Dive Brief:
- Portland's largest micro-apartment building — the 150-unit Freedom Center — will be back on the market with a call for best offers on Sept. 8, two years after it failed to sell, commercial real estate firm Cushman & Wakefield announced.
- Cushman & Wakefield representatives said they have seen a major increase in interest from investors this time around — which they believe signals that the micro-apartment market is "maturing."
- The apartment building, which opened in 2012, includes exclusively studio units, with a significant portion of them smaller than 300 square feet. A representative said the sale of the building would mark the country's first sale of a micro-apartment multifamily development of such a large size.
Dive Insight:
Pete Shelton, a senior director in Cushman & Wakefield's Seattle office, said: "We have broad interest ... In fact, very broad interest. And that's not a surprise. ... If you want to live in the Pearl but don't want to pay market-rate rents, this is an affordable option."
The typical rent for a Freedom Center micro-apartment runs between $1,000 and $1,100 per month. That is drastically lower than the average rental price for a home in the same zip code, which Zillow found to be almost $2,000 in July.
Gary Griff, the Cushman & Wakefield Portland representative handling the sale, said he predicts the micro-apartment building trend will continue to grow in the area.
"There's a definite niche, a place for them. ... There's going to be more, for sure," Griff said. "The proof is in the results. The property is 96, 97 percent leased at all times."
Downsized living has proven itself to be a lasting trend for both apartments and houses, as demand picks up from all age groups for an alternative to large homes and even larger price tags.
