Caldera Sunnybrook IMG Portland Value Add Sponsored 1031 Apartment TIC

PROPERTY INFO

Units: 136
Year built: 1980
Location: Clackamas, Oregon
Market: Portland-Vancouver-Hillsboro, OR-WA MSA
Submarket: Southeast/Damascus
Purchase price (2017): $19 million
1031 exchanges: 5
Equity invested: $8.3 million

Over $2 million in capital improvements to date have gone into upgrades such as remodeling apartment interiors and constructing a new community clubhouse, fitness and leasing center. Operations have surged under IMG’s asset management during the repositioning period, with net income growing an average of 13% per year over the last three years.

Investment Highlights

This property’s location at the base of Mt. Talbert— an ancient volcanic cinder cone just 10 miles southeast of downtown Portland, Oregon— provided IMG a unique rebranding and repositioning opportunity.

IMG acquired this owner-managed property off-market. Poor operating performance and an outdated amenity set had resulted in rental rates 20% below market. Under IMG’s ownership, on-site management has strengthened and over $2M in improvements have been completed.

Caldera features a mix of 1-, 2- and 3-bedroom apartments across nine acres. The property is located within Portland's fast-growing Damascus submarket. Strong demographics have spurred the development of new schools and high quality retail offerings. The city's award-winning light rail service is accessed less than one mile from the property connecting Caldera residents to downtown, Portland’s Westside (headquarters for Nike and Intel) and the airport.

Residents are drawn to the area’s abundant outdoor recreation, major employment hubs and upper-end retail centers all within close reach.