In First Foray Into Portland, SoCal Investor Snaps Up Recently Completed Studio-Only Property
San Diego-based Sentre acquired Tess O'Brien, the 123-unit Portland micro-unit apartment development for $25.5M. The deal marks the company's expansion into Portland and into the Pacific Northwest.
The property has only studios measuring 300 SF to 650 SF and was completed in 2016 by Kehoe Northwest Properties.
Although the property was recently developed, the new owner plans to rebrand it as The Thornton and spend about $1M for renovations.
According to Sentre President and CEO Doug Arthur, the revitalized 15K SF indoor and outdoor amenity package will, along with "efficient and reasonably priced studio units, and the well-regarded and highly amenitized Slabtown location, position The Thornton for long-term success.”
As Tess O'Brien, the property has had considerate success. After its completion, lease-up to stabilization took 10 months. That is a quick pace among local properties with more than 50 units, demonstrating the demand for small-unit projects in Portland.
Improvements will include an upgrade of common amenities on the ground floor, including the fitness center, clubhouse and exterior seating, as well as signage, landscaping enhancements and various upgrades to unit interiors. The work will be completed by fall.
"The robust amenity package will position the project to appeal to the influx of residents moving to Portland, including 35,000 people during the past year alone, and to defend the community against future supply marketed at significantly higher rents," Arthur said.
Rents at the property start at just under $1K/month. Post-renovation, rental rates are projected to average $1,275 to $1,300/month.
Find out more about what is influencing the multifamily market at our Portland Multifamily Investment and Development Summit on Feb. 22.