Courtesy / Porta & Co.
On Portland’s West End, 28 High St. is a fully occupied apartment building that sold for $50,000 above the list price of $1.625 million.
Updated: July 18, 2022
Investors come from as far as NYC for Portland multifamily showings
Courtesy / Porta & Co.
On Portland’s West End, 28 High St. is a fully occupied apartment building that sold for $50,000 above the list price of $1.625 million.
Two multifamily buildings in Portland experienced over 15 showings each within a two-hour window, with potential buyers coming from as far as New York City.
Both listings received multiple offers over the asking price.
“We believe the narrative is multifamily investment demand in downtown Portland remains stronger than ever due to barriers for new construction, which is resulting in increased value of existing housing stock, among other factors,” said Tim Millett of Porta & Co., who represented the seller in the deals.
I-95 Portland Portfolio I LLC sold 28 High St., a 6,864-square-foot multifamily building, to 28 High Street LLC for $1,675 million, which was $50,000 above the list price. Cheri Bonawitz and Karen Rich of Malone Commercial Brokers represented the buyer.
On the same day, I-95 Portland Portfolio I LLC sold 41 Chestnut St., a 16-unit multifamily building, to 41 Chestnut LLC for $3.15 million. The sale price was $155,000 above the list price of $2.995 million. David Holman of RE/MAX Riverside represented the buyer.
Courtesy / Porta & Co.
In Portland’s West Bayside, 41 Chestnut St., in the foreground, sold for $3.15 million, $155,000 above the list price.
Huge value increase
The aggregate deal totaled 23 units for $4,825,001.
“We had two people flying in from New York City,” Millett said of the showings.
Two different buyers came in on the deals.
At the time of the sales, 28 High St. was fully occupied and 41 Chestnut St. had one vacant unit that has since filled, said Millett.
Millett said he’s seen a huge increase in the value of multifamily properties in Greater Portland.
“It’s becoming difficult to build new downtown,” he said. “That continues to add more pressure on existing housing stock and we certainly saw that demand.”
Opportune timing
The seller, I-95 Portland Portfolio I LLC, is a partnership and led by general partners Palo Peirce and Alex Jones.
Peirce is a Portland resident who also co-owns Bricklight Realty Management along with Jones, which owns and manages about 225 multi-family market-rate and affordable units spread across 14 buildings, predominantly in Portland.
Both 28 High and 41 Chestnut were built around the turn of the 20th century. The former is in the West End and features two-bedroom apartments, private porches, views of the harbor and on-site parking. The latter is a large, 16-unit building comprising 3 and 4-bedroom apartment units in West Bayside.
I-95 bought the properties in 2014 primarily as a value-add opportunity to improve them through active management of rents, operational improvements and physical renovations such as system upgrades.
The decision to sell the two buildings came at an opportune time, given buyer interest, the maturity of the deal, and recent investments in other assets, Peirce said.
“We’re still looking at a multitude of buildings,” said Peirce. “We think Portland is a good market. Portland is a wonderful place to live, so you’re seeing those impacts on the demand side and, consequently, valuations.”
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