A joint venture of Philadelphia-based Lubert-Adler Partners and Seattle-based Security Properties Inc. has sold Honeyman Hardware Lofts, a 100-unit apartment community with 10,800 square feet of street-level retail space in the vibrant Pearl District of downtown Portland, OR. DiNapoli Capital Partners purchased the historic property for $37,050,000. The sale was brokered by the Portland HFF team led by Ira Virden.
The JV acquired the property in 2012 from a joint venture of SPI and Equity Resource Investments. Following the acquisition, the new ownership invested $4.9 million in upgrades that included converting a portion of the earlier retail space to 11 live-work lofts and creating a new resident lounge that offers free wi-fi and a gourmet coffee bar. Apartments were provided with new cabinetry and quartz countertops as well as updated appliances, plumbing, and lighting fixtures.
Honeyman Hardware Lofts, located at 555 NW Park Avenue, was originally constructed as three individual buildings between 1903 and 1920. The Cotter Building, the largest of the three, was the original home of the Honeyman Hardware Company and is listed on the National Register of Historic Places. All three buildings were completely renovated and converted to residential and retail use between 1989 and 1991.
Covering a full city block, Honeyman Hardware Lofts’ three buildings operate as a single entity: the eight-story Cotter building with 66 units, the one- to two-story Bindery Building with 17 units, and the three-story Metro Building with 17 units. Select apartments offer such sought-after features as two-level floor plans, exposed brick walls, vaulted ceilings, private balconies, Jacuzzi baths, and built-in window seats.
The Honeyman community is just steps away from Portland’s MAX light rail system and is surrounded by many of Portland’s most popular retail, restaurant, and entertainment destinations, including the iconic Powell’s City of Books, Chinatown, the Roseland Theater, Chinatown, several parks including Governor Tom McCall Waterfront Park, as well as major employers. Within a 20-minute walk, residents have access to three grocery stores including Whole Foods, more than 100 restaurants, and more than 150 shops.
“The acquisition, renovation and sale of Honeyman Hardware Lofts property was an opportunistic investment in the truest sense,” said Security Properties Director Jason Book-Symons, who oversaw the extensive renovation process. “In this property, we saw substantial opportunity to add value by while adding to the context of the Pearl District.”
“The surrounding submarket was continuing to improve and the time had come for this asset to realize its full potential,” added David Dufenhorst, CEO of Security Properties. “This historic renovation had the potential to be extremely challenging and from the start, we devoted a great deal of management focus to ensure a smooth execution.”
The Wall Street Journal (April 6, 2012) called Portland “the utopian symbol of the possibilities of urban living in the 21st century – affordable, friendly, environmentally conscious, and full of epicurean delights…set against a stunning natural backdrop.”
Lubert-Adler was co-founded in 1997 by Ira Lubert and Dean Adler, who collectively have over 50 years of experience in underwriting, acquiring, repositioning, refinancing, and disposing real estate assets. Today, the Philadelphia-based firm has grown to include more than 20 investment professionals and has invested $6.5 billion of equity into assets valued at over $16 billion. For more information, visit www.lubertadler.com.
Security Properties is a national real estate investment and operating company headquartered in Seattle, Washington. For more than 45 years, Security Properties has provided quality housing to its residents as well as excellent financial performance for its investors. Over time, Security Properties has acquired or developed over 66,500 residential units at a cost of over $3.35 billon. Security Properties maintains a focused multifamily strategy supported by integrated teams of professional acquisition, development, construction, investment, and property management specialists. For more information, visit www.securityproperties.com.