INVESTMENT REAL ESTATE, INC. MISSISSIPPI COURT · TILBUR FERUSO INVESTMENT REAL ESTATE, INC. 1231 NW HOYT STREET, SUITE 201 PORTLAND, OREGON 97209 OFFICE: 503.224.6743 FAX: 503.224.7933

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]

MISSISSIPPI COURT43 LIKE-NEW APARTMENTS & ONE OFFICE/ART SPACE 2631 N MISSISSIPPI AVE, PORTLAND, OR 97227

PRICE: $8,550,000

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

MISSISSIPPI COURT

Extensive Renovation in 2016 - Building was vacated and some units combined/reconfigured at a cost of over $1,385,000

1920's Art Deco Building with Vintage Charm

Wood Frame Construction

STUDIO APARTMENTS PRICE: $8,550,000

43 STUDIO APARTMENTS & ONE OFFICE/ART SPACE 2631 N MISSISSIPPI AVE, PORTLAND, OR 97227

Brokers:Tilbury Ferguson Investment Real Estate, Inc.

Liz Tilbury, [email protected]

Ben [email protected]

NOTE: PLEASE DO NOT DISTURB RESIDENTS OR STAFF

PROPERTY DETAILS

Fully Sprinkled & Alarmed

Historic Mississippi District

Substantially upgraded electrical and plumbing systems

Two blocks from Albina/Mississippi MAX station.Three blocks to Legacy Emanuel Medical Center



Price: Price/Unit

Avg. Rent: Avg. Rent/SF:

EGI:

$8,550,000$194,318

$1,126/month

$2.62/SF

$684,793

241,292 (35.2%)

$5,484

$443,501

5.2%

PROFORMA SUMMARY

Year Built: Units: No. Floors:

Gross Building SF:

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

Laundry: Access: Parking:

1926; Renovated 201644 (one office/art space)

Three

23,438 SF 0.31 acres StuccoFlat - MembraneWood FrameConcreteVinyl - Custom Double Hung

Gas - Individual Furnaces, Cadet Lower Level

Central Boiler (Gas)On-site Secured entryStreet

IMPROVEMENTS SUMMARY

INVESTMENT HIGHLIGHTS

MISSISSIPPI COURT

• Rare asset in historic Mississippi District.

• Close-in east side location near trendyshops & restaurants offering some of thebest dining & entertainment Portland has tooffer.

• 1920’s restoration - Jazz age charm withmodern day finishes.

• Excellent access to public transit - Twoblocks from Albina/Mississippi MAX station.Five minutes to downtown. “Biker’sparadise, 88 bike score.”

• Upside potential as discounted leasesrenew. 100 %occupied with over two years

stabilized operations.

• Can place new debt, loan quotes providedupon request.

Expenses: Expenses/Unit:

NOI:Cap Rate:



SORTED RENT ROLL

Type Current Scheduled Count

1

1

1

1

5

1

1

1

1

4

1

1

1

1

1

1

2

Studio (g) - 529 SF

Studio (a) - 298 SF Total

Studio (b) - 354 SF

$995 $1,075

$1,020 $1,075

$1,045 $1,075

$1,075 $1,075

$1,023 $1,075$955 $1,050

$995 $1,050

$1,000 $1,050

$1.050 $1,050

$1,000 $1,050Studio (b) - 354 SF Total

Studio (d) - 448 SF $1,050

$1,245$1,065

$1,245$1,095

$1,245$1,110

$1,245$1,120

$1,245$1,135

$1,245$1,165

$1,245$1,175

$1,245$1,185

$1,245$1,195

$1,245$1,245

$1,245$1,245

$1,245$1,156

$595$575

$595$575

1

1

1

5

1

17

1

1

$1,200 $1,295

$1,290 $1,295

$1,295 $1,295

$1,126 $1,196Averages Total

1

1

1

1

44

$1,245

$980 $1,075 1

Studio (e) - 457 SF

Studio (d) - 448 SF Total

Studio (e) - 457 SF Total

Studio (f) - 494 SF $1,095

$1,145

$1,155

$1,215

$1,280

$1,280

$1,280

$1,280

1

2

1

1

Studio (f) - 494 SF Total $1,178 $1,280 5

$1,295$1,295Studio (g) - 529 SF Total

$1,270 $1,295 4

Studio (a) - 298 SF

Studio (C) - 415 SF 1

1

1

1

$1,015 $1,215

$1,095 $1,215

$1,125 $1,215

$1,155 $1,215

2

2

$1,215 $1,215

$1,215 $1,215

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

HighestAchieved

$1,280 $1,280 1



Current Schedule of Rents

Income And Expense Summary Operating Expenses

%/GOI7.6%

1.8%

3.5% 5.0% 3.0%

3.3%

2.9%

Per Unit$1,178

$281

$545 $778 $467

$509

$458

$51,817

$12,379$23,968

$34,240 $20,544

$22,390

$20,166

1.3%

1.3%

0.7% 1.6% 0.9%

1.1%

1.3%

$199

$198

$113 $250 $136

$170

$200

$8,774

$8,730

$4,985 $11,000 $6,000

$7,500

$8,800

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

Net Operating Income (NOI)

Cap Rate

$241,29235.2%$5,484

$12.75

$443,501 5.2%

$594,720

$17,842 (3%)

$576,878

$34,621 $2,959 $5,127

$65,208$684,793

Current Gross Scheduled Income

Less: Estimated Vacancy/Credit Loss

Effective Rental Income

Miscellaneous Income (1)Storage Income (1)Laundry Income (1)Utility Reimbursement (RUBs) (2)

Gross Operating Income (GOI)

(1) Misc., Storage, Laundry Income: 2018 Year-End Actuals

(2) Current RUBs charges: $130/Unit (assumes %5 vacancy factor)

(3) Fire/Liability Insurance Premium: $12,379

(4) Current C&R Real Estate Management Fee: 3.5%

(5) Estimated Payroll/On-Site personnel for manager/maintenance staff: 5%

(6) Estimated R/M: Includes parts/supplies for electrical, plumbing,appliances

(7) Utilities: 2018 Year-End actuals

(8) Phone/Internet: 2019 Year-End actuals (FastMesh Internet for residents)

(9) Landscaping: 2018 Year-End actuals (Includes pest control)

(10) Turnover: $250/Unit, includes "make ready" expenses such as cleaning

(11) Advertising/Promotion: Estimated, includes Zillow, Yelp, Hotpads, SEO

(12) General/Admin: Estimated and includes IT support, office supplies, security

(13) Reserves/Replacements: Estimated $200/Unit

$241,292$5,48435.2%

Expenses:Real Estate Taxes (2)

Property Insurance (3)

Property Management (4) Payroll: On-site Personnel (5)

Repair/Maintenance (6)

Electricity/Gas (Common Area) (7)

Water/Sewer (7)

Garbage (7)

Phone/Internet (8)

Landscaping (9)

Turnover (10)Advertising/Promotion (11)

General/Administration (12)

Reserves/Replacements (13)

Total

Total Operating Expenses

Type

Studio/One BathStudio/One BathStudio/One BathStudio/One BathArt Studio/Work OfficeStudio/One BathStudio/One Bath

Approx. SF

298354415448500494529

Rent

$1,023$1,000$1,156$1,156$575$1,178$1,270

$/SF

$3.43$2.82$2.79$2.58$1.15$2.38$2.40

Monthly

$5,115$4,000$9,250$19,650$575$5,890$5,080

Current Schedule of Rents

#

54817154

44 430 $1,126 $2.63 $49,560



Highest Achieved Rents

Income And Expense Summary Operating Expenses

%/GOI7.3%

1.7%

3.5% 5.0% 3.0%

3.2%

2.8%

Per Unit$1,178

$281

$563 $804 $483

$509

$458

$51,817

$12,379

$24,778

$35,398 $21,239

$22,390

$20,166

1.2%

1.2%

0.7% 1.6% 0.8%

1.1%

1.2%

$199

$198

$113 $250 $136

$170

$200

$8,774

$8,730

$4,985 $11,000 $6,000

$7,500

$8,800

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

Net Operating Income (NOI)

Cap Rate

$243,95634.5%$5,544

$12.89

$463,998 5.4%

$631,620$31,581 (5%)

$600,039

$34,621 $2,959 $5,127

$65,208$707,954

(1) Misc., Storage, Laundry Income: 2018 Year-End Actuals

(2) Current RUBs charges: $130/Unit (assumes %5 vacancy factor)

(3) Fire/Liability Insurance Premium: $12,379

(4) Current C&R Real Estate Management Fee: 3.5%

(5) Estimated Payroll/On-Site personnel for manager/maintenance staff: 5%

(6) Estimated R/M: Includes parts/supplies for electrical, plumbing,appliances

(7) Utilities: 2018 Year-End actuals

(8) Phone/Internet: 2019 Year-End actuals (FastMesh Internet for residents)

(9) Landscaping: 2018 Year-End actuals (Includes pest control)

(10) Turnover: $250/Unit, includes "make ready" expenses such as cleaning

(11) Advertising/Promotion: Estimated, includes Zillow, Yelp, Hotpads, SEO

(12) General/Admin: Estimated and includes IT support, office supplies, security

(13) Reserves/Replacements: Estimated $200/Unit

$243,956$5,54434.5%

Expenses:Real Estate Taxes (2)

Property Insurance (3)

Property Management (4) Payroll: On-site Personnel (5)

Repair/Maintenance (6)

Electricity/Gas (Common Area) (7)

Water/Sewer (7)

Garbage (7)

Phone/Internet (8)

Landscaping (9)

Turnover (10)Advertising/Promotion (11)

General/Administration (12)

Reserves/Replacements (13)

Total

Current Gross Scheduled Income

Less: Estimated Vacancy/Credit Loss

Effective Rental Income

Miscellaneous Income (1)Storage Income (1)Laundry Income (1)Utility Reimbursement (RUBs) (2)

Gross Operating Income (GOI)

Total Operating Expenses

Type

Studio/One BathStudio/One BathStudio/One BathStudio/One BathArt Studio/Work OfficeStudio/One BathStudio/One Bath

Approx. SF

298354415448500494529

Highest Achieved Rents

#

54817154

$1,075$1,050$1,215$1,245$595$1,280$1,295

Rent

$3.61$2.97$2.93$2.78$1.19$2.59$2.45

Increase

5.1%5.0%5.1%7.7%3.5%8.7%2.0%

Monthly

$5,375$4,200$9,720$21,165$595$6,400$5,180

44 430 $1,196 $2.78 6.2% $52,635

$/SF



MISSISSIPPI COURT

Renovation Highlights.

• Brick courtyard, water feature, & planters• Entryway, intercom, & mailboxes• Bike racks• Four laundry rooms (stacked washer/dryer in

each)• Substantially upgraded plumbing & sewer

• Custom fiberglass, double-hung, double-glazed windows (replaced in phases)

• Fully sprinkled & alarmed• New fire escape• Oil tank decommissioned• New leasing office

• Upgraded common areas & hallways• Addition of arches and other architectural

period fixtures• Fast Mesh Internet service• Nine brand new apartments reconfigured from

previous existing offices• Remaining 34 units extensively renovated

• Refinished oak & fir floors in apartments &hallways

• Energy efficient appliances• Gas stoves• New cabinetry, countertops, & light fixtures• Classic built-ins

• Checkered (black/white) tile floors inbathrooms & kitchens

• Bathrooms with new hardware, flooring, tubsurrounds, and fixtures

• Forced air (gas) heaters on upper level; electricCadet heaters on lower level

• New electrical systems on ground floor units

• Total hard costs over $1,385,000



FLOOR PLANS



SALES COMPARABLES$



EXTERIOR / INTERIOR PHOTOGRAPHY



HISTORIC MISSISSIPPI NEIGHBORHOOD

HISTORIC N. MISSISSIPPI

North Mississippi is Portland distilled to its essence. The street’s commercial district, which runs 6 blocks north/south, features quirky stores with coffee roasting equipment, saltwater aquariums, chandeliers made with recycled wine bottles, and jewelry cast from animal organs. It started as a tumbledown neighborhood, but in the 90’s began to turn around and is now attracting people from all over Portland to its quirky shops, great bars, and unique restaurants. Some call it “hipster central.”

For example, if it’s time for brunch, the hands down favorite according to a neighborhood poll is Bridges Cafe and Catering. The second favorite is Broder Nord, which specializes in beautifully presented Scandinavian dishes. Beer aficionados will appreciate the Labrewatory for its fine craft beers. Widmer Brothers, located one block from Mississippi Court, was founded in 1894 and is the 9th largest brewing company in the nation. This is a publicly-held brewery employing over 150 people.

Portland Diamond Project

The group called the Portland Diamond Project announced that they have an agreement in principle with the Port of Portland for land north of downtown Portland that is suitable for a 32,000-34,000 seat MLB ballpark, as well as ancillary development. The location of the site sits on the Willamette River, would face toward Portland’s Fremont Bridge, and would have a retractable roof.

The 45-acre Terminal 2 location site has been controlled by the Port and is located in an industrial part of Portland that is slowly seeing development edge northward toward it. The location has ample to space to host a ballpark and additional development, but there has been speculation that an adjacent parcel called Terminal 1 could also be in play at some point. The two together would provide more than 88 acres. If the ballpark plans were to come to fruition, it and the associated development would anchor one of the largest development areas in Portland since the South Waterfront district.

N. WILLIAMS CORRIDOR

New Seasons Market recently opened its 13th location on North Williams. The store is 30,000 SF and aims to fill a grocery void in North Portland. It employs a staff of 162 people, 115 of whom reside in the immediate area. New Seasons currently has three additional stores in development for Nyberg Rivers, Northwest Portland, and Grant Park in Northeast Portland.

A trio of new office buildings in Portland’s North Williams corridor should put the rapidly changing neighborhood on the map for companies seeking office space. A 36,000 SF, five-story office building called the Radiator opened on North Vancouver in March. Next door, R&H Construction is building twin office buildings that will make up a nearly 80,000 SF development called One North. Numerous tech companies have driven a surge in demand for so-called “creative office” space.

LEGACY EMANUEL

Legacy Emanuel is nationally known for its expertise in critical health conditions and features specialists in virtually every field of medicine. It is the largest employer in the immediate neighborhood and employs 10,000 workers across six medical centers. This location features a 554-bed center specializing in trauma care, urology, and neonatal care. The Randall Children’s hospital is also on campus. According to the Oregon Employment Department, Portland

metro hospital employment grew by 3.2% in 2014.



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INVESTMENT REAL ESTATE, INC. MISSISSIPPI COURT · TILBUR FERUSO INVESTMENT REAL ESTATE, INC. 1231 NW HOYT STREET, SUITE 201 PORTLAND, OREGON 97209 OFFICE: 503.224.6743 FAX: 503.224.7933