LYNNWOOD APARTMENTS - LoopNet...Urbanism” represented along the corridor appeals to every demographic, creating a demand that provides an economic foundation similar to the building

OFFERING MEMORANDUM

1634 SE Hawthorne Blvd, Portland, OR

LYNNWOOD APARTMENTS

LYNNWOOD APARTMENTS Kidder Mathews | OM 2

Table of Contents1. Property Overview .............................. 3

• Executive Summary

• Highlights

• Aerial

• Location Overview

• Regional Map

2. Financials ............................................ 8

• Valuation Analysis Current

• Valuation Analysis Pro-forma

• Sales Comparables

3. Market Overview .............................. 11

• Location Summary

• Portland MSA Apartment Market

• Portland MSA Rankings

• Portland Overview

Clay NewtonExecutive Vice [email protected]

Jordan A. CarterExecutive Vice [email protected]

Tyler LinnVice [email protected]

Exclusively listed by

The information supplied herein is from sources we deem reliable. It is provided without any representation, warranty or guarantee, expressed or implied as to its accuracy. Prospective Buyer or Tenant should conduct an independent investigation and certification of all matters deemed to be material, including, but not limited to, statements of income and expenses. Consult your attorney, accountant, or other professional advisor.

Kidder Mathews101 SW Main St, Suite 1200Portland, OR 97204

kiddermathews.com

LYNNWOOD APARTMENTS


Executive Summary

PROPERTY INFORMATION

Address 1634 SE Hawthorne Blvd, Portland, OR

# Units 29

Land Area 7,073 SF (0.16 acres)

Year Built 1927

Total SF 14,400 SF

Net Rentable Square Feet 9,423 SF

Average Apartment Unit Size 325 SF

Average Mo. Apartment Rent $903

Construction Brick and Masonry (unreinforced masonry)

PRICE ANALYSIS

Sale Price Price/Unit Price/SF Net Operating Income

$4,000,000 $137,931 $278 $176,017

The Lynnwood Apartments consist of 29 apartment units located in the Hawthorne District, one of the most highly coveted close-in eastside neighborhoods in Portland. Built in 1927, the property is situated just a three-minute drive to the I-5 freeway, and five minutes from downtown Portland. Lynnwood’s ideal location provides residents with quick and easy access to all that Portland has to offer by foot, car, or public transit.

The property has unbeatable visibility on SE Hawthorne Blvd, which serves as one of the major arterial streets in SE Portland, and is the epicenter of the quirky and eclectic “Hawthorne District,” known for its vintage shops, indie boutiques, and playful cafés and eateries that cater to all walks of life.

Lynnwood residents enjoy cozy apartment homes comprised of a single two-bedroom one-bath unit, and 28 compact studios that all boast full kitchens and dressing rooms, with hardwood and vinyl floors throughout. There is an onsite laundry facility conveniently located on the ground floor, common bike storage space, and a small garden area on the western side of the property.

APARTMENT UNITS

29

YEAR BUILT

1927NET RENTABLE SQUARE FEET

9,423

AVERAGE UNIT SIZE

325 SF


Highlights

HIGHLIGHTS

Unbeatable SE Portland location

One mile from downtown Portland

Immediate access to public transportation

Steps from popular dining and retail

Easy access to nearby bike corridors

Full open layout kitchens

Wood flooring

Large walk-in closets

Onsite access to laundry facilities

Bike storage

Period detailings


CLOSE-IN AERIAL

Aerial

SE

20th Ave

SE

12t

h A

ve

SE

20th Ave

SE Hawthorne Blvd

LYNNWOOD APARTMENTS

LADD’S ADDITION


Location Overview

SE

CE

SA

R C

HA

VE

Z B

LVD

(39T

H A

VE

)

SE

12T

H A

VE

Walk score91

Bike score97

Transit score64

LYNNWOOD APARTMENTS

HAWTHORNE BLVD RETAILERS


DOWNTOWN PORTLAND

LLOYD CENTER

SE Powell Blvd

SE Stark St

SE

82n

d A

ve

E Burnside

SE Division StClinton St Bike Corridor

SE Foster Rd

SE Holgate Blvd

SE

39t

h A

ve

SE

Gra

nd A

ve

NE

MLK

Jr

Blv

d

SE Belmont St

SE Sandy Blvd

SE Hawthorne Blvd

NE Glisan St

SELLWOOD

WILLAMETTE RIVER

SOUTHWATERFRONT

LAURELHURST PARK

MT. TABOR PARK

LYNNWOOD APARTMENTS

Regional Map


CURRENT RENTS

PRICE ANALYSIS

Sale Price $4,000,000

Price Per Unit $137,931

Price Per SF $278

Cap Rate 4.48%

Valuation Analysis

INCOME ANNUAL PER UNIT

Apartment Potential Rental Income $315,779 $10,838

Other Income (2018) $8,615 $297

Utility Reimbursement (2018) $12,344 $426

Gross Operating Income $335,250 $11,560

Vacancy (4%) ($15,715) ($542)

Effective Operating Income $319,536 $11,018

QTY TYPE AVG SF* AVG RENT $/SF

1 2x1 679 $1,200.00 $1.77

4 Studio 254 $843.75 $3.32

24 Studio 322 $905.83 $2.81

29 9,423 $26,314.92 $2.79

* Based on May 2017 appriasal

ESTIMATED EXPENSES ANNUAL % OF EXP PER UNIT

Real Estate Taxes 2018-2019 $20,911 6.45% ($721)

Insurance 2018 $8,429 2.60% ($291)

Water/Sewer 2018 $13,271 4.09% ($458)

Electric 2018 $2,156 0.66% ($74)

Garbage 2018 $2,144 0.66% ($74)

Gas 2018 $10,040 3.10% ($346)

Landscaping 2018 $970 0.30% ($33)

Maint/Repair 2018 $29,683 9.15% ($1,024)

Turnover 2018 $8,558 2.64% ($295)

Professional Management Est $12,971 4.00% ($447)

Onsite Management 2018 $19,635 6.06% ($677)

Office/Admin 2018 $9,138 2.82% ($315)

Reserves Est $7,250 2.24% ($250)

Total Operating Expenses ($145,156) 44.76% ($5,005)

Net Operating Income $179,110 $6,176


Sales ComparablesAPARTMENT SALES COMPARABLES

LYNNWOOD APARTMENTS

Property Address 1634 SE Hawthorne Blvd , Portland, OR

Sale Date On Market

Number of Unites 29

Year Built 1927


Price/Unit $137,931

Price/SF $278

Building SF 14,400 SF

Cap Rate 4.48%

SUBJECT

MARCELLA APARTMENTS

Property Address 2151 NW Johnson St, Portland, OR

Sale Date 9/26/2018

Number of Unites 46

Year Built 1926


Price/Unit $163,043

Price/SF $261

Building SF 28,712 SF

Cap Rate 5.40%

CHELSEA COURT APARTMENTS

130 NW 19th Ave, Portland OR

11/16/2018

32

1925

$4,300,000

$134,375

$204

21,068 SF

4.95%

THE DRAKE APARTMENTS

2308-2326 SW Osage, Portland, OR

12/7/2018

12

1904

$1,950,000

$162,500

$198

9,823 SF

N/A

THE ARTHUR

726 SW 11th Ave, Portland, OR

1/26/2018

50

1912

$7,600,000

$152,000

$420

18,102 SF

5.10%

AVA MAE

1634 NE 41st Ave, Portland, OR

11/30/2018

17

1927

$2,500,000

$147,059

$244

10,233 SF

3.5%


Southeast Hawthorne Blvd. is one of Portland’s major East/West arterial streets. Located just minutes from downtown Portland, the “Hawthorne” neighborhood is loosely defined as beginning at SE 22nd and extending Eastward to SE 60th Avenue. Development along this street is often at the forefront of Portland’s visionary urban planning and socially conscious development. The “New Urbanism” represented along the corridor appeals to every demographic, creating a demand that provides an economic foundation similar to the building of drivable suburbs in the mid-to-late 20th century. A walkable, vibrant neighborhood lined with bioswales, public transit, bike corridors, eclectic DIY restaurants and startups, Hawthorne serves as a doorway to the future of Portland and the nation.

Development along Hawthorne Blvd is an eclectic mix of new, old and adaptive reuse buildings. Many of the newer buildings are LEED certified, lending credence to the value placed on sustainable development. The street’s wide appeal is driven in part by the neighborhoods mixed-use development where retail and offices adorn the street and residents reside above. The sense of place created by this blend of uses fosters a sense of place for residents who find walking to their grocery store or coffee shop is preferable to driving.

In a city renowned for its Olmsted-planned parks, no discussion of the Hawthorne Blvd corridor would be complete without mention of two of the City’s most treasured spaces: Laurelhurst Park and Mt. Tabor Park. Laurelhurst Park, the first city park to ever be listed on the National Register of Historic Places, is located on SE Cesar E Chavez Blvd (39th Ave). A short walk from Hawethorne Blvd, the 31-acre park is host to summer concerts, a variety of recreational activities, and a beautiful lake full of fish, ducks, and turtles. Mt. Tabor Park, just east of SE 60th Ave, is a 190-acre park on a volcanic cinder cone. The park offers stunning views of downtown Portland and Mt. Hood and is a fitness enthusiast’s playground due to its extensive network of trails.

All this culminates in making the Hawthorne neighborhood what it is: a place where innovation and experimentation manifest in a pristine setting at various scales. From the artisans and the buildings they inhabit, to the residents and customers that spill out onto the streets rain or shine, the constant bustling is affirmation that Portland champions the places that lead.

Location Overview

Mt. Tabor Park

HAWTHORNE BLVD

Laurelhurst Park


CITY OF PORTLAND

Portland is considered one of the nation’s most livable cities. Located on the banks of the Willamette River only 90 minutes from snow-capped peaks, and the Pacific Ocean, one might not realize Portland’s bustling downtown and waterfront are the heart of a metropolitan region with more than 2 million people. Twelve bridges span a wide elbow of the Willamette River, connecting the east and west sides of town. Throughout the metro area are thriving neighborhoods filled with restaurants, record shops, bars, funky clothing stores, antique malls and art galleries.

Portland is known for its progressive bike-friendly attitude, lively music and restaurant scenes, food carts, farmers’ markets, and endless recreation possibilities. Beyond the metro area residents enjoy the Pacific Northwest’s natural beauty via slopes, sails, surf and trails.

Portland is a walkable and bikable city. Within walking distance of most parts of downtown is the campus of Portland State University, the world-class Portland Art Museum, Waterfront Park, Pioneer Courthouse Square, the Oregon Historical Society, a performing arts complex and a concert hall. For the sports-minded, Portland is home of the MLS Timbers, NBA Trail Blazers, and WHL Winterhawks. Outdoor enthusiasts love Forest Park, the largest city park in the nation, with 5,000 acres of hiking and biking trails, a zoo, public gardens and beautiful old-growth woods. The downtown core is connected by one of the world’s leading public transportation systems, a combination of buses, streetcars, and light-rail trains, putting the entire metro area only a couple stops away.

Portland Market Overview

POPULATION

2,436,583

EMPLOYEES IN METRO AREA

1,170,900

MOVING DESTINATION IN US (2018)

#2

MEDIAN HOME VALUE

$411,200

JOB GROWTH NATIONALLY

#2

#2ANNUAL RENT

GROWTH NATIONALLY


PORTLAND RANKINGS

Energy Infastructure – US News, 2018#1 Safest Place to Live

– Rental Housing Journal, 2017#1

Best Foodie City in America – Trust for Publicland, 2018#1

In US for Public Park Spending – Trust for Public Land, 2018#1 Moving destination of 2018

– United Van Lines, 2019#2

Best places for business and careers – Forbes.com#1


Portland Apartment Market

ULI 2018 Investment Prospects ranks Portland #2 in the Pacific region

In 2018, at 5.2% Oregon personal income growth was above the national average of 4.1%

Portland ranked #6 on Business Insider's Top 50 Best Places to Live in 2018

Portland MSA multifamily vacancy is below 4.85%

Portland MSA is the 8th strongest rental market in the nation, per Axiometrics

Portland’s current unemployment rate is 3.6%, a 42 year low

Oregon was the #2 moving destination in 2018 for people moving from one state to another, according to a United Van Lines Study

Portland has added 42,000 residents over the last three years, an increase of 1.7%; above national average

Portland ranked 19th in the nation in population growth ahead of San Francisco, Boston, and New York City

More than 34% of Portland residents have a bachelor's degree or higher, above the national average of 28%

Portland MSA employment is at an all-time high, employing ±1,190,400 workers

Portland has the the 15th fastest growth rate of the nation's largest metro areas, at an increase of 2.4% every three months

Portland MSA is expected to add 25,500 additional jobs in 2018

Amazon is projected to add more than 2,000 new jobs after breaking ground for new fulfillment centers in North Portland and Troutdale

Event software company Cvent plans to hire 1,000 new employees through 2019 as part of a massive expansion

Oregon Health & Science University is projected to add 500+ jobs

INVESTING IN PORTLAND GROWING POPULATION EMPLOYMENT


Clay NewtonExecutive Vice [email protected]

Jordan A. CarterExecutive Vice [email protected]

Tyler LinnVice [email protected]

Kidder Mathews101 SW Main Street, Suite 1200 Portland, OR 97204

kiddermathews.com

Documents

LYNNWOOD APARTMENTS - LoopNet...Urbanism” represented along the corridor appeals to every demographic, creating a demand that provides an economic foundation similar to the building