The Challenge

Following the post-COVID collapse in Portland's apartment market, the original sponsors experienced extreme distress and handed operational control to an out-of-state investor. Professional property management ceased, further deteriorating the property and residents' trust.

Our Approach

• • Secured operational control via our Arboreal affiliate before closing to prevent further deterioration and restore trust with residents
• • Surged management and maintenance teams to address immediate needs, working closely with residents to address their needs and concerns
• • Took collaborative approach to resident relations, working individually with each resident especially where rent payments had ceased
• • Achieved 95% economic occupancy within 12 months, providing stable, income-producing asset that is providing affordable housing to the community
• • Secured cash-out Freddie Mac refinancing on favorable terms, thanks to our 80% AMI affordability restrictions

The Result

Within 12 months, transformed Rose City Flats from a distressed asset into a fully stabilized property with significant value creation: (1) Economic occupancy improved from 60% to 95%, (2) Bank appraisal showed 20% valuation increase from acquisition price, (3) Annual NOI increased from $425K to $1.1M through operational improvements, (4) Successfully refinanced with Freddie Mac at favorable terms with 80% AMI affordability restrictions, providing investor liquidity while maintaining long-term affordability commitment. Demonstrates the value of vertical integration—our in-house property management enabled rapid turnaround impossible with third-party operators.