DiNapoli Capital Partners Acquires Pearl District Residential Community in $37M Deal
- Dec 08, 2014
Portland’s Pearl District is attracting a large amount of interest lately, with investors ready to move on any great opportunities. Honeymoon Hardware Lofts was recently sold by a joint venture between Seattle-based Security Properties Inc. and Lubert-Adler Partners of Philadelphia to buyer DiNapoli Capital Partners for $37.1 million. Portland HFF representative Ira Virden led the team that handled the transaction for both parties.
Honeyman Hardware Lofts is located at 555 N.W. Park Ave. and offers a total of 100 residential units, as well as around 10,800 square feet of street-level retail space. The community was originally developed as three separate buildings between 1903 and 1920, with the largest known as The Cotter Building, the original home of the Honeyman Hardware Co. and also listed on the National Register of Historic Places.
After an extensive renovation process carried out between 1989 and 1991, the three buildings were converted to residential and retail use. They cover an entire city block in the Pearl District and currently operate as a single entity, with 66 of the units located in The Cotter Building, 17 in the Bindery Building and the other 17 in the three-story Metro Building. Some of the units offer features such as two-level floor plans, exposed brick walls, vaulted ceilings, private balconies, Jacuzzi baths and built-in window seats.
The current seller, a JV between Security Properties and Lubert-Adler Partners, acquired the property back in 2012 and carried out $4.9 million in upgrades, including the conversion of a large amount of the retail space to 11 live-work lofts and a new resident lounge with free wi-fi and a gourmet coffee bar. Apartments were fitted with new cabinetry, quartz countertops, and new appliances, plumbing and lighting fixtures. The community is located in the vicinity of the MAX light-rail system, in an area of the city that features great entertainment and dining options.