The Diplomat

EXCLUSIVE INVESTMENT OFFERING

10934 & 10950 NE Wygant Street , Portland, OR 97220

27 Units - Built 1968 - $3,950,000

Grayson Pounder President, Principal Broker

503.680.4638 Grayson@PounderRealty.com

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.

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 Grayson@PounderRealty.com

Pounder Realty

6105 SW Macadam Ave Portland, Oregon 97239

www.pounderrealty.com

PRO FORMA INCOME & EXPENSES

Units 27 Price $3,950,000

Built 1968 Price / Unit $146,296

Average SF 796 Price / SF $186.05

Building Two Story, wood frame Pro Forma Cap Rate 7.27%

Roof Pitched Composition Proposed Loan Amount $2,765,000

Rent / SF $1.56 Loan Payment $13,201

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 $3,950,000 $146,296 $183.72 7.27% 5.84%

All Financing Total

Loan

Down

Payment LTV

Monthly

Payment

Debt

Constant

$2,765,000 $1,185,000 70% ($13,201) 5.7%

New First Mortgage

(to be originated at purchase)

LTV for this loan Amount Interest Amortiza-

tion Payment Fees I/0 Term

70% $2,765,000 4.00% 30 ($13,201) 0.00% 0