Parkside Apartments - LoopNet€¦ · HOUSING UNITS 1 Miles 3 Miles 5 Miles Occupied Units 2024...
Transcript of Parkside Apartments - LoopNet€¦ · HOUSING UNITS 1 Miles 3 Miles 5 Miles Occupied Units 2024...
10 Unit Apartment Complex in a Desirable LocationParkside Apartments
883 SE 11th St * Hillsboro * OR * 97123
N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E
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Parkside ApartmentsPortland, ORACT ID ZAA0210041
Broker of Record: Adam Lewis, OR 201209561
the INVESTMENT OVERVIEW
EXECUTIVE SUMMARYParkside APARTMENTS
Price $1,395,000 10 Apartments Units
MIX: 10- Two Bedroom / One Bath Flats
VITAL DATA
Price $1,395,000 CURRENT PRO FORMA
Down Payment30% /
$418,500CAP Rate 5.17% 6.42%
Loan Amount $976,500 GRM 11.13 9.73
Loan TypeProposed
New
Net Operating Income
$72,131 $89,563
Interest Rate / Amortization
3.75% / 30 Years
Net Cash Flow After Debt Service
4.27% / $17,8638.43% / $35,295
Price/Unit $139,500Total Return
8.56% / $35,81912.89% / $53,936
Price/SF $208.21
Number of Units 10
Rentable Square Feet
6,700
Year Built 1966
Lot Size 0.59 acre(s)
▪ - 6.42% Pro Forma Cap Rate▪ - Desirable Single-Level Living▪ - Rapidly Growing Submarket▪ - Value-Add Opportunity▪ - Brand-New Parking Lot
Marcus & Millichap is pleased to exclusively represent the sale of the ParksideApartments, a true value-add opportunity in the growing Hillsboro submarket ofPortland, Oregon. The asset is comprised of 10 residential units, each with twobedrooms and one bath. The single level layout and location at the end of a quietresidential street attract tenants looking for an attractive alternative to traditional"stacked" apartments.
Upside can be achieved via several avenues. Rents are approximately 12.6% belowmarket, allowing for significant rent growth. In June 2020, the parking lot wasrepaved. One of the roofs was brand new a few years ago along with new fencingalongside the back of the property. Total rents are about 10% below the highestalready achieved, with additional upside through improvement to curb appeal andinterior finishes. Various units have been upgraded with luxury vinyl plank flooring, andgranite counter tops. The community features off-street parking, a communityplayground and a shared laundry facility as both a tenant amenity and an additionalincome stream.
the PROPERTY
Parkside APARTMENTS
- -Various Units with LVP and Granite Counter- Tops- -All Desirable Two Bedroom Units with Private Patios- -Walking distance to Shute Recreation Center and Park- - Walking distance to Restaurants, Retail and Shopping - -On-Site Laundry Facility- -New Fencing Along Back- -Playground
Site Description:Number of Units 10 ApartmentsYear Built 1966Zoning A-2Number of Buildings 3Number of Stories 1Rentable Square Feet 6,700Lot Size 0.59 acresParking 16 SpacesParking Ratio 1.6 Landscaping Grassy with Small BushesTopography Flat
Utilities:Water/Sewer Paid by OwnerElectric Paid by TenantTrash Paid by Owner
Construction:Foundation CrawlspaceFraming WoodExterior T1-11Roof Pitched Composite Shingle
Parkside APARTMENTS
Parkside APARTMENTS
The Parkside Apartments is
Walking Distance to Recreation and Retail
About the Property Location:
The Downtown Hillsboro neighborhood offers asuburban lifestyle with urban accessibility and amenities.Hillsboro is the home of international tech powerhouseIntel, which is a top employer in all of Oregon. The areais experiencing significant growth, with the developmentof the long-awaited South Hillsboro Project, a majordevelopment repurposing 1,400 acres of agricultural landas a master community. This development fills in aprevious gap between Beaverton and downtownHillsboro, and further ties the submarket in to the greaterPortland MSA.
The Parkside Apartments is walking distance to ShutePark and Aquatic & Recreation Center, as well as severalrestaurants, including local options alongside regionaland national chains.Residents of Parkside enjoy excellent access to keypoints throughout the area:
• Downtown Portland – 20 miles• Tualatin Community Hospital – 0.9 miles• Nike World Headquarters – 8.3 miles• Orenco Station – 4.0 miles• PCC Hillsboro Center – 0.9 miles• Hillsboro Farmers Market – 0.9 miles
Despite the proximity to major corridors Tualatin ValleyHwy/SR 8 and Sunset Hwy/SR 26, Parkside is tucked backfrom the bustle, providing both peace and convenience.
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Residential Feel with Close Proximity to Downtown Hillsboro
Uber/Lyft Drive Time- 20-minute Radius
Walking Distance to:Trimet Station, Shute Park and Stage,
Schute Park Aquatic & Recreation CenterCommunity Senior Center, Hillsboro Seafood Market,
Ocean Plays Indoor Playground, Nail Spa, Juan Colorado Restaurant,
Planet Fitness, Black Rock Coffee Bar,Jim’s Ice Cream, Izzy’s Pizza
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the MARKET OVERVIEW
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DEMOGRAPHICS
77,790Total Populations within
Three Mile Radius
GENDER
Average Household Income
in One Mile Radius
Median Housing Value within
One Mile Radius
5,908Total Households in One Mile Radius
32.4%From 2000
$70,202 $246,110
51.8%
48.19%
Source: © 2018 ExperianSource: © 2019 Experian
Created on May 2020
POPULATION 1 Miles 3 Miles 5 Miles
▪ 2024 Projection
Total Population 18,771 81,733 158,215
▪ 2019 Estimate
Total Population 18,273 77,790 148,105
▪ 2010 Census
Total Population 17,102 71,016 132,120
▪ 2000 Census
Total Population 14,593 56,928 107,712
▪ Daytime Population
2019 Estimate 16,726 82,084 147,594
HOUSEHOLDS 1 Miles 3 Miles 5 Miles
▪ 2024 Projection
Total Households 6,102 28,414 57,299
▪ 2019 Estimate
Total Households 5,908 26,829 52,939
Average (Mean) Household Size 3.05 2.85 2.75
▪ 2010 Census
Total Households 5,484 24,128 46,190
▪ 2000 Census
Total Households 4,462 18,892 37,411
Growth 2015-2020 3.28% 5.91% 8.24%
HOUSING UNITS 1 Miles 3 Miles 5 Miles
▪ Occupied Units
2024 Projection 6,102 28,414 57,299
2019 Estimate 6,019 27,306 54,019
Owner Occupied 2,869 16,971 31,948
Renter Occupied 3,039 9,858 20,991
Vacant 112 476 1,080
▪ Persons In Units
2019 Estimate Total Occupied Units 5,908 26,829 52,939
1 Person Units 22.75% 21.60% 23.36%
2 Person Units 26.24% 30.96% 31.93%
3 Person Units 15.44% 16.53% 16.43%
4 Person Units 15.01% 15.74% 14.52%
5 Person Units 10.19% 8.27% 7.53%
6+ Person Units 10.34% 6.90% 6.24%
HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles
▪ 2019 Estimate
$200,000 or More 1.82% 5.05% 4.35%
$150,000 - $199,000 4.21% 8.79% 7.82%
$100,000 - $149,000 16.52% 21.41% 20.42%
$75,000 - $99,999 15.99% 18.98% 19.41%
$50,000 - $74,999 18.19% 18.16% 18.94%
$35,000 - $49,999 12.24% 9.35% 10.69%
$25,000 - $34,999 9.11% 6.76% 6.97%
$15,000 - $24,999 9.91% 5.90% 6.03%
Under $15,000 12.00% 5.62% 5.36%
Average Household Income $70,202 $96,032 $91,770
Median Household Income $58,375 $80,476 $77,543
Per Capita Income $23,517 $33,420 $33,014
POPULATION PROFILE 1 Miles 3 Miles 5 Miles
▪ Population By Age
2019 Estimate Total Population 18,273 77,790 148,105
Under 20 30.45% 28.21% 27.18%
20 to 34 Years 25.50% 21.96% 23.52%
35 to 39 Years 8.35% 8.54% 8.78%
40 to 49 Years 13.49% 14.45% 14.14%
50 to 64 Years 13.27% 16.18% 15.73%
Age 65+ 8.93% 10.67% 10.64%
Median Age 31.79 34.91 34.61
▪ Population 25+ by Education Level
2019 Estimate Population Age 25+ 11,380 51,105 98,541
Elementary (0-8) 12.82% 5.13% 4.29%
Some High School (9-11) 10.50% 6.79% 6.04%
High School Graduate (12) 22.21% 20.98% 21.06%
Some College (13-15) 23.04% 22.60% 23.11%
Associate Degree Only 7.35% 9.24% 10.11%
Bachelors Degree Only 14.51% 21.19% 21.21%
Graduate Degree 6.09% 12.57% 12.49%
▪ Population by Gender
2019 Estimate Total Population 18,273 77,790 148,105
Male Population 51.81% 51.00% 50.44%
Female Population 48.19% 49.00% 49.56%
MARKETING TEAM
Income
In 2019, the median household income for your selected geography is
$58,375, compare this to the US average which is currently $60,811.
The median household income for your area has changed by 44.97%
since 2000. It is estimated that the median household income in your
area will be $68,429 five years from now, which represents a change
of 17.22% from the current year.
The current year per capita income in your area is $23,517, compare
this to the US average, which is $33,623. The current year average
household income in your area is $70,202, compare this to the US
average which is $87,636.
Population
In 2019, the population in your selected geography is 18,273. The
population has changed by 25.22% since 2000. It is estimated that
the population in your area will be 18,771.00 five years from now,
which represents a change of 2.73% from the current year. The
current population is 51.81% male and 48.19% female. The median
age of the population in your area is 31.79, compare this to the US
average which is 38.08. The population density in your area is
5,800.41 people per square mile.
Households
There are currently 5,908 households in your selected geography. The
number of households has changed by 32.41% since 2000. It is
estimated that the number of households in your area will be 6,102
five years from now, which represents a change of 3.28% from the
current year. The average household size in your area is 3.05 persons.
Employment
In 2019, there are 9,199 employees in your selected area, this is also
known as the daytime population. The 2000 Census revealed that
39.39% of employees are employed in white-collar occupations in
this geography, and 60.93% are employed in blue-collar occupations.
In 2019, unemployment in this area is 5.37%. In 2000, the average
time traveled to work was 30.00 minutes.
Race and Ethnicity
The current year racial makeup of your selected area is as follows:
64.78% White, 1.61% Black, 0.36% Native American and 3.72%
Asian/Pacific Islander. Compare these to US averages which are:
70.07% White, 12.87% Black, 0.19% Native American and 5.66%
Asian/Pacific Islander. People of Hispanic origin are counted
independently of race.
People of Hispanic origin make up 49.63% of the current year
population in your selected area. Compare this to the US average of
18.17%.
Housing
The median housing value in your area was $246,110 in 2019,
compare this to the US average of $212,058. In 2000, there were
2,183 owner occupied housing units in your area and there were
2,278 renter occupied housing units in your area. The median rent at
the time was $570.
Source: © 2019 Experian
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The Portland-Hillsboro 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.
Overview
[ Portland-Hillsboro]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.ECONOMY
▪ Lower land costs than other West Coast metros, a skilled labor
pool and affordable, abundant power attract companies to the
region. The favorable tax structure, with no state income taxes
in Washington and no sales tax in Oregon, also lures
businesses.
▪ The metro’s economy has shifted from timber to industries that
include athletic and outdoor activities, clean tech, advanced
manufacturing and software.
▪ A diverse group of companies based in the metro include Nike,
Daimler, Oregon Iron Works, Intel and IBM.
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DEMOGRAPHICS
DEMOGRAPHICS
SPORTS
EDUCATION
ARTS & ENTERTAINMENT
▪ The metro is expected to add nearly 163,200 people over the next five years,
resulting in the formation of nearly 74,400 households.
▪ A median home price well above the U.S. level means 59 percent of households can
afford to own their home, which is above the national rate of 57 percent.
▪ Of residents age 25 and older, 37 percent hold bachelor’s degrees, and 14 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.
The metro has professional basketball, soccer and hockey teams. 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’5 Centers for the Arts. Major colleges and universities include 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
2019 Population by Age
0-4 YEARS
6%5-19 YEARS
18%20-24 YEARS
6%25-44 YEARS
30%45-64 YEARS
26%65+ YEARS
14%
38.1
2019MEDIAN AGE:
U.S. Median:
38.1
$72,100
2019 MEDIAN HOUSEHOLD INCOME:
U.S. Median:
$60,800
2.5M
2019POPULATION:
Growth2019-2024*:
6.5%
985K
2019HOUSEHOLDS:
7.4%
Growth2019-2024*:
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DEMOGRAPHICS
propertyname
Wave of Young Professionals, Healthy Local Economy
Maintain Investor Sentiment Despite New Rent Cap
Competition for talent motivates strong migration trends. The Portland apartment sector enters the
next decade on solid footing as an influx of new residents call the metro home, many being young
professionals drawn by a large corporate presence. A highly skilled workforce encourages tech titans
Amazon, Google and Apple to increase their hiring efforts in the metro on top of large contributions to
the employment base by Nike, Adidas and Under Armour. In addition to a healthy job outlook and
growing economy this year, young workers are enticed by a lower cost of living in contrast to other
West Coast metros, bolstering demand for rental housing. Many of these are choosing to lease an
apartment longer as they are not ready to commit to a 30-year mortgage, motivating developers to
boost apartment inventory substantially as the market contends with a shortage of housing. More
than 9,000 market-rate units were underway at the onset of 2020, with the greatest focus placed on
areas near major employers and transit access including Central and East Portland.
No shortage of investment opportunities following new regulations. Oregon made headlines last year
as the first state in the nation to enact statewide rent control, causing some investors to reevaluate
their strategies. Despite increased local and statewide regulations, investor sentiment holds strong
against a backdrop of robust underlying demand, tight operations across the metro and another year
of favorable rent growth. Elevated initial yields also grab the attention of investors as the market
average is the highest on the West Coast, falling in the mid-5 percent band. Fewer restrictions and
returns that are 50 to 100 basis points above the market average will keep buyers active in Portland’s
suburbs this year, including Beaverton, Vancouver and East Portland. Institutional groups have
become a major participant in recent years, boosting liquidity in the market for large and modern
complexes positioned toward higher-income renters.
* Estimate; ** Forecast
Sources: Marcus & Millichap Research Services; BLS; CoStar Group, Inc.
Best Beer State in America (Thrillist) - #2 Oregon
10 Best Foodie Cities in America (WalletHub) - #1 Portland, OR
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DEMOGRAPHICS
propertyname
2020 Market Forecast
Employers add 15,100 workers to company payrolls in 2020, a modest
slowdown from the 1.7 percent pace posted last year.
A wave of rentals are scheduled for delivery this year, accounting for the
strongest increase to supply in more than two decades and outpacing the
2019 total by nearly 2,000 units.
A robust influx of young professionals ensures stable demand for new
apartments, compressing the vacancy rate to 3.9 percent after falling 40
basis points last year.
After rising 4.5 percent in 2019, rent growth holds strong this year, bringing
the average effective rent up to $1,480 per month.
Major commercial investments in Vancouver are rapidly transforming the
area, attracting new tenants and investors to a submarket with minimal
regulations.
* Estimate; ** Forecast
Sources: CoStar Group, Inc.; RealPage, Inc.; Real Capital Analytics
Employment
up 1.2%
Construction
5,600 units
Vacancy
down 10 bps
Rent
up 4.1%
Investment
the FINANCIAL OVERVIEW