6256-6258 SOUTHEAST FOSTER ROADPORTLAND, OR 97206

Exclusively Listed By:

Nicholas R. Bushong

Senior Associate

503.200.2078

nicholas.bushong@marcusmillichap.com

License: OR 2012209785

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thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty

or representation, with respect to the income or expenses for the subject property, the future projected financial

performance of the property, the size and square footage of the property and improvements, the presence or

absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the

physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or

any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in

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has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted

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by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo

or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of

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ACTIVITY ID:

C O N F I DE N T I A L I T Y A N D DI S C L A I M E R

6256-6258 Southeast Foster Rd.

PORTLAND OR 97206

6256-6258 SE Foster Rd.

P O R T L A N D O R E G O N 9 7 2 106

EXECUTIVE SUMMARY

Price $1,200,000

Gross Leasable Area 6,100 SF

Lot Size 0.80 Acres (3,485 SF)

YearBuilt 1928

Zoning CM2

EXECUTIVE SUMMARY

SBA FINANCING QUOTE

Loan To Value $ 1,020,000 (85%)

Down Payment $ 180,000 (15%)

Interest Rate 4.85%

Term 5 Year Fixed

Amortization 25 Years

Monthly Payments $5,874

Marcus and Millichap has been exclusively selected to

market for sale the mixed use commercial building

located at 6256-6258 SE Foster Road. The property is

strategically located between the Foster/Powell,

Woodstock and Creston neighborhoods on the going-

home side of the street and benefits from outstanding

visibility on SE Foster Road. The property is a 6,100 SF

concrete block commercial building with approx. 3,300

square feet of ground floor retail space that could be

demised into 2-3 different units. The second level is

approx. 2,800 square feet and consists of a 2-bedroom

apartment and eight (8) small offices with a kitchen.

This property presents an opportunity for either an

investor to re-tenant the property and increase both rents

for the retail suites along with significantly increase the

income from the second floor offices and apartment unit.

This is also a fantastic opportunity for an owner/user or

live/work buyer to acquire a flexible building that would

accommodate a myriad of different businesses and

provide additional income for the user.

INVESTMENT HIGHLIGHTS

• Close-In Southeast Portland Location

• Attractive Commercial Zoning (CM2)

and Mixed Use

• Add Value Opportunity on SE Foster Road

• High Street Visibility at Lighted Intersection

• New TPO Roof (2017)

PROPERTY OVERVIEW

RENT ROLLLease Dates

Tenant Name SF Comm. Exp.Rent Per

Sq. Ft.

Total Rent

Per Month

Total Rent

Per Year

Lease

Type

Upstairs Master Lease 2,800 MTM MTM $10.71 $2,500 $30,000 G

Occupied Retail 800 3/1/2019 2/28/2020 $12.00 $950 $11,400 G

Vacant Retail 2,500

Total 6,100 $3,400 $40,800

EXPENSE STATMENTOperating Expenses $

Property Tax $6,638

Insurance $2,300

Water/Sewer/Garbage $2,500*

Electric $ 1,000*

HVAC Maintenance $ 1,000*

General Maintenance $ 2,500*

Management Fee (3%) $ 1,242

Reserves $ 1,145

Total $ 18,325

*normalized to market

5

Foster Rd

“Occupied Retail” on Rent Roll

5

PORTLAND-VANCOUVEROVERVIEW

The Portland-Vancouver metro is located near the confluence of the

Columbia and Willamette rivers and stretches across the Oregon

border into Washington State. The region is composed of Multnomah,

Clackamas, Columbia, Washington and Yamhill counties in Oregon,

and Clark and Skamania counties in Washington. Mount Hood and the

Cascade Range stand to the east, and the Oregon Coast Mountain

Range lies to the west. The metro contains approximately 2.4 million

residents, with more than 640,000 people residing in Portland, the

area’s most populous city.

METRO HIGHLIGHTS

HIGH POPULATION GROWTH

The Portland-Vancouver metro has recorded more

than 20 years of positive net migration thanks to

expanding industries.

ALTERNATIVE-ENERGY INDUSTRY

Alternative-energy companies are attracted to the

local educated workforce and research institutions

and are moving to the region.

LOW BUSINESS COSTS

The cost of doing business is among the lowest on

the West Coast, supported by no state income tax

in Washington and no sales tax in Oregon.

DEMOGRAPHICS

SPORTS

ARTS & ENTERTAINMENT

▪ The metro is expected to add nearly 120,000 people over the next five years,

resulting in the formation of nearly 64,000 households.

▪ A median home price well above the U.S. level means 60 percent of households can

afford to own their home, which is below the national rate of 64 percent.

▪ Of residents age 25 and older, 35 percent hold bachelor’s degrees, and 13 percent

have also obtained a graduate or professional degree.

The metro contains more than 37,000 acres of parks and provides numerous outdoor

opportunities, including activities at Mount Hood and on the Hood River. The metro lies 60

miles east of the Pacific Ocean, with 330 miles of beaches along the Oregon coast.

Professional sports teams represent basketball, soccer and hockey. Cultural activities can

be found at various local venues, including the Portland Art Museum, World Forestry

Center Discovery Museum and the Portland Children’s Museum, and plays are staged at

the Portland Center for the Performing Arts. Major colleges and universities including Lewis

and Clark, Pacific University, the University of Portland and Portland State University. The

University of Oregon and Oregon State University are nearby.

QUALITY OF LIFE

* Forecast

Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s

Analytics; U.S. Census Bureau

37.9

2017MEDIAN AGE:

U.S. Median:

37.8

$63,000

2017 MEDIAN HOUSEHOLD INCOME:

U.S. Median:

$56,300

2.4M

2017POPULATION:

Growth2017-2022*:

4.9%

948K

2017HOUSEHOLDS:

6.7%

Growth2017-2022*:

2017 Population by Age

0-4 YEARS

6%5-19 YEARS

19%20-24 YEARS

6%25-44 YEARS

30%45-64 YEARS

26%65+ YEARS

14%

PORTLAND METRO AREA

Influx of new residents and visitors to Portland boosts demand for retail.

Approximately 21,000 individuals are expected to migrate to the metro this year,

drawn by the market’s vibrant job creation. Tourism has also risen for eight straight

years. The growing consumer base is contributing to a 7.7 percent jump in retail

sales, well above the U.S. level of 5.4 percent. As revenue improves, retailers are on

the lookout for quality space. Total completions for 2018 will surpass last year’s

deliveries but are still below the annual average for the cycle. Construction is taking

place largely outside the urban core, with almost 80 percent of arrivals going to the

submarkets of Southwest Portland, the I-5 Corridor and Clark County.

Extremely low vacancy supports healthy rent gains. Favorable demographics and

below-average construction activity have enabled vacancy to decline steadily over

the past seven years to a rate of 3.3 percent in 2018. Several areas of the market

have minimal availability of sub-2 percent, with almost no vacancy for multi-tenant

space in the centrally located CBD and Lloyd District submarkets. As availability falls,

rents are improving. Acute vacancy and minimal completions are driving above-

market growth rates in Northwest Portland and on the Westside.

• Retail properties in central Portland continue to perform well amid less

supply-side pressure. The average cap rate for assets downtown and in the

surrounding neighborhoods compressed below 6 percent over the past four

quarters, with an average sale price of $325 per square foot, just above the

market average of $313 per square foot.

• Transaction velocity roughly doubled in the Southwest submarket during the

12 months prior to July. Assets in the Portland-adjacent community of

Beaverton, itself the sixth largest city in Oregon, changed hands at an

average sale price of $400 per square foot.

• The strength of the Portland retail market is drawing investment from

elsewhere in the country, including Michigan and Minnesota. Foreign

investors from Canada are also targeting Portland, as evidenced by two

multi-property acquisitions that were made in August.

Retail 2018 Outlook

New Development Has No Impact on Tight

Vacancy; Rent Growth Continues

540,000 sq. ft.

will be completed

3.2% increase in

asking rents

40 basis point

decrease in vacancy

Construction:

Less vacant space is contributing to the

average monthly rent payment improving to

$19.93 per square foot this year. In 2017

rents appreciated 6.9 percent.

Net absorption improves year over year to

roughly 970,000 square feet, compressing

vacancy to 3.3 percent in 2018.

* Cap rates trailing 12 months through 2Q18; 10-Year Treasury up to June 29.

Sources: CoStar Group, Inc.; Real Capital Analytics

A total of 540,000 square feet will be

completed during 2018, up from 345,000

square feet last year. Roughly 85 percent of

this year’s inventory is pre-leased.

Vacancy:

Rents:

Investment Trends

Income

In 2018, the median household income for your selected geography is

$80,949, compare this to the US average which is currently $58,754.

The median household income for your area has changed by 61.11%

since 2000. It is estimated that the median household income in your

area will be $92,202 five years from now, which represents a change

of 13.90% from the current year.

The current year per capita income in your area is $50,857, compare

this to the US average, which is $32,356. The current year average

household income in your area is $112,631, compare this to the US

average which is $84,609.

Population

In 2018, the population in your selected geography is 23,944. The

population has changed by 9.36% since 2000. It is estimated that the

population in your area will be 24,215.00 five years from now, which

represents a change of 1.13% from the current year. The current

population is 48.59% male and 51.41% female. The median age of

the population in your area is 40.93, compare this to the US average

which is 37.95. The population density in your area is 7,600.49 people

per square mile.

Households

There are currently 10,788 households in your selected geography.

The number of households has changed by 12.29% since 2000. It is

estimated that the number of households in your area will be 10,999

five years from now, which represents a change of 1.96% from the

current year. The average household size in your area is 2.22 persons.

Employment

In 2018, there are 11,186 employees in your selected area, this is also

known as the daytime population. The 2000 Census revealed that

71.84% of employees are employed in white-collar occupations in

this geography, and 28.33% are employed in blue-collar occupations.

In 2018, unemployment in this area is 2.50%. In 2000, the average

time traveled to work was 25.00 minutes.

Race and Ethnicity

The current year racial makeup of your selected area is as follows:

85.04% White, 3.33% Black, 0.14% Native American and 5.57%

Asian/Pacific Islander. Compare these to US averages which are:

70.20% White, 12.89% Black, 0.19% Native American and 5.59%

Asian/Pacific Islander. People of Hispanic origin are counted

independently of race.

People of Hispanic origin make up 4.46% of the current year

population in your selected area. Compare this to the US average of

18.01%.

Housing

The median housing value in your area was $434,186 in 2018,

compare this to the US average of $201,842. In 2000, there were

6,444 owner occupied housing units in your area and there were

3,163 renter occupied housing units in your area. The median rent at

the time was $564.

Source: © 2018 Experian

Exclusively Listed By:

Nicholas R. Bushong

Senior Associate

503.200.2078

nicholas.bushong@marcusmillichap.com

License: OR 2012209785