Argosy Exits The Parker
We are pleased to announce that Argosy Real Estate Partners II, L.P. (“AREP II”) has exited its investment in The Parker, a multifamily development project located in the Pearl District of downtown Portland, Oregon. On March 26, 2015, AREP II sold its interest in the project to a core fund managed by a large institutional investment management firm. The project includes 177 units averaging 670 square feet, 165 underground parking spaces, a resident lounge with demonstration kitchen, an expansive outdoor patio with barbeque and seating areas, and a fitness center. The project is located within Portland’s central business district in one of the most desirable urban neighborhoods in the metropolitan area. The per-unit and per-square-foot valuation achieved in the exit represented the highest price ever for a podium-style multifamily property in Portland.
In December 2012, AREP II made a controlling equity investment in a partnership to acquire the approximately one acre site. The partnership was formed with Astor Pacific, a division of Robert Ball Companies, a Portland-based firm with deep experience in multifamily development in the local market. Construction commenced immediately after land closing in December 2012 and was completed in September 2014. As of the date of closing, the project was still in lease-up with 83% of units leased.
The partnership was able to create significant value by successfully completing construction and substantially leasing up the project. The Portland multifamily market has experienced consistent rent growth, a declining vacancy rate, and strengthening investor demand since the inception of the project.