UDR Sells The Arbory in City’s Upscale Hillsboro Suburb for $79 Million
UDR sold a 276-unit apartment property in Hillsboro in one of Oregon’s highest-dollar multifamily transactions of 2023.
NALS Apartment Homes, an multifamily investment firm based in Santa Barbara, California, bought The Arbory at 9250 NE Rockspring St. from UDR, a Denver-based real estate investment trust, for $78.6 million. That equates to about $275,000 per unit, or roughly 8% below the average market per-unit sales price in the upscale Portland suburb of Hillsboro, CoStar data shows.
Hillsboro, where corporate giants Nike and Intel have a massive presence, is typically one of Portland’s most active submarkets for apartment investors, according to CoStar Market Analytics.
While deal activity nearly ground to a halt in the suburb last year amid a national decline in multifamily investment, Hillsboro logged two of the the Beaver State’s biggest apartment sales of 2023 by total price in December.
In an even higher-priced deal that recently closed, Seattle-based Security Properties paid $99 million for the 304-unit Tessera at Orenco Station.
The newer properties’ solid occupancy and excellent location near the Intel campus helped drive strong pricing in the two deals, said John Gillem, director of CoStar Market Analytics for CoStar in Portland.
“Also, while single-family home affordability isn’t always a one-to-one measure of apartment demand, home prices are still prohibitively expensive in Portland’s western suburbs,” Gillem added.
The Arbory, built in 2018, is the fourth acquisition in the Portland area by NALS, which now owns 46 properties across the United States, the buyer said in a post on the company’s blog.
By Randyl Drummer
CoStar News