Fully Stabilized Rivage Finds New Buyer in Magnolia Capital
Portland investors continue to focus on high-quality assets that will endure over time within the metro’s long-term job and growth projection even though rental growth has slowed.
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PORTLAND, OR—On one of the last remaining waterfront sites in Portland, Rivage is a 260-unit fully stabilized multifamily community. Fore Property recently sold the asset to Magnolia Capital.
“Recognizing the vast potential for multifamily development, we’ve been active in the Portland metro area for several years. By adhering to our core values and executing with precision, we were able to provide a high-quality, stabilized rental community to the region that meets the everyday needs of its residents and offers contemporary conveniences in a prime waterfront location,” said Fore Property vice president Lee Novak. “This transaction demonstrates the success of Fore’s regionally tailored investment strategy and the quality of our approach and product, which enables us to consistently generate excellent returns for our investors.”
In 2017, Fore Property and funds from Carlyle Realty Partners VII, a fund sponsored by global investment firm The Carlyle Group, provided equity capital and PNC Bank provided financing to develop the North Pearl District apartment community.
“Rivage was developed on one of the last remaining waterfront sites available in Portland,” Novak tells GlobeSt.com. “The luxury apartments take full advantage of the views and waterfront trail amenity. The site also completes the Riverscape neighborhood, where Fore has completed three projects in this cycle totaling over 650 units.”
The podium-style waterfront apartment complex is located at 2220 NW Front Ave., immediately adjacent to the Pearl District and Slabtown neighborhoods. With an amenity package including a rooftop deck overlooking the Willamette River, Rivage features a mix of studio, one- and two-bedroom apartments. It also provides its residents with access to mass transit, expanding employment opportunities and highly rated schools.
In addition to the sale of Rivage, Fore recently announced the opening of three new apartment communities in the Portland metro area: Revere, a 211-apartment community located in the historic Mississippi Neighborhood, Northpointe Apartments, a 158-unit community in Portland’s Overlook Neighborhood and Hearth, a 179-unit community located in Vancouver, WA.
“In Portland, we are seeing investors continue to focus on high-quality assets that will endure over time. Rivage’s modern yet classic look will continue to be desirable for many years,” Novak tells GlobeSt.com. “While rental growth has slowed, investors continue to believe in the long-term jobs and growth story for Portland. It remains the most affordable and livable city on the West Coast.”
The Portland multifamily market has had a substantial run-up in the current cycle. Each unit type has seen quarter-over-quarter and year-over-year rental rate increases. Yet some headwinds indicate that the current development and investment cycle is entering the later stages. Homeownership rates are increasing, the rate of rent growth is declining, population growth rate is subsiding and apartment construction is beginning to slow, according to a Kidder Mathews report.