Highlander Apartments

EXCLUSIVE INVESTMENT OFFERING

1217 NE 122nd Avenue . Portland, OR 97230

38 Units . $5,100,000

Grayson Pounder Principal Broker, President

503.680.4638 Grayson@PounderRealty.com

High Rent Growth Area

Easy Access to I-205 & I-84

Newly Remodeled Units

On Bus Line & Near MAX Light Rail

Two On-Site Laundry Facilities

Newer Roof & Vinyl Windows

Spacious Floor Plans

Vinyl Windows

Patio / Balconies

Remodeled Throughout

Wood Floors

UNIT AMENITIES

THE OPPORTUNITY

PROPERTY DESCRIPTION

Conveniently located at the convergence of I-84 and I-205, the Highlander

Apartments offer 38 residential units comprised of one and two bedroom floor

plans. Every unit features standard kitchen appliances, modern cabinetry, a

patio or balcony, and vinyl windows.

Originally built in 1960, Highlander recently underwent significant capital

improvements including a membrane roof, vinyl windows, and numerous

interior upgrades. The pro forma attached is based on completion of all interior

remodels. The property is located on a bus line and near MAX light rail. The

location provides quick and easy access to schools, parks, shopping, and enter-

Recent property improvements including roof & vinyl windows

15 of 38 units fully remodeled as pictured

The Portland region boasts one of the most diverse economies on the West

Coast

Beautifully landscaped central courtyard

On bus line & near MAX light rail

Close proximity to several parks, golf courses, and entertainment options

A short commute to the Portland International Airport

PORTLAND’S ECONOMY

Portland’s economy was founded on the area’s abundant resources and accessi-

bility of water transport. Within the past 20 years, the economy has significantly

expanded and diversified. Today, international trade is vitally important to the

regional economy, as well as high-tech manufacturing, metals manufacturing,

construction, and business services. Future economic development will center

on the current manufacturing sectors, as well as biotechnology / health scienc-

es and alternative energy. Tourism is a strong player in the local economy, sup-

porting over 28,900 jobs in the metro area. The Portland Metro Area is home to

two Fortune 500 headquarters: Nike and Precision Castparts.

HIGHLANDER APARTMENTS

LOCATION

The Highlander Apartments are located on the east side of the city, approximately 8

miles from downtown Portland. The property is located on a bus line near the national-

ly recognized light rail system (MAX), providing an easy and quick commute to down-

town Portland as well as the rest of the city. This convenient location provides the best

of both worlds; a more rural environment with direct access to the urban core.

Portland, Oregon is considered by many demographic and planning experts to be one

of the cities of the future. Outside Magazine describes Portland as, “hip, smart, and

packed with adventure.” Portland’s winning combination of urban and natural

amenities has made it one of the nation’s most desirable places to live and work. The

city of Portland, situated between two West Coast economic powerhouses, San Francis-

co and Seattle, has a population of 2.2 million people. The area is a lure for both talent

and business, helping to underscore Portland’s leadership in various sectors such as

clean tech, green building, computer software development and apparel design. De-

spite what is going on in the economy, Portland has continually experienced an annual

population growth better than one percent.

6105 SW Macadam, Portland, OR 97223

HIGHLANDER APARTMENTS

IMPORTANT INFORMATION & DISCLAIMER: The information contained herein is assumed to be correct and market-

supported. Output produced from this model should not be considered an appraisal. Projections are forecasts and are

not to be considered fact. The information contained in this file is privileged and confidential; it is intended only for use

by Pounder Realty and their clients. This file may not be reproduced physically or in electronic format without the

expressed written consent of Pounder Realty. Not responsible for errors and omissions.

Grayson Pounder Principal Broker, President

503.680.4638 Grayson@PounderRealty.com

Pounder Realty

6105 SW Macadam Ave Portland, Oregon 97239

www.pounderrealty.com

Units Type Unit SF Total SF Market

Rent Monthly

Mkt. Rent Annual

Mkt. Rent Rent / SF

16 1 Bed / 1 Bath 750 12,000 $995 $15,920 $191,040 $1.33

22 2 Bed / 1 Bath 950 20,900 $1,295 $28,490 $341,490 $1.36

38 866 32,900 $1,169 $44,410 $410,040 $1.35

Income

Pro Forma

Scheduled Market Rent $532,920

Less: Vacancy 3.00% ($15,988)

Net Rental Income $516,932

Additional Income

Plus: RUBS Income $27,360

Plus: Fee Income $5,300

Plus: Other Income $4,200

Total Operating Income (EGI) $553,792

Expenses Per Unit

Administrative $66 $2,500

Advertising & Promotion $21 $800

Turnover $200 $7,600

Payroll $460 $17,493

Repairs & Maintenance $500 $19,000

Management Fee 5.00% $729 $27,690

Utilities $1,088 $41,348

Contracted Services $163 $6,200

Real Estate Taxes $707 $26,874

Insurance $170 $6,450

Replacement Reserve $250 $9,500

Total Expenses $165,454

Per Unit: $4,354

Per SF: $5.03

Net Operating Income $388,338

PRO FORMA INCOME & EXPENSES

Units 38 Price $5,100,000

Built 1960 Price / Unit $134,210

Average SF 866 Price / SF $155.02

Building Two-Story, Concrete/Stucco Pro Forma Cap Rate 7.61%

Roof Membrane Proposed Loan Amt $3,570,000

Rent / SF $1.35 Loan Payment $16,736

Interest Rate 3.85%

Amortization 30 Years

PROPERTY SUMMARY

INVESTMENT SUMMARY