Lloyd Place Apartments

Portland, Oregon

Historical Transaction

Units: 202
Total Capital: $17.3 million
Equity Invested: $3.9 million
Status: Sold
Realized Multiple: 1.8x
Realized IRR: 39%

Lloyd Place Apartments is a 202 unit Class A apartment project arranged in two main buildings containing four residential floors over structured parking. The site is comprised of 171,206 net rentable square feet on a 1.8 acre site adjacent to the 1.5 million square foot Lloyd Center Mall in the Lloyd District of Portland. The Lloyd District is a distinct mixed-use submarket located across the Willamette River from downtown Portland. The district also is comprised of approximately 4.0 million square feet of commercial, Federal and State office space. At the time of development, the Lloyd District had undergone over $750 million in capital improvements (new construction, renovation, & infrastructure) and had developed as a distinct and vibrant submarket within Portland. The project was developed and stabilized with 26 months and sold in December, 1997.

Opportunity

  • Joint-venture with a regional multi-family developer based in Pacific Northwest and Florida with a development track record spanning over 9,000 units.
  • Market research projected a strong emerging submarket with increases in rental rates and occupancy complemented by limited direct competition during the development timeline.
  • Capitalize on opportunity for compressed lease-up timeline given the attractiveness of the project’s urban infill location and proximity to major employment centers, public transportation, retail facilities, and outdoor recreation.
  • Leverage 10 year tax abatement from the city scheduled to commence with the completion of the project, resulting in an initial operating savings of $183,000 per annum.