Aliso Viejo, Calif. — Southern California-based Nelson Brothers Professional Real Estate, LLC has officially closed on Patterson Place Apartments, a 14-unit luxury student housing project located near the University of Oregon in Bend, Oregon. The property was purchased for $3,575,000 as a Tenant-in-Common (TIC) structure in an all cash purchase and the first student housing venture for the company.
According to Brian Nelson, Principal and Co-Founder of Nelson Brothers Professional Real Estate, the apartment complex is a desirable property for their investors with its unique mix of units, cash-on-cash starting at 6% and situated in a prime location for stability and growth.
“Patterson Place is the ideal student housing property located within walking distance to the school and the University is projected to grow its student body by another 28% over the next five to 10 years,” said Nelson. “What attracted us most to this deal is the stability. Even though school doesn’t begin until September, the property has been 100% pre-leased by April for three straight years, even in this recession. We have no reason to believe that trend won’t continue.”
The property was built in 2008 with 14 units and 48 beds comprised of (two) 2-bedroom units, (four) 3-bedroom units, (four) 4-bedroom units and (two) 5-bedroom units.Each property is leased out by the bed with leases contracted for 12 months and is guaranteed by each student’s parents. The University of Oregon was built in 1876 and currently has over 23,000 students with an endowment of nearly $500 million.
Nelson mentioned that they chose Property Management Concepts in Eugene, Oregon to manage Patterson Place Apartments because of their experience and knowledge with student housing.
Nelson Bros. Launched their real estate company in 2007 concentrating on the acquisition, financing and ownership of office, retail and multi-family properties for TIC investments throughout the West and Southwestern United States.