Case Study
Stabilizing a distressed new construction luxury apartment building in Portland, Oregon
Situation
Rose City Flats, a new construction luxury apartment building in Portland, Oregon, faced severe financial and operational challenges. The prior owner had defaulted on loans, forcing the lender and equity investor to take control. The property had no active management—only a live-in maintenance person collecting rents without remitting to the owner. Residents had lost trust and many stopped paying rent entirely.
Arboreal's Approach
Arboreal moved quickly, securing operational control before closing and working with Great Expectations to stabilize finances. We surged management and maintenance teams, addressed deferred maintenance, and took a collaborative approach to resident relations, working individually with residents to rebuild trust and restore payment compliance.
Key Strategies
- • Diving catch: Mobilizing within one week to gain operational control before closing
- • Rapid deployment of experienced teams across management, maintnance and finance
- • Collaborative resident relations approach, only one eviction required
- • Collaboration with Great Expectations to refinance quickly
Results
Within 12 months, Arboreal transformed Rose City Flats from a distressed asset into a fully stabilized property. The bank appraisal showed a 20% valuation increase, enabling a successful cash-out refinancing.
Net Operating Income Over First 15 Months
Property Valuation Comparison
Key Outcomes
The property achieved full operational and financial stability with consistent rent collection and restored resident confidence. Through professional management and strategic financial restructuring, the building now operates at institutional standards.
To full stabilization
As confirmed by bank appraisal
Property operations and collections
Transforming Properties, Delivering Results
Rose City Flats now operates at institutional standards, providing residents with exceptional living experiences while delivering strong returns for owners.
Ready to Transform Your Property?
Arboreal has the expertise and systems to deliver results for properties facing operational challenges or financial distress.