(EDITOR’S NOTE: Seattle-based Foundation Group Real Estate, led by Isaac Chamberlin, represented the buyer of the Serrano North and South community in Spokane.)
Tualatin, OR and Spokane, WA and (April 27, 2021) – Next Wave Investors, LLC (“Next Wave”) a private equity firm focused on value-add multifamily investments, has acquired two multifamily properties in the Pacific Northwest: Serrano North and South, a 300-unit multifamily community in Spokane, Washington for $34.4 million and River Lofts, a 74-unit multifamily property in Tualatin, Oregon for $14.2 million.
“The opportunity to enter the Oregon market and expand our footprint in Washington is well-timed with our ongoing investment strategy, through which we continue to identify value-add properties situated in markets poised for rapid growth and expansion,” says Jordan Fisher, Principal at Next Wave.
Next Wave was an early value-add investor in Las Vegas, Phoenix, and Salt Lake City multifamily after the Great Recession. The firm benefited from strong value creation as population and job growth soared in these markets, says Fisher.
“There is an opportunity to enhance property value in the Pacific Northwest as fundamentals in both Oregon and Washington strengthen,” Fisher continues. “Overarching trends in the region include rising rental demand based on increasing in-migration from California residents and a ‘flight to suburbia’ that ignited during 2020. This momentum, coupled with the new economic recovery and subsequent job growth, make these acquisitions well-positioned to benefit from strong future demand and stability, while giving us an opportunity to leverage economies of scale in the region and further streamline operational efficiencies.”
David Sloan, Principal at Next Wave adds: “Both properties were acquired in off-market transactions through previous broker relationships, which speaks to our positive track record and strength of reputation in the industry. These are vintage 1974, 1981, and 1984 properties, giving our team a tremendous opportunity to implement our improvement and renovation strategies and enhance quality of life for our residents at each of these properties.
More information about these two acquisitions is below.
300-Unit Serrano North and South in Spokane, WA
Next Wave has acquired Serrano North and South Apartments, a 300-unit garden style community in Spokane, Washington for $34.4 million ($114,666 per unit).
“Spokane offers an excellent quality of life with top medical facilities, award-winning education, plentiful access to outdoor recreation activities and beautiful scenery that attracts residents from both out of state and the Seattle metro in search of a more affordable cost of living,” says Fisher. “Spokane’s annual population has exceeded the average rate of the United States for the past several years, and forecasts continued growth substantially above the national average.”
The asset is located less than four miles from Gonzaga University, Washington State University, and downtown Spokane, and near Spokane International Airport, Franklin Park, NorthTown Mall and popular ski destination, Mount Spokane.
Serrano North and South offers a mix of studio, one-, two-, and three-bedroom units with fully equipped kitchens, large closets, private balconies and patios. On-site amenities include a swimming pool with sundeck, laundry facilities, clubhouse, detached garages and carports.
Next Wave plans to reposition the property by renovating all 300 units with modern upgrades including: stainless steel appliances, lighting fixtures, plumbing fixtures, vinyl plank flooring in common areas, new carpet in bedrooms, resurfacing countertops, new cabinets and hardware, among other items. The firm will also implement improvements to the amenity areas and exterior to enhance curb appeal with new paint, roof maintenance, asphalt resurfacing, deck repairs and upgrades to the pool area and landscaping.
The property is located at 121 East Wedgewood Avenue in Spokane, Washington.
74-Unit River Lofts in Tualatin, OR
Next Wave has also acquired River Lofts, a 74-unit multifamily community in Tualatin, Oregon, a southwestern suburb of the Portland metropolitan area, for $14.2 million ($191,891 per unit).
“River Lofts is the perfect setting for residents who enjoy a more quiet and rural community with easy access to the city,” explains Sloan. “Home to some of the best places to work in Oregon, Tualatin offers easy access to downtown Portland through the nearby MAX light rail, I-5 and TriMet’s public transit system. Locally, the property is surrounded by retailers including the open-air Bridgeport Village shopping center. There are also several scenic attractions nearby including the Tualatin River, Oswego Lake, and Tualatin’s River Greenway Trail.”
The seller previously renovated eight units, leaving 66 units to be upgraded by Next Wave. Next Wave will renovate these units to a consistent premium finish-level.
The property features a mix of one-, two-, and three-bedroom apartments with spacious floorplans that average 976 square feet, fully equipped kitchens and private balconies or patios, and select units offering views of the Tualatin River.
River Lofts is located at 18540 SW Boones Ferry Road in Tualatin, Oregon.
About Next Wave Investors, LLC
Next Wave Investors, LLC (“Next Wave”) is a Southern California-based private equity investment firm with a specialized focus in value-add multifamily investments throughout the Western United States. With more than $290 million in acquisitions to date, Next Wave is exceptionally skilled in identifying well-located, underappreciated properties where value can be created through professional operations and capital improvements.
Drawing upon a 15-year track record and hands-on experience in the ownership, operation, enhancement, and in-house management of multifamily properties, the firm consistently delivers for its investors.
