OFFERING MEMORANDUM · 2019. 6. 24. · 900 SW 5th Ave • 17th Floor • Portland, OR 97204...

900 SW 5th Ave • 17th Floor • Portland, OR 97204503.223.3171 • norris-stevens.com

INVESTMENT REAL ESTATE SERVICES

OFFERING MEMORANDUM

FIR CREST APARTMENTS1351-1385 NE 162nd Avenue

Portland, OR 97230

$3,000,000 • 18-UNITS

Information contained herein has been obtained from others and considered to be reliable; however, a prospective purchaser or lessee is expected to verify all information to his/her own satisfaction.

503.223.3171norris-stevens.com

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FIR CREST APARTMENTS OFFERING MEMORANDUM


Exclusively Marketed By

David C. ChatfieldMultifamily Investment Broker

[email protected]

TABLE OF CONTENTS

Investment Overview .....................................................................................3

Executive Summary .......................................................................................4

Aerial Map ..................................................................................................5

Financial Analysis .........................................................................................6

Sales Comparables .......................................................................................7



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Fir Crest Apartments is a well maintained 18-unit garden-court community situated in a low-density residential setting in northeast Portland. The property is made of up of four spacious one-bedroom/one-bathroom units at 624 square feet and fourteen two-bedroom/one-bath-room units at 855 square feet. Fir Crest has recently undergone replacement of all new vinyl windows and sliding doors. The interiors have been well-maintained with updates to flooring, countertops, and every unit is equipped with washer/dryer hookups and a balcony or patio.

Fir Crest offers convenient access to I-84 and I-205 and is also situated near some of Portland area’s largest employers, including Boeing of Portland, Albertsons Distribution Center, Microchip and the new Amazon.com fulfillment center locat-ed in Troutdale. The Gresham/ Troutdale market has seen very little new construc-tion during the current cycle and hosts one of the lowest vacancy rates in the Portland Metro Region at approximately 3%.

INVESTMENT OVERVIEW

DOWNTOWN PORTLAND

PROPERTY HIGHLIGHTS• Washer/dryer hookups in every unit• Additional laundry room• Balcony/patio on all units• Four double car garages• Four single car garages• Condominimized with eighteen

individual tax lots • New Vinyl Windows• New LVT Flooring & additional

upgrades (partial)• 4-units are sprinklered • Improved decks & patios

FIR CREST APARTMENTS

NE 162ND AVE

NE H

ALSEY ST



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PROPERTY OVERVIEWProperty Fir Crest Apartments

Address 1351-1385 NE 162nd Avenue

City/State/Zip Portland, OR 97230

County Multnomah

Total Units 18

Year Built 1973

RBA 14,466 SF

Lot Size 0.38 Acres (16,553 SF)

Stories 2

Total Buildings 3

Heating Type Baseboard Electric

Roof Type Pitched/Composition

Siding Type Aluminum

Foundation Type Crawl

Offering Price $3,000,000

Price per Unit $166,667

Price per SF $207.67

Cap Rate (Actual) 5.68%

PRICING SUMMARY

Purchase Price $3,000,000

Loan Amount $2,250,000

Down Payment $750,000

Loan-to-Value 75%

Interest Rate4.25% 3 years interest only available

Annual Debt Service (P/I) $132,824

Annual Debt Service (I/O) $95,625

Cash-on-Cash Return (Year 1) P/I - 5.02%I/O – 9.98%

Total Return (Year 1) P/I - 10.08%I/O – 9.98%

AVAILABLE FINANCING

EXECUTIVE SUMMARY

(25+ basis points lower less than 70% LTV)

Available financing as of 5/29/2019 Provided by Michael Coffee of Commerical Lending [email protected] | (503) 866-8817



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AERIAL

N

ALBERTSONS DISTRIBUTION

CENTER

GLENDOVEERGOLF & TENNIS

GLENFAIRELEMENTARY

NE HALSEY ST

NE 162ND AVE



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FINANCIAL ANALYSIS

PROPERTY NAME: Fir Crest Condominiums PROPERTY TYPE: Multifamily PRICE: $3,000,000ADDRESS: 1351-1385 NE 162nd Ave TOTAL UNITS: 18 PRICE/UNIT: $166,667 CITY/STATE/ZIP: Portland, OR 97230 YEAR BUILT: 1973 PRICE/SF: $207.38MARKET: Wilkes TOTAL RBA: 14,466 ACTUAL CAP RATE 5.68%

SCHEDULE OF MONTHLY RENTSUNIT TYPE # OF UNITS APPROX. SF PRICE/SF SCHEDULED RENT TOTAL RENT1 Bed/1 Bath 1 624 $1.48 $925 $9251 Bed/1 Bath 1 624 $1.60 $1,000 $1,0001 Bed/1 Bath 1 624 $1.68 $1,050 $1,0501 Bed/1 Bath 1 624 $1.71 $1,070 $1,0702 Bed/1 Bath 2 855 $1.24 $1,060 $2,1202 Bed/1 Bath 2 855 $1.28 $1,098 $2,1962 Bed/1 Bath 1 855 $1.29 $1,100 $1,1002 Bed/1 Bath 1 855 $1.35 $1,150 $1,1502 Bed/1 Bath 2 855 $1.43 $1,225 $2,4502 Bed/1 Bath 5 855 $1.46 $1,250 $6,2502 Bed/1 Bath 1 855 $1.52 $1,300 $1,300TOTAL: 18 14,466 $20,611

ESTIMATED INCOME STABILIZED

POTENTIAL GROSS INCOME $247,332 PLUS: Laundry 720 PLUS: Other 1,000GROSS OPERATING INCOME $249,052 LESS: Vacancy/Credit Loss 5.0% (12,453) PLUS: Garage Rent 15,900EFFECTIVE GROSS INCOME $252,499

ESTIMATED EXPENSES ANNUALFixedReal Estate Taxes 2018-2019 20,094Property Insurance 7,792Landscaping 1,500Replacement Reserves 4,500TOTAL VARIABLE EXPENSES $33,886Variable Repairs/Maintenance 12,000Professional Management Approx. 4.5% of EGI 11,500Estimated Turnover 2,000Water/Sewer 11,500Garbage 6,400Electricity 700Marketing/Advertising 500Fire Alarm/Phone Line 1,530Miscellaneous/Admin 2,000TOTAL FIXED EXPENSES $48,130

TOTAL ANNUAL EXPENSES $82,016

NET OPERATING INCOME $170,483

32.5% Expenses/Unit: $4,556 Expense Ratio (% of EGI):

Apartments



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SALES COMPARABLES

THE ANCHOR15340 SE STARK STPORTLAND, OR 97233

Sale Date 3/14/2019

Sale Price $2,129,000


Price PSF $160.47

Cap Rate 6.33%

# of Units 15

Year Built 1973

RBA 13,267 SF

POWELL COURT VILLA12540 SE POWELL CTPORTLAND, OR 97236

Sale Date 5/1/2019



Price PSF $212.94

Cap Rate 5.55%

# of Units 40

Year Built 1970

RBA 24,396 SF

127 SE 148TH AVE127 SE 148TH AVEPORTLAND, OR 97233

Sale Date 3/27/2019



Price PSF $144.42

Cap Rate 5.67%

# of Units 12

Year Built 1953

RBA 10,940 SF

THE COURTYARDS AT PARK PALCE2755 NE HOGAN DRGRESHAM, OR 97030

Sale Date 10/10/2018



Price PSF $134.35

Cap Rate 5.43%

# of Units 13

Year Built 1974

RBA 12,467 SF

PATRICIA ANNE737 SE 187TH AVEGRESHAM, OR 97233

Sale Date 6/27/2018



Price PSF $136.34

Cap Rate 6.33%

# of Units 14

Year Built 1966

RBA 19,326 SF

HIDDEN VILLA911 SE 187TH AVEGRESHAM, OR 97233

Sale Date 9/28/2018



Price PSF $164,37

Cap Rate 5.84%

# of Units 16

Year Built 1971

RBA 12,928 SF



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SALES COMPARABLESFir Crest Comps - Chatfield

Untitled layer

15340 SE Stark St

911 SE 187th Ave

737 SE 187th Ave

12540 SE Powell Ct

127 SE 148th Ave

2755 NE Hogan Dr

SUBJECT PROPERTY

900 SW 5th Ave • 17th Floor • Portland, OR 97204503.223.3171 • norris-stevens.com


For more information, please contact:

David C. ChatfieldMultifamily Investment Broker

[email protected]

OFFERING MEMORANDUM · 2019. 6. 24. · 900 SW 5th Ave • 17th Floor • Portland, OR 97204...

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Transcript of OFFERING MEMORANDUM · 2019. 6. 24. · 900 SW 5th Ave • 17th Floor • Portland, OR 97204...