Download - LAS BRISAS VILLAGE - LoopNet...Property Las Brisas Village Location 16400 NE Las Brisas Village Court City, State Portland, OR 97230 County Multnomah Year Built 2005 Total Units 48

OFFERING MEMOR ANDUM48 Units • Portland, Oregon

LAS BRISAS VILLAGE

2

Seller and Agent make no representations or warranties as to the accuracy of the information contained in this Offering Memorandum. The enclosed materials include highly confidential information and are being furnished solely for the purpose of review by prospective purchasers of the interest described herein. Neither the enclosed materials, nor any information contained herein, is to be used for any other purpose or made available to any other person without the express written consent of Seller.

The enclosed materials are being provided solely to facilitate the Prospective Purchaser‘s own due diligence, for which it shall be fully and solely responsible. The material contained herein is based on information and sources deemed to be reliable, but no representation or warranty, express or implied, is being made by Agent or Seller or any of their respective representatives, affiliates, officers, employees, shareholders, partners and directors, as to the accuracy or completeness of the information contained herein. Summaries contained herein of any legal, or other, documents are not intended to be comprehensive statements of the terms of such documents, but rather only outlines of some of the principal provisions contained therein. Neither Agent nor Seller shall have any liability whatsoever for the accuracy or completeness of the information contained herein, or any other written or oral communication or information transmitted, or made available, or any action taken or decision made by the recipient with respect to the Property. Interested parties are to make their own investigations, projections, and conclusions without reliance upon the material contained herein.

Seller reserves the right, at its sole and absolute discretion, to withdraw the Property from being marketed for sale at any time and for any reason. Seller and Agent each expressly reserves the right, at its sole and absolute discretion, to reject any and all expressions of interest or offers regarding the Property, and/or to terminate discussions with any entity at any time, with or without notice. This Offering Memorandum is made subject to omissions, correction of errors, change of price or other terms, prior to sale or withdrawal from the market without notice. Agent is not authorized to make any representations or agreements on behalf of Seller.

Seller shall have no legal commitment or obligation to any interested party reviewing the enclosed materials, performing additional investigation and/or making an offer to purchase the Property unless and until a binding written agreement for the purchase of the Property has been fully executed, delivered and approved by Seller, and any conditions to Seller‘s obligations thereunder have been satisfied or waived.

By taking possession of, and reviewing, the information contained herein, the recipient agrees that (a) the enclosed materials and their contents are of a highly confidential nature and will be held and treated in the strictest confidence, and shall be returned to Agent or Seller promptly upon request; (b) the recipient shall not contact employees or tenants of the Property directly or indirectly regarding any aspect of the enclosed materials or the Property without the prior written approval of Seller or Agent and (c) no portion of the enclosed materials may be copied or otherwise reproduced without the prior written authorization of Seller or Agent.

If you have no interest in the Property at this time, please destroy or return this Offering Memorandum immediately to:

HFO Investment Real Estate 2424 SE 11th Ave, Portland, OR 97214 503.241.5541

Build your legacy is a service mark of HFO Investment Real Estate.

CONFIDENTIAL AND DISCLAIMER

OFFERING MEMORANDUM

16400 NE Las Brisas Village Court • Portland, Oregon

L A S BRISA S VILL AGE

HFO INVESTMENT REAL ESTATE

Greg [email protected](971) 717.6332

Tyler [email protected](971) 717.6336

www.hfore.com • 503.241.5541

Licensed in the states of Oregon and Washington.

TABLE OF CONTENTSExecutive Summary 4

Location 10

Operations Analysis 21

Offer Terms 25

INVESTMENT SUMMARYLas Brisas Village is a 48-unit community in the Wilkes neighborhood in Portland. The asset was completed in 2005 and offers large two- and three-bedroom floor plans. Las Brisas Village makes their residents feel at home with decks or patios overlooking landscaped grounds with picnic areas.

Las Brisas Village is convenient to major employers found in both Portland and Gresham. A large portion of the metro area’s industrial and manufacturing companies are found north of Sandy Boulevard, which is adjacent to Las Brisas Village. Las Brisas is a short fifteen minute drive from Portland International Airport or downtown Portland.

Las Brisas Village has been well-maintained over the years with several capital improvements. Recently, Las Brisas Village received new siding, paint and deck repair. Every spacious unit features a full size washer/dryer, a fireplace and a balcony or patio. Las Brisas Village provides comforts many tenants are looking for.

Las Brisas Village’ rents currently average $1,240 per unit or $1.29 per unit square foot. Las Brisas Village’ newer vintage and balanced unit mix results in an attractive investment located in an in-demand area between the cities of Gresham and Portland.

4 HFO INVESTMENT REAL ESTATE

PROPERTY HIGHLIGHTS

• New landscaping

• Carports and garages available

• Full size washer/dryer

• Fireplaces

• Spacious layouts

• Private patio or balcony

• Convenient location

• Gazeboed outdoor spaces and BBQs

EXECUTIVE SUMMARYASSET SUMMARYProperty Las Brisas Village

Location 16400 NE Las Brisas Village Court

City, State Portland, OR 97230

County Multnomah

Year Built 2005

Total Units 48

Approx NR Sq Ft 46,320

Avg Unit Size 965

Acreage 2.15

Density 22.33

OFFERING SUMMARYPrice $7,500,000

Price Per Unit $156,250

Per Square Foot $162

Cap Rate 5.68%

50% 50%2 Bedrooms 3 Bedrooms

TOURS AND INQUIRIES Please do not disturb tenants. All tours and inquiries regarding Las Brisas Village are to be directed to HFO Investment Real Estate at (503) 241.5541.

Greg Frick • [email protected]

Tyler Johnson • [email protected]

Jack Stephens • [email protected]

Tyson Cross • [email protected]

Lee Fehrenbacher • [email protected]

Todd Tully • [email protected]

Adam Smith • [email protected]

Brokers licensed in Oregon and Washington.

5LAS BRISAS • 48 UNITS • PORTLAND, OREGON

HFO INVESTMENT REAL ESTATE

Las Brisas Village’s two- and three-bedroom floor plans are spacious. The upper floor units have vaulted ceilings and open kitchens with dedicated dining areas that open to large decks. All of the apartments have a full-size washer and dryer, patio and a fireplace.

8

9LAS BRISAS VILLAGE • 48 UNITS • PORTLAND, OREGON

COLUMBIA RIVER

26

26

Forest Park

WASHINGTON

OREGON

VANCOUVER

BEAVERTON

CLACKAMAS

LAKE OSWEGO

TIGARD

PORTLAND

GRESHAM

Portland International Airport

8.7 miles (17 min.)

20.7 miles (29 min.)





4.9 miles (12 min.)

7.3 miles (20 min.)

217

210

213

224

212

99E

8

10

Las Brisas Village

LOCATION


LIFESTYLE CONVENIENCES

COLUMBIA RIVER

26

30B

84

Sandy River Delta Park

Blue Lake Regional Park

NE Halsey St

NE Glisan St

NE Stark St

SE Division St

SE Powell St

NE Burnside St

SE 223rd Ave

SE 182nd Ave

SE 162nd Ave

SE 122nd Ave

SE 148th Ave

SE 202nd Ave

NE Hogan Dr NE Kane Dr

SE Troutdale Dr

MAX Blue line

Powell Butte Nature Park

Kelly ButteNature Park

Troutdale AirportLas Brisas Village

Glendoveer Golf & Tennis

Mall 205

Gateway Shopping Center

205

Distribution Center


*Source: US Census and PSU Center for population research for four-county metro area.

**Bureau of Labor Statistics. ***OR Metro.

10.2% Metro Area

population growth (April 2010-July 2017)*

4.85% Metro Area vacancy

4.0% Year-over-year rent

growth**

$68,676 Median household income

3.7% Unemployment rate **

(May 2018)

35.7% Bachelor’s or higher

(Age 25+ ***)

30,066 New Metro Area

residents*(2016-2017)

38.3% Metro Area renter-

occupied housing rate

PORTLAND METRO SNAPSHOTPORTLAND METRO AREA The Portland Metro Area is one of the most robust 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 80 people move here each day. New apartment construction is unable to keep pace with demand.


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 ranked Portland as having the 6th lowest vacancy rate in the nation for the first quarter of 2018 at 3.6%.

REIS reports 2017 Portland metro year-over-year rents grew 3.3%. Overall rents have increased every quarter since Q1 2010.

SKILLED WORKFORCE & STRONG EMPLOYMENT54% of Portland workers have an associates degree or higher, outpacing the national average of 38%.

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, having added 31,000 jobs in 2016 and 28,000 jobs in 2017.

The Portland Metro Area’s unemployment rate as of May 2018 is 3.7%—the lowest since 1995.

TOP 10 LISTSPortland consistently receives glowing reviews and rankings from the media.

2018 lists include: • #4 Best City for Biking (Fast Company)• #6 Best Place to Live (U.S. News and World Report)• #10 Most Entrepreneurial State (Amazon.com)

2017 lists include: • #3 City with Best Opportunities for Job Seekers

This Year (Fast Company)

2016 lists include: • America’s Best City for Summer Travel (Travel +

Leisure)• Best City for Electric Cars in the U.S.

(The Christian Science Monitor)• Best Places to Live 2016 (Money Magazine)• #8 Greenest City in the Nation (Wallethub)• #8, World’s Best Cities for Millennials (Matador

Network)• Food and Drink Capital of America (The Telegraph

– London)• World’s #10 Best City to Live In (Metropolis Magazine)

DIVERSIFIED ECONOMYPortland is home to the headquarters of Fortune 500 companies Nike, Precision Castparts and Lithia Motors. Fortune 1000 companies headquartered here include Stancorp Financial, Greenbrier Companies, Columbia Sportswear, Schnitzer Steel Industries, and Portland General Electric.

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 recently 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 January, 2015, Nike began a $1 billion expansion of its Washington County campus, adding three buildings with a collective 1.3 million square feet and more than 3,300 parking stalls. Nike recently released artists’ renderings of the completed expansion, which is estimated to open in 2018.

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. OSHU 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 millions renovating its Portland facility and invests heavily in research and development, including autonomous driving.

PORTLAND MARKET SNAPSHOTMAJOR EMPLOYERS


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,

According to the State of Oregon Employment Department, the Portland Metro region created jobs at the rate of 2.43% in 2017. Portland ranks 11th among the 50 largest metropolitan areas in the United States.

JOB GROWTH BY INDUSTRYMSA PORTLAND

7,200

Construction

3,900

Trade, Transportation & Utilities

5,000

Leisure & Hospitality

2,800

Manufacturing

3,700

Professional Business Services

5,400

Healthcare & Social Assistance

6,500

Education & Health Services

Portland Brewing, Powell’s Books, ZGF Architects, and two major West Coast law firms: Stoel Rives and Schwabe, Williamson & Wyatt.

Full time employment increased 2.6% in the past 12 months, an increase of 29,700 positions. Following is a list of net job growth by industry June 2016-June 2017:


Portland has three interstate highways running through it: I-5, I-84 and I-205. These freeways help mitigate the amount of congestion on city streets.

I-84 (1.1 miles Southeast) runs east and west, with its western terminus at I-5, heading east to the suburbs of Gresham and Troutdale, and to the scenic Columbia River Gorge on its way to its terminus east of Salt Lake City, Utah.

I-5 (11.7 miles West) runs the length of the entire West Coast between the U.S. borders with Canada and Mexico.

I-205 (5.2 miles West) is a 37-mile loop running north-south skirting downtown Portland to the east. It begins in Vancouver, Washington, and ends south of Portland in Tualatin, Oregon. This helps commuters avoid traveling through downtown Portland.

I-405 (13.3 miles West) is an additional 4.25-mile highway connector on the west side of downtown Portland.

Hwy. 26 (5.3 miles South) runs east and west, with its western terminus on the Oregon Coast. Hwy. 26 is an expressway and is part of the Mount Hood Scenic Byway. Its eastern terminus is Oglallala, Nebraska.

TRANSPORTATION SYSTEMSINTERSTATE HIGHWAY SYSTEM

COLUMBIA RIVER

26

26

Forest Park

WASHINGTON

OREGON

VANCOUVER

BEAVERTON

CLACKAMASLAKE OSWEGO

TIGARD

PORTLAND

GRESHAM

PDX

217

213

224

212

99E

INTERSTATE HIGHWAY SYSTEM

84

84

205

205

405

405

5

5

5

5.3 miles (South)

1.1 miles (Southeast)

5.2 miles (West)

11.7 miles (West)

13.3 miles (West)

Distance from Las Brisas Village

26

Las Brisas Village


GRESHAM MARKET DRIVERS

GRESHAM MARKET DRIVERSThe vacancy rate in Gresham remains low, but is beginning to increase slowly. As of April 2018, the vacancy rate for the Gresham/Troutdale/Fairview submarket was 3.8% overall, below the metro area average of 4.37%. The vacancy rate for 3-bedroom 2-bathroom units in Gresham is 0.43%. This submarket has seen below-market average vacancy rates since 2010.

Source: Multifamily NW Spring 2018 Report

Gresham’s population in 2017 was 111,053, according to the Census Bureau. Between 2010 and 2017 the population of the city increased by 5.1%. Approximately 47.5% of Gresham’s 38,921 households rent, and the average number of persons per household is 2.78. Median household income in Gresham is $49,866.

GRESHAM SCHOOLSIn November 2016, Gresham voters approved a $291.2 bond for the Gresham-Barlow school district. The vote occurred after the Reynold’s School District, which also serves Gresham, announced that it would replace three elementary schools and work on improvements to Reynolds High School with money raised from the 2015 school bond.


GRESHAM TRADED SECTOR EMPLOYERS The City of Gresham aims to strengthen and grow the manufacturing sector in Gresham by offering incentives to companies who bring jobs to the city. Within their Enterprise Zone, businesses can receive a property tax abatement on new investment for 3-5 years, and within their 500-acre Investment Zone, businesses can receive a 15-year tax abatement. The goal of the city is to attract high paying jobs that will position Gresham as a regional manufacturing and industrial center. Gresham has also streamlined the permitting process for industrial development, guaranteeing a decision within a 66-day period.

According to Oregon Business, 28 companies have come to Gresham since 2015, and 35 companies including Boeing and Teeny Foods have committed to expanding in the area.

In February 2015, Amazon announced a new fulfillment center planned for 73 acres of land in Troutdale, just Northeast of Gresham. Plans for the property include 49 loading docks and parking stalls for 276 trailers and 2,511 vehicles. The city estimates it could bring hundreds of new jobs to the area.

In 2015, Gresham saw approximately $17 million in new industrial development projects. The same year, Subaru unveiled plans to build a 600,000 square foot distribution center at a Gresham industrial park located within the Gresham Enterprise Zone. 2016 industrial permits for Gresham were valued at over $80 million—double the value of 2015 permits.

Currently, New York Life Real Estate Investors LLC and Specht Development, Inc. are working to build a 732,824 square foot industrial space on a 37.42 acre site at SE 223rd and Stark Street in Gresham. The site, Vista Logistics Park, is “the largest single phase speculative development ever constructed within the Portland metropolitan area” according to Capacity Commercial Group principal Don Ossey.

ON Semiconductor has been expanding its operations as it has acquired new companies in the semiconductor industry. As of 2016, ON employed 750 people, with an additional 30 jobs likely to be created in the near term. In 2006, ON employed 500 people in its Gresham factory.

In February 2017, Amazon announced it would be building a new facility just north of Gresham in Troutdale. The company is planning to build

an 855,000 square foot fulfillment center with 49 loading docks and 276 trailer parking spaces on 73 acres of brownfield land. The distribution center is expected to be fully operational by 2018.

Gresham expects to break ground on the Rockwood Rising redevelopment project in 2018, which is a partnership between the city and a variety of schools and businesses including Mount Hood Community College, Metro East Community Media, Worksystems, and KCR Manufacturing. The 5.5 acre site formerly occupied by Fred Meyer will be home to 100,000 square feet of new commercial, office, and retail space. The project aims to connect Rockwood residents with services and amenities, as well as job training and entrepreneurship programs. Completion is expected in 2019.


GRESHAM TRADED SECTOR EMPLOYERS (AS OF JUNE 2017 – FROM CITY OF GRESHAM)

Employer Product/Services Employee Count RangeBoeing of Portland Aerospace Manufacturer 1500-2000US Bank Processing Services Check Processing 1500-2000ON Semiconductor Semiconductor Manufacturing 700-1499Albertson’s Distribution Center Food Distribution 700-1499Microchip Technology Semiconductor Manufacturing 500-699Affiliated Computer Services/Xerox Business Services Call Center 500-699Christenson Electric Electrical Contractor 400-499Celestica Semiconductor Equipment Manufacturer 200-399Cascade Controls Control Systems Manufacturer 200-399Cascade Corporation Hydraulics Equipment Manufacturer 200-399Organically Grown Food Distribution 200-399Portland Specialty Baking Groceries/Related Products Manufacturer 200-399Arnprior/QPM Aerospace Aerospace Manufacturer 100-199Boyd Coffee Company Specialty Foods Manufacturer 100-199Capsa Health Care Medical Equipment Manufacturer 100-199Frito-Lay NA Food Distribution 100-199Imperial Brown Refrigeration Manufacturer 100-199International Paper Paper Production 100-199LaneCo Inc. Concrete Cutting 100-199Pella Vinyl Metal Frames/Windows Manufacturer 100-199Performance Food Service Pacific NW Food Distribution 100-199Staples Distribution Center Distribution 100-199Teeny Foods Specialty Food Manufacturer 100-199Wright Business Graphics, Inc. Business Forms 100-199

GRESHAM TRADED SECTOR EMPLOYERS


GRESHAM: SCHOOLS

Gresham-Barlow School District: This district serves families living in Oregon’s fourth-largest city, with a diverse population of over 106,000. The school district currently has 11 elementary schools, five middle schools, three high schools, and five charter schools.

The district has a student population of over 11,700. Students in this district consistently score above the national average on standardized exams. On Oregon’s Statewide Assessment, Gresham-Barlow students compare favorably with those from districts with a similar socioeconomic make-up.

Reynolds School District: Established in 1954, the Reynolds District serves the Portland, Gresham, Fairview, Wood Village, and Troutdale areas. Currently enrolling over 10,000 students, the district comprises 11 elementary schools, three middle schools and two high schools. For the 2014-2015 school year, Reynolds recently achieved a goal of acquiring one technology device for every two students—with the purpose of making progress in reading, writing, math, and technology skills. Target areas for the Reynolds District are student achievement, fiscal responsibility, communications, and equity.

Mt. Hood Community College (MHCC) is located on a 260-acre campus in Gresham and offers more than 120 professional and technical programs.

The college enrolls approximately 33,000 students each year. Students of MHCC typically take personal enrichment courses to continue their education or as a stepping-stone to a four-year institution.

MHCC interacts with its community through a large number of programs and places, including its:

• Aquatic Center, an enclosed area with a 25-yard, six-lane competitive pool, an instructional pool, hydrotherapy pool, and locker rooms with showers

• Planetarium Sky Theater, which has monthly astronomy programs;

• Summer Camp program for kids, which offers a five-week series of themed activities and excursions;

• KMHD 89.1-HD2, the student radio station

• A dental hygiene clinic that offers affordable dental care for students and Gresham residents

Mt. Hood Community College is accredited by the Northwest Commission on Colleges and Universities. The college offers programs in administrative office, business management, computer information systems and engineering technologies, as well as more than 90 Associate of Applied Science degrees and certificates.

MHCC’s athletic programs include men’s and women’s basketball teams, cross-country, track and field and softball.


OPERATIONS ANALYSISIncome Current Scheduled Rents Projected Operations Note

Scheduled Gross Rent $714,410 $14,884 $777,600 $16,200 1 Less: Vacancy/Credit Loss ($35,720) ($744) -5.0% -$38,880 -$810 -5.0% 2 Less: Concessions ($7,144) ($149) -1.0% -$7,776 -$162 -1.0% 2

Net Rental Income $671,545 $13,991 $730,944 $15,228 Other Income $56,208 $1,171 $56,208 $1,171 3

Includes: Parking (Garage) $11,784 $246 $11,784 $246 Includes: Utility Billing (RUBs) $27,975 $583 39.5% $27,975 $583 39.5%

Gross Operating Income $727,754 $15,162 $787,152 $16,399

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

Real Estate Taxes $74,321 $1,548 10.2% $74,321 $1,548 9.4% 4

Insurance $6,768 $141 0.9% $6,768 $141 0.9%

Total Utilities $73,933 $1,540 10.2% $73,933 $1,540 9.4% 5

Administrative $18,296 $381 2.5% $18,296 $381 2.3% 6

Advertising $5,321 $111 0.7% $5,321 $111 0.7%

Fee Management $21,833 $455 3.0% $23,615 $492 3.0% 7

On-site Payroll $46,034 $959 6.3% $46,034 $959 5.8%

Landscaping $9,790 $204 1.3% $9,790 $204 1.2%

Maintenance/Repairs $24,000 $500 3.3% $24,000 $500 3.0% 8

Turnover $9,360 $195 1.3% $9,360 $195 1.2% 9

Reserves $12,000 $250 1.6% $12,000 $250 1.5% 10

Total Expenses ($301,656) ($303,438) Expenses per Unit ($6,284) ($6,322)

% of Gross Operating Income 41% 39%Net Operating Income (NOI) $426,098 $483,715


PROJECTED OPERATIONS1. RENTS Rents are based on an August 2018 rent roll. Current scheduled rents average $1,240 per unit or $1.29 per

square foot. The projected rents are based on both new move-in rates and those historically achieved at Las Brisas Village.

2. VACANCY, CONCESSIONS, AND BAD DEBT/RECOVERY

Las Brisas Village currently has three vacant units. Our projected operations stabilize vacancy at 5.0%.

3. OTHER INCOME Other Income includes administrative fees, parking, pet fees, laundry income and utility charges (RUBs). • RUBs. A large portion of the other income is a result of utility charges (RUBs). Residents are charged for water,

sewer and garbage. RUBs collections totaled $27,975 for June 2018 Trailing 6-months annualized operations which cover approximately 39.5% of adjusted water, sewer and garbage costs. These collections are brought forward to current operations.

• Garages. Las Brisas Village offers both garages and carports for rent. There are 16 garages and 48 carports. These rentable items produced $11,784 in other income over the previous 6 months, which income is carried forward to current scheduled income.

Projected other income totaled $56,701.

RENT ROLL ANALYSIS: MARKET RENTS

Unit Type Unit Count

Square Feet

Average Scheduled

Rents

Average Scheduled

Rents per Sq Ft

Average Market Rent

Average Market Rent

per Sq Ft% Change

2 Bedroom / 2 Bathroom 24 940 $1,206 $1.28 $1,300 $1.38 7.2%

3 Bedroom / 2 Bathroom 24 990 $1,274 $1.29 $1,400 $1.41 9.0%

Totals / Averages 48 965 $1,240 $1.29 $1,350 $1.40 8.1%


OPERATIONS ANALYSIS4. PROPERTY TAXES Oregon’s property taxes are evaluated on a fiscal year starting July 1. Property tax values for the 2017-2018 tax year

are published October 15. Projected operations include current taxes for the 2017-2018 property tax year. In Oregon, property taxes are not reassessed on sale and are limited to a 3.0% annual increase at the state level. The gross property taxes for Las Brisas Village total $74,321. Property taxes paid prior to November 15th each year receive a 3.0% discount. Most investors take advantage of this discount. The 2018-2019 tax year starts July 1. Therefore gross taxes are used in the projected operations in anticipation of pending assessments for the next tax cycle.

5. INSURANCE Property insurance reflects the current policy premium of $6,768 annually, or $141 per unit.

6. UTILITIES Utilities have been adjusted for water and sewer costs. January and February costs were not reported, so the costs were annualized. Projected operations utilities totals $73,933, or $1,540 per unit.

7. ADMINISTRATIVE Approximately $3,000 was removed from the operating expenses for consultation services applicable to the current ownership. The project administrative expenses totals 2.5% of GOI (Gross Operating Income) or $18,296 annually.

8. MANAGEMENT FEE The management fee includes cost associated with the current ownership. Projected operations include a market-rate management fee of 3.0% of GOI.

Tax HistoryTax Year 2015/2016 2016/2017 2017/2018

Account #

R246233 $68,934 $70,840 $74,321

Total $68,934 $70,840 $74,321

% Change 2.64% 2.69% 4.68%


OPERATIONS ANALYSIS9. TURNOVER Turnover has been adjusted for market-rate

operations which assumes approximately 30% or 14 units will turnover over each year. The turnover expense is for cleaning and make-ready processes. It does not include any capital costs or repair. Approximately $650 per turn is allocated to turnover a unit.

Turnover Analysis Projected TurnoversTotal Units 48

% of units 30%

Turnovers 14

Annual Turnover Cost $9,360

Cost per Turnover $650

Per Unit Turnover Cost $195

10. 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, or $12,000 annually.

January-18 March-18 May-18February-18 April-18 June-18

$58,500

$58,000

$57,500

$59,500

$59,000

$60,000

$60,500INCOME HISTORY

$57,000

Sche

dule

d Re

nt

OFFER TERMSASSET SUMMARYProperty Las Brisas Village

Location 16400 NE Las Brisas Village Court

City, State Portland, OR 97230

County Multnomah

Year Built 2005

Total Units 48

Avg Unit Size 965 Sq Ft

PRICINGPrice $7,500,000

Price Per Unit $156,250

Per Square Foot $162

Cap Rate 5.68%

QUESTIONS & TOUR REQUESTS: All inquiries, questions, or tour requests are to be directed to HFO Investment Real Estate at (503) 241.5541.

Please do not disturb the residents.

Greg Frick • [email protected] Johnson • [email protected] Jack Stephens • [email protected] Cross • [email protected] Lee Fehrenbacher • [email protected] Tully • [email protected] Smith • [email protected]

Investment Real Estate 2424 SE 11th AvenuePortland, Oregon 97214

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

Brokers licensed in the States of Oregon and Washington.


HFO Investment Real Estate

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

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