1223 NW 24TH AVENUE - LoopNet · 2019. 10. 8. · EXECUTIVE SUMMARY ASSET SUMMARY Location 1223 NW 24th Avenue City, State Portland, OR 97210 County Multnomah Total Units 7 Year Built

OFFERING MEMOR ANDUM7 Units in the Heart of Northwest Portland

1223 NW 24TH AVENUE

www.hfore.com(503) 241.5541

2 HFO INVESTMENT REAL ESTATE

EXECUTIVE SUMMARYASSET SUMMARYLocation 1223 NW 24th Avenue

City, State Portland, OR 97210

County Multnomah

Total Units 7

Year Built 1907

Approx. NR Sq Ft 5,410Average Unit Size 773 Sq. Ft.

PRICE SUMMARYPrice $2,100,000

Price Per Unit $300,000

Per Square Foot $388

GRM 14.77

Projected Cap Rate 4.55%

DETAILED UNIT MIXUnit Type Unit Count Average Sq Ft Total Sq Ft % of Total Units0 Bed / 1 Bath 1 600 600 14.3%1 Bed / 1 Bath 1 575 575 14.3%1 Bed / 1 Bath 3 600 1,800 42.9%2 Bed / 1 Bath 1 835 835 14.3%2 Bed / 2 Bath 1 1,500 1,500 14.3%Total / Averages 7 759 5,310 100.0%

TOURS AND INQUIRIES Lee Fehrenbacher • [email protected]

Greg Frick • [email protected]

2424 SE 11th Avenue, Portland, Oregon 97214www.hfore.com • (503) 241.5541 • Fax: (503) 241.5548

Please do not disturb tenants.

1223 NW 24th Avenue is a 7-unit community located in Northwest Portland. This beautiful vintage asset has been extensively updated and offers immaculate studio, one-, and two-bedroom floor plans with high-quality finishes. The property has six permitted units, plus an upstairs “owner’s unit” which currently is not permitted. The property’s comfortable units and outstanding location make the property an especially attractive investment opportunity.

1223 NW 24th Avenue is located just one block from the heart of Northwest Portland. Northwest 23rd Avenue is home to the city’s finest shops and restaurants. The property is within walking distance of dozens of local amenities including Wallace Park. Wallace Park is home to baseball diamonds, basketball courts, picnic areas, and summer concerts in the park. The property also provides short drive times to major employment centers in Vancouver and Portland via Interstate 405.

The property’s desirable close-in location, combined with its updated and modern units, make the property an ideal opportunity for investors seeking stable, quality assets in the growing Portland metro area.

31223 NW 24TH AVENUE • 7 UNITS • PORTLAND, OREGON

1224 NW 24th Avenue is immaculately landscaped and features a private backyard garden area, as well as spacious front and back porch lounging areas for tenants. Many capital improvments include: new roof in 2018, updated electrical, new windows, and irrigation system.



• Original rifted oak hardwood floors• A mix of new and vintage decorative

lighting • New quartz and granite counter tops • Mini-split heat and air conditioning*

• Gas fire places*

• Private decks• *Select Units





APARTMENT MARKETThe Portland Metro Area consistently ranks among the nation’s lowest for apartment vacancy rates according to the U.S. Census Bureau and other third-party services like REIS, MPF Research, and Axiometrics. The U.S. Census Bureau pegged Portland’s Q3 2018 vacancy rate at 4.5% and the U.S. average at 7.1%.

REIS forecast 2018 Portland metro year-over-year rents growth at 3.0% and the Multifamily NW Apartment Report survey proved average October 2017-18 year-over-year rent growth at 3.3%.

SKILLED WORKFORCE & STRONG EMPLOYMENTIn a 2018 WalletHub report comparing 150 of the largest U.S. metros, Portland is listed as the 15th most educated city in America. More than half of Multnomah County workers have a college degree, well ahead of the national average of 38.5%.

According to the State of Oregon’s Employment Department, Portland enjoys one of the fastest job growth rates in the Pacific Northwest, and the entire nation. Data indicates the area added 31,000 jobs in 2016, 28,000 jobs in 2017, and 29,000 in 2018.

TOP 10 LISTS

Portland consistently receives glowing reviews and rankings from the media.

2019 lists include: • #4 Best City for an Active Lifestyle (Wallethub)

• #7 Healthiest Cities to Live (Thrillist.com)

• #7 Best Cheap Destinations in the U.S. (U.S. News and World Report)

• # 8 Best Place to Live in the U.S. (U.S. News and World Report)

• #8 Fittest Cities in America (CBS News)

• #9 Best Foodie Cities in the USA (U.S. News and World Report)

2018 lists include: • #1 Restaurant City of the Year (Bon Appetit)

• #1 Best Foodie City in America (Wallethub & Travelpulse) #6 (Jetsetter)

• #3 Healthiest City in the U.S. (Active.com)

• #3 Best Place for Business and Careers (Forbes)

• #4 Best City for Biking (Fast Company)

• #9 Top City for Entrepreneurs and Start-Ups (Business.org) #23 (CNBC)

• #10 Greenest City in America (Newsweek)

• #10 Most Entrepreneurial State (Amazon.com)

• #15 Most Educated City in America (Wallethub)

DIVERSIFIED ECONOMYPortland is home to the headquarters of Fortune 500 companies Nike and Lithia Motors. Fortune 1000 companies headquartered here include Columbia Sportswear, Greenbrier Cos. and Portland General Electric. Fortune 500 companies based outside Oregon with major operations here are Precision Castparts and Intel.

Tech and software companies continue to relocate their operations here or open major outposts in Portland. These companies enjoy Portland’s educated workforce, affordable high quality of life, and a low cost of doing business compared to the Bay Area.

Companies which have opened major branches in Portland include Airbnb, Google, Squarespace, Mozilla, Simple, Survey Monkey, SalesForce and New Relic, Inc. Portland’s tech startup companies include Viewpoint, Jama Software, Thetus, Urban Airship, Acquia, Elemental Technologies, Act-On, Puppet Labs, and The Clymb.

PORTLAND REGIONOregon’s largest city, Portland, is near the confluence of the Willamette and Columbia Rivers. The Portland Metro Area consists of four counties: Multnomah, Washington, Clackamas, and Clark County, Washington.

PORTLAND METRO SNAPSHOT


GOVERNMENTThe U.S. Federal Government is Portland metro’s overall largest employer, with 20,500 workers. The State of Oregon gives employment to an additional 14,000 residents.

HIGH TECH & CHIP MANUFACTURINGAttracted by the Portland area’s educated workforce and relative low cost of doing business, tech companies continue moving to Portland—opening major branches and, in some cases, relocating to the area entirely.

With over 19,300 employees, Intel is the area’s largest private employer. Intel acquired its first Portland location in 1974. The company is currently expanding its presence with forthcoming D1X microprocessor chip facilities at the Ronler Acres Campus in Hillsboro. This is part of a five-year, $6 billion expansion, and is part of the company’s long-term plans for growth. Intel is the largest property taxpayer in Washington County, with payments of approximately $30 million a year.

Other notable Portland-area high-tech companies include ON Semiconductor and Tektronix.

SPORTSWEARNike has its world headquarters in Beaverton and employs 12,000 Portland-area residents. The company designs, develops and manufactures footwear, apparel, equipment and accessories. From here, Nike orchestrates production and design for one of the world’s most recognizable brands. In 2019 Nike will complete a $1 billion expansion of its Washington County campus.

Nike’s two key competitors have a major local presence as well. Those employers include the North American headquarters of Adidas with 1,200 employees, and a new 70,000 SF outpost of Under Armour. Under Armour has moved 100 employees into an iconic former YMCA.

HEALTHCARE AND RESEARCHHealth services are another major employment sector for the Portland area. The top healthcare employers in the area are Providence Health Systems, with 17,543 employees, and The Oregon Health Sciences University (OHSU), with 16,200 workers. OHSU is the recent recipient of a total of $1 billion in donations for cancer research from over 10,000 Oregon donors. Grants from the National Institutes of Health totaled $182.7 million in 2016.

MANUFACTURINGIn trucking and transportation, Daimler Trucks—with nearly 3,000 area workers—has big plans for the Portland area. The company recently spent $150 million renovating its Portland facility and invests heavily in research and development, including autonomous driving.

PORTLAND MARKET SNAPSHOTMAJOR EMPLOYERS


LIFESTYLE CONVENIENCES

Washington Park

Pioneer Courthouse

Square

Restoration HardwareWilliams-Sonoma

Papa Haydn

Portland Art Museum

Union Station

Bridgeport Brewing

Deschutes Brewing

Portland Saturday Market

Oregon Convention

Center

Portland State

University

DOWNTOWN

GOOSE HOLLOW

OLD TOWN CHINA TOWN

WIL

LAM

ETTE

RIV

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W Burnside St Burnside Bridge

Steel Bridge

SW Madison St

SW Washington St

Hawthorne Bridge

Morrison Bridge

SW Clay St SW Jefferson St

SW Alder St

SW Market St

SW Pa

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SW Br

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1223 NW 24th Avenue

Lincoln High School


The following market conditions have made Portland one of the strongest multifamily markets in the nation for several years:

• Low Vacancy. The Metro Area’s vacancy rate has consistently ranked among the nation’s lowest. Multifamily NW’s Spring 2018 Apartment Report cited average vacancy for the Portland Metro Area as 4.85%.

• Rent Growth. Overall rent growth for the Portland Metro Area Q3 2016-2017 was 6.37%—despite large numbers of new units available for lease throughout 2016 and 2017. Spring 2018 year-over-year rents per square foot grew by 4%. Rents have grown by 51.5% since fall 2012.

• Continued In-Migration. Oregon has ranked in the top two popular destination for people moving within the United States for each of the past five years according to United Van Lines.

• Low Housing Inventory. The inventory of for-sale housing was 1.6 months as of March 2018 and has held at less than two months since 2015.

PORTLAND METRO SNAPSHOT


OPERATIONS ANALYSISIncome Projected Rents Per Unit % GOI Notes

Scheduled Gross Rent $142,140 $20,306 1 Less: Vacancy/Credit Loss -$7,107 -$1,015 -5.0% 2

Net Rental Income $135,033 $19,290

Includes: Laundry $2,100 $300

Includes: Utility Billing (RUBs) $2,880 $411 20%

Includes: Miscellaneous $1,200 $171

Total Other Income $6,180 $883 3

Gross Operating Income (GOI) $141,213 $20,173

Expenses Projected Operations Per Unit % GOI % GOI

Real Estate Taxes $11,099 $1,586 7.9% 4

Insurance $2,100 $300 1.5%

Total Utilities $10,500 $1,500 7.4%

Fee Management $14,121 $2,017 10.0% 5

Landscaping $2,100 $300 1.5%

Maintenance & Repairs $3,500 $500 2.5%

Turnover $1,400 $200 1.0%

Reserves $1,750 $250 1.2% 6

Expenses -$46,570 -$6,653 -33%

Net Operating Income (NOI) $94,643 $13,520 67%


OPERATIONS ANALYSIS1. RENTS Rents are based on market rate projections for units. Those averages total $1,692 per unit or $2.23 per sq ft.

2. VACANCY The projected operations include a market-rate vacancy of 5.0%.

3. OTHER INCOME Other Income includes laundry, miscellaneous, and utility charges (RUBs).

• RUBs. Residents are projected to be charged an average of $25 per unit per month for water, sewer, and garbage expenses. The property is individually metered for electric.

4. PROPERTY TAXES Oregon’s property taxes are evaluated on a fiscal year starting July 1. In Oregon, property taxes are not reassessed on sale and are limited to a 3.0% annual increase at the state level. Property taxes paid prior to November 1 each year receive a 3.0% discount. 1223 NW 24th Avenue’s projected operations include the property taxes for the 2019-2020 tax year totaling $11,099.

5. FEE MANAGEMENT The management fee has been projected to 10.0% of GOI or $14,121 which represents standard independent, third-party management costs for properties in the metro area similar to 1223 NW 24th Avenue.

6. RESERVES Lenders require reserves be set aside to address future capital costs associated with any property as it ages. The projected operations include reserves of $250 per unit or $1,750 annually.

Type Units Count Avg Sq Ft Projected Rent Projected Rent per Sq ft0 Bed / 1 Bath 1 600 $1,250 $2.08

1 Bed / 1 Bath 1 575 $1,495 $2.60

1 Bed / 1 Bath 3 600 $1,550 $2.58

2 Bed / 1 Bath 1 835 $2,050 $2.46

2 Bed / 2 Bath 1 1,500 $2,400 $1.60

Total / Average 7 759 $1,692 $2.23


OFFER TERMS

QUESTIONS & TOUR REQUESTS:

All tours and inquiries regarding 1223 NW 24th Avenue are to be directed to HFO Investment Real Estate at (503) 241.5541. Please do not disturb tenants.

Lee Fehrenbacher • [email protected]

Greg Frick • [email protected]

Jack Stephens • [email protected]

Todd Tully • [email protected]

Adam Smith • [email protected]

Khari Gates • [email protected]

Rand Hoffman • [email protected]

HFO Investment Real Estate 2424 SE 11th Avenue Portland, Oregon 97214

www.hfore.com(503) 241.5541Fax: (503) 241.5548Brokers licensed in the States of Oregon and Washington.

ASSET SUMMARYLocation 1223 NW 24th Avenue

City, State Portland, OR 97210

Total Units 7

PRICE SUMMARYPrice $2,100,000

Price Per Unit $300,000

Per Square Foot $388

GRM 14.77

Projected Cap Rate 4.55%

LOAN QUOTE - PROVIDED BY AMF CAPITALTerm 30 Years

Amortization 30 Years

Loan Amount $1,209,027 - (57% LTV)

Rate 3.85% - 7 Years

Debt Coverage Ratio 1.20x

*Other loan options are available for both term and LTV*



HFO Investment Real Estate

2424 SE 11th Avenue • Portland, OR 97214www.hfore.com • 503.241.5541

Passion • Collaboration • Specialization

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. Parties who receive this information from unauthorized parties shall not be recognized. ©2019 HFO Investment Real Estate LLC. Build your legacy is a service mark of HFO Investment Real Estate. Licensed in the states of Oregon and Washington.

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1223 NW 24TH AVENUE - LoopNet · 2019. 10. 8. · EXECUTIVE SUMMARY ASSET SUMMARY Location 1223 NW 24th Avenue City, State Portland, OR 97210 County Multnomah Total Units 7 Year Built