Southern California-based Next Wave Investors is expanding its Pacific Northwest footprint. The private equity firm has acquired the 300-unit Serrano North and South in Spokane, Washington, for $34.4 million and the 74-unit River Lofts in Tualatin, Oregon, for $14.2 million.
“The opportunity to enter the Oregon market and expand our footprint in Washington is well-timed with our ongoing investment strategy, through which we continue to identify value-add properties situated in markets poised for rapid growth and expansion,” said Jordan Fisher, principal at Next Wave.
Fisher said opportunity exists to enhance property value in the Pacific Northwest as fundamentals in both Oregon and Washington strengthen, with rising rental demand being seen from the in-migration of California residents and the “flight to suburbia” that ignited during the pandemic in 2020.
“This momentum, coupled with the new economic recovery and subsequent job growth, make these acquisitions well-positioned to benefit from strong future demand and stability, while giving us an opportunity to leverage economies of scale in the region and further streamline operation efficiencies,” added Fisher.
Both of the developments were acquired in off-market transactions through previous broker relationships, and Next Wave has plans for capital improvements.
“These are vintage 1974, 1981, and 1984 properties, giving our team a tremendous opportunity to implement our improvement and renovation strategies and enhance the quality of life for our residents at each of these properties,” said principal David Sloan.
Located less than 4 miles from Gonzaga University, Washington State University, and downtown Spokane, Serrano North and South Apartments features a mix of studio, one-, two-, and three-bedroom units with fully equipped kitchens, large closets, and private balconies and patios. Amenities include a swimming pool with a sundeck, laundry facilities, a clubhouse, and detached garages and carports.
Next Wave plans to renovate all 300 units with modern upgrades, including stainless steel appliances, lighting fixtures, plumbing fixtures, and new carpet and cabinets. The firm also will enhance curb appeal with new paint, roof maintenance, asphalt resurfacing, deck repairs, and upgrades to the pool area and landscaping.
River Lofts, located in a southwestern suburb of Portland, includes a mix of one-, two-, and three-bedroom units with floor plans that average 976 square feet. The seller had renovated eight apartments; Next Wave plans to renovate the remaining 66 units to a consistent premium finish level.
