BEAVERTON, OR – Freshwater Investments has acquired 84-unit Hanover Apartments in Beaverton, Oregon for $26.5 million. Built in 1998, an ideal vintage for value-add strategy, the property is comprised of good size 1-, 2- and 3-bedroom apartments with an average unit size of 918 square feet.
Ideally located within Beaverton, one of Portland s most coveted suburban areas, the Hanover property is only 15-minute drive from the Portland downtown. Freshwater is not a novice in this market as it has been operating Maybeck Apartments in Tigard, Oregon – a well performing asset located 9 miles from the Hanover.
With the rising interest rate, we are certainly observing the shift in the market. Based on my daily conversations with the brokers, many deals are now falling apart due to this turbulence. We had secured the favorable interest rate right before things got shaky and despite the current market conditions closed the deal without any hiccups , said Alex Rozenfeld, Freshwater Founder and Managing Partner. We saw a tremendous interest in this deal from our investors, with a record number of new investors and the demand exceeding our equity needs. Given the inflation on the rise and the recent struggles of the stock market, our investors know – diversifying into real estate is a way to strengthen their portfolios.
The CBRE team has brokered the transaction and Josh McDonald, Senior Vice President at CBRE Multifamily, commented: “It was an absolute pleasure working with the Freshwater team on our first of what will be many deals in our market. The Freshwater reputation has always been a “5 Star” rating as described by our partners in Seattle and colleagues in the West, and they proved to live up to that reputation. We look forward to working with them on additional opportunities in the future.”