images2.loopnet.comimages2.loopnet.com/d2/3S_8DGGWFys9AvKJKj7... · The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended

O F F E R I N G M E M O R A N D U M

30 TH & KA P A R T M E N T S

3 0 1 1 N E K I L L I N G S W O R T H S T P O R T L A N D , O R E G O N 9 7 2 1 1

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a

service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included

for the purpose of providing tenant lessee information about this listing to prospective customers.

NON-E NDOR SE M E N T NOT ICE

ALL PROPERT Y SHOW INGS AR E BY APPOINTMENT ONLY. PLE ASE CONSULT YOUR M ARCUS & MILLICH AP AGENT FOR MOR E DETAILS.

3011 NE K i l l ingsworth | Port land, ORACT ID Z0210200

C O N F I D E N T I A L I T Y A N D D I S C L A I M E R


TABLE OF CONTENTS

INVESTMENT OVERVIEWExecutive Summary 2Investment Overview 3Property Photos – Exterior 4Property Photos – Interior 6Property Photos – Floorplans 8Aerial Map 10Builder Portfolio 12

FINANCIAL ANALYSISRent Roll Summary 17Operating Data – Income 18Operating Data – Expenses 19Rent Roll – Detail 20Financing Options 22

COMPETITIVE PROPERTY SETRecent Sales Comparables 26Rent Comparables 32

MARKET OVERVIEW & DEMOGRAPHIC SUMMARYMarket Overview 40Metro Aerial Map 47

30TH & K

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap Z0210200

01INVESTMENT OVERVIEW

2

EXECUTIVE SUMMARY

2

30TH & K APARTMENTSP O R T L A N D O R E G O N 9 7 2 1 1

E X E C U T I V E S U M M A R Y

3011 NE Killingsworth Blvd, Portland, OR 97211Price $9,800,000 Down Payment 30% / $2,940,000Cap Rate (Pro Forma) 4.78%

Price/Unit $316,129

Price/SF $373.46

Number of Units 31

Rentable Square Feet 26,241

Year Built 2018

Lot Size 0.21 acre(s)

F I N A N C I N G

Loan Amount $6,860,000 Loan Type Proposed NewInterest Rate 4.50%Amortization 30 Years

Loan Term 10 Years

INVESTMENT HIGHLIGHTS

• New Construction with 24 Two-Bedroom/Two-Baths, 5 One-Bedroom/One-Baths, One Studio/One-Bath, And One Retail Space

• Walking Distance To New Seasons Grocer, Eateries, Shopping, Local Boutiques And Galleries, And Many More Iconic Northeast Portland Spaces

• Fifteen Minutes To Downtown Portland As Well As the Portland International Airport • Half Mile To Concordia University And Two Miles To Portland Community College• Easy Access To I-5 Freeway And Bus Lines

Loan information is subject to change. Contact your Marcus & Millichap Capital Corporation Representative.

3

30TH & K

30TH & K APARTMENTS is a newly constructed four-story asset with 30 apart-ment units and a single, ground-floor retail suite. The apartments are comprised of predominantly two-bedroom units, setting the property apart from more typical new construction in the city of Portland, and heightening demand from tenants seeking well-located new homes that offer more spacious floor plans than those found at competing buildings. The property’s energetic aesthetics perfectly complement its location within the vibrant Concordia neighborhood of northeast Portland, Oregon.

30th & K received a certificate of occupancy in January 2018, and is currently in lease-up stage. The property offers tenants high-end finishes inclusive of quartz counters, energy efficient appliance packages, stainless steel appliances, wood-style plank flooring, contemporary LED lighting, modern cabinetry and tile backsplashes. Tenants are provided with amenities such as in-unit laundry, a shared community space with a spacious deck overlooking Northeast Killingsworth Street, and elevators to provide easy access to upper-story units. The ground-floor retail space is ideal to provide an on-site amenity such as a coffee shop or casual restaurant concept.

The Concordia neighborhood is located northeast of Portland’s downtown core, and is know for it’s culturally diverse, eclectic, artsy vibe. 30th & K is three blocks north of Alberta Street, home to the Alberta Street Arts District and a dozen or so art galleries, and charmingly renovated older homes and buildings. The property has a Walk Score of 86 – “Very Walkable”, and offers easy access to public transportation on both Northeast Killingsworth and Northeast 30th Ave. Within walking distance are multiple parks, including a quintessentially Portland off-leash dog park, and within a single block are several renowned restaurants for tenants of 30th & K to enjoy. Just a few minutes away by foot tenants can access significant services on Northeast 33rd Avenue, including New Seasons Market, Walgreens, and banking and automobile services.

A M E N I T I E S

• Stainless Steel Appliances• Community Room• Bike Storage• In-Unit Washer & Dryer• Air Conditioned Units• Small Community Courtyard

INVESTMENT OVERVIEW

4

PICTURES–EXTERIOR

5

30TH & K PICTURES–BIRD’S EYE

N E K i l l i n g s w o r t h S t

NE

30

th A

ve

NE

31

st A

ve

NE

29

th A

ve

6

PICTURES–INTERIOR

7

30TH & K PICTURES–INTERIOR

8

FLOORPLANSSTUDIO

ONE BEDROOM

9

30TH & K FLOORPLANSTWO BEDROOM

COMMUNITY SPACE

10

AERIAL MAPConcordia, one of the larger neighborhoods in North East Portland, has been slowly emerging as one of the city of Portland’s most eclectic and best loved. It is bordered on the west by the Sabin, Vernon, and North Woodlawn neighborhoods; on the north by the Sunderland neighborhood; on the east by Cully, and by Beaumont-Wilshire and Alameda on the south side.

Concordia is one of Portland’s most diverse neighborhoods, and residents pride themselves on that face, as well as their neighborhood’s reputation for being a hub for the arts. For starters, almost all of the Alberta Street Arts District is located within Concordia. Concordia University, a private liberal arts school, is also located in the center of the neighborhood. And last, the McMenamins hotel and restaurant chain maintains a large event space and hotel property within the neighborhood as well.

Some great attractions in the neighborhood include:

McMenamins Kennedy School: A hotel, a theater, several restaurants and bars, a soaking pool, conference rooms, and multiple event spaces all housed within a remodeled turn of the twentieth century elementary school? Only in Portland. Kennedy School has to be experienced to be believed. Whether you’re in for a soak, a movie, dinner, drinks, a conference, a concert, or the weekend, you’re sure to have great time in this beautifully converted and preserved building and grounds.

The Alberta Arts District: The Alberta Arts District runs from around North East Fifteenth Avenue to around Northeast 30th Avenue along Alberta Street, depending on whom you ask. The district is home to near countless independent art galleries, art supply shops, artist studios, restaurants, bars, nightclubs, and boutiques. The district hosts a monthly art walk on the last Thursday of each month, and a street fair in the summer.

Concordia University: Concordia University is now a four-year liberal arts college training young people in a wide variety of disciplines, through various pre-professional programs, and for the seminary.

Source: http://www.urbannestpdx.com/life-in-portland

30TH & K

11

12

BUILDER PORTFOLIO

HAWTHORNE TWENTY SIX


The 30th & K Apartments were constructed by Union Corner Construction, incorporated in 1981 and run by President Rick Porter. Union Corner has built a variety of high-end structures in the Portland area. From the luxury apartments shown here to academic buildings for Concordia University, Union Corner has proven itself to be a quality and trusted local company. Concordia has named an area of their Law Library the Rick Porter Conference Room for his contributions to the university just minutes away from the subject property.

The 30th and K Apartments were a perfect project for Union Corner to pick up to continue to develop the Concordia and Alberta area. Union Corner has built a strong track record in the metro area, making the 30th & K Apartments a reliable investment from the foundations to the roofing.

“Our growth over the last twenty years has included a wide variety of new construction and renovations. Our success in the private arena proves that we are quality conscious and service oriented.” --Union Corner Construction


13

30TH & K BUILDER PORTFOLIO

DIVISION STREET LOFTS DIVISION STREET LOFTS

EAST 12 LOFTS EAST 12 LOFTS


FINANCIAL ANALYSIS02

16

17

30TH & K RENT ROLL SUMMARY

P R O F O R M A

# OF AVG SQ RENTAL AVG AVG MONTHLYU N I T T Y P E UNITS FEET R ANGE RENT RENT/SF I N C O M E

Studio 1 393 $1,100 $1,100 $2.80 $1,100

1 Bed / 1 Bath 5 689 $1,350 - $1,500 $1,440 $2.13 $7,350

2 Bed / 2 Bath 24 902 $1,600 - $2,100 $1,881 $2.09 $45,150

NNN Retail Space 1 750 $1,500 $1,500 $2.00 $1,500

Totals/Weighted Avg 31 846 $1,777 $2.10 $55,100

Gross Annualized Rents $661,200

18

OPERATING DATA–INCOME

I N C O M E P R O F O R M A P E R U N I T P E R S F

Gross Potential Rent1 $664,800 $21,445 $25.33Loss / Gain to Lease2 ($0.00) ($0) ($0)

Gross Current Rent $664,800 $21,445 $25.33Physical Vacancy3 ($33,240) 5.00% ($1,072) ($1.27)

Total Vacancy ($33,240) 5.00% ($1,072) ($1.00)Effective Rental Income $631,560 $20,373 $24.07

NOTES1 As of 3/13/18 seven units have been leased. Remaining units are assumed at achieved rent levels.2 “Loss to Lease” means potential rent loss when current rents fall below market rents.3 5% vacancy required by lender. 4 Current is based on $9.8MM sales price. Formula for taxes is: Sales price x 0.3297 = AV (assessed value), AV x 25.0131/1000 = Property Tax. 5 Current and Pro Forma are estimated to be lower than market norms at $250 per unit per year because it is new construction, instead of $500/unit.6 There is one recreation room for tenants. Owner pays water/sewer and electricity for recreation room and common hallways.7 Based on market norms and include background checks, evictions and other misc items.8 Marketing for Current and Pro Forma is estimated to be $200 per month per year. Properties with higher yielding rents need good marketing.9 Current and Pro Forma management is estimated at 6% fee for off-site management and on-site management rent credit or stipend if applicable.10 Added reserves of $250 per unit, which are required by lender.11 Retail is not yet rented and expected to lease out at $1500 per month.12 Landscaping for small shared green-space estimated at $50/month.13 House and vacant unit electricity was $768.98 in February 2018. 50% of that amount was annualized due to unit costs being attributed to tenants after stabilization.14 All units are separately metered for water/sewer and have their own washers/dryers. Water/sewer estimated to average $50 per month.15 Garbage & recycling for February 2018 was $209.14. That number was annualized.16 Current and Pro Forma are estimated as market norms.17 Gas for February 2018 was $490.68, and provides common area heat. 85% of that amount was annualized due to higher than annual average heating costs.18 Estimated at $300/unit annually.

19

30TH & K

E X P E N S E S C U R R E N T Y E A R 1 P E R U N I T P E R S F

Real Estate Taxes4 $80,819 $80,819 $2,607 $3.08Insurance18 $9,300 $9,300 $300 $0.35

Utilities - Electric6,13 $4,614 $4,752 $153 $0.18

Utilities - Water & Sewer6,14 $600 $618 $20 $0.02

Utilities - Gas17 $5,005 $5,155 $166 $0.20

Trash Removal15 $2,510 $2,510 $81 $0.10

Repairs & Maintenance5 $7,750 $7,750 $250 $0.30

Turnover16 $4,650 $4,650 $150 $0.18

Marketing & Advertising8 $2,400 $2,400 $77 $0.09

Landscaping12 $600 $600 $19 $0.02

General & Administrative7 $2,325 $2,325 $75 $0.09

Operating Reserves10 $7,750 $7,750 $250 $0.30

Management Fee9 $8,028 6.00% $37,894 6.00% $1,222 $1.44

Total Expenses $136,351 $166,523 $5,372 $6.35

Expenses as % of EGI 101.9% 26.4%

Net Operating Income -$2,551 $465,037 $15,001 $17.72

OPERATING DATA–EXPENSES

20

RENT ROLL – DETAILC U R R E N T S C H E D U L E D

SQUARE MONTHLY MONTHLY

U N I T TYPE FEET RENT RENT/SF RENT RENT/SF

101 2 Bed / 2 Bath 825 Vacant $0.00 $1,800 $2.18

102 1 Bed / 1 Bath 714 Vacant $0.00 $1,500 $2.10

103 1 Bed / 1 Bath 714 Vacant $0.00 $1,500 $2.10

104 1 Bed / 1 Bath 590 Vacant $0.00 $1,350 $2.29

105 Studio 393 $1,100 $2.80 $1,100 $2.80

106 1 Bed / 1 Bath 714 $1,500 $2.10 $1,500 $2.10

107 1 Bed / 1Bath 714 $1,500 $2.10 $1,500 $2.10

201 2 Bed / 2 Bath 875 $1,800 $2.06 $1,800 $2.06

202 2 Bed / 2 Bath 1,094 Vacant $0.00 $2,100 $1.92

203 2 Bed / 2 Bath 883 Vacant $0.00 $1,900 $2.15

204 2 Bed / 2 Bath 743 Vacant $0.00 $1,650 $2.22

205 2 Bed / 2 Bath 875 Vacant $0.00 $1,900 $2.17

206 2 Bed / 2 Bath 1,094 Vacant $0.00 $2,100 $1.92

207 2 Bed / 2 Bath 883 Vacant $0.00 $1,900 $2.15

208 2 Bed / 2 Bath 743 $1,650 $2.22 $1,650 $2.22

301 2 Bed / 2 Bath 875 Vacant $0.00 $1,900 $2.17

302 2 Bed / 2 Bath 1,094 Vacant $0.00 $2,100 $1.92

303 2 Bed / 2 Bath 883 Vacant $0.00 $1,900 $2.15

304 2 Bed / 2 Bath 743 Vacant $0.00 $1,650 $2.22

21

30TH & K

C U R R E N T S C H E D U L E D

SQUARE MONTHLY MONTHLY

U N I T TYPE FEET RENT RENT/SF RENT RENT/SF

305 2 Bed / 2 Bath 875 $1,700 $1.94 $1,700 $1.94

306 2 Bed / 2 Bath 1,094 Vacant $0.00 $2,100 $1.92

307 2 Bed / 2 Bath 883 Vacant $0.00 $1,900 $2.15

308 2 Bed / 2 Bath 743 Vacant $0.00 $1,650 $2.22

401 2 Bed / 2 Bath 875 $1,900 $2.17 $1,900 $2.17

402 2 Bed / 2 Bath 1,094 Vacant $0.00 $2,100 $1.92

403 2 Bed / 2 Bath 883 Vacant $0.00 $1,900 $2.15

404 2 Bed / 2 Bath 743 Vacant $0.00 $1,650 $2.22

405 2 Bed / 2 Bath 875 Vacant $0.00 $1,900 $2.17

406 2 Bed / 2 Bath 1,094 Vacant $0.00 $2,100 $1.92

407 2 Bed / 2 Bath 883 Vacant $0.00 $1,900 $2.15

408 NNN Retail Space 750 Vacant $0.00 $1,500 $2.00

Total 26,241 $11,150 $0.42 $55,100 $2.10

22

P E R M A N E N T L O A N

Loan Amount Up to 75% LTV constrained by a 1.25 DSCRTerm 10 years (longer terms available with rate resets)

Interest Rate 4.50% to 5.0% depending on LTV and DSCR

Amortization 30 years (Interest only available at lower LTV)

Guarantees Nonrecourse except for standard carveouts

Lender Fees Par

Broker Fees 1%

Prepayment Options Yield maintenance (step down available at slightly higher interest rate spread)

FINANCING OPTIONS

*For more information contact Marcus & Millichap Capital Corp.

23

30TH & K


COMPETITIVE PROPERT Y SET03

RECENT SALES COMPARABLES

30th & K Apartments

1. Muse Apartments

2. The Bridgetown

3. Brim Apartments

4. Serrano Apartments

5. Provi Apartments

6. Fenwick Crossing

26

1

2

3

4 5

6

27

30TH & K RECENT SALES

3 0 T H & K A PA R T M E N T S3 011 N E K I L L I N G S W O R T H S T, P O R T L A N D , O R

Units Unit TypeOffering Price: $9,800,000 1 Studio

Price/Unit: $322,581 5 1 Bdr 1 Bath

Price/SF: $381.08 24 2 Bdr 2 BathCAP (Pro Forma): 4.78% 1 NNN RetailGRM: 74.74 Total No. of Units: 31 Year Built: 2018

M U S E A PA R T M E N T S315 NW 19TH AVENUE, PORTLAND, OR 97209

Units Unit TypeClose Of Escrow: 2/1/2017 20 StudioSales Price: $20,150,000 31 1 Bdr 1 BathPrice/SF: $388.00 7 2 Bdr 2 BathCAP Rate: 4.50% Total No. of Units: 58 Year Built: 2017

28

RECENT SALES

T H E B R I D G E T O W N A PA R T M E N T S4 52 5 N E F R E E M O N T S T, P O R T L A N D , O R 9 7 21 3

Units Unit TypeClose Of Escrow: 11/30/2017 9 StudioSales Price: $20,000,000 27 1 Bdr 1 BathPrice/SF: $506.42 11 2 Bdr 1 BathCAP Rate: 4.20% 3 2 Bdr 2 BathTotal No. of Apt: 20 4 Retail Total No. of Retail: 4 Year Built: 2017

B R I M A PA R T M E N T S1 2 0 6 S E A N K E N Y S T, P O R T L A N D , O R 9 7 214

Units Unit Type

Close of Escrow: 7/17/2017 13 Studio Sales Price: $7,800,000 14 1 Bdr 1 BathPrice/SF: $339.46Total No. of Units: 27 Year Built: 2017

29

30TH & K RECENT SALES

S E R R A N O A PA R T M E N T S2 2 5 0 N E G L I S A N S T, P O R T L A N D , O R 9 7 2 3 2

Units Unit Type

Close Of Escrow: 11/7/2017 12 StudioSales Price: $8,700,000 15 1 Bdr 1 BathPrice/SF: $290.00 10 2 Bdr 2 BathCAP Rate: 4.97% Total No. of Units: 37 Year Built: 2017

P R O V I A PA R T M E N T S4 7 2 0 N E G L I S A N S T, P O R T L A N D , O R 9 7 21 3

Units Unit Type

Close Of Escrow: 1/26/2018 2 StudioSales Price: $4,925,000 18 1 Bdr 1 BathPrice/Unit: $214,130 2 1 Bdr 1 BathPrice/SF: $407.83 CAP Rate: 4.92%Total No. of Units: 23 Year Built: 2014

30

RECENT SALES

F E N W I C K C R O S S I N G17 7 5 N E L O M B A R D P L , P O R T L A N D , O R 9 7 211

Units Unit Type

Close of Escrow: 2/15/2018 18 1 Brd 1 Bath FlatSales Price: $3,889,000Price/Unit: $216,056Price/SF: $337.59Total No. of Units: 18 Year Built: 2017

31

30TH & K

32

1

2

3

4

5

6 RENTCOMPARABLES

30th & K Apartments

1. Muse Apartments

2. The Bridgetown

3. The Elmore

4. Brim Apartments

5. Serrano Apartments

6. Northwood Apartments

33

30TH & K AVERAGE RENT

Avg. $2,042

$0

$300

$600

$900

$1,200

$1,500

$1,800

$2,100

$2,400

$2,700

3009 NEKillingsworth

MuseApartments

TheBridgetown

The Elmore Serrano NorthwoodApartments

2 Bedroom

Avg. $1,349

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600


MuseApartments

TheBridgetown

Brim Serrano NorthwoodApartments

Studios

Avg. $1,432

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800


MuseApartments

TheBridgetown

The Elmore Brim Serrano NorthwoodApartments

1 Bedroom

34

RENT COMPARABLES

M U S E A PA R T M E N T S1 315 N W 19 T H AV E , P O R T L A N D , O R 9 7 2 0 9

Unit Type Units SF Rent Rent/SFStudio 20 489 $1,450 $2.971 Bdr 1 Bath 31 607 $1,750 $2.882 Bdr 2 Bath 7 978 $2,426 $2.48Total/Avg. 58 664 $1,875 $2.78

Comments: This property features assigned garage parking, fire pit, and valet trash service. The units include dishwashers, disposals, stainless steel appliances. Water, sewer, and garbage are included in rent.

3 0 T H & K A PA R T M E N T S3 011 N E K I L L I N G S W O R T H S T, P O R T L A N D , O R

Unit Type Units SF Rent Rent/SFStudio 1 393 $1,100 $2.801 Bdr 1 Bath 5 689 $1,470 $2.132 Bdr 1 Bath 24 902 $1,881 $2.09Retail 1 750 $1,500 $2.00Total/Avg. 31 846 $1,777 $2.10

35

30TH & K RENT COMPARABLES

T H E B R I D G E T O W N A PA R T M E N T S4 52 5 N E F R E E M O N T S T, P O R T L A N D , O R 9 7 21 3

Unit Type Units SF Rent Rent/SFStudio 9 507 $1,350 $2.661 Bdr 1 Bath 27 629 $1,465 $2.332 Bdr 2 Bath 11 993 $2,495 $2.513 Bdr 2 Bath 3 1,079 $2,795 $2.59Total/Avg. 50 802 $2,026 $2.52

Comments: This property features assigned covered parking, controlled access, bike room with commuter lockers, and an outdoor deck with fire-pit. The units include stainless steel appliances, dishwasher, disposal, walk in closets, washer/dryer, ceiling fans, and pantry space. Water, sewer, and garbage are included in rent.

T H E E L M O R E18 03 N L O M B A R D S T, P O R T L A N D, O R 9 7217

Unit Type Units SF Rent Rent/SF1 Bdr 1 Bath 6 700 $1,175 $1.682 Bdr 1.5 Bath 6 1,150 $1,675 $1.46Total/Avg. 12 875 $1,25 $1.57

Comments: This property features a security system and on-site parking. The units include air conditioning, dishwashers, disposals, granite counters, hardwood floors, stainless steel appliances, and washer/dryers. Water, sewer, and garbage are paid via an additional $75 that has been included in rent.

36

RENT COMPARABLES

S E R R A N O A PA R T M E N T S2 2 5 0 N E G L I S A N S T, P O R T L A N D , O R 9 7 2 3 2

Unit Type Units SF Rent Rent/SFStudio 12 460 $1,298 $2.821 Bdr 1 Bath 15 576 $1,350 $2.342 Bdr 2 Bath 10 908 $1,990 $2.19Total/Avg. 37 648 $1,546 $2.45

Comments: The property featured a camera identification system, assigned parking for specific units, and high speed internet throughout the building. The units include a bike rack, laundry units, and individual climate control. Water, sewer, and garbage are included in rents.

B R I M A PA R T M E N T S1 2 0 6 S E A N K E N Y S T, P O R T L A N D , O R 9 7 214

Unit Type Units SF Rent Rent/SFStudio 13 471 $1,250 $2.651 Bdr 1 Bath 14 641 $1,650 $2.57Total/Avg. 27 556 $1,450 $2.61

Comments: The property features bike storage, controlled access, and an elevator. The units include dishwashers, disposals, washer/dryer,

and air conditioning. All utilities are billed to the tenant.

N O R T H W O O D A PA R T M E N T S8 3 3 8 N I N S T E R S T A T E AV E , P O R T L A N D , O R 9 7 217

Unit Type Units SF Rent Rent/SFStudio 8 658 $1,395 $2.121 Bdr 1 Bath 31 690 $1,199 $1.742 Bdr 2 Bath 18 1,080 $1,625 $1.50Total/Avg. 57 809 $1,406 $1.79

Comments: This property features assigned garage parking, elevator, courtyard, outside pet wash station, lobby with sitting area, and gated entrance. The units include hardwood floors, quartz counter tops, stainless steel appliances, dishwashers, disposals, and washer/dryers.

37

30TH & K


M A R K E T OV E RV I EW &D E M O G R A PH I C S U M M A RY

04

LOCATION OVERVIEWThe Portland-Vancouver metro is located near the confluence of the Columbia and Willamette rivers and stretches across the Oregon border into Washington State. The region is composed of Multnomah, Clackamas, Columbia, Washington and Yamhill counties in Oregon, and Clark and Skamania counties in Washington. Mount Hood and the Cascade Range stand to the east, and the Oregon Coast Mountain Range lies to the west. The metro contains approximately 2.4 million residents, with more than 640,000 people residing in Portland, the area’s most populous city.

The metro contains more than 37,000 acres of parks and provides numerous outdoor opportunities, including activities at Mount Hood and on the Hood River. The metro lies 60 miles east of the Pacific Ocean, with 330 miles of beaches along the Oregon coast. Professional sports teams represent basketball, soccer and hockey. Cultural activities can be found at various local venues, including the Portland Art Museum, World Forestry Center Discovery Museum and the Portland Children’s Museum, and plays are staged at the Portland Center for the Performing Arts. Major colleges and universities including Lewis and Clark, Pacific University, the University of Portland and Portland State University. The University of Oregon and Oregon State University are nearby.

• The metro is expected to add nearly 120,000 people over the next five years, resulting in the formation of nearly 64,000 households.

• A median home price well above the U.S. level means 60 percent of households can afford to own their home, which is below the national rate of 64 percent.

• Of residents age 25 and older, 35 percent hold bachelor’s degrees, and 13 percent have also obtained a graduate or professional degree.

40

PORTLAND-VANCOUVEROVERVIEW

METRO HIGHLIGHTS

HIGH POPULATION GROWTHThe Portland-Vancouver metro has recorded more than 20 years of positive net migration thanks to expanding industries.

ALTERNATIVE-ENERGY INDUSTRYAlternative-energy companies are attracted to the local educated workforce and research institutions and are moving to the region.

LOW BUSINESS COSTSThe cost of doing business is among the lowest on the West Coast, supported by no state income tax in Washington and no sales tax in Oregon.

37.92017

MEDIAN AGE:

U.S. Median:

37.8

$63,000 2017 MEDIAN

HOUSEHOLD INCOME:

U.S. Median:

$56,300

2.4M2017

POPULATION:

Growth2017-2022*:

4.9%

948K2017

HOUSEHOLDS:

6.7%

Growth2017-2022*:

2017 Population by Age

0-4 YEARS

6%5-19 YEARS

19%20-24 YEARS

6%25-44 YEARS

30%45-64 YEARS

26%65+ YEARS

14%

41

30TH & K LOCATION OVERVIEW

42

DEMOGRAPHIC SUMMARY

ECONOMY Lower land costs than other West Coast metros, a skilled labor pool and affordable,

abundant power attract companies to the region. The favorable tax structure, with no state income taxes in Washington and no sales tax in Oregon, also lures businesses.

The metro’s economy has shifted from timber to industries that include athletic and outdoor activities, clean tech, advanced manufacturing and software.

A diverse group of companies based in the metro include Nike, Daimler, Oregon Iron Works, Intel and IBM.

SHARE OF 2017 TOTAL EMPLOYMENT

MAJOR AREA EMPLOYERS

Providence Health & Services

Oregon Health and Sciences University

Portland State University

Kaiser Foundation Health Plan of the NW

Legacy Health System

Nike, Inc.

Wells Fargo

Fred Meyer Stores

U.S. Bank

Intel Corp.* Forecast

MANUFACTURING11%

GOVERNMENT

HEALTH SERVICESEDUCATION AND

+OTHER SERVICES

4%

LEISURE AND HOSPITALITY FINANCIAL ACTIVITIES

18%AND UTILITIES

TRADE, TRANSPORTATION CONSTRUCTION

PROFESSIONAL ANDBUSINESS SERVICES

2%INFORMATION

15%

6%

13% 10% 6%

15%

43

30TH & K DEMOGRAPHIC SUMMARY

PORTLAND METRO AREA

* Estim ate; ** Forecast; Through 3Q; Trailing 12-month averageSources: CoStar Group, Inc.; MPF Research; Real Capital Analytics

Policy change could exacerbate housing shortage. A moderating pace of completions and persistent rentaldemand will keep vacancy low in 2018. The rate has remained below 4.5 percent for eight years, pushing rentup to record levels. The shortage of units, particularly for low- and moderate-income households, led the cityof Portland to pass the inclusionary zoning policy that required builders to set aside some units for low-income residents. The city estimates 23,000 units are needed to meet the need for low- to moderate-incomehousing. Many developers fear that the required affordable rentals will not generate enough returns to offsetthe cost. A surge in multi-housing permitting before the policy could bring thousands of new market-rate unitsto the metro but builders may decide to hold off on these projects. Slowing completions in 2018 coupled withstrong tenant demand will push down vacancy and drive a respectable increase in rent growth.

Range of opportunities entice investors. Low vacancy and steady economic growth will maintain investorinterest in Portland. Out-of-state buyers are increasingly competing with local investors for yields up to 100basis points higher than other West Coast markets. Properties directly east of the Willamette River, whereabove-average rent growth has persisted for the previous two years, will continue to garner investors’attention. Here, initial yields in the high-4 percent band can be found, below the market average of 5.5percent. Strong demand for assets has vaulted property valuations above the previous cycle’s peak,potentially moderating sales velocity as buyers become more selective in acquisition criteria. Additional riskfactors include the tightening of lending requirements and proposed changes for retrofitting unreinforcedmasonry buildings (URM). The URM requirements may prompt some owners to list their assets. New investorsmay find it worthwhile to make the improvements as many of these apartment properties are in desirableareas.

Regulatory Changes Bring Uncertainty To Portland’s Apartment Market

44

DEMOGRAPHIC SUMMARYPORTLAND METRO AREA

2018 Market Forecast

* Estim ate ** ForecastSources: Marcus & Millichap Research Services; CoStar Group, Inc.; Real Capital Analytics

Portland ascends one spot in the NMI amid tight vacancy and improving rentgains.

Hiring above the national rate of growth will persist this year; employers add22,000 jobs in 2018.

Roughly half of all completions will be in Central and East Portland. In 2017, ofthe 6,700 apartments delivered, 440 were affordable housing units, providinglittle relief to the shortageof low-incomehousing.

Net absorption of 5,500 apartments will outpace completions, loweringvacancy to 3.9 percent. Last year, vacancy ticked up 10 basis points.

Strong demand for rentals will spur rent growth. The average effective rent willreach $1,400 per month this year, building on a 5.5 percent gain recorded in2017.

Employment growth and tight vacancy generate new housing demand,potentially pushing valuations higher in assets near major employment hubs.

NMI Rank5, up 1 place

Employmentup 1.9%

Construction4,800 units

Vacancydown 40 bps

Rentup 6.0%

Investment

45

30TH & K DEMOGRAPHIC SUMMARY

Source: © 2017 Experian

Created on April 2018

POPULATION 1 Miles 3 Miles 5 Miles

2022 Projection

Total Population 24,594 149,687 376,618

2017 Estimate


2010 Census


2000 Census


Daytime Population

2017 Estimate 19,681 186,778 586,538

HOUSEHOLDS 1 Miles 3 Miles 5 Miles

2022 Projection

Total Households 10,108 66,529 176,856

2017 Estimate


Average (Mean) Household Size 2.40 2.24 2.08

2010 Census


2000 Census


Growth 2015-2020 1.61% 2.74% 4.54%

HOUSING UNITS 1 Miles 3 Miles 5 Miles

Occupied Units

2022 Projection 10,108 66,529 176,856

2017 Estimate 10,006 65,553 174,393

Owner Occupied 6,930 36,659 80,985

Renter Occupied 3,018 28,094 88,187

Vacant 58 801 5,222

Persons In Units

2017 Estimate Total Occupied Units 9,948 64,753 169,171

1 Person Units 26.24% 34.02% 40.10%

2 Person Units 36.90% 34.53% 33.63%

3 Person Units 18.37% 15.21% 12.80%

4 Person Units 12.10% 10.55% 8.43%

5 Person Units 3.93% 3.47% 3.01%

6+ Person Units 2.46% 2.21% 2.02%

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles

2017 Estimate

$200,000 or More 5.56% 6.06% 5.67%

$150,000 - $199,000 7.58% 6.38% 5.00%

$100,000 - $149,000 18.45% 15.47% 13.26%

$75,000 - $99,999 16.46% 13.36% 12.51%

$50,000 - $74,999 19.33% 18.61% 17.86%

$35,000 - $49,999 11.50% 11.77% 12.30%

$25,000 - $34,999 6.68% 8.60% 9.44%

$15,000 - $24,999 5.31% 8.23% 9.55%

Under $15,000 9.13% 11.52% 14.41%

Average Household Income $92,885 $87,000 $80,764

Median Household Income $72,435 $63,103 $55,706

Per Capita Income $38,003 $38,343 $37,738

POPULATION PROFILE 1 Miles 3 Miles 5 Miles

Population By Age

2017 Estimate Total Population 24,616 148,284 367,647

Under 20 20.21% 18.80% 17.55%

20 to 34 Years 25.09% 26.09% 28.45%

35 to 39 Years 11.18% 10.54% 9.74%

40 to 49 Years 16.97% 16.47% 14.98%

50 to 64 Years 16.72% 17.64% 17.61%

Age 65+ 9.79% 10.48% 11.66%

Median Age 37.07 37.37 36.96

Population 25+ by Education Level

2017 Estimate Population Age 25+ 18,264 112,727 278,813

Elementary (0-8) 1.86% 2.51% 2.37%

Some High School (9-11) 3.40% 3.97% 4.44%

High School Graduate (12) 13.16% 13.67% 14.96%

Some College (13-15) 19.76% 21.63% 22.21%

Associate Degree Only 5.27% 5.74% 6.14%

Bachelors Degree Only 33.67% 31.37% 29.89%

Graduate Degree 22.11% 20.11% 18.96%

Population by Gender

2017 Estimate Total Population 24,616 148,284 367,647

Male Population 48.05% 49.07% 49.87%

Female Population 51.95% 50.93% 50.13%

46

DEMOGRAPHIC SUMMARY

IncomeIn 2017, the median household income for your selected geography is$72,435, compare this to the US average which is currently $56,286.The median household income for your area has changed by 61.54%since 2000. It is estimated that the median household income in yourarea will be $82,476 five years from now, which represents a changeof 13.86% from the current year.

The current year per capita income in your area is $38,003, comparethis to the US average, which is $30,982. The current year averagehousehold income in your area is $92,885, compare this to the USaverage which is $81,217.

PopulationIn 2017, the population in your selected geography is 24,616. Thepopulation has changed by 6.72% since 2000. It is estimated that thepopulation in your area will be 24,594.00 five years from now, whichrepresents a change of -0.09% from the current year. The currentpopulation is 48.05% male and 51.95% female. The median age ofthe population in your area is 37.07, compare this to the US averagewhich is 37.83. The population density in your area is 7,813.84 peopleper squaremile.

HouseholdsThere are currently 9,948 households in your selected geography. Thenumber of households has changed by 10.94% since 2000. It isestimated that the number of households in your area will be 10,108five years from now, which represents a change of 1.61% from thecurrent year. The average household size in your area is 2.40 persons.

EmploymentIn 2017, there are 4,838 employees in your selected area, this is alsoknown as the daytime population. The 2000 Census revealed that65.42% of employees are employed in white-collar occupations inthis geography, and 34.41% are employed in blue-collar occupations.In 2017, unemployment in this area is 4.09%. In 2000, the averagetimetraveled to work was 25.00 minutes.

Race and EthnicityThe current year racial makeup of your selected area is as follows:71.27% White, 15.51% Black, 0.36% Native American and 3.13%Asian/Pacific Islander. Compare these to US averages which are:70.42% White, 12.85% Black, 0.19% Native American and 5.53%Asian/Pacific Islander. People of Hispanic origin are countedindependently of race.

People of Hispanic origin make up 7.41% of the current yearpopulation in your selected area. Compare this to the US average of17.88%.

HousingThe median housing value in your area was $360,205 in 2017,compare this to the US average of $193,953. In 2000, there were6,350 owner occupied housing units in your area and there were2,617 renter occupied housing units in your area. The median rent atthe time was $591.

Source: © 2017 Experian

47

30TH & K


3 0 1 1 N E K I L L I N G S W O R T H S T | P O R T L A N D , O R E G O N 9 7 2 1 1

EXCLUS IVELY L ISTED BY :Teresa RoblesAssociateNational Multifamily Housing GroupPh. 503.200.2030Fax: [email protected]: OR 201214984, WA 130007

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