On March 28, 2016, Cumberland Holdings acquired the 20 unit Shalom Village Apartments in Beaverton, Oregon for $1,695,000.
Beaverton is one of Portland’s most desirable suburbs with excellent shopping, transit, schooling, and recreational amenities. Washington Square Mall is one of the strongest performing malls in the country and it is within one mile of the property. Beaverton Transit Center is within close proximity with light rail and bus service providing service throughout the entire metro area.
The property had been held and self-managed by the same family for almost 30 years. Past management practices were substandard and the property’s dated appearance limited its appeal. Rents were 40% to 50% below professionally owned and managed communities.
On behalf of its investors, Cumberland executed a $500,000 “Value Add” plan which included: residing the building exteriors, upgrading the landscaping, renovating the unit interiors, adding an additional rental unit, and rebranding the community as West End Apartments.
Management services were provided by Affinity Management. Acquisition financing was provided by Umpqua Bank with equity from Cumberland Investors.
On September 22, 2017, West End Apartment was sold for $3,940,000. During the 19 month ownership period, Cumberland’s investors received 173% total return equating to a 56% IRR.