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PORTLAND, OR-Behringer Harvard has put down $1.5 million toward the $65-million purchase of Cyan, a downtown condo-come-apartment tower here that opened earlier this year. The 16-story building has 352 units, most of which measure less than 600 square feet, making it ideal for the conversion. It also has a business center, a fitness center and 5,700 square feet of retail space.

Cyan Apartments is located at 1420 SW 4th Ave., which is at the south end of the Downtown core. Behringer Harvard Multifamily OP I LP, its operating partnership is acquiring the property in a 55-45 joint venture with Behringer Harvard Master Partnership I LP, which is 99% owned by Stichting Pensioenfonds Zorg en Welijn, a Netherlands-based social work sector pension fund based better known as PGGM.

The tower was developed by Gerding Edlen Development. The official seller is 4th & Harrison Investors, an LLC whose manager is 4th & Harrison Development, another LLC whose managers are Gerding Edlen managing partners Mark C. Edlen and Kelly T. Saito, according to the Oregon Secretary of State’s office.

Gerding Edlen publicly made the switch from condos to apartments in October 2008. It was the sixth condo project in Portland to switch to apartments since spring 2007.

Two-thirds of Cyan’s units measure less than 600 square feet. In January 2008, a little more than a year before the project was completed, the Cyan’s smallest unit, 541 square feet, was listed at $213,000, and 60% of the units were listed at less than $600,000, according to published reports.

Behringer Harvard did not disclose vacancy or rent data for the project, or its cap rate expectations. Back in March, loft units were reportedly renting for $995 per month and one-bedroom units for $1,295. The price at the time included perks such as access to a community garden, an online concierge, a fleet of bicycles, as well as discounts on New Seasons grocery delivery and Zipcar memberships.

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