When Trion Properties brought Fox Meadows, a 95-unit property in the Portland, Oregon, submarket of Tualatin, Oregon, to market in August there was no shortage of buyer interest, according to Farhan Mahmood, partner and head of West Coast acquisition for Trion.
“Immediately upon launching, reception was significant with several highly interested and well-qualified buyers,” Mahmood said.
But the increase in the 10-year Treasury yield last year did ultimately trim the buyer pool. “Despite this level of fallout, a number of confident buyers with the ability to navigate the new environment remained active in the market,” Mahmood said.
Ultimately, the multifamily investment sponsor and private equity real estate firm based in West Hollywood, California and Miami chose to sell the property to Chicago-based FPA Multifamily for $19.35 million, earning a return rate of 36.98%. FPA, which was founded in 1985, facilitates apartment acquisitions, dispositions and asset management for institutional investors.
“Through a standard marketing period with a 90-day negotiation and closing time frame, we ultimately awarded a buyer with a dedicated fund and long track record, who faced fewer obstacles given the interest rate climate and could close quickly and efficiently,” Mahmood said.
Trion, which has owned and managed 22 properties in the Portland area since 2015 and presently has 13 assets there, originally bought Fox Meadows in 2020 during a lull in the market due to COVID-19.
“We identified an opportunity to purchase the property in the brief multifamily downturn during the pandemic, when it was underwritten fairly conservatively, and capitalized on the right moment to sell when the market is recovering and there are few assets of this type on the sale block,” Max Sharkansky, managing partner of Trion Properties, said in a release announcing the sale.
Fox Meadows, which includes townhouse-style units, comprises two adjacent properties that Trion combined and managed as one upon acquisition in 2020. The community, built in 1968, is located less than a mile from downtown Tualatin and close to transportation, employment centers, state-of-the-art medical facilities and retail. It has a swimming pool, laundry facilities and ample parking and storage.
“Fox Meadows is situated in an exceptional location in Tualatin, an affluent submarket where homeownership has become increasingly less affordable and the decline of housing affordability is more extreme than in Washington County overall,” Mahmood said.
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