Trailblazing: FortyOne 11, Portland, OR
“Quality Living for Eclectic Portlanders”
Just northeast of downtown Portland lies the Alberta Arts District, an eclectic neighborhood which is home to independently owned boutiques, cafes, art galleries, music venues and breweries. Arts District residents are a mix of local families, working professionals and Millennials and Gen Zer’s. In 2021, the district was ranked as one of best neighborhoods in Portland by Apartment Guide and the second-best neighborhood in Portland by the travel website EmbraceSomeplace.com. This year, the district was recognized as one of Portland’s best up-and-coming neighborhoods by the moving company Bellhop.
Last spring, while scouting out opportunities during the pandemic, we followed Portland’s artistic culture to the Alberta Arts District and found a neighborhood where street murals, vinyl records and recycled denim are commonplace fixtures. We also found FortyOne 11, our first acquisition in Pathfinder Partners Opportunity Fund VIII, which we raised in December 2020.
FortyOne 11, built in 2019, is a 112-unit mid-rise apartment community just a ten-minute drive to the city center and walking distance to light rail and bus transit. The surrounding area is highly walkable, and the property is less than a mile from Williams Avenue, a vibrant corridor known for its local restaurants, unique shops and bustling nightlife.
FortyOne 11 is situated on a half-acre parcel and includes a mix of studios and one- and two-bedroom apartments averaging 516 square feet. The apartments feature floor-to-ceiling windows, vinyl plank flooring, in-unit washers and dryers and quartz countertops. The property offers secured parking, a fitness center, 24-hour package lockers and a community lounge area with WiFi and complementary concierge coffee service.
Fund VIII’s strategy was to build a diversified portfolio of multifamily properties impacted by the pandemic. Our target properties consisted of those owned by distressed owners – those struggling with lease-up or collections or facing imminent loan maturities.
Upon completion of construction in 2019, FortyOne11 suffered from a slow lease-up and several operational issues resulting from the pandemic. At acquisition, the property was less than 70% leased and collecting only about 75% of monthly rents. Our 24-month business plan included implementing professional property management, improving collections, upgrading the common areas and stabilizing the property.
We have now stabilized occupancy at 95% and reduced delinquency by approximately one-third. We enhanced the landscaping and installed new signage and vinyl plank flooring in the hallways. We improved the lobby with a concierge-style front desk, resident Wi-Fi bar, new flooring, paint, furniture and décor. We also provided residents with branded community bikes and upgraded the fitness room with new a SoulCycle® bike and a boxing and stretching area.
Our aim for FortyOne 11 is to create a comfortable and stylish living environment suitable for Portland’s diverse population.
Portland, OR: Did you know?
Downtown Portland is getting the Pacific Northwest’s first Ritz-Carlton Hotel. The five-star hotel will occupy a 35-floor tower with 251 rooms, a pool and an indoor/outdoor restaurant with panoramic views of Portland and the Cascade Mountain range. The building will also house condos, office space and a food hall. The $600 million project is replacing the iconic downtown food cart pod. Construction is underway and planned for completion by next summer.
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