Trailblazing: Red Tail Canyon Townhomes
High Quality Townhomes in Private, Exclusive Neighborhood
Portlanders are attracted to the city’s many waterfront parks, public squares, civic centers, excellent public transportation system and – of course – the fabulous coffee. The Central City 2035 plan – Portland’s new, transformative development program – looks down the road and also envisions a pedestrian/bike/transit-only bridge that will connect every district of the central city.
Pathfinder has been investing in Portland since 2009 and we continue to be attracted to the city’s progressive approach to growth and development, growing economy, population and employment and educated workforce. This spring, we acquired Red Tail Canyon Townhomes, a 100-unit townhome development built in 2001, our fourth investment in Portland.
We knew we had found a diamond in the rough when we first walked through the secluded network of streets encompassing Red Tail Canyon, located in the Happy Valley/Clackamas neighborhood, 12 miles southeast of downtown Portland. The property – at the base of Mount Scott and surrounded by a green belt with walking paths – was converted to for-sale townhomes in 2006. The developer sold 27 townhomes in 2006 and 2007 and after the downturn was left operating the remaining 73 homes as rentals. The developer’s widow self-managed the property until February when she sold the remaining 73 units to Pathfinder.
We transitioned the management to a local, best-in-class property manager and are implementing several common area improvements including renovations of the clubhouse, pool area and fitness center. We plan to continue operating Red Tail Canyon as a rental community for the next several years and to increase rents to market levels on new leases and renewals. As housing prices and rental demand continue to grow in Portland, we believe there may be an opportunity to sell individual townhomes in the next several years. In the meantime, we continue to look at gentrifying markets such as Portland through the lens of opportunity and hope to make additional investments in the area in 2015.