Site Offers Must-Haves Often Cited in Development Opportunities

PORTLAND, OR—The Resmark Companies is entering the Portland multifamily market in partnership with longtime joint venture investment partner LMC, a Lennar Company. The JV is set to develop Amara, a 138-unit multifamily community at 815 W. Burnside St.

“Portland is an attractive market for us. Its vibrant job market, high quality of life, relative affordability when compared to other West Coast gateway cities and innovative culture are well-suited for our multifamily strategy,” said Ziv Cohen, chief investment officer of The Resmark Companies. “This desirable site offers many of the ‘must-have’ hallmarks we seek in a development opportunity, including a best-in-class developer and an irreplaceable site close to transit, employers, retail and entertainment. Having LMC as our partner makes it the complete package for us.”

Amara marks the seventh partnership between Resmark and LMC, building on earlier successful multifamily development investments in California, Colorado and Arizona. Construction is projected to start in September with first residents slated to move-in by summer 2021.

“In addition to being one of Portland’s most desirable neighborhoods, the Pearl District is a model for urban districts around the US,” said Brad Reisinger, division president of LMC. “Our focus is on developing communities that offer a wide range of amenities, foster community and enhance our residents’ quality of life. In Portland, that lifestyle embraces walking, biking and public transportation, and the dual appeal of a spirited urban atmosphere and vital outdoor traditions.”

Reisinger noted that future residents will be able to walk to jobs in the city’s most desirable creative office spaces, commute to the central business district via the Portland Streetcar A and NS lines just one block away, and enjoy the Pearl District’s boutiques, bookstores, galleries, craft breweries, coffee shops, restaurants, theaters and nightlife.

Resmark and LMC anticipate a target resident mix of young professionals who work in downtown, Baby Boomers who are downsizing and graduate students from the three nearby universities.

“After a successful series of investments in Seattle, we concluded that we can create similar lifestyle options at more attainable rental rates for Portland apartment residents employed in technology, health care and other industries similar to those in Seattle,” Cohen tells GlobeSt.com.

Designed by Ankrom Moisan Architects, the community will have five stories of wood-framed construction over a two-level concrete podium with one level of subterranean parking. The building’s tapestry-like upper level facade is made of large white and grey panels with large picture windows. The development will offer a range of floor plans including studios, open one bedrooms, conventional one bedrooms, and two- and three-bedroom homes.

Amenities will include a fitness center, clubroom, bike storage and workshop, and rooftop deck with a barbecue area, fireplace, and views of the Portland skyline and Mount Hood. A street-level retail promenade will wrap around the south side of the community facing Burnside Street.

In second quarter, occupancy increased 40 basis-points year-over-year since second quarter 2018 while rents shot up 3.3% during the same period, according to a report by Colliers International. As nearly 2,000 units delivered this quarter, almost 10,000 remain in the pipeline across the Portland Metro. Nearly 7,000 of those units are under construction in Portland, which had an increase in occupancy of 1.1% but only a 1.9% change in effective rent from second quarter 2018.

Washington and Clackamas County continue to be the healthiest suburban submarkets, posting 4.4% and 4.6% increases in effective rental rates during the year. Based on the number and volume of transactions, second quarter 2019 was stronger than first quarter 2019 and second quarter 2018, although it did not top the third or fourth quarters of 2018. A favorable interest rate environment is likely pushing cap rates down in the Portland market, despite regulatory pressures at the state and city level that make investing in the region more volatile, says the report.

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