CRESTON VILLA APARTMENTS · 30. The Garden Spout 31. N.W.I.P.A 32. Henry Higgins Boiled Bagels 33....

OFFERING MEMOR ANDUM44 Units • Portland, Oregon

CRESTON VILLA APARTMENTS

www.hfore.com(503) 241.5541

INVESTMENT SUMMARYCreston Villa Apartments is a well-located 44-unit apartment community in southeast Portland, Oregon. Located near the intersection of Powell Boulevard and Cesar Chavez Boulevard (SE 39th Avenue), Creston Villa Apartments has immediate access to major thoroughfares as well as convenient retail services. Safeway is less than one block away, as is Portland’s newest multiplex movie theatre. Numerous local and national retailers and restaurants are found on Powell Boulevard, along Division Street to the north, and Holgate Boulevard to the south. Creston Park and Creston Elementary are immediately to the east, and Cleveland High School is within walking distance.

Creston Villa Apartments has a diverse unit mix that includes one-, two- and three-bedroom apartments. The majority of the floor plans—approximately 66%—are 776 sq ft two-bed one-bath apartments. Each of the units offers a private patio or deck, and a central laundry room is easily accessible.

Creston Villa Apartments’ rents currently average $1,123, or $1.54 sq ft and have demonstrated a positive trend. Current average rents are approximately 6.5% higher than 2018. Creston Villa Apartments’ convenient location and strong historical operations make the asset an exceptional investment opportunity.

2 HFO INVESTMENT REAL ESTATE

INVESTMENT HIGHLIGHTS

• Outstanding SE Portland location

• Newer roofs and windows

• Private patios or decks

• On-site laundry and off-street parking

EXECUTIVE SUMMARY

ASSET SUMMARYProperty Creston Villa Apartments

Location 3608 SE 40th Avenue

City, State Portland, OR 97202

County Multnomah

Year Built 1969

Total Units 44

Approx NR Sq Ft 32,002

Avg Unit Size 727

Acreage 0.99

PRICE SUMMARYPrice $7,150,000

Per Unit $162,500

Per Sq Ft $223

Cap Rate 5.10%

TOURS AND INQUIRIES Rob Marton • [email protected]

Greg Frick • [email protected]

www.hfore.com(503) 241.5541Fax: (503) 241.5548

Please do not disturb tenants.

29.6% 65.9% 4.5%1 Bedrooms 2 Bedrooms 3 Bedrooms

UNIT MIX SUMMARY

Unit Type Unit Count Avg Sq Ft Total Sq Ft % of Total Units

1 Bedrooms 13 570 7,409 29.6%

2 Bedrooms 29 776 22,518 65.9%

3 Bedrooms 2 1,038 2,075 4.5%

Total / Averages 44 727 32,002 100.0%

3CRESTON VILLA APARTMENTS • 44 UNITS • PORTLAND, OR

LIFESTYLE CONVENIENCES

SE 52th Ave

SE 50th Ave

SE 26th Ave

SE 28th Ave

SE 82nd Ave

SE 60th Ave

SE 92nd Ave

SE Woodstock Blvd

SE Holgate Blvd

SE Steele St

SE Foster Rd

César E. Chávez Blvd

Hawthorne

SE Powell Blvd

SE Division St

SE Belmont St

Mt Tabor Park

Woodstock Park

Creston Park

Lent Park

Mt Scott Park

26

Mall 205

Fubonn Shopping Center

McMenamins Baghdad Theater & Pub

Crystal Spring Rhododendron Garden

205

Century 16 Eastport Plaza

Powell Street Station

Pok Pok

Blue Star Donuts

Stumptown Coffee RoastersPetite Provence

Portland Campus

Mt Scott Community Center & Indoor Pool

HK Cafe

213

Creston Villa Apartments


1. Safeway2. Brown Lumber3. Tecos Fresh Mexican Food4. Dank Snacks and Supplies5. T-Moble6. Petco Grooming7. Wells Fargo Bank8. Rapid Cash9. O’Reilly Auto Parts10. Les Schwab Tire Center11. Path Twyman’s Car Center12. Starbucks13. Rose City Pediatrics14. Denicolas’s15. Naomi’s Organic Farm Supply

SE 26th Ave SE 50th Ave

SE Division St

16. Oregon Buddist Temple17. Portland Taiko18. Holy Trinity Barbecue19. Gladstone Street Pub20. Plaid Pantry21. Smith PDX22. Loyola Jesuit Center23. Van Veen Nursery24. Rhododendron Society Portland25. Fireston Complete Auto Care26. Pho Hung27. Thai BBQ28. La Bama29. Taco Bell30. US Postal Service

31. Burger King32. Taco Time33. Speedboat Coffee34. Little Caesars Pizza35. Planned Parenthood - SE36. K & M Auto Service37. Bete-Luka | Ethiopian38. North Bar39. Smaaken Waffle Sanwiches40. Fern Kitchen41. Good Coffee42. Landmark Saloon43. Los Gorditos44. Tokio Table - Japanese

Steakhouse

45. Tasty n Daughter46. New Thai Blues47. Tea Bar SE48. Marino Cafe49. Loprinzi’s Gym50. Tropical Hut51. Rite Aid52. Tom’s53. 7-Eleven54. Authentic Thai Cuisine55. Yataimura Maru56. Xico57. Division Do it Best Hardware58. Atlas Pizza59. Townshend’s Teahouse

60. Ava Gene’s61. Olympia Provisions Public House62. Salt & Straw63. Blue Star Donuts64. Artigiano65. Pok Pok66. Whiskey Soda Lounge67. Imperial Bottle Shop & Taproom68. Bollywood Theater69. Papa G’s Vegan70. Pastini71. New Seasons Market72. Clinton Community Garden73. Yama Sushi & Izakaya74. Jacquelin

75. People’s Food Co-op76. US Postal Service77. Teutonic Wine Company78. Bullseye Glass Co79. Portland General Electric80. Fred Meyer Main Office81. Burgerville82. Catholic Charities83. McDonald’s84. Hopworks Urban Brewery85. Target / CVS Pharmacy86. Papa John’s Pizza87. Pacific Fish & Oyster88. Multnomah County Clinics

326 27

2928 32

3738

4544

3946 4348

50 475254

55565960

6168 6766

65696270

71

73

7781

8486

87

74

6364 58

4140

3334

3112

14

18

19

10

72

76 22

30

35

36

4249

111382

16

9

65 7

8115

75

78

79 80

85

17

202188

2

23

515357

24

25

4

IN THE VICINITY Restaurants and Dining Shopping/Entertainment Lifestyle Services

Creston Park

Powell Park

Cleveland High School

Franklin High School

St Ignatius School

Creston Elementary School

Creston Annex Head Start

Richmond Elementary School

Creston Villa Apartments SE 52nd Ave

SE Foster Rd

SE Powell Blvd


26

2683


SE 52nd Ave SE 72nd Ave

SE Holgate Blvd

SE Harold St

SE Steele St SE Foster Rd

1. Pho Hung2. Taco Bell3. Taqueria Los Gorditos4. Burger King5. Siri Thai6. U.S. Postal Service7. Speed Boat Coffee8. Subway9. Little Caesars Pizza10. Carts on Foster11. Trap12. Awesome Burger13. An Xuyen Bakery14. New Day Center for the Arts15. George Morlan Plumbing Supply

SE 92nd Ave

205

213

16. Foster Fitness Center17. Po’ Boy Art18. Foster Buds19. Nayar Taqueria20. FoPo Tarven21. Tambayan22. Y Arts / SE Center YMCA23. Assembly Brewing24. 7-Eleven25. Foster Market26. Round Table Pizza27. Laurelwood Park28. SEIU29. K & B Bakery30. The Garden Spout

31. N.W.I.P.A32. Henry Higgins Boiled Bagels33. Bar Carlo34. Starday Tavern35. Off The Griddle36. Euroclassic Furniture37. Dutch Bros38. Garden Home Montessori School39. Dollar Tree40. Everyday Food Mart41. Envirocars42. Maple Leaf43. Portland Mercado44. FoPo Food Carts45. Mt Scott Community Center

46. WorkSource Portland Metro47. McDonald’s48. Popeyes Louisiana Kitchen49. Emmert Cali Saigon Mall50. K-Town Korean BBQ51. Wells Fargo Bank52. Big 5 Sporting Goods53. Standard TV & Appliance54. Harbor Freight Tools55. Super King Buffet56. 82nd Street Bar & Grill57. IHOP58. Shamrock Bar & Grill59. Double Up Bar60. Batteries Plus Bulds

61. Baxter Auto Parts62. Multnomah County Library63. Walgreens64. GameStop65. HK Cafe66. Dollar Tree67. U.S. Bank Branch68. Walmart69. Jack in the Box70. Domino’s Pizza71. Fujiyama Sushi Bar & Grill72. Wingstop73. LA Fitness74. Taco Bell75. Bank of America

76. JOANN Fabrics and Crafts77. Izzy’s Pizza & Buffet78. Ross Dress for Less79. U.S. Postal Services80. Carl’s Jr81. Best Baguette82. KFC83. Pizza Hut84. WinCo Food85. OM Seafood Company86. Chair Outlet87. 7-Elevent88. Powell’s Seafood89. ABC Seafood Company90. Steakadelphia

21 34 5

7 89

11 12 13

18

1920

212423

26 293235

33 3437

42

43 44

49

55 565758

65

6970 71

74

77

808283888990

85 81

72

59

4748

50

106

14

2728

67

73

84

8687

62

38

4546

51

17

22

1615

25

30 3136

39 40 41

52

53

60

61

63 6468

75

78 79

76

66

54

IN THE VICINITY Restaurants and Dining Shopping/Entertainment Lifestyle Services

Woodstock Park

Lents Park

Creston Park

Essex ParkKern Park Century 16

Eastport Plaza

SE Powell Blvd26Creston Villa Apartments


APARTMENT MARKETThe Portland Metro Area consistently ranks among the nation’s lowest for apartment vacancy rates according to the U.S. Census Bureau and other third-party services like REIS, MPF Research, and Axiometrics. The U.S. Census Bureau pegged Portland’s Q3 2018 vacancy rate at 4.5% and the U.S. average at 7.1%.

REIS forecast 2018 Portland metro year-over-year rents growth at 3.0% and the Multifamily NW Apartment Report survey proved average October 2017-18 year-over-year rent growth at 3.3%.

SKILLED WORKFORCE & STRONG EMPLOYMENTIn a 2018 WalletHub report comparing 150 of the largest U.S. metros, Portland is listed as the 15th most educated city in America. More than half of Multnomah County workers have a college degree, well ahead of the national average of 38.5%.

According to the State of Oregon’s Employment Department, Portland enjoys one of the fastest job growth rates in the Pacific Northwest, and the entire nation. Data indicates the area added 31,000 jobs in 2016, 28,000 jobs in 2017, and 29,000 in 2018.

TOP 10 LISTS

Portland consistently receives glowing reviews and rankings from the media.

2019 lists include: • #4 Best City for an Active Lifestyle (Wallethub)

• #7 Healthiest Cities to Live (Thrillist.com)

• #7 Best Cheap Destinations in the U.S. (U.S. News and World Report)

• # 8 Best Place to Live in the U.S. (U.S. News and World Report)

• #8 Fittest Cities in America (CBS News)

• #9 Best Foodie Cities in the USA (U.S. News and World Report)

2018 lists include: • #1 Restaurant City of the Year (Bon Appetit)

• #1 Best Foodie City in America (Wallethub & Travelpulse) #6 (Jetsetter)

• #3 Healthiest City in the U.S. (Active.com)

• #3 Best Place for Business and Careers (Forbes)

• #4 Best City for Biking (Fast Company)

• #9 Top City for Entrepreneurs and Start-Ups (Business.org) #23 (CNBC)

• #10 Greenest City in America (Newsweek)

• #10 Most Entrepreneurial State (Amazon.com)

• #15 Most Educated City in America (Wallethub)

DIVERSIFIED ECONOMYPortland is home to the headquarters of Fortune 500 companies Nike and Lithia Motors. Fortune 1000 companies headquartered here include Columbia Sportswear, Greenbrier Cos. and Portland General Electric. Fortune 500 companies based outside Oregon with major operations here are Precision Castparts and Intel.

Tech and software companies continue to relocate their operations here or open major outposts in Portland. These companies enjoy Portland’s educated workforce, affordable high quality of life, and a low cost of doing business compared to the Bay Area.

Companies which have opened major branches in Portland include Airbnb, Google, Squarespace, Mozilla, Simple, Survey Monkey, SalesForce and New Relic, Inc. Portland’s tech startup companies include Viewpoint, Jama Software, Thetus, Urban Airship, Acquia, Elemental Technologies, Act-On, Puppet Labs, and The Clymb.

PORTLAND REGIONOregon’s largest city, Portland, is near the confluence of the Willamette and Columbia Rivers. The Portland Metro Area consists of four counties: Multnomah, Washington, Clackamas, and Clark County, Washington.

PORTLAND METRO SNAPSHOT


GOVERNMENTThe U.S. Federal Government is Portland metro’s overall largest employer, with 20,500 workers. The State of Oregon gives employment to an additional 14,000 residents.

HIGH TECH & CHIP MANUFACTURINGAttracted by the Portland area’s educated workforce and relative low cost of doing business, tech companies continue moving to Portland—opening major branches and, in some cases, relocating to the area entirely.

With over 19,300 employees, Intel is the area’s largest private employer. Intel acquired its first Portland location in 1974. The company is currently expanding its presence with forthcoming D1X microprocessor chip facilities at the Ronler Acres Campus in Hillsboro. This is part of a five-year, $6 billion expansion, and is part of the company’s long-term plans for growth. Intel is the largest property taxpayer in Washington County, with payments of approximately $30 million a year.

Other notable Portland-area high-tech companies include ON Semiconductor and Tektronix.

SPORTSWEARNike has its world headquarters in Beaverton and employs 12,000 Portland-area residents. The company designs, develops and manufactures footwear, apparel, equipment and accessories. From here, Nike orchestrates production and design for one of the world’s most recognizable brands. In 2019 Nike will complete a $1 billion expansion of its Washington County campus.

Nike’s two key competitors have a major local presence as well. Those employers include the North American headquarters of Adidas with 1,200 employees, and a new 70,000 SF outpost of Under Armour. Under Armour has moved 100 employees into an iconic former YMCA.

HEALTHCARE AND RESEARCHHealth services are another major employment sector for the Portland area. The top healthcare employers in the area are Providence Health Systems, with 17,543 employees, and The Oregon Health Sciences University (OHSU), with 16,200 workers. OHSU is the recent recipient of a total of $1 billion in donations for cancer research from over 10,000 Oregon donors. Grants from the National Institutes of Health totaled $182.7 million in 2016.

MANUFACTURINGIn trucking and transportation, Daimler Trucks—with nearly 3,000 area workers—has big plans for the Portland area. The company recently spent $150 million renovating its Portland facility and invests heavily in research and development, including autonomous driving.

PORTLAND MARKET SNAPSHOTMAJOR EMPLOYERS


PORTLAND MARKET SNAPSHOTPORTLAND METRO AREA The Portland Metro Area is one of the strongest apartment markets in the nation, as reflected in strong year-over-year rent growth and consistently tight vacancy. The area’s strong job market and high quality of life continues to attract new residents; approximately 65 people move here per day. New apartment construction has not caught up to the housing demand created by in-migration.

4.95% Metro-area vacancy

#2 for Oregon in Migration

in US

7.7% Year-over-year rent growth**

$68,125 Median household

income

3.7% Unemployment rate

(November 2018)

48.2% Portland residents age 25+ years (with a bachelor’s degree or higher)

21,345 New Portland residents

(2016-2018)

38.3% Metro area renter-

occupied housing rate

4,474 Portland residents

per square mile


TOP AREA EMPLOYERS

20,000 area employees 10,269 area employees 12,000 area employees

12,955 area employees


5,200 Oregon employees

Intel is the area’s largest private employer. Recently, following a five year, $6 billion expansion, the company unveiled vast, long-term plans for future growth.

Kaiser has 35 medical facilities, 18 dental offices and 1,400 doctors in the Pacific Northwest. It employs more than 10,000 in the Portland metro region and serves 11.8 million members nationally. Kaiser is headquartered in Oakland, California.

In April of 2016, Nike announced a $1 billion expansion of its Beaverton world headquarters. The company is adding 1.3 million square feet of office space and parking for 3,300 vehicles. Construction on the final parts of this expansion will wrap up in 2019.

Legacy is a locally-owned nonprofit based in Portland, Oregon. It is the only health system covering the Portland/Vancouver area south to Salem with multiple hospitals and a hospital dedicated to exclusively serving children.

With nearly 50,000 students, Portland Public Schools is Oregon’s largest district. Portland is currently in the midst of a massive voter-approved high school and middle school reconstruction and modernization program.

In 2017 voters approved $790 million in taxes to rebuild one middle school and three high schools. The bond was in addition to a $480 million bond in 2012 for a similar program.

Fred Meyer offers one-stop shopping at 133 multi-department stores in four western states.

17,543 area employeesProvidence is a non-profit network of hospitals, health plans, physicians, clinics and related services. It operates in Alaska, Washington, Oregon, Montana and California. It was originally founded by the Sisters of Providence in Montreal Quebec in 1843.


Oregon Health Sciences University (OHSU) leads the way in government-funded healthcare — and secures numerous grants for the advancement of health sciences. OHSU recently acquired a $1 billion gift for cancer research.

Grants from the National Institutes of Health have held steady from around $184 million in 2011 to $219 million in 2017. This infuses the economy with jobs and income from outside the Portland MSA.


Among the influx of companies to the Portland metropolitan area—including many who have transplanted their world, North American or U.S. headquarters here—are Adidas, Daimler Trucks, KinderCare and Keen.

Other significant companied in the close-in Portland metro area include Umpqua Holdings, Weiden+Kennedy, NW Natural, PacifiCorp, PGE, New Seasons, Storables, McMenamins, McCormick & Schmick’s, Franz Bakery, Portland Brewing, Powell’s Books, ZGF Architects, and two major West Coast law firms: Stoel Rives and Schwabe, Williamson & Wyatt.

Full time employment increased 1.8% between March 2018 – March2019, an increase of 21,800 positions. Following is a list of net job growth by industry March 2018–2019:

According to the State of Oregon Employment Department, the Portland Metro region created jobs at the rate of 1.6% in 2018. Portland ranks 16th among the 50 largest metropolitan areas in the United States.

JOB GROWTH BY INDUSTRYMSA PORTLAND

2,800 Construction, Mining, Logging

3,200Trade, Transportation & Utilities

Leisure & Hospitality

4,500 Manufacturing

2,000

2,500

Healthcare & Social Assistance

6,100Education & Health Services


RENT COMPARABLESCRESTON VILLA APARTMENTS • 44 UNITS • PORTLAND, OR

Creston Park

Kenilworth Park

SE 42nd Ave

SE Powell Blvd

SE Frances St

SE Franklin St

SE Kelly St

SE Tibbetts St

SE Rhine St

SE Brooklyn St

SE Gladston St

SE Boise St

SE Center St

SE Cora St

SE Mall St

SE Holgate Blvd


SE 36th AveSE 33rd Ave

SE 43rd Ave

SE 38th Ave

SE 37th Ave

26

Maplewood Court

The Oak Tree

Shady Glenn Apartments

Waverly Arms

Gladstone Gardens

Hudson Court Apartments

Cedar Flats

Ravenbourne

Creston Villa Apartments

Properties

Creston Villa3608 SE 40th AvenuePortland, ORCedar Flats3741 SE 40th AvenuePortland, ORGladstone Gardens3937 SE Gladstone StreetPortland, ORHudson Court Apartments4125 SE Cesar Chavez BoulevardPortland, ORMaplewood Court4030 SE Gladstone StreetPortland, ORRavenbourne3685 SE Francis StreetPortland, ORShady Glenn Apartments3710 SE 36th PlacePortland, ORThe Oak Tree3615 SE 40th AvenuePortland, ORWaverly Arms3725 SE Rhine StreetPortland, OR



1

CRESTON VILLA3608 SE 40th Avenue, Portland, ORTotal Units: 44 Avg SF: 708Year Built: 1969 Avg Rent: $1,122

Avg Rent/SF: $1.59

WAVERLY ARMS3725 SE Rhine Street, Portland, ORTotal Units: 26 Avg SF: 746Year Built: 1964 Avg Rent: $1,083

Avg Rent/SF: $1.45

S

Unit type Units Sq Ft Rent Rent/Sq FtStudio 9 600 $1,003 $1.67

1 Bed / 1 Bath 12 750 $1,033 $1.38

2 Bed / 1 Bath 5 1,000 $1,349 $1.35

Average 26 746 $1,083 $1.45

Unit type Units Sq Ft Rent Rent/Sq Ft1 Bedroom / 1 Bathroom 3 384 $955 $2.49

1 Bedroom / 1 Bathroom 10 626 $963 $1.54

2 Bedroom / 1 Bathroom 29 776 $1,177 $1.52

3 Bedroom / 1 Bathroom 1 950 $1,525 $1.61

3 Bedroom / 1.5 Bathroom 1 1,125 $1,260 $1.12

Average 44 727 $1,123 $1.54



2

THE OAK TREE3615 SE 40th Avenue, Portland, ORTotal Units: 22 Avg SF: 725Year Built: 1961 Avg Rent: $1,112

Avg Rent/SF: $1.53

3

CEDAR FLATS3741 SE 40th Avenue, Portland, ORTotal Units: 47 Avg SF: 888Year Built: 1972 Avg Rent: $1,253

Avg Rent/SF: $1.41

Unit type Units Sq Ft Rent Rent/Sq Ft1 Bed / 1 Bath 10 670 $970 $1.45

2 Bed / 1 Bath 12 770 $1,230 $1.60

Average 22 725 $1,112 $1.53

Unit type Units Sq Ft Rent Rent/Sq FtStudio 2 550 $798 $1.45

1 Bed / 1 Bath 5 775 $978 $1.26

2 Bed / 1 Bath 40 919 $1,311 $1.43

Average 47 888 $1,253 $1.41


RENT COMPARABLES

5

RAVENBOURNE3685 SE Francis Street, Portland, ORTotal Units: 37 Avg SF: 1,097Year Built: 1973 Avg Rent: $1,085

Avg Rent/SF: $0.99


2 Bed / 1 Bath 15 837 $841 $1.00

Average 31 680 $696 $1.02

Unit type Units Sq Ft Rent Rent/Sq Ft2 Bed / 1 Bath 19 1,000 $931 $0.93

3 Bed / 1 Bath 18 1,200 $1,248 $1.04

Average 37 1097 $1,085 $0.99

SHADY GLENN APARTMENTS3710 SE 36th Place, Portland, ORTotal Units: 31 Avg SF: 680Year Built: 1978 Avg Rent: $696

Avg Rent/SF: $1.02

4

CRESTON VILLA APARTMENTS • 44 UNITS • PORTLAND, OR


RENT COMPARABLES

6

GLADSTONE GARDENS3937 SE Gladstone Street, Portland, ORTotal Units: 25 Avg SF: 783Year Built: 1960 Avg Rent: $1,301

Avg Rent/SF: $1.66

Unit type Units Sq Ft Rent Rent/Sq Ft1 Bed / 1 Bath 11 650 $1,094 $1.68

2 Bed / 1 Bath 24 750 $958 $1.28

Average 35 719 $1,001 $1.39

7

HUDSON COURT APARTMENTS4125 SE Cesar Chavez Boulevard, Portland, ORTotal Units: 35 Avg SF: 719Year Built: 1969 Avg Rent: $1,001

Avg Rent/SF: $1.39

Unit type Units Sq Ft Rent Rent/Sq Ft1 Bed / 1 Bath 2 725 $1,258 $1.74

2 Bed / 1 Bath 23 788 $1,305 $1.66

Average 25 783 $1,301 $1.66



RENT COMPARABLES


2 Bed / 1 Bath 10 836 $1,195 $1.43

Average 20 793 $1,091 $1.38

MAPLEWOOD COURT4030 SE Gladstone Street, Portland, ORTotal Units: 20 Avg SF: 793Year Built: 1971 Avg Rent: $1,091

Avg Rent/SF: $1.38

8



ONE-BEDROOM FLOOR PLANS

Average Rent Average Unit Size (Sq Ft)

$0

$600

$400

$200

$1,000

$800

$1,200

Aver

age R

ent –

Aver

age S

q Ft $959 $970 $978 $988

$1,033$1,094

Creston Villa Maplewood Court

Waverly Arms Hudson Court Apartments

The Oak Tree Cedar Flats



TWO-BEDROOM FLOOR PLANS

Average Rent Average Unit Size (Sq Ft)

$0

$600

$400

$200

$1,200

$1,000

$800

$1,600

$1,400

Aver

age R

ent –

Aver

age S

q Ft

$931 $958

$1,177 $1,195 $1,230$1,300

$1,349

Ravenbourne Creston Villa Maplewood Court

Waverly ArmsHudson Court Apartments

The Oak Tree Cedar Flats



Income December 2018 TTM July 2019 TTM

Scheduled Gross Rent $554,355 $579,536Less: Vacancy/Credit Loss -$29,086 -5.2% -$24,657 -4.3%Less: Concessions -$4,080 -0.7% -$120 0.0%Less: Bad Debt/Recovery -$1,653 -0.3% -$65 0.0%

Net Rental Income $519,536 $554,694Other Income $38,566 $42,443

Includes: Laundry $7,823 $7,104Includes: Utility Billing (RUBs) $21,845 51.6% $23,840 56.3%Includes: Miscellaneous $8,897 $11,498

Gross Operating Income $558,102 $597,137

Expenses December 2018 TTM % GOI December 2018 TTM % GOI

Real Estate Taxes $51,967 $51,967

Insurance $6,806 $6,806

Total Utilities $46,888 $46,888

Administrative $10,797 $10,797

Fee Management $25,155 4.5% $25,155 4.2%

Asset Management $5,590 1.0% $5,590 0.9%

Onsite Payroll $52,796 9.5% $52,796 8.8%

Landscaping $8,290 $8,290

Maintenance/Repairs $47,435 $47,435

Turnover $11,429 $11,429

Reserves $11,000 $11,000

Total Expenses -$278,154 -$278,154Expenses per Unit -$6,322 -$6,322

% of Gross Operating Income 49.8% 46.6%

Net Operating Income (NOI) $279,948 $318,983

HISTORICAL OPERATIONSCRESTON VILLA APARTMENTS • 44 UNITS • PORTLAND, OR


Income Scheduled Rents of as 07/2019 Projected Operations Note

Scheduled Gross Rent $592,990 $13,477 $646,942 $14,703 1Less: Vacancy/Credit Loss -$29,649 -$674 -5.0% -$32,347 -$735 -5.0% 2Less: Concessions $0 $0 0.0% $0 $0 0.0% Less: Bad Debt/Recovery $0 $0 0.0% $0 $0 0.0%

Net Rental Income $563,340 $12,803 $614,595 $13,968 Other Income $42,443 $965 $42,443 $965 3

Includes: Laundry $7,104 $161 $7,104 $161 Includes: Utility Billing (RUBs) $23,840 $542 56.3% $23,840 $542 56.3% Includes: Miscellaneous $11,498 $261 $11,498 $261

Gross Operating Income $605,783 $13,768 $657,038 $14,933

Expenses Projected Operations Per Unit % GOI Projected Operations Per Unit % GOI

Real Estate Taxes $53,449 $1,215 8.8% $53,449 $1,215 8.1% 4

Insurance $6,806 $155 1.1% $6,806 $155 1.0%

Total Utilities $46,888 $1,066 7.7% $46,888 $1,066 7.1%

Administrative $10,797 $245 1.8% $10,797 $245 1.6%

Fee Management $21,202 $482 3.5% $22,996 $523 3.5% 5

Asset Management $0 $0 0.0% $0 $0 0.0% 6

Onsite Payroll $52,796 $1,200 8.7% $52,796 $1,200 8.0%

Landscaping $8,290 $188 1.4% $8,290 $188 1.3%

Maintenance/Repairs $21,328 $485 3.5% $21,328 $485 3.2% 7

Turnover $8,580 $195 1.4% $8,580 $195 1.3% 8

Reserves $11,000 $250 1.8% $11,000 $250 1.7% 9

Total Expenses -$241,137 -$242,930 Expenses per Unit -$5,480 -$5,521

% of Gross Operating Income 39.8% 37.0%

Net Operating Income (NOI) $364,647 $414,107

PROJECTED OPERATIONSCRESTON VILLA APARTMENTS • 44 UNITS • PORTLAND, OR


OPERATIONS ANALYSIS1. RENTS Creston Villa Apartments’ current rents average $1,123 per unit or $1.54 per sq ft based on a rent roll dated July 2019.

Rents have shown a positive trend. The current scheduled rents are nearly $75 per unit higher than 2018 averages.

Projected rents are based on new leases and 3% increases to specific floor plans which have had limited turnover. The market rates are projected at $1,225 per unit or $1.68 per sq ft.

2. VACANCY Operations have been adjusted for a 5.0% vacancy rate based on lender underwriting requirements. Lenders consider the long-term nature of a property and the market in which it is located. Lenders typically underwrite to 5.0% vacancy in the Portland metro area. The vacancy rate includes both concessions and bad debt.

3. OTHER INCOME Creston Villa Apartments generated $42,443 in Other Income based on July 2019 TTM collections, and the projected operations include this income.

RENT ROLL ANALYSIS: MARKET RENTS

Unit Type Unit Count Square Feet Average Scheduled Rent

Average Scheduled Rent per Sq Ft

Average Market Rent

Average Market Rent per Sq Ft % Change

1 Bedroom / 1 Bathroom 3 384 $955 $2.49 $1,060 $2.76 9.9%1 Bedroom / 1 Bathroom 10 626 $963 $1.54 $1,115 $1.78 13.7%2 Bedroom / 1 Bathroom 29 776 $1,177 $1.52 $1,258 $1.62 6.4%3 Bedroom / 1 Bathroom 1 950 $1,525 $1.61 $1,525 $1.61 0.0%3 Bedroom / 1.5 Bathroom 1 1,125 $1,260 $1.12 $1,570 $1.40 19.7%Totals / Averages 44 727 $1,123 $1.54 $1,225 $1.68 8.3%

RENT ROLL ANALYSIS: SCHEDULED RENTS

Unit Type Unit Count Square Feet Lowest Achieved Rent

Highest Achieved Rent % Diff Average Scheduled

RentAverage Scheduled

Rent per Sq Ft1 Bedroom / 1 Bathroom 3 384 $905 $1,030 13.8% $955 $2.491 Bedroom / 1 Bathroom 10 626 $825 $1,080 30.9% $963 $1.542 Bedroom / 1 Bathroom 29 776 $1,000 $1,350 35.0% $1,177 $1.523 Bedroom / 1 Bathroom 1 950 $1,525 $1,525 0.0% $1,525 $1.613 Bedroom / 1.5 Bathroom 1 1,125 $1,260 $1,260 0.0% $1,260 $1.12Totals / Averages 44 727 $1,103 $1,249 15.9% $1,123 $1.54



OPERATIONS ANALYSIS

1 bed – 1 bath 1 bed – 1 bath 2 bed – 1 bath

Sche

duled

Rent

Average Rent Maximum RentMinimum Rent

$900

$700

$1,100

$1,000

$1,200

$1,300

$1,400RENT RANGES BY UNIT TYPE

$800



-3.50%

-4.00%

-2.50%

-3.00%

-1.50%

-2.00%

-1.00%

-0.50%

0.00%

-4.50%

Vaca

ncy

RENT TRENDS

Scheduled RentsJuly 2019 T6-Months Annualized

July 2019 T3-Months Annualized

July 2019 TTM$1,080

$1,100

$1,105

$1,090

$1,095

$1,085

$1,115

$1,110

$1,125

$1,120

Aver

age L

ease

Ren

t

$1,098

$1,112

$1,121$1,123

OPERATIONS ANALYSISCRESTON VILLA APARTMENTS • 44 UNITS • PORTLAND, OR


OPERATIONS ANALYSISHISTORICAL INCOME TRENDS

$50,000

$49,000

$49,500

98.0%

100.0%

$48,500

$48,00096.0%

$47,500

$47,000

94.0%

$46,500

$45,500

$46,000

88.0%

90.0%

92.0%

86.0%$45,000

102.0%

Sche

dule

d Re

nt

Occu

panc

y

Dec 2018 Jan 2019Nov 2018Oct 2018 Jul 2019Apr 2019Feb 2019Aug 2018 Jun 2019May 2019Mar 2019Sep 2018

Scheduled Rent Occupancy



OPERATIONS ANALYSISEXPENSESCreston Villa Apartments’ expenses are based on December 2018 YE operations, which represent a full year’s operations.

4. PROPERTY TAXES Oregon’s property taxes are evaluated on a fiscal year starting July 1. Property tax values for the 2018-2019 tax year were published October 15. Projected operations include current taxes for the 2018-2019 property tax year.

Creston Villa Apartments’ taxes increased 4.16% over 2017-2018. In Oregon, property taxes are not reassessed on sale and are limited to a 3.0% annual increase at the state level. Property taxes paid by November 1 each year receive a 3.0% discount. Oregon’s tax years starts July 1 and anticipation of the pending tax year; net property taxes are used in the projected operations.

5. MANAGEMENT FEE The management fee has been adjusted to a market rate of 3.5% of gross operating income (GOI).

6. ASSET MANAGEMENT FEE The operations include an asset management fee that totals $5,590 annually. The asset management fee is applicable to the current owner and, therefore, removed from projected operations.

7. MAINTENANCE/REPAIR The maintenance repair costs totaled $47,435, or $1,078 per unit for December 2018 YE operations. The operations have been adjusted for capital costs and represent market-rate costs for supplies only.

8. TURNOVER Per move-in dates on the July 2019 rent roll, approximately 10 units turned over in 2018, a turnover rate of 23%. The turnover costs for December 2018 YE operations totaled $11,429, or $260 per unit. This expense equates to a cost of $1,143 per turned unit. The turnover cost may include one-time, capital expenditures. The projected operations have been adjusted to reflect costs for make-ready processes only and not to include any capital costs.

9. RESERVES Lenders require reserves be set aside to address future capital costs associated with any property as it ages. The projected operations include reserves of $250 per unit, a total of $11,000 annually.

TAX HISTORYTax Year 2017/2018 2018/2019Account #

R0624890 $51,227 $53,449

Total $51,227 $53,449

% Change 8.48% 4.16%



OFFER TERMSCRESTON VILLA APARTMENTS • 44 UNITS • PORTLAND, OR

QUESTIONS & TOUR REQUESTS:

Please do not disturb tenants.

All tours and inquiries regarding Creston Villa Apartments are to be directed to HFO Investment Real Estate at (503) 241.5541.

Rob Marton • [email protected]

Greg Frick • [email protected]

Jack Stephens • [email protected]

Lee Fehrenbacher • [email protected]

Todd Tully • [email protected]

Adam Smith • [email protected]

Khari Gates • [email protected]

Rand Hoffman • [email protected]

Investment Real Estate 2424 SE 11th Avenue • Portland, Oregon 97214www.hfore.com • (503) 241.5541 • Fax: (503) 241.5548

Brokers licensed in the States of Oregon and Washington.

PRICE SUMMARYPrice $7,150,000

Per Unit $162,500

Per Sq Ft $223

Cap Rate 5.10%

Avg Square Foot 727

Avg Rent $1,123

Avg Rent per Sq Ft $1.54

ASSET SUMMARYProperty Creston Villa Apartments

Location 3608 SE 40th Avenue

City, State Portland, OR 97202

County Multnomah

Year Built 1969

Total Units 44

Approx NR Sq Ft 32,002

Avg Unit Size 727

Acreage 0.99


HFO Investment Real Estate

2424 SE 11th Avenue • Portland, OR 97214www.hfore.com • 503.241.5541

Passion • Collaboration • Specialization

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Parties who receive this information from unauthorized parties shall not be recognized. ©2019 HFO Investment Real Estate LLC. Build your legacy is a service mark of HFO Investment Real Estate. Licensed in the states of Oregon and Washington.

CRESTON VILLA APARTMENTS · 30. The Garden Spout 31. N.W.I.P.A 32. Henry Higgins Boiled Bagels 33....

Documents

Transcript of CRESTON VILLA APARTMENTS · 30. The Garden Spout 31. N.W.I.P.A 32. Henry Higgins Boiled Bagels 33....