held well since the onset of the global COVID-19 pandemic. A number of institutional and private investors have invested in the market, making it one of West Coast’s more desirable investment locales.
Some notable recent acquisitions include the $19 million sale of the 66-unit Parallax Apartments in Portland, a $23 million acquisition the 118-unit Ashley Terrace in Vancouver, Wash. (suburb of Portland) and a $30 million acquisition of 111-unit TownCenter Park Apartments just south of Portland in Wilsonville. Larger deals have also been recorded recently showing strong interest for downtown Portland properties has matched that of the assets in the suburbs. In July of this year, The Wolff Company, a Scottsdale, Ariz.-based multifamily investment firm paid $109 million to acquire North Hollow and Sky3, two multifamily communities in Portland that combine feature 317 units.