PORTLAND, Ore. — Real estate investors spent far more money on Portland-area apartment buildings last year than previously thought.
CoStar Group, a real estate analytics provider, last year tallied in excess of $3 billion worth of sales in the region's multifamily market, which broke a 2016 record of $2.978 billion. CoStar counts complexes with five or more units and doesn't include residential condos or co-ops.
Turns out, $4.314 billion worth of deals actually went through, according to updated CoStar data shared with the Business Journal this week.
Speeding things along were deals like the roughly $145 million sale of Seven West at the Trails in Beaverton and the $75 million sale of the 10th @ Hoyt apartment complex inside Portland's Pearl District.
"Investors are really drawn to Portland's growing population," said John Gillem, CoStar's Portland market analytics director. But the investor feeding frenzy, which coincides with rising residential home sale prices and cost of living increases more generally, could translate to higher prices for people living inside those apartments. "As far as locals go, you're probably going to be looking at increased rents, certainly in the near to mid-term," Gillem said.
Oregon passed rent control legislation in 2019 that allows landlords to raise rents by 7% plus inflation. In 2022, they can increase rents by up to 9.9%.
Read the full story at the Portland Business Journal.