Newmark announces the $20.4 million sale and $14.2 million financing of a two-property portfolio in Oregon’s Willamette Valley. Two Freddie Mac fixed-rate loans were originated on behalf of Glencrest Group for the purchase of the two garden-style properties – The Village, a 64-unit property in Keizer, Oregon and Towncenter Apartments, an 84-unit property in McMinnville, OR. Both properties are situated within the Willamette Valley, Oregon’s wine country, one of the fastest growing and most visited areas in the state.
The sale was led by Newmark Senior Managing Directors Robert Black and Lydia Thompson and Director Sam Lawhead. Newmark Vice Chairman Mitch Clarfield and Managing Director Ryan Greer advised Glencrest on the financing.
“The portfolio received interest from a strong and competitive buyer pool,” said Black. “Glencrest stepped up and performed extremely well with an efficient due diligence process and a smooth closing.”
“Newmark utilized the partnership of the investment sales and debt teams to secure the best possible transaction for the sponsor. The transaction was executed in a changing rate environment with volatility in the 10-year U.S. Treasury, and yet the Newmark team was able to work with all parties, despite market challenges, to negotiate a successful transaction that was most comfortable for the sponsor,” said Clarfield.
Greer added, “Glencrest’s extensive experience and focus on transaction details coupled with their strong relationship with Newmark and Freddie Mac allowed for the sponsor to remove interest rate risk coincidentally with the removal of contingencies in a volatile rate environment through Freddie Mac’s Index Lock. By processing the two properties at once, the team was able to leverage economies of scale to create the most efficient transaction for all.”
“Towncenter and The Village add to our presence in central Oregon and are great additions to our Generations portfolio, which is designed around long-term ownership by individual investors. We are pleased to have closed this transaction without delay during these uncertain times, a testament to the commitment of our Generations network equity investors and the experience of our lending and investment sales partners at Newmark,” said Mike Bergelson, Managing Partner, Glencrest Group.
The Village consists of six three-story buildings containing all two-bedroom units. Each unit offers residents a balcony or patio, washer/dryer and full-size kitchen with dishwasher, garbage disposal and microwave hood. Select units have vaulted ceilings and new LVT flooring.
Towncenter Apartments includes 10 two-story residential buildings of all two-bedroom units and a one-story, non-residential building. Common area amenities include a leasing office, laundry room, playground and a recreation center with an exercise room and open area. Units offer a balcony or patio, ceiling fan, washer/dryer hookups and a full-size kitchen with dishwasher, garbage disposal, and wood cabinets with Formica countertops.
Glencrest Group was formed in 2019 by John Adair and Mike Bergelson to provide the next generation of multifamily investment opportunity. It focuses exclusively on purchasing existing apartment communities with above-average yield and appreciation potential. Glencrest’s founding team combines decades of leadership in the real estate and technology industries. Before Glencrest, John was the Principal in charge of capital transactions for Prime Residential, where he acquired, sold and financed more than 35,000 multifamily units, developing a reputation for generating alpha via creative and decisive deal making. Mike was most recently the co-founder and CEO of Everwise, a software company leading in the corporate learning and development space with hundreds of large enterprise clients. Before Everwise, Mike founded two other successful technology companies that focused on improving consumer experience.
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate services, with a comprehensive suite of investor/owner and occupier services and products. Our integrated platform seamlessly powers every phase of owning or occupying a property. Our services are tailored to every type of client, from owners to occupiers, investors to founders, growing startups to leading companies. Harnessing the power of data, technology, and industry expertise, we bring ingenuity to every exchange, and imagination to every space. Together with London-based partner Knight Frank and independently owned offices, our 18,800 professionals operate from approximately 500 offices around the world, delivering a global perspective and a nimble approach. In 2020, Newmark generated revenues in excess of $1.9 billion.