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The Diplomat
EXCLUSIVE INVESTMENT OFFERING
10934 & 10950 NE Wygant Street , Portland, OR 97220
27 Units - Built 1968 - $4,200,000
Grayson Pounder President, Principal Broker
503.680.4638 [email protected]
Consistent Rental History
Upside in Rents
On MAX Line for Downtown Portland Commuters
Easy Access to I-205, I-84 and Portland Airport
Onsite Laundry for Additional Income
Upgraded Vinyl Windows
Dishwasher
Vinyl Windows
Lots of Storage
UNIT AMENITIES
THE OPPORTUNITY
PROPERTY DESCRIPTION
Built in 1968, The Diplomat Apartments are located in the NE Portland neigh-
borhood of Parkrose. The property is comprised of 27 apartment homes and a
unit mix of (1) One Bedroom/One Bathroom, (25) Two Bedroom/One Bathroom
and (1) Three Bedroom/One Bathroom apartments. The property offers off-
street parking, including carports and lots of greenspace.
The Diplomat Apartments are comprised of 3 two story buildings with wood
frame construction with pitched composition roof.
Energy Efficient Vinyl Windows
Plentiful Parking with Carports
Great Location in Close Proximity Portland Airport and Area Freeways
Upside in Rents
Desirable Unit Mix of 1, 2 & 3 Bedroom Floorplans
PORTLAND’S RENTAL MARKET
Portland’s economy was founded on the area’s abundant resources and acces-
sibility of water transport. Within the past 20 years, the economy has signifi-
cantly expanded and diversified. Today, international trade is vitally important
to the regional economy, as well as high-tech manufacturing, metals manufac-
turing, construction, and business services. Future economic development will
center on the current manufacturing sectors, as well as biotechnology / health
sciences and alternative energy. Tourism is a strong player in the local econo-
my, supporting over 28,900 jobs in the metro area. The Portland Metro Area is
home to two Fortune 500 headquarters: Nike and Precision Castparts.
The Diplomat
LOCATION
A semi-suburban residential neighborhood on the eastern side of Portland, Park-rose features a mixture of affordable apartments and houses for rent. Established as a municipality in 1911, Parkrose has a number of parks and garden spaces, in-cluding Senn's Community Garden, where residents can share small vegetable plots.
Sandy Boulevard, which runs through central Parkrose, encompasses a diverse
number of businesses and restaurants, such as El Sombrero Mexican Restaurant
and MeKha Vietnamese. The area is also close to shopping centers. Parkrose pro-
vides easy access to public transit and lies just a short drive away from both down-
town Portland and the Portland International Airport.
https://www.apartments.com/portland-or/https://www.apartments.com/parkrose-portland-or/https://www.apartments.com/parkrose-portland-or/https://www.apartments.com/downtown-portland-portland-or/https://www.apartments.com/downtown-portland-portland-or/https://www.apartments.com/portland-international-airport-portland-or/
6105 SW Macadam, Portland, OR 97223
The Diplomat
IMPORTANT INFORMATION & DISCLAIMER: The information contained herein is assumed to be correct and market-
supported. Output produced from this model should not be considered an appraisal. Projections are forecasts and are
not to be considered fact. The information contained in this file is privileged and confidential; it is intended only for use
by Pounder Realty and their clients. This file may not be reproduced physically or in electronic format without the
expressed written consent of Pounder Realty. Not responsible for errors and omissions.
Grayson Pounder President, Principal Broker
503.680.4638 [email protected]
Pounder Realty
6105 SW Macadam Ave Portland, Oregon 97239
www.pounderrealty.com
PRO FORMA INCOME & EXPENSES
Units 27 Price $4,200,000
Built 1968 Price / Unit $155,556
Average SF 796 Price / SF $195.35
Building Two Story, wood frame Pro Forma Cap Rate 6.84%
Roof Pitched Composition Proposed Loan Amount $1,260,000
Rent / SF $1.56 Loan Payment $14,036
Interest Rate 4.00%
Amortization 30 Years
PROPERTY SUMMARY
INVESTMENT SUMMARY
Units Type Unit SF Total SF Current
Rent
Monthly
Rent
Annual
Mkt. Rent Rent / SF
1 1 Bed / 1 Bath 600 600 $995 $995 $11,940 $1.66
25 2 Bed / 1 Bath 800 20,000 $1,250 $31,250 $375,000 $1.56
1 3 Bed / 1 Bath 900 900 $1,350 $1,350 $16,200 $1.50
27 796 21,500 $1,244 $33,595 $403,140 $1.56
Income Pro Forma
2017
Projected
Scheduled Market Rent $403,140 $338,316
Less: Vacancy 3.00% ($12,094)
Net Rental Income $391,046 $338,316
Plus: RUBS $14,580 $8,700
Plus: Fee Income $4,500 $4,500
Total Operating Income (EGI) $410,126 $351,516
Expenses Per Unit
Admin & Advertising $56 $1,500 $1,500 On-Site Management $222 $6,000 $6,000
Turnover $152 $4,100 $4,250
Repair & Maintenance $500 $13,500 $15,480
Management Fee 5.0% $759 $20,506 $16,318
Utilities $1,056 $28,500 $28,000
Landscape $178 $4,800 $4,800
Real Estate Taxes $1,201 $32,416 $32,416
Insurance $178 $4,800 $5,000
Replacement Reserves $300 $6,875 $6,875
Total Expenses $122,997 $120,639
Per Unit: $4,555 $4,468
Per SF: $5.72 $5.61
Net Operating Income $287,129 $230,877
Less : Debt Service ($168,432) ($168,432) Projected Net Cash Flow $118,696 $62,445
Cash-on-Cash Return 9.42% 4.96%
Cap Rate Analysis Price $/Unit $/SF Cap Rate Cap Rate
Listing Price $4,200,000 $155,556 $195.35 6.84% 5.50%
All Financing Total
Loan
Down
Payment LTV
Monthly
Payment
Debt
Constant
$2,940,000 $1,260,000 70% ($14,036) 5.7%
New First Mortgage
(to be originated at purchase)
LTV for this loan Amount Interest Amortiza-
tion Payment Fees I/0 Term
70% $2,940,000 4.00% 30 ($14,036) 0.00% 0