Palladium Asset Management : managing risk, building equity.

Britewood Townhouse Apartments, Woodburn, Oregon

This 53 unit property was built in the early 80’s. The former owner spent a significant amount of money upgrading this property in as far as most of the linoleum seems new and close to half of the units have newer carpeting and appliances. They also spent over $80,000 on roof repairs in 2005.

The seller agreed to a 12 month rent guarantee of up to a total of $25,000, which reduced the risk in the first year, providing an opportunity to make improvements to the property. It is our intent to either increase the rent or institute a water bill back to take expenses into account.

We will be assuming an existing loan with a balance of $2,250,000 and interest rate of 5.73 % that is due in May of 2013. Recourse is limited to the property and does not extend to the borrowers or those assuming the debt. This is a conduit loan currently being serviced by US Bank.

Palladium raised just over $1,300,000 in increments of no less than $100,000 for this project.

Parkhurst Apartments, Portland, Oregon

Located at 6341-6403 NE Glisan Street In Portland, Oregon, the Parkhurst Apartments were built in 1976 and are conveniently located near grocery stores, public transportation and provide easy access to I-85.

The complex of 3 residential buildings features 33 large two-bedroom units and one commercial space with a long-term tenant. All residential units include washer/dryer hookups, decks and storage closets. Each unit additionally features new vinyl windows and sliding doors. There are 3 parking lots providing a total of 35 parking spaces; a storage shed is also housed on the property.

The purchase price of the investment was $1.4 M. Palladium Asset Management closed this transaction with financial investors who formed a new LLC. The anticipated holding time for this property is seven years with an annual potential return of 7.4% plus additional return upon the sale of the property. The project was structured for either a 1031 exchange or cash sale.