NON- E N D O R S E M E N T A N D D I S C L A I M E R …...This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish

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

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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

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Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The

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

ACTIVITY ID: Z0210366

4

PROPERTY SUMMARY

THE OFFERING

Property Multifamily and Townhome Assemblage

Price Unpriced

Property Address7909 and 7915 SE Harney Street

7910-7918, and 7928 SE Crystal Springs Blvd,Portland, OR 97206

SITE DESCRIPTION

Lot Size (SF) 102,802

Price/SF N/A

Lot Size (Acres) 2.3600

Price/Acre N/A

Number of Units/Houses 4

Number of Bedrooms 10

Current Monthly Income $4,594

Occupancy 75%

Price/Unit N/A

Number of Lots 6

Price/Lot N/A

Type of Ownership Fee Simple

Current Zoning Residential 2, R2

Proposed Zoning RM1

Floor Area Ratio 1:1, 1:1.5 w/ Bonus

Height Limit Current 40 feet

Property Taxes 2017 $18,023.84

Frontage 165’ SE Harney Street, 165’ SE Crystal Springs Blvd

Adjacent Development US Post Office Facility, Progressive Insurance Office

MAJOR EMPLOYERS

EMPLOYER # OF EMPLOYEES *

Empres Financial Services LLC 4,218

Providence Medical Center 3,603

Portland Adventist Medical Ctr 3,238

PCC Schlosser 2,000

ADVENTIST HEALTH 1,900

Fred Meyer 1,313

Fred Meyer Stores Inc 1,313

Administration Main Office 989

Safeway 983

Banfield Pet Hospital 866

Clackamas Dental Office 800

Portland Fire Department 740

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles

2017 Estimate Pop 20,569 155,210 402,326

2010 Census Pop 18,921 143,371 368,697

2017 Estimate HH 7,471 60,223 161,708

2010 Census HH 6,934 55,900 148,588

Median HH Income $47,967 $53,037 $56,020

Per Capita Income $22,089 $27,451 $30,924

Average HH Income $60,270 $70,112 $76,262

5

2.36 Acres Zoned R2 with Proposed RM1 Zoning with 1:1 FAR, or 1:1.5 FAR of

Development Potential

Close Proximity to SE 82nd Avenue Commerce District, Including Iconic Cartlandia

Strong Neighborhood Demand for Housing Current 3.5% Vacancy in Submarket

Level, Rectangular Assemblage with Direct Access to Two Streets, SE Harney

Street, and SE Crystal Springs Boulevard

Neighborhood Suited for Variety of Projects, Including Apartments, Single Family

Home, Townhomes and more

INVESTMENT HIGHLIGHTS

The subject property is an assemblage of six parcels located at 7909, 7915 Southeast Harney Street, 7910 -7918, and 7928 Southeast Crystal Springs

Boulevard, Portland, Oregon 97206. Parcel-1 is 23,087 square feet, Parcel-2 is 10,019 square feet, Parcel-3 is 16,988 square feet, Parcel-4 is 10,109 square

feet, Parcel-5 is 24,394 square feet and Parcel-6 is 18,295 square feet, for a total of approximately 102,802 square feet, or 2.36 acres. The topography is flat.

The assemblage is approximately 165 x 800, with 165 frontage on SE Harney Street and SE Crystal Springs Boulevard. There are four single family homes

comprised of two, 2-bedroom/ 1-bathroom, one, 3-bedroom/ 1-bathroom, and one 3-bedroom/ 2-bathroom houses. Three houses are currently rented, and

one house is vacant. (Please see following pages for rental income) The current zoning is R2, or 1-residential unit per 2,000 square feet of land area. There is a

proposed City of Portland land use change (Better Housing by Design project) to increase density in this zone, described as RM1. (For additional information

regarding use and FAR please see following pages)

The site has a Walk score of 68, and a Bike score of 76. The site is near major arterial road SE 82nd Avenue and is less than one half mile from Interstate 205.

There are plans for improving SE 82nd Avenue in coming years through a program called 82nd Avenue of Roses Implementation Plan. Nearby retailers

include, Trader Joes, Grocery Outlet, Walmart, Dicks Sporting Goods, Bank of America, Home Depot, Fred Meyer and more. Nearby parks include, Flavel City

Park, Harney City Park, and Glenwood City Park. Additionally, the site benefits from abutting the Springwater Corridor trail, a 21-mile mostly paved biking and

walking trail. Schools are within the Portland School District with residents attending Whitman Elementary School, Lane Middle School, and Cleveland High

School.

The site is ideal for a developer to purchase and develop as multifamily property. A developer may receive income from the four properties currently located

onsite while going through plans in the development process with the City of Portland. Additionally, a developer may be poised for additional value and

development potential upon acceptance and adoption of the proposed RM1 zoning, increasing the number of units that may be developed.

INVESTMENT OVERVIEW

6

PROPERTY SUMMARY

7

REGIONAL MAP

8

AERIAL MAP

Nearby Retailers:

9

PROPERTY PHOTO

10

Current Zoning Allowed Use Table

ZONING INFORMATION

11

Proposed Standards in RM1 Zone

*Area shaded in blue, above, is

proposed land to be converted to

RM1 Zoning

*Area within Red, above, is subject

property boundary lines

PARCEL MAP

12

INCLUSIONARY HOUSING SUMMARY AND R2 SETBACKS

14

MULTIFAMILY AND TOWNHOME

ASSEMBLAGE

(SUBJECT)

7900 SE Luther Road

8205 SE Harney Street

7939 and 8107 SE Luther

Road

SALES COMPARABLES

ON MARKET COMPARABLES

1

2

3

SALES COMPARABLES

15

SALES COMPARABLES

ON MARKET COMPARABLES

SALES COMPS AVG

ON MARKET COMPS AVG

Avg. $15.19

Avg. $24.08

$0.00

$3.80

$7.60

$11.40

$15.20

$19.00

$22.80

$26.60

$30.40

$34.20

$38.00

7915 SE

Harney St

7900 SE

Luther Road

8205 SE

Harney

Street

7939 and

8107 SE

Luther Road

Average Price Per Square Foot

SALES COMPARABLES

16

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SALES COMPARABLES ON MARKET COMPARABLES

1

Close of Escrow 3/19/2018

Sales Price $6,400,000

ZoningCommercial Corridor (CC) &

Residential (HDR)

Price/SF $15.19


Price/Acre $661,841

Lot Dimensions Irregular

NOTES

The comparable property is in close proximity to the subject property. The

sale represented approximately 250 units of multifamily developable land.

7900 SE LUTHER ROAD7900 SE Luther Rd, Portland, OR, 97206

2

On Market

List Price $4,507,588

Zoning EG2

Price/SF $36.48


Price/Acre $1,588,857

NOTES

The comparable property is in close proximity to the subject property.

8205 SE HARNEY STREET8205 SE Harney St, Portland, OR, 97266

ENTITLED: NO | PERMIT READY: NO

Lot Size (Acres) 2.36 acre(s)

7915 SE HARNEY ST7915 SE Harney St, Portland, OR, 97206


SALES COMPARABLES

17

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SALES COMPARABLES ON MARKET COMPARABLES

NOTES

The comparable property is in close proximity to the subject property.

Highest and best use of the property is to require a zoning change to

develop site for multifamily use. There are only 5.8 Acres of useable area.

3

On Market

List Price $4,300,000

Zoning Eg2

Price/SF $11.68


Price/Acre $508,876

Lot Dimensions Irregular

7939 AND 8107 SE LUTHER ROAD8107 SE Luther Rd, Portland, OR, 97206


SALES COMPARABLES

18

8

MULTIFAMILY AND TOWNHOME

ASSEMBLAGE

(SUBJECT)

Lents Commons

Oliver Station Apartments

Latitude

9947 SE Old Town Ct

7820-7838 SE Otty St

Summit - Stevens Creek

Apartments

4

7

8

9

11

12

14

15

16

17

13

18

10

4

1

2

3

5

6

RENT COMPARABLES

19

AVERAGE RENT - MULTIFAMILY

Avg. $1,700

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

Lents

Commons

Oliver

Station

Apartments

Latitude 9947 SE Old

Town Ct

7820-7838

SE Otty St

Summit -

Stevens

Creek

Apartments

3 Bedroom

Avg. $1,134

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

Lents

Commons

Oliver

Station

Apartments


Town Ct

7820-7838

SE Otty St

Summit -

Stevens

Creek

Apartments

Studios

Avg. $1,260

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

Lents

Commons

Oliver

Station

Apartments


Town Ct

7820-7838

SE Otty St

Summit -

Stevens

Creek

Apartments

1 Bedroom

Avg. $1,641

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

Lents

Commons

Oliver

Station

Apartments


Town Ct

7820-7838

SE Otty St

Summit -

Stevens

Creek

Apartments

2 Bedroom

RENT COMPARABLES

20

rentpropertyname1


rentpropertyname1


rentpropertyname1


YEAR BUILT: 2018

1

Unit Type Units SF Rent Rent/SF

Studio 1 Bath Flat 3 490 $997 $2.03

1 Bdr 1 Bath Flat 36 673 $1,046 $1.55

2 Bdr 1 Bath Flat 6 915 $1,247 $1.36

3 Bdr 1 Bath Flat 3 1,200 $1,074 $0.90

3 Bdr 2 Bath Flat 6 1,422 $1,503 $1.06

Total/Avg. 54 802 $1,118 $1.39

NOTES

This property features on-site parking, laundry facilities, a courtyard, and

professional landscaping. The units include stainless steel appliances, vinyl

flooring, quartz countertops, ceiling fans, and other basic amenities.

Water/sewer and trash are metered by occupancy and square footage per

unit, not included in rent.

LENTS COMMONS9101 SE Foster Rd, Portland, OR, 97266

YEAR BUILT: 2018

2

NOTES

This property features laundry facilities, a rooftop deck/lounge and bbq

area, and a fitness center. The units include stainless steel appliances,

hardwood flooring, balcony/decks, and ceiling fans. Water/sewer and

trash are included in the rent.


1 Bdr 1 Bath Flat 40 650 $1,202 $1.85

2 Bdr 1 Bath Flat 35 850 $1,550 $1.82

2 Bdr 1 Bath Flat 70 1,015 $1,750 $1.72

Total/Avg. 145 874 $1,551 $1.77

OLIVER STATION APARTMENTS9202 SE Foster Rd, Portland, OR, 97266

3

YEAR BUILT: 2007

NOTES

The property features surface parking, garage parking for townhomes, and

there is a playground, fitness center and pool. The units include basic

amenities, stainless steel appliances, laminate floors, air conditioning,

balcony/decks, and washer/dryer. Utilities are not included in the rent.


1 Bdr 1 Bath Flat 35 630 $1,383 $2.20

2 Bdr 1 Bath Flat 28 785 $1,434 $1.83

2 Bdr 2 Bath Flat 100 1,292 $1,970 $1.52

3 Bdr 2.5 Bath Twnhs 47 1,565 $1,968 $1.26

Total/Avg. 210 1,175 $1,800 $1.53

LATITUDE8411 SE Causey Ave, Happy Valley, OR, 97086

RENT COMPARABLES

RENT COMPARABLES

21

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rentpropertyname1


rentpropertyname1


YEAR BUILT: 2007

4


3 Bdr 2.5 Bath Twnhs 4 1,733 $1,820 $1.05

Total/Avg. 4 1,733 $1,820 $1.05

NOTES

The property features attached garages. The units feature spacious

rooms, large windows, granite countertops, stainless steel appliances, and

a washer/dryer. Water/sewer and trash are not included in the rent.

9947 SE OLD TOWN CT9947 SE Old Town Ct, Happy Valley, OR, 97086

YEAR BUILT: 2006

5

NOTES

Property features include a fenced backyard. The units feature basic

amenities, washer/dryers, balcony/decks, and attached garages.

Water/sewer and trash are not included in the rent.


3 Bdr 2.5 Bath Twnhs 5 1,537 $1,387 $0.90

Total/Avg. 5 1,537 $1,387 $0.90

7820-7838 SE OTTY ST7820 SE Otty St, Milwaukie, OR, 97222

6

YEAR BUILT: 2018

NOTES

This property features covered parking, bike storage, picnic area,

playground, clubhouse, and a fitness center. The units include stainless

steel appliances, granite countertops, and vinyl flooring. Water/sewer and

trash is metered per unit, not included in the rent.


Studio 1 Bath Flat 24 598 $1,270 $2.12

1 Bdr 1 Bath Flat 24 584 $1,409 $2.41

2 Bdr 1 Bath Flat 36 937 $1,632 $1.74

2 Bdr 2 Bath Flat 54 980 $1,880 $1.92

3 Bdr 2 Bath Twnhs 2 1,189 $1,965 $1.65

Total/Avg. 140 839 $1,632 $1.95

SUMMIT - STEVENS CREEK APARTMENTS11430 SE Stevens Rd, Happy Valley, OR, 97086

RENT COMPARABLES

RENT COMPARABLES

23

The 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.

Overview

[ Portland-Vancouver]METRO HIGHLIGHTS

HIGH POPULATION GROWTH

The Portland-Vancouver metro has recorded more

than 20 years of positive net migration thanks to

expanding industries.

ALTERNATIVE-ENERGY INDUSTRY

Alternative-energy companies are attracted to the

local educated workforce and research institutions

and are moving to the region.

LOW BUSINESS COSTS

The 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.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.

24

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.

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.

QUALITY OF LIFE

* Forecast

Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau

37.9

2017MEDIAN AGE:

U.S. Median:

37.8

$63,000

2017 MEDIAN HOUSEHOLD INCOME:

U.S. Median:

$56,300

2.4M

2017POPULATION:

Growth2017-2022*:

4.9%

948K

2017HOUSEHOLDS:

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%

MARKET OVERVIEW

DEMOGRAPHICS

SPORTS

ARTS & ENTERTAINMENT

MSA POPULATION

2 ,226 ,009

26

EMPLOYMENT CONSTRUCTION VACANCY RENTS

PORTLAND METRO AREA

* Forecast

27

Vacancy

Rate

Y-O-Y

BasisPoint

Change

SubmarketEffective

Rent

Y-O-Y %

Change

Vancouver 2.8% -40 $1,237 3.1%

Southwest

Portland/Tigard3.3% -50 $1,345 4.7%

Gresham/Far East

Portland3.4% -110 $1,194 4.7%

East Beaverton 3.5% -40 $1,235 2.2%

Southeast Portland 3.6% -50 $1,306 2.3%

Aloha/West Beaverton 3.7% -50 $1,364 1.5%

Northwest Portland 4.0% -20 $1,385 3.9%

Lake

Oswego/Tualatin/Wilso

nville

4.1% -160 $1,444 4.7%

East Portland 4.3% -80 $1,348 5.8%

Hillsboro 4.8% -10 $1,530 -0.2%

Overall Metro 3.9% -50 $1,365 2.9%

Submarket Trends

Lowest Vacancy Rates 3Q18

Sales Trends

PORTLAND METRO AREA

• Healthy demand in Portland during the past 12 months elevated the average price 8.6

percent to $177,000 per unit. Class B assets in particular boasted a considerable

increase, with property values rising 12 percent to $212,600 per apartment.

• The average cap rate dropped 30 basis points since last October to the low-5 percent

band.

* Trailing 12 months through 3Q18

Pricing trend sources: CoStar Group, Inc.; Real Capital Analytics

*Mortgage payments based on quarterly median home price with a 30-year fixed-rate conventional mortgage, 90%

LTV, taxes, insurance and PMI. **2017-2022 Annualized Rate

28

DEMOGRAPHICS

155,210Total Populations within

Three Mile Radius

GENDER

Average Household Income

in Three Mile Radius

Median Housing Value within

Three Mile Radius

60,223Total Households in Three Mile Radius

18.32%From 2000

$70,112 $264,414

49.4%

50.56%

29

Documents

NON- E N D O R S E M E N T A N D D I S C L A I M E R …...This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish