Behringer Harvard has acquired Tupelo Alley, an urban infill, mixed-use community in Portland, Ore., that includes 188 apartment homes and approximately 10,000 sq. ft. of retail space. The purchase price was approximately $38.8 million, excluding closing costs.
Tupelo Alley is located in the trendy Mississippi Avenue District on the east side of Portland, which is Oregon’s largest city. The community is approximately four miles north of Portland’s city center and nine miles southwest of Portland International Airport.
“We’re pleased to acquire this high-quality, newly constructed community in a vibrant live/work/play urban neighborhood,” says Mr. Mark Alfieri, chief operating officer of Behringer Harvard Multifamily REIT I Inc. “With its transit-oriented, centralized location and its commitment to sustainability, Tupelo Alley is a popular choice for young professionals. We believe it offers attractive upside potential.”
This investment was made through a joint venture between Behringer Harvard Multifamily REIT I Inc. and PGGM Private Real Estate Fund, an investment vehicle for Dutch pension funds. Behringer Harvard Multifamily REIT I funded 55% of the purchase price, or approximately $21.3 million with proceeds from its initial public offering. Its co-investment partner funded the remaining 45% of the purchase price.
Dallas-based Behringer Harvard has interests in or manages more than $10 billion in real estate assets. The company creates and manages global institutional-quality investment programs for individual and institutional investors through its real estate investment trusts, joint ventures and proprietary program structures.
Tupelo Alley was constructed in the summer of 2009 at 3850 N. Mississippi Avenue. The stabilized community is seeking LEED certification from the U.S. Green Building Council for its sustainable practices. Tupelo Alley consists of three controlled-access residential buildings; one is a mid-rise and the others are three stories each. Residents enjoy reserved below-grade parking, a television lounge with Wi-Fi access, a 24-hour fitness center and a landscaped courtyard with casual seating.
The homes at Tupelo Alley average 770 sq. ft. with one or two bedrooms and baths. The nonsmoking buildings provide interior finishes including ample closets, oversized windows with abundant natural light, wood-style flooring, dual stainless-steel sinks with spray-head faucets, and a washer and dryer. Select homes feature a private patio or balcony, city views and pendant lighting.
The pedestrian-friendly Tupelo Alley community is located in the heart of Mississippi Avenue’s boutiques, restaurants, brewpubs, bakeries, cafés, coffee shops and nightlife venues. Residents enjoy convenient access to public transportation options including light rail and bus services. Tupelo Alley is less than one mile from the TriMet MAX Yellow and Red lines providing commuter rail services throughout Portland. The community also provides easy access to major traffic arteries including interstates 5, 405 and 84.