- Type: Multifamily
- Size: 53 Units
- Location: Woodburn, Oregon
- Year Built: 1979
- Broker: Cliff Hockley & Jeremiah Wilgus
- Sale Price: $4,100,000
Built in 1979, Britewood Apartments is a 53-unit multifamily property in Woodburn, Oregon. This property features (50) 2-bedroom 1 1/2 bath townhouse units and (3) 3-bedroom flats. Amenities include a new playground, pool, garages and a laundry room. In 2015, the property was painted, fences were installed and the parking lot was seal coated.
Client’s Goal(s): Client was a TIC investment sponsored by Palladium Asset Management whose goal was to sell the property after 8 years of ownership. Rents cooperated, which enabled the property value to increase significantly. It was listed for $4,250,000 and sold for $4,100,000 plus credit for $100,000 worth of repairs. The upside for the buyer was the location, the strong rental history and the significantly increasing rents.
This property was on the market for 1 ½ years and originally the biggest challenges were the orange color of the property and the siding repairs that needed to be accomplished before the buyer ‘stuck.’ There were 2 previous strong offers before this final third offer. In both cases the magnitude of the maintenance issues discouraged the buyers. After the inspection was completed it was discovered that there was mold and mildew in all attic spaces and two of the roofs needed to be replaced. In preparing the building for market, the sellers spent $100,000 in roof repairs/replacements, painting, siding and landscaping. In previous years, it was a challenge to keep the property full but prior to sale the rents increased approximately $200 per unit which increased the NOI of the property and gave the seller the ability to make necessary repairs. The interior of almost all of the units were given new linoleum and carpeting upon purchase, and the partnership invested in fans and sliding glass shower doors in all of the bathrooms. Additionally, approximately 50% of the apartments were provided new cabinetry and new windows.
The property provided its TIC investors a significant depreciation shelter, an average 7% return per year, and a healthy settlement from the sale.