As Population Soars, Multifamily Investors Pay Commensurately
Sygnii is the newest multifamily asset in one of the tightest markets in the Pacific Northwest, reaching stabilized occupancy twice as quickly as the average new community so it attracted strong investor interest.
TIGARD, OR—Many areas of the Portland MSA are growing rapidly but Washington County is the fastest-growing county. And within the county, suburban Tigard demonstrates the continued tightening of multifamily product.
For this reason, one investor, Watt Companies, saw the importance of a top-tier property and its location. The Los Angeles-based investor paid $75.2 million to acquire 240-unit multifamily asset, Sygnii.
“Sygnii is the newest and most highly amenitized residential community in one of the tightest markets in the Pacific Northwest and attracted strong interest among investors,” said Mark Washington, JLL senior vice president. “Proof of its best-in-class status is that it reached stabilized occupancy twice as quickly as the average new community.”
The property was completed in 2017 and leased up in a record 11 months. It is located on 9.88 acres, centrally located between Portland and four Intel campuses and Nike’s world headquarters. The community is also surrounded by numerous retail and lifestyle amenities, within easy reach of public transportation and commuter highways, and near Oregon Health and Sciences University.
In addition to Washington, JLL’s capital markets multifamily experts David Young and Corey Marx, both managing directors, represented the seller and developer, Holland Partner Group of Vancouver, WA. The sale of Sygnii marks the second record-setting transaction for this Portland multifamily team in 2018.
“Urban areas have not experienced much development and quality product is in high demand,” Washington tells GlobeSt.com. “In fact, within a 5-mile radius of Tigard, apartments are an average of 20 years old. This property appeals to annual household incomes of $95,000 who demand a better product near employment in growth suburbs.”
Sygnii means “latest victory” in Scandinavian languages. Sygnii offers one, two and three-bedroom residences and has parking for 409 vehicles in 74 garages, 99 carport stalls and 236 surface spaces.
JLL’s review of the 25 largest US metropolitan areas found that highly educated populations grew faster in major cities (28.7%) than in surrounding suburbs (23.6%) between 2008 and 2016, the latest data available. However, not all cities are created equal when it comes to attracting highly educated talent. JLL research shows more than 50% of the growth in highly educated population in central cities from 2008 to 2016 occurred in just six large cities: New York (365,000), Los Angeles (189,000), Chicago (162,000), Houston (119,000), Philadelphia (109,000) and Seattle (93,000).
Philadelphia also took the crown for largest growth rate of highly educated population within the city, with a 56% increase during that time period, with other secondary markets rounding up the top performers being Denver (51% growth), Miami (47% growth), Pittsburgh (45% growth), San Jose (42% growth) and Portland, OR (40% growth), GlobeSt.com learns.
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