CBRE has announced the sale of a 132-unit multifamily community in Happy Valley, Ore., The Elwood, to Borello Asset Management, a Northern California-based multifamily investment group, for $41 million ($310,606 per unit).
CBRE’s Josh McDonald, Phil Oester and Joe Nydahl represented the seller, Pahlisch/Cedar Coast, in the transaction. The San Francisco-based CBRE Capital Markets team of Jesse Weber, Andrew Behrens and Stephen Baird arranged a $23.97 million acquisition loan through Fannie Mae on behalf of the buyer.
Located at 13702 SE 162nd Avenue in the Taralon Community of Happy Valley, the 132-unit multifamily community was originally constructed in 2020. The Elwood’s unit mix is comprised of one-, two- and three-bedroom floor plans. Community amenities include an outdoor seasonal pool, resident clubhouse, fitness center, lounge and meeting space. Within two blocks of The Elwood are a New Seasons grocery store, multiple local brewpubs, spa, retail shopping, restaurants, medical and dental offices.
“The sale of The Elwood represents high investor sentiment for new, best-in-class suburban core product,” said Mr. McDonald. “The Elwood is an asset in a rapidly growing suburban submarket with limited new supply that was successfully leased-up during COVID-19 without offering concessions.”
“Josh McDonald was integral in our acquisition of The Elwood in Happy Valley,” said President of Borello Asset Management Chris Borello. “Our relationship with Josh started with the acquisition of The Range, in Bend, Ore. and was founded on trust, transparency and ultimately friendship. Josh’s relationship with the seller and our family helped make this off market acquisition a reality.”
“The strong lease-up of The Elwood during the pandemic highlights the attractiveness of the property and consequently generated significant interest from numerous lenders for the Borello Family,” said Mr. Weber. “The ability to secure 10-year, interest-only financing at a desirable rate was an integral part of facilitating this acquisition.”
Mr. Borello added, “Jesse Weber and the CBRE team quickly recognized our goals and understood that we were not just looking for a broker to provide us financing, but were looking to build a relationship with trusted advisors. CBRE has exceeded that expectation and we have financed over $80 million in debt capital for our family in the past 12 months alone.”
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2020 revenue). The company has more than 100,000 employees serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of 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.