Cumberland Holdings acquired the 73 unit Hermitage Apartments located in Portland, Oregon on December 17, 2012. It represented Cumberland’s third acquisition in 2012.
The property was renamed Connery Place Apartments with a comprehensive internet branding strategy. Constructed in 1977, it is a garden style community consisting of 12 two story wood framed buildings with one bedroom and two bedroom floor plans. Amenities include surface parking, a community pool, and a laundry room. Connery Place’s location is in the artsy and eco-conscious Montavilla neighborhood within walking distance to eateries, farmers market, mass transit, Portland Community College, and several retail/commercial services. Renovations included unit upgrades, a new leasing office, upgrade of the pool, new landscaping and development of a controlled access driveway.
The purchase price was $3,875,000 capitalized with private equity and a mortgage arranged by HFF and Sterling Bank.
In April 2014, Connery Place was sold for $7.1M, a significant gain over it's $3.875M purchase price. During the ownership period, a significant investment was made in value-add improvements and management practices that generated a 22% increase in monthly revenue collections. Over the 22 month ownership period, Cumberland's investors received a 200% return resulting in a 43% IRR.