INVESTMENT REAL ES TATE, INC. HAMPTON HEIGHTS€¦ · tilbur feruso investment real estate, inc. 1231 nw hoyt street, suite 201 portland, oregon 97209 office: 03.224.6743 fax: 03.224.7933

O. 503.224.6743F. 503.224.7933www.tfn-ire.com

Exclusively listed by:Tilbury Ferguson Investment Real Estate, Inc.

TILBURY FERGUSON

INVESTMENT REAL ESTATE, INC.

Liz Tilbury, CCIM [email protected]

1231 NW Hoyt Street, Suite 201 Portland, Oregon 97209

Ben Murphy [email protected]

HAMPTON HEIGHTS64 APARTMENT UNITS BUILT 1997496-518 SW 257th Drive, Troutdale, OR

VALUE-ADD OPPORTUNITY

PRICE: $11,250,000

TILBURY FERGUSON INVESTMENT REAL ESTATE, INC.

1231 NW HOYT STREET, SUITE 201 PORTLAND, OREGON 97209 | OFFICE: 503.224.6743 | FAX: 503.224.7933 | WWW.TFN-IRE.COM

HAMPTON HEIGHTS

Value-Add Opportunity. Income upside from renovations and continued interior upgrades and more aggressive management.

Well maintained asset. All new roofs in 2016-17.

Spacious Two Bedroom floor plans.

Many attractive amenities such as full size washer and dryers, carports, river and/or mountain views and vaulted ceilings in select units.

64 APARTMENT UNITS 496-518 SW 257th Drive, Troutdale, OR

Brokers:Tilbury Ferguson Investment Real Estate, Inc.

Liz Tilbury, [email protected]

Ben [email protected]

PROPERTY DETAILS

Newer construction. Built 1997.

High barrier to entry sub market. Limited new supply proposed or under construction.

Gresham/Troutdale area one of the lowest vacancy rates in the Portland MSA at 3.8%.

Troutdale is the gateway to the Columbia River Gorge National Scenic area.

PRICE: $11,250,000 PRICE/UNIT: $175,781 PRICE/SF: $180



Price:

Price/Unit

Avg. Rent: Avg. Rent/SF:

EGI:

PROFORMA SUMMARY

Year Built: Units:

No. Floors:

Lot Size: Exterior:Roof:Framing: Foundation:Windows: Heat: Hot Water:

Laundry: Zoning: Parking:

199764

975 SF

Two and Three

62,400 SF 4.84 acres

Vinyl Siding

Composition Asphalt (Replaced 2016-17) Wood FrameConcreteDouble Pane (Vinyl)

Electric Cadet

IndividualWasher and Dryers

A-2 (Apartment Res.)

71 open spaces, 24 carports

IMPROVEMENTS SUMMARY

Expenses: Expenses/Unit:

NOI:Cap Rate:

Price/SF: $11,250,000$180$175,781$1,232/month

$1.26/SF$917,872 377,588 (38.5%)$5,900$603,030

5.4%

Net Rentable Area:

Avg. Unit Size:



SORTED RENT ROLL

Type Current Scheduled Count

10

28

1

1

9

2

7

1

$1,195 $1,380

$1,200 $1,380

$1,205 $1,380

$1,240 $1,380

$1,250 $1,380

$1,275 $1,380

$1,300 $1,380

$1,340 $1,380

$1,155 $1,380 12X1 - 975 SF

64$1,232 $1,380

Studio (c) - 415 SF Total 8$1,156 $1,215

HighestAchieved

$$1,245

$1,380

$$1,0751,380

$$1,0501,380

1

3

Averages/Total

VALUE -ADD SUMMARY

CAPITAL EXPENDITURES SINCE 2012 (PER OWNER)

1. Bring all existing rents to current asking rent levels as leases expire-Current rents average $1,232/month-Market rents: Highest Achieved rent $1,380/month

2. Increase capture rate for water/sewer/garbage-Current RUBs are $30/unit/month-Potential RUBs (billed via Yardi) $80/unit/month

3. Charge rent for 24 carports4. Build garages and more units on vacant buildable land

-A-2 zoning allows for additional apartment units-Buyer to confirm with city of Troutdale

5. Convert laundry rooms into storage units

1. All new roofs in 2016-17.2. Office remodel (bathroom added)3. Office and unit upgrades (carpet/faux wood vinyl/counters/appliances etc.)4. Recreation room remodel (converted to studio; may not be legally permitted)5. Landscaping, overgrown trees removed, sprinklers repaired, drainage improvements6. Siding repair & pressure washing7. Exterior painting8. Parking lot striping9. Gutter guard installation10. Plumbing/electrical (24 hr lighting for lower level stairways)11. Handrail, fence, and deck repairs



Current Schedule of Rents

Income And Expense Summary Operating Expenses

%/GOI8.0%

1.6%

3.5% 6.0% 7.0%

0.4%

3.4%

Per Unit$1,219

$241

$536 $919 $1,073

$64

$517

$78,017$15,436

$34,322

$58,837 $68,643$4,109$33,083

1.9%

1.1%

1.6% 0.5% 2.0%

1.6%

$284

$167

$250 $71 $309

$250

$18,167$10,669

$16,000 $4,525 $19,780$16,000

Total Amount/Per Year% of GOIPer Unit/Per Year Per Sq. Ft./Per Year

Net Operating Income (NOI)

Cap Rate

$377,588 38.5%$5,900$6.05

$603,030 5.4%

$946,260$28,388 (3%)*

$917,872$28,096 $23,250

$11,400**

$980,618

(1) Miscellaneous Income: Apr. 2018-Mar. 2019 actuals

(2) Current RUBs Income: Apr. 2018-Mar.2019 actuals($30/unit/month) Proforma RUBs ($80/month, 2019Yardi building)

(3) 2018/19 Net Real Estate Taxes (3% paid in fulldiscount)

(4) 2018 Insurance Premium

(5) Property Management Fee: 3.5%, fees for comparableproperties range from 3%-4%

(6) Payroll/On-Site Management: Salaries, leasingbonuses, benefits for on-sire manager

(7) Repair/Maintenance: Includes labor and parts/supplies for maintenance personnel

(8) Utilities: Apr. 2018-Mar. 2019 actuals

(9) Landscaping: 2018 year-end actuals, actuallandscaping contract is $6,935/year (does not includeseasonal services or pest control)

(10) Turnover: $250/unit, includes "make ready" expensessuch as blinds, cleaning and painting

(11) Advertising/Promotion: Apr. 2018-Mar. 2019 actuals

(12) General/Admin: Apr. 2018-Mar. 2019 actuals, coversdues, permits/licenses, evictions, office supplies,phone/internet

(13) Reserves/Replacements: Estimated $250/Unit

$377,588$5,90038.5%

Expenses:Real Estate Taxes (3) Property Insurance (4)

Property Management (5)

Payroll: On-site Personnel (6)

Repair/Maintenance (7)

Electricity/Gas (8)

Water/Sewer (8)

Garbage (8)

Landscaping (9)

Turnover (10)

Advertising/Promotion (11)

General/Administrative (12)

Reserves/Replacements (13)

Total

Current Gross Scheduled Income

Less: Estimated Vacancy/Credit Loss

Effective Rental Income

Miscellaneous Income (1)

Utility Reimbursement (RUBs) (2)

Studio Income

Gross Operating Income (GOI)

Total Operating Expenses

Type

2 Bedroom 1 Bath

Approx. SF

975

Rent

$1,232

$/SF

$1.26

Monthly

$78,855

Current Schedule of Rents

#

64

$377,588

*3% Vacancy Rate: 2018 year-end vacancy was 2.4%** Studio rent $950/month (not legally permitted unit)



Highest Achieved Rents

Operating Expenses

%/GOI7.1%

1.4%

3.5% 6.0% 7.0%

0.4%

3.0%

Per Unit$1,219

$241

$604 $1,036 $1,208

$64

$517

$78,017$15,436$38,665

$66,283

$77,330$4,109$33,083

1.6%

1.0%

1.4% 0.4%

1.8%

1.5%

$284

$167

$250 $71 $309

$250

$18,167$10,669

$16,000 $4,525 $19,780$16,000

Total Amount/Per Year% of GOIPer Unit/Per Year Per Sq. Ft./Per Year

Net Operating Income (NOI)

Cap Rate

$398,063 36.0%$6,220$6.38

$706,649 6.3% $398,063$6,62036.0%

Expenses:Real Estate Taxes (3) Property Insurance (4)

Property Management (5)

Payroll: On-site Personnel (6)

Repair/Maintenance (7)

Electricity/Gas (8)

Water/Sewer (8)

Garbage (8)

Landscaping (9)

Turnover (10)

Advertising/Promotion (11)

General/Administrative (12)

Reserves/Replacements (13)

Total

Highest Achieved Rents

# Type

2 Bedroom 1 Bath

Rent

$1,380

$/SF

$1.42

Increase

12.0%

Monthly

$88,32064

Income And Expense Summary$1,059,840$52,992 (5%)

$1,006,848$28,096 $58,368

$11,400*

$1,104,712

Current Gross Scheduled Income

Less: Estimated Vacancy/Credit Loss

Effective Rental Income

Miscellaneous Income (1)

Utility Reimbursement (RUBs) (2)

Studio Income

Gross Operating Income (GOI)

Total Operating Expenses $398,063

(1)(1)(1) Miscellaneous Income: Apr. 2018-Mar. 2019 actuals

(2)(2)(2) Current RUBs Income: Apr. 2018-Mar.2019 actuals($30/unit/month) Proforma RUBs ($80/month, 2019Yardi building)

(3)(3)(3) 2018/19 Net Real Estate Taxes (3% paid in fulldiscount)

(4)(4)(4) 2018 Insurance Premium

(5)(5)(5) Property Management Fee: 3.5%, fees for comparableproperties range from 3%-4%

(6)(6)(6) Payroll/On-Site Management: Salaries, leasingbonuses, benefits for on-sire manager

(7)(7)(7) Repair/Maintenance: Includes labor and parts/supplies for maintenance personnel

(8)(8)(8) Utilities: Apr. 2018-Mar. 2019 actuals

(9)(9)(9) Landscaping: 2018 year-end actuals, actuallandscaping contract is $6,935/year (does not includeseasonal services or pest control)

(10)(10)(10)(10) Turnover: $250/unit, includes "make ready" expensessuch as blinds, cleaning and painting

(11)(11)(11)(11) Advertising/Promotion: Apr. 2018-Mar. 2019 actuals

(12)(12)(12)(12) General/Admin: Apr. 2018-Mar. 2019 actuals, coversdues, permits/licenses, evictions, office supplies,phone/internet

(13)(13)(13)(13) Reserves/Replacements: Estimated $250/Unit

* Studio rent $950/month (not legally permitted unit)



SALES COMPARABLES$



HAMPTON HEIGHTS

Unique Features

• Attractive hillside setting. Many unitswith territorial views of Columbia River,Mt. St. Helens, and forest buffer acreage.

• Mostly newer appliances and colorschemes (contrasting walls, faux granitecounter tops, faux wood floors,modernized kitchens and baths).

• Walking distance to charming Old TownTroutdale "Gateway to the Gorge" withquaint coffee shops, library, stores,wineries and factory stores.

• Close proximity to I-84 Freeway andPortland International (PDX) Airports. MtHood Community College is just twomiles to the south. Columbia and SandyRiver Recreation Areas nearby.



INTERIOR PHOTOGRAPHY



TROUTDALE AREA

Amazon

Amazon will create 1,500 full-time jobs when it opens its fulfillment center next summer in Troutdale, the online retailer confirmed Wednesday. The $178.4 million facility, where online orders will be filled, packed and shipped, will be the first of its kind in Oregon and provide a needed economic boost for the eastern Multnomah County community.

Columbia Gorge Outlets

Conveniently located just 15 minutes east of Portland and Portland International Airport, Columbia Gorge Outlets is situated directly off Interstate 84, Exit 17 in Troutdale. Columbia Gorge Outlets features a fabulous selection of brand name outlet stores including Adidas, Carter's, Coach & Coach Men's, Eddie Bauer Outlet, Gap Outlet, Harry & David, Loft Outlet, Pendleton, Samsonite, Tommy Hilfiger, Van Heusen and more.

Multnomah Falls

Multnomah Falls is the most visited natural recreation site in the Pacific Northwest with more than 2 million stopping by each year to take in the views! Fed by underground springs from Larch Mountain, the flow over the falls varies, but is usually highest during winter and spring. This is also one of the best places in the Columbia River Gorge National Scenic Area to study geology exposed by floods.

Sandy River

Sandy River Delta is a multi-use recreation area open to horseback riding, hiking, biking, and even hunting in the allowable area. A quick drive from Troutdale and not far from Portland, this is a great spot for a nature getaway. Its views, extensive trail system, and easy mountain biking make this site a quick retreat from the city.

New Subaru Distribution Center

Subaru of America Inc. has opened a massive master parts distribution center in Gresham. The 600,000-square-foot facility will serve as a key West Coast hub for Subaru's existing regional center network. The company plans to hire 50 full-time workers at the site, into which $60 million was poured. Subaru makes its goods at zero-landfill production plants.

Mount Hood Community College

Mt. Hood Community College (MHCC), located in the shadow of majestic Mount Hood, serves approximately 33,000 students annually. Classes are offered at the Gresham Campus, Maywood Park Campus, Bruning Center for Allied Health Education and public schools within the district. MHCC offers 120 associate degrees, certificate programs and transfer options at the Gresham Campus, Maywood Park Campus, Bruning Center for Allied Health Education and public schools within the district.

FedEx Expansion

With the potential for new investment and additional jobs, FedEx Ground is purchasing more property at Troutdale Reynolds Industrial Park for future growth. To allow for expansion, the Port of Portland Commission today approved the sale of 38 acres of property to FedEx Ground at TRIP. FedEx Ground, the anchor tenant at the brownfield redevelopment site, exercised an option to purchase the parcel east of their 633,000 square foot fully automated hub.

AREA MAPS



Documents

INVESTMENT REAL ES TATE, INC. HAMPTON HEIGHTS€¦ · tilbur feruso investment real estate, inc. 1231 nw hoyt street, suite 201 portland, oregon 97209 office: 03.224.6743 fax: 03.224.7933