SOLVING FOR REGULATORY FRICTION BY MOVING EQUITY SOUTH

SHERIDAN PLAZA

GOAL

The client sought to simplify operations and escape the regulatory headwinds of the Pacific Northwest by moving their investment portfolio into more landlord-friendly states with stronger cash-on-cash performance.

CHALLENGE

With no prior ownership experience outside Oregon, the client faced steep learning curves on lending, due diligence, and credibility with out-of-state sellers and agents—particularly in competitive markets like Texas. Timing was also critical, as they needed to secure an upleg quickly to complete a successful 1031 exchange.

ACTION

The Christensen Group had partnered with the seller for over five years through custom Operational Edge reporting—tracking rent growth, controlling expenses, and optimizing performance. That long-term strategy culminated in a market-ready asset with a clean story and improved returns.

We brought Sheridan Plaza to market and secured a buyer within just 35 days. The purchase terms included non-refundable earnest money within the first 25 days of escrow, giving our client the confidence to aggressively pursue upleg opportunities in Texas.

Through our national platform and strategic outreach, we sourced and vetted three viable replacement options. The client ultimately selected The Kelly Apartments, a well-located, stabilized 42-unit in San Antonio, TX with upside and ease of management.

RESULT

The client successfully completed a 1031 exchange, transitioning from a tertiary market asset in Oregon into a higher-performing, larger property in Texas. By leveraging a $2,660,000 loan on the upleg acquisition, they preserved liquidity while increasing their total unit count and acquiring a stabilized asset with stronger cash flow. The move resulted in a net improvement of $81,790 in annual NOI, reduced management burden, and eliminated exposure to increasingly restrictive landlord/tenant policies in Oregon. This outcome was made possible through years of collaboration with our team via Operational Edge reporting, which helped the client steadily improve cash flow at Sheridan Plaza and execute a seamless and strategic reinvestment into a more favorable market.

SHERIDAN PLAZA - ALBANY, OR

Relinquished:
Sheridan Plaza, Albany, OR

• Sale Price: $2,900,000

• Total Units: 32

• Cap Rate: 5.71%

• NOI: $165,590

• Price/Unit: $90,625

• Hold Period: 10 Years

• Profit: $1,000,000

Acquired:
Kelly Apartments, San Antonio, TX

• Purchase Price: $3,800,000

• Total Units: 42

• Cap Rate: 6.51%

• NOI: $247,380

• Price/Unit: $90,476

• Loan Amount: $2,660,000