OFFERING MEMORANDUM · 2019. 6. 24. · 900 SW 5th Ave • 17th Floor • Portland, OR 97204...
Transcript of OFFERING MEMORANDUM · 2019. 6. 24. · 900 SW 5th Ave • 17th Floor • Portland, OR 97204...
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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
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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
INVESTMENT REAL ESTATE SERVICES
Exclusively Marketed By
David C. ChatfieldMultifamily Investment Broker
TABLE OF CONTENTS
Investment Overview .....................................................................................3
Executive Summary .......................................................................................4
Aerial Map ..................................................................................................5
Financial Analysis .........................................................................................6
Sales Comparables .......................................................................................7
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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.
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FIR CREST APARTMENTS OFFERING MEMORANDUM
INVESTMENT REAL ESTATE SERVICES
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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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
INVESTMENT REAL ESTATE SERVICES
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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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
INVESTMENT REAL ESTATE SERVICES
AERIAL
N
ALBERTSONS DISTRIBUTION
CENTER
GLENDOVEERGOLF & TENNIS
GLENFAIRELEMENTARY
NE HALSEY ST
NE 162ND AVE
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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
INVESTMENT REAL ESTATE SERVICES
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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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
INVESTMENT REAL ESTATE SERVICES
SALES COMPARABLES
THE ANCHOR15340 SE STARK STPORTLAND, OR 97233
Sale Date 3/14/2019
Sale Price $2,129,000
Price per Unit $141,933
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
Sale Price $5,195,000
Price per Unit $129,875
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
Sale Price $1,580,000
Price per Unit $131,666
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
Sale Price $1,675,000
Price per Unit $128,846
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
Sale Price $2,635,000
Price per Unit $188,214
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
Sale Price $2,125,000
Price per Unit $132,812
Price PSF $164,37
Cap Rate 5.84%
# of Units 16
Year Built 1971
RBA 12,928 SF
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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
8
FIR CREST APARTMENTS OFFERING MEMORANDUM
INVESTMENT REAL ESTATE SERVICES
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
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900 SW 5th Ave • 17th Floor • Portland, OR 97204503.223.3171 • norris-stevens.com
INVESTMENT REAL ESTATE SERVICES
For more information, please contact:
David C. ChatfieldMultifamily Investment Broker