Honeyman Hardware Lofts (“Honeyman”) was a value-add joint venture equity investment in a 101-unit apartment project located in the Pearl District submarket of Portland, OR. The investment was a recapitalization of a failed condo conversion during the prior cycle. The revised business plan involved a renovation of common areas and units to capitalize on the asset’s unique positioning as an authentic loft style apartment project in a highly sought after location. Portland entitlement hurdles and the historic nature of Honeyman prevented true competitive supply from altering an attractive and improving market rent dynamic.

Following our investment, and as units turned over, all unit interiors were renovated with new kitchen and bathroom finishes and fixtures. Additionally, the exterior windows at the project were upgraded to cure a water intrusion condition that was a consequence of the age and historic nature of the building. Finally, a new community center, leasing office and fitness center were added to enhance the amenity offering at Honeyman.

All common area and unit upgrades were completed during the first 18 months of our ownership.