Trecap Nabs Two Portland Apartment Complexes for $53.9M
- Jul 21, 2011
July 21, 2011
By Barbra Murray, Contributing Editor
Trecap Partners L.L.C. jumped into the booming Beaverton, Ore., submarket with the acquisition of a majority stake in two apartment complexes totaling 542 units. Trecap joined forces with Holland Partners to take Country Gables and Club at the Green off the hands of Equity Residential in a $53.9 million transaction.
Sited less than 10 miles southwest of Portland, Country Gables first opened its doors 20 years ago with 288 residences, while the Club at the Green made its debut in one year earlier in 1990, featuring 254 residences. Trecap and Holland plan to upgrade the properties, whose location in Beaverton’s Silicon Forest put them right in the middle of an increasingly tight apartment market.
“Employment is a major provider of demand for the area,” R. Josh Lehr, director of research and associate broker with HFO Investment Real Estate, told Commercial Property Executive. “Three or four of the largest high-tech firms are in the area. That’s the primary driver.” IBM, Intel and Tektronix are among the leading employers in the city. “Beaverton is kind of a high-tech hub,” he adds. It is also home to a host of other leading employers including Nike and Kaiser Permanente.
Proof of the high demand for rental accommodations in Beaverton is in the numbers. According to the U.S. Census Bureau, the Portland-Vancouver-Beaverton apartment market ranked number one in the country; its 4 percent vacancy rate was the lowest among the 75 leading metropolitan statistical areas in the first quarter of the year.
For Trecap, which bought Country Gables and Club at the Green for a pre-specified facility on behalf of a soon-to-be launched institutional investment fund, the new acquisitions mark a continuation of a buying binge. With the purchase of the Beaverton properties, the company has added five apartment communities to its portfolio over a four-month period.