CUMBERLAND I 15103 SE POWELL BOULEVARD • PORTLAND, …...RENT SALE COMPARABLES Property Name &...

PRICE: $599,000

OFFERING MEMORANDUM CUMBERLAND I 15103 SE POWELL BOULEVARD • PORTLAND, OREGON

COLLIERS INTERNATIONAL P. 2CUMBERLAND I | OFFERING MEMORANDUM

Table of ContentsINVESTMENT SUMMARY PAGE 3

PROPERTY INFORMATION PAGE 5

MARKET OVERVIEW PAGE 9

COMPARABLES PAGE 14

FINANCIAL OVERVIEW PAGE 21

TRANSACTION GUIDELINES PAGE 25

OFFERING MEMORANDUM

Exclusive AdvisorsThis Offering Memorandum contains select information pertaining to the business and affairs of the Property at 15103 SE Powell Boulevard, Portland, Oregon. It has been prepared by Colliers International. This Offering Memoran-dum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memoran-dum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property.

For further information regarding the purchase and sale of this asset, to register to receive due diligence materials, schedule a tour, or to submit a bid, please contact the following Colliers International professionals:

851 S.W. Sixth Ave., Suite 1200Portland, Oregon 97204503.223.3123

Alex ChengAssociateMultifamily DIRECT +1 503 499 0075 EMAIL [email protected]

Skip Rotticci CCIM

Vice President MultifamilyDIRECT +1 503 499 0062 EMAIL [email protected]

> Property Information


PROPERTY INFORMATION

Property Description

Cumberland I Mobile Home Park represents a rare opportunity for an

investor to acquire a newer all-age community in one of the most

desirable markets across the country. Tenants enjoy the privacy of

their own road and convenient access to commercial and retail

services nearby. All utilities are paid by tenants, with water and

sewer sub metered and billed back.

PROPERTY HIGHLIGHTS

• Prime metropolitan area

• Redevelopment potential

• Under-market rents

• All newer multi-section homes

• 100% occupied



Site Details

57 Bike Score

NAME: Cumberland I Mobile Home ParkADDRESS: 15103 SE Powell Boulevard, Portland, OregonPARCEL NUMBER(S): 1S2E12BD 05400YEAR BUILT: 1985SPACES: 7LAND AREA: .77 AC; 33,541 SFUTILITIES: City of PortlandZONING: R3AAGE RESTRICTIONS: NoneOCCUPANCY: 100%DW/SW RATIO: 100% Double-WidePARK-OWNED HOMES: NoneOFFERING PRICE: $599,000PRICE PER SPACE: $85,571

CAP RATE: 5.08% Current | 6.45% Pro-Forma

56 Walk Score

42 Transit Score



NORTH

SE Division Street

SE Powell BoulevardSE

148

th A

venu

e

SE Powell Boulevard

SE 1

82ne

Ave

nue

> Market Overview


MARKET OVERVIEW

Neighborhood InformationSoutheast Portland is an up and coming desirable area of Portland, with a neighborhood that hums day and night with an energy that is redefining the market. The diverse population and intriguing mix of uses in the area makes this neighborhood a top destination for millennials and young hipsters.

Like most Portland neighborhoods, Southeast feels very self-sustaining. It features local grocery stores, many local shops and restaurants. The neighborhood is at the epicenter of a growing movement and industries that cater to millennials –including bike co-ops, renowned restaurants and bars, and companies supporting the maker movement. The area also features extensive transit options from the bus to light rail.

Portland is a top destination and is regularly on top 10 lists for food, cycling, sustainability, travel and culture. The median age in the Portland area is 36.9, slightly younger than the state and nation, contributing to a vibrant Portland. According to the Bureau of Economic Analysis, at 22.8%, Portland had the fastest GDP growth rate from 2008-2013 of all major metropolitan areas in the country; and with annual GDP growth of 2.7% from 2012-2013, the Portland MSA made the Bureau’s recently released Top 20 Major Metro Fastest GDP Growth List for 2012-2013.

Portland leads the nation with the highest percentage of people who bike to work at 6.1% - U.S. Census Bureau

Portland’s Multnomah County has seen a 41 percent increase in the millennial population from 2007 to 2013 - Portland Business Journal

Oregon ranked #6 on a foodie destination list citing our wine country, craft beer movement and the hipster centric food cart movement - Thrillist

Portland has the 11th biggest public transit system in the U.S. - GoLocalPDX

Portland ranked 23rd in best quality of life in the world, America’s only livable city - Monocle


MARKET OVERVIEW

Local DemographicsDISTANCE TO/FROM PROPERTY 1 MILE 3 MILE 5 MILE

2018 Total Population: 22,763 168,518 368,203

2023 Population: 24,259 179,382 392,026

Pop Growth 2018-2023: 6.57% 6.45% 6.47%

Average Age: 36.90 37.10 37.80

HOUSEHOLDS

2018 Total Households: 7,697 59,086 136,148

HH Growth 2018-2023: 6.28% 6.31% 6.33%

Median Household Inc: $44,610 $49,691 $55,368

Avg Household Size: 2.90 2.80 2.60

2018 Avg HH Vehicles: 2.00 2.00 2.00

HOUSING

Median Home Value: $235,201 $255,861 $284,432

Median Year Built: 1971 1976 1974

CUMBERLAND I

> Comparables


RENT & SALE COMPARABLES

Property Name& Address

FAMILY/55+

# OF SITES YEAR BUILT

GAT

ED

COM

MU

NIT

Y CE

NTE

R

POO

L/ S

PA

OU

TDO

OR

RECR

EATI

ON

RV/ B

OAT

STO

RAG

E

LOT RENT Comments Adjusted Lot Rent

1990 $634 $634

NoNo

No No

No NoNo

AVERAGE

Family

Family

Family

15103 SE Powell BoulevardPortland, OR 97236


Cumberland II Mobile Home Park

Picture HERE Family 51 198713115 SE Foster RoadPortland, OR 97236

Cumberland I

1985


Park Place Mobile Home Park

Picture HERE 1988

13400 SE Holgate BoulevardPortland, OR 97236

Aspen Meadows

Picture HERE 1994

Family15768 SE Powell BoulevardPortland, OR 97230

Parkway Estates

Picture HERE 1993

Meadowland Mobile Home Park

Picture HERE Family

No Yes No No No

No No

No No No No No

No No Yes

No No No No No

No

$500

$550 Tenants pay all utilities. $550



Tenants pay all utilities. $815

7

118

24

51

76 1989 No No


$500 Tenants pay all utilities.

$815

Rent Comparables



Rent Comparables

$0.00

$100.00

$200.00

$300.00

$400.00

$500.00

$600.00

$700.00

$800.00

$900.00Adjusted Lot Rents

Lot Rent Average



YEAR BUILT PRICE# OF

SPACES$/SPACE CAP RATE SOLD DATE

Cumberland I 15103 SE Powell BoulevardPortland, OR 97236

Tonisgah4264 SE 122ndPortland, OR 97236

Holly Court3016 SE Holly AvenueMilwaukie, OR 97222

Nine Oaks4239 SE 122nd AvenuePortland, OR 97236

Foster Road MHP12506 SE Foster RoadPortland, OR 97236

1991 $ 816,667 11 $ 71,667 5.54%

38

Family

55+ 1951 2,825,000$

70,000$ 4.77% 8/1/2015

5.50% 8/17/2017

AVERAGE

1985 $ 599,000 7Family

Family 1990 10700,000$

1991 700,000$ 10

5.08% - $ 85,571

74,342$ 5.77% 12/15/2017

11/14/20176.10%70,000$

55+ 1993 1,050,000$ 14 75,000$

Sale Comparables



Sale Comparables

$0.00

$10,000.00

$20,000.00

$30,000.00

$40,000.00

$50,000.00

$60,000.00

$70,000.00

$80,000.00

$90,000.00Price Per Space

Series1 Average

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

10.00%

Cumberland I Tonisgah Holly Court Nine Oaks Foster RoadMHP

Cap Rate

Series1 Series2

> Financial Overview


FINANCIAL OVERVIEW

Pro Forma Rent Summary & Income

Min Max Avg 7 MH Pad 450$ 550$ 499$ 3,490$ 600$ 4,200$

7 TOTAL 3,490$ 4,200$

Annualized Income Current Per Unit Pro-Forma Per Unit

Gross Potential Rent 41,880$ 5,983$ 50,400$ 7,200$

Gross Potential Income 41,880$ 5,983$ 50,400$ 7,200$

Vacancy Factor 3% (1,256)$ 3% (1,512)$

Effective Gross Income 40,624$ 5,803$ 48,888$ 6,984$

Annualized Operating Expenses Current Per Unit Pro-Forma Per Unit

Real Estate Taxes 4,320$ 10.63% 617$ 4,316$ 8.83% 617$

Insurance 555$ 1.37% 79$ 572$ 1.17% 82$

Accounting/Legal 1,500$ 3.69% 214$ 1,545$ 3.16% 221$

Landscaping 875$ 2.15% 125$ 901$ 1.84% 129$

Repairs & Maintenance 2,100$ 5.17% 300$ 2,100$ 5.17% 300$

Reserves & Replacements 812$ 2.00% 116$ 837$ 2.06% 120$

Total Expenses 10,163$ 1,452$ 10,271$ 1,467$

Expense Ratio of EGI 25% 21%

Net Operating Income 30,461$ 4,352$ 38,617$ 5,517$

Market Estimate $300/Unit

2% of EGI

Market Estimate

Market Estimate $125/Unit

Income

Market Estimate

Rents

2018-2019 Actuals Inflated 3%

2017 Actuals Inflated 3%

Unit Type Rents Income

Current Pro-FormaMonthly Scheduled Rent Income

No. of units

> Transaction Guidelines


TRANSACTION GUIDELINES

Offering ProcedureThe offering of 5607 East Burnside St., Portland, Oregon is being conducted exclusively by Colliers International. All questions and inquiries should be directed to the Colliers representatives listed in this memorandum.

Colliers will be available to assist prospective investors with their review of the offering. On-site inspections of the property and tours of the market area can be arranged directly with Colliers.

All prospective purchasers can receive the due diligence materials by contacting any one of the listing brokers to register and receive a Confidentiality Agreement. Once a signed Confidentiality Agreement is received prospective buyers will receive a link to the due diligence material folders.

Offers should include, at a minimum, the following:• The purchase price and closing date;• The source of capital, both equity and debt, for the transaction;• The amount of earnest money deposit;• A statement agreeing to the due diligence, Purchase and Sale

Agreement, and closing processes; and• A description of assumptions utilized for the offer.

Please address your offers to the brokers listed below.


ALEX [email protected]+1 503 499 0075

SKIP ROTTICCI CCIMVice President [email protected]+1 503 499 0062


TRANSACTION GUIDELINES

CONFIDENTIALITY & DISCLAIMER STATEMENTThis Offering Memorandum contains select information pertaining to the business and affairs of the Property at 5607 East Burnside St., Portland, Oregon. It has been prepared by Colliers International. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Colliers International. The material is based in part upon information supplied by the Seller and in part upon financial information obtained by Colliers International from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness or this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum from Colliers, you agree:

1) The Offering Memorandum and its contents are confidential;

2) You will hold it and treat it in the strictest of confidence; and

3) You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.

Owner and Colliers International expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchas-er have any other claims against Seller or Colliers International or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

Alex ChengAssociateDIRECT +1 503 499 0075 EMAIL [email protected]

Skip Rotticci CCIM

Vice President DIRECT +1 503 499 0062 EMAIL [email protected]


CUMBERLAND I 15103 SE POWELL BOULEVARD • PORTLAND, …...RENT SALE COMPARABLES Property Name &...

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