As 2022 draws to close, Central Oregon’s red-hot apartment market continued to set high watermarks for property sales prices this year, including one institutional group acquiring two complexes in Bend for a total of over $110 million.
Recently, Seattle-based Security Properties (SP) bought the 168-unit multifamily community of Sienna Pointe Apartments off Lotus Avenue near St. Charles Hospital in Bend, for $49.5 million ($294,642 per unit).
Built in 1991, the garden-style community in the shadow of Pilot Butte sits on 9.7 acres and comprises 21 buildings with one- and two-bedroom units averaging 845 square feet. Unit amenities include washers and dryers in most units, stainless steel appliances, electric fireplaces and private decks and patios.
Site amenities include a fitness center, pet play area, laundry and clubhouse facilities, and on-site management. The low-density property features 17 units per acre and 264 parking spaces, and access to a Pilot Butte trailhead.
Commenting on the strategy behind the purchase, Alex Gauper, acquisitions director at Security Properties, said, “Bend continues to be one of our highest conviction markets due to its compelling combination of affordability and overall quality of life. The addition of Sienna Pointe combines well with our existing market footprint, and we look forward to executing on our value-add business plan as Bend continues to grow.”
Gauper added that the asset represented a “value-add investment with moderate upgrade characteristics” and SP would continue to add cosmetic upgrades to unit interiors as well as enhancing the existing amenity spaces.
Portland-based commercial real estate brokerage firm HFO Investment Real Estate (HFO) represented the seller, Bend Housing LLC, in the sale, after the class B asset was extensively updated. HFO partner Rob Marton said these renovations and the property’s location just blocks from St. Charles Medical Center — the largest provider of medical care in Central Oregon — made Sienna Pointe an attractive investment in a market where apartment properties are relatively rarely traded.
HFO previously brokered the sale of the property in 2016 for $23.75 million or $141,369 per unit, to a private investor from Louisiana which set the record for the highest per-unit sale price in the city at that time. The latest Sienna Point deal comes hard on the heels of Security Properties’ purchase of the 153-unit newer construction Bellevue Crossing apartments, also in NE Bend, at a cost of $61 million, or close to $400,000 per unit earlier this year. These transactions represented Security Properties’ fourth and fifth acquisition in the Bend market as the city continues to gain further national recognition for the high-quality lifestyle it offers.
Security’s local portfolio also includes the 228-unit Seasons Apartments at Farmington Reserve in Bend and the 205-unit Outlook at Pilot Butte complex, making it the largest apartment landlord by number of units in Central Oregon. The properties are managed by Security Properties-affiliate Security Properties Residential.
Significant as they are, the two sales this year are not even the highest price per unit recorded for a larger apartment complex transaction in recent history. That distinction goes to the new construction of Cypress at Triple Ridge in Redmond whose 144 units sold to Pleasanton, California-based Green Leaf Capital at the end of 2021 for $60 million, or a staggering $416,667 per unit.
About Security Properties:
Security Properties is a national real estate investment, development, and operating company headquartered in Seattle, Washington. For more than 50 years, Security Properties has provided quality housing to its residents as well as proven financial performance for its investors. Since its founding, Security Properties has acquired or developed over 83,000 residential units at a cost of over $5.7 billion, maintaining a focused multi-family strategy supported by integrated teams of professional acquisition, development, construction, investment, and property management specialists. Today, the Security Properties portfolio reflects interests in 113 assets encompassing 22,354 multifamily housing units — including properties under construction — making it one of the largest owners of residential real estate in the country.
About Security Properties Residential:
Security Properties Residential is the affiliated property management firm of Security Properties, created to increase the value of its real estate holdings by more closely managing its assets. Operating throughout the Western U.S., Security Properties Residential is committed to delivering exceptional service to its apartment communities and residents. Services include property, construction and compliance management services that create positive living environments for residents and build value for clients.