Greater Portland is a Magnet for Multifamily Investors
Posted on November 16, 2020
GRESHAM, OR—Trion Properties along with joint venture partner AMC Investments recently acquired Hood Apartments, a new 64-unit multifamily community. This acquisition brings Trion’s regional holdings to eight properties totaling 675 units.
Hood Apartments is the firm’s first purchase in Gresham, the fourth largest city in the state, according to Max Sharkansky, managing partner at Trion Properties. Sharkansky shared some insights into why Trion is betting on the Greater Portland market, trends in the region’s multifamily sector and where the market is headed.
“Portland has long attracted residents to its richly beautiful scenery and relaxed outdoor lifestyle,” Sharkansky tells GlobeSt.com. “More recently, numerous corporations have also been drawn to this western market for its affordability and business-friendly policies.”
GlobeSt.com: What are some of the other reasons Trion continues to target the Greater Portland region?
Sharkansky: Portland is a market that Trion believes in and knows well. We have deep expertise in identifying markets with strong growth potential, where there is increasing demand for attractive and affordable apartment communities, and Greater Portland is one of those markets. The region offers a cost of living that compares favorably to other western markets, in addition to a family-friendly lifestyle, high walkability and a flourishing business environment.
Greater Portland aligns well with our proven strategy of investing in growth markets where the demand for budget-friendly apartment units is high. We currently own eight assets in the market comprising 675 units and we have continued to target the region because of its healthy economy and potential for enormous growth in the coming months and years.
GlobeSt.com: What trends are you seeing in the region when it comes to the multifamily sector?
Sharkansky: While Greater Portland has been challenged economically in recent months due to COVID-19 like most markets, the region’s high relative affordability and appealing quality of life are working in its favor. Because so many companies have been drawn to the market due to its property-tax incentive programs, apartment units are in demand, developers are working hard to deliver them and investors are eager to acquire them.
Although the pandemic has slowed transaction volume in the market, signs point to a robust recovery once the virus has subsided. Greater Portland has all the elements in place to bounce back from this unprecedented health and economic crisis stronger than ever.
GlobeSt.com: With the pandemic, how was your most recent Portland acquisition different from previous ones?
Sharkansky: Our recent purchase of Hood Apartments was unusual for us because we typically invest in older properties in Portland where we can implement our proven value-add strategy to revitalize neighborhoods and increase returns for our investors. It was also an unique opportunity for the particular submarket. Most of Gresham’s apartment inventory was constructed before 2000.
In the case of this acquisition, however, we recognized the rare opportunity to purchase a brand-new asset below replacement cost, offering large apartment homes in a highly desirable market, and located close to public transportation, restaurants, retailers, a medical center, a community college, and some gorgeous local natural sites including Mount Hood, Multnomah Falls and the Columbia River Gorge National Scenic Area. This was an opportunity we couldn’t pass up and Hood Apartments is an excellent addition to our portfolio.
GlobeSt.com: What do you expect to see in Portland moving into 2021?
Sharkansky: As we navigate our way out of the pandemic, we expect the Portland market to rise, buoyed by its strong economy, attractive quality of life, beautiful scenery and diverse business environment. This is a market that has garnered increasing interest from people of all demographics and income levels, as well as a variety of companies, and it is well positioned to thrive once we are past COVID-19. Trion will continue to seek opportunities to invest in multifamily properties in this market that align with our strategy as we know that demand for these communities will only increase in the years ahead.