JLL Capital Markets announced today that it has closed the $23.15 million sale and arranged $12.9 million in acquisition financing for two value-add, garden-style multi-housing communities totaling 112 units in the Vancouver suburb of Battle Ground, Washington.
JLL marketed the properties on behalf of the seller, a private company. Glencrest Group acquired the asset. Additionally, JLL worked on behalf of the new owner to originate the 10-year, fixed-rate Fannie Mae loan. The loan will be serviced by JLL Real Estate Capital, LLC, a Fannie Mae DUS lender.
“First Place and Devonwood add to our presence in the greater Portland metropolitan area and are important additions to our Generations portfolio, which is designed around long-term ownership by individual investors,” said Mike Bergelson, Managing Partner, Glencrest Group. “We are pleased to have closed this transaction without delay during these uncertain times, a testament to the commitment of our Generations network equity investors and the experience of our lending and investment sales partners at JLL.”
The portfolio includes First Place with 60 units averaging 924 square feet and Devonwood, which contains 52 units averaging 883 square feet. The properties, located one mile apart, offer residents one- and two-bedroom apartment homes with vinyl plank and carpet flooring, wood-burning fireplaces, washer/dryer hookups, balconies or patios with storage, lofts and vaulted ceilings. The communities offer leasing offices, surface and garage parking and storage units.
Battle Ground is the commercial and social hub of north Clark County and enjoys an abundance of retail options - with 1.2 million square feet of retail within a 1.5-mile radius. The two properties are located less than a mile from Battle Ground Village, a 21-acre mixed use retail space featuring the new community library, and Devonwood sits a block away from a one mile stretch of retail on West Main Street.
First Place and Devonwood are a short drive to the employment centers of Vancouver and the Portland International Airport as well as Interstates 5 and 205. Local population growth is predicted to exceed eight percent through 2025 due, in part, to the lower housing costs and higher quality of life relative to many other places in the Portland Metro Area.
The JLL Capital Markets Investment Sales and Advisory team representing the seller was led by Senior Managing Director Ira Virden, Senior Director Carrie Kahn and Associate Frank Solorzano.
The Capital Markets Debt Advisory team representing the borrower included Senior Managing Directors Charles Halladay and Peter Smyslowski and Associate Jonah Aelyon.
“Devonwood and First Place are two exceptionally well-maintained late 1990’s built communities poised to benefit from population trends occurring in Clark County, which has outpaced the growth of all other counties in the Portland MSA since 2010, said Virden. “Robust demand coupled with limited new supply has supported strong rent growth in Battle Ground. Effective rental rates have increased over six percent year-over-year, while the current vacancy rate remains less than one percent.”
“The purchase of Devonwood and First Place Apartments further validates Glencrest Group’s thesis of being able to acquire well-constructed, value-added apartment communities in desirable locations,” added Smyslowski.
