CLIENT IMPROVES NOI THROUGH A 1031 EXCHANGE
STEPHENS COURT
CHALLENGE
The client originally acquired Stephens Court in 2019 through an off-market transaction facilitated by our team. Located in Roseburg, a tertiary market with limited liquidity, the asset required careful management to optimize performance. Over four years, we partnered closely with the client through recurring Operational Edge reports, identifying strategies to increase NOI, improve collections, and reduce expenses—all while tracking the property’s rising market value.
By 2023, the client was ready to reposition out of tertiary markets and into higher-quality, more scalable assets in the I-5 corridor. Their goal: increase long-term cash flow while simplifying management by transitioning into more urban product with institutional-quality tenants.
RESULT
We launched a targeted marketing campaign leveraging our deep knowledge of the buyer pool and the client’s operational track record. The downleg was successfully sold to a 1031 exchange buyer at full asking price, netting $1,000,000 in cash proceeds—nearly 2x the original purchase price. We immediately structured a successful exchange into St. Mary’s Crossing, a stabilized, 29-unit apartment asset in Beaverton, Oregon.
The new asset delivered an immediate $215,524 increase in annual NOI, with the added benefit of a more centralized location and stronger tenant base. The client’s long-term management strategy now benefits from improved location, scale, and cash flow—all unlocked through years of planning and execution.
1031 Exchange Masterclass: $1M profit and a 180% NOI jump in 60 days.
Stephens Court - Roseburg, OR
Relinquished Property
Stephens Court | Roseburg, OR
• Selling Price: $2,100,000
• Total Units: 23
• Cap Rate: 5.71%
• NOI: $119,910
• Price/Unit: $91,304
• Profit: $1,000,000
• Hold Period: Four Years
Replacement Property
St. Mary’s Crossing | Beaverton, OR
• Purchase Price: $6,235,000
• Total Units: 29
• Cap Rate: 5.96%
• NOI: $371,434
• Price/Unit: $215,000
• New Loan: $4,940,000