Driftwood Terrace Apartments
13455 SE Oatfield Rd, Milwaukie, OR 97222
33 units in Clackamas County, Oregon
$4,850,000
Driftwood Terrace Apartments is a 33-unit multifamily community located in the desirable Oak Grove / Milwaukie Heights area of Clackamas County. Constructed in 1965, the property features a low-density garden-style courtyard setting with mature landscaping and attractive grounds. The property offers a diverse unit mix consisting of studio, one-bedroom, two-bedroom, and three-bedroom apartment homes, with the majority of units comprised of spacious two-bedroom and three-bedroom floor plans.
Driftwood Terrace continues to benefit from strong occupancy and a stable long-term tenant base. Numerous residents have occupied the property for many years and remain below current market rents, providing investors with a clear path to future rental growth through annual rent increases and natural turnover.
The property has benefited from significant capital investment during current ownership, including replacement of all roofs between 2016-2018, extensive deck reconstruction, stair and landing replacement, fencing improvements, and ongoing interior renovations. Ownership estimates that approximately 50% of the units have received varying levels of interior updates, creating an attractive balance between operational stability and future value-add potential through continued renovation and leasing of long-term residents upon turnover.
Property Highlights
33-Unit Multifamily Community
Low-Density Garden-Style Courtyard Setting
Diverse Unit Mix Featuring Spacious Studio, 1BR, 2BR & 3BR Floor Plans
Approximately 50% of Units Updated
Significant Rental Upside Through Natural Turnover & market growth
Long-Term Tenant Base with Below-Market Rents
Extensive Capital Improvements Completed
Strong Occupancy
Clackamas County Location
Convenient Access to MAX Orange Line & Highway 99E
Off-Street Parking
On-Site Laundry Facilities
Additional Land Area Offering Potential for Future Amenities or Site Enhancements (Buyer to confirm)
Attractive Workforce Housing Investment Opportunity
Location Overview
Milwaukie, Oregon is one of the Portland metro area's most compelling emerging submarkets, offering investors and businesses a unique combination of historic character, urban revitalization, and strategic connectivity.
Located immediately south of Portland along the Willamette River, Milwaukie has evolved from a traditional bedroom community into a vibrant destination supported by new mixed-use development, transit-oriented growth, and an expanding local business scene.
The arrival of the MAX Orange Line has further strengthened connectivity to Downtown Portland, helping fuel continued redevelopment and economic activity.
Strong regional transportation access via McLoughlin Boulevard (Highway 99E), Highway 224, and Interstate 205, provides convenient connectivity to major employment centers, retail destinations, and neighborhoods throughout Clackamas County and the Portland metro area.
Located just minutes from the MAX Orange Line, Highway 99E, Downtown Milwaukie, and Downtown Portland, Driftwood Terrace offers investors the opportunity to acquire a well-maintained Clackamas County apartment community with durable physical improvements, strong transportation connectivity, and long-term rental upside.
Driftwood Terrace presents investors with a compelling balance of stability and upside. The property currently benefits from strong occupancy, a diverse unit mix, and a long-term resident base that has contributed to historically low turnover. Many residents remain below current market rental levels, creating the opportunity for future revenue growth through annual rent increases and natural turnover.
With approximately 50% of the units already updated and substantial exterior capital improvements completed, a future owner can focus primarily on continuing the interior renovation program while capturing rental upside over time. This combination of completed capital improvements, stable occupancy, and organic rent growth potential creates an attractive long-term investment opportunity.
