43 units • west linn, oregon › d2 › ifjsnkfzw3csxksmnr0...2 bedrooms 38 1,070 40,647 88.4% 3...

OFFERING MEMOR ANDUM

43 Units • West Linn, Oregonwww.hfore.com • (503) 241.5541

INVESTMENT SUMMARYLarkspur West Linn is a 43-unit apartment community in the affluent suburb of West Linn, Oregon that has recently completed extensive renovations. More than $3,700,000, or $86,000 per unit was spent on interior, exterior and common area improvements. The renovations at Larkspur West Linn required vacating the property and the asset is finalizing lease-up. The renovations resulted in an exceptional, turn-key asset that benefits from an outstanding location in West Linn, Oregon.

Larkspur West Linn is an attractive, low-density community and the majority of its apartments — approximately 65% — are spacious two-bedroom townhomes averaging 1,139 sq ft. Most apartments have large, private decks or patios, an open living room with modern kitchen, vaulted ceilings and an in-unit washer/dryer. The renovations included new kitchens with designer cabinets, tiled backsplashes, stainless steel appliances, slide-in glass-top ranges with stainless steel vented hoods, open shelving and quartz counter tops. Plank flooring is found throughout the living areas and large decks (+/- 90 sq ft) extend the living areas. The decks and patios overlook landscaped courtyards and green spaces that surround Larkspur West Linn. Residents have a number of on-site amenities including an enclosed dog park, central leasing office, irrigated community garden boxes, BBQ picnic area, and an outdoor lounge area with gas fireplace.

2 HFO INVESTMENT REAL ESTATE

RENOVATIONS

Larkspur West Linn underwent extensive renovations. The entire exterior envelope was replaced including windows, doors, siding, paint, decks, entire stairway systems (landings, stringers and treds), and roofs.

Interiors were also updated with new finishes on all surfaces including quartz counter tops, updated cabinetry in both bathrooms and bedrooms, updated flooring, new stainless steel appliances, tiled backsplash, updated lighting, new baseboards, window coverings, plumbing fixtures and doors.

The landscaping in the courtyards was regraded and re-planted, with community amenities added to include an outdoor gas fire pit, irrigated community garden beds, an enclosed dog run, BBQ area and walking paths.

INVESTMENT SUMMARY

3LARKSPUR WEST LINN • 43 UNITS • WEST LINN, OR

INVESTMENT SUMMARYASSET SUMMARYProperty Larkspur West Linn

Location 19500 SW Hidden Springs Road

City, State West Linn, OR 97068

County Clackamas

Year Built 1978 / 2018 Renovation

Total Units 43

Approx NR Sq Ft 45,985 Sq Ft

Avg Unit Size 1,069 Sq Ft

Acreage 2.48 acres

PRICINGPrice $11,900,000

Per Unit $276,744

Per Sq Ft $259

Cap Rate 5.0%

Larkspur West Linn is located in the affluent city of West Linn, Oregon between the cities of Lake Oswego and Oregon City. Lake Oswego is one of the Portland metro area’s exclusive suburbs and the city of West Linn shares many similarities in stature. West Linn’s median household income, which averages $100,188, is more than $7,000 higher than Lake Oswego. Larkpur West Linn’s residents attend schools in one of the best school districts in the metro area. There are numerous high-end retailers and restaurants a short distance away. Adjacent to the property is the Robinwood Shopping Center, offering a Walmart Neighborhood Market, Wells Fargo Bank, and Orangetheory Fitness. Willamette Drive (Highway 43) conveniently connects Larkspur West Linn to Interstate 205 to the south, and downtown Portland to the north. Numerous outdoor attractions are found a short distance from Larkspur West Linn including Mary S. Young Park, a 128-acre forested park along the Willamette River, and 16.5 acre Cedaroak Boat Ramp with fishing access and hiking trails.

There are limited apartment options in the city of West Linn. There are only six communities larger than 40 units— with nothing new added since 1998. Larkspur West Linn’s extensive renovations and rare townhome floor plans make it an exceptional asset in the submarket. The property is expected to benefit from continued rent growth due to its strong, in-demand West Linn location. Investors will find Larkspur West Linn a remarkable investment opportunity.

FOR MORE INFORMATION

2424 SE 11th Avenue, Portland, Oregon 97214

www.hfore.com • (503) 241.5541 • Fax: (503) 241.5548

Please do not disturb tenants.

Broker licensed in Oregon.

Greg [email protected](971) 717.6332

Tyler [email protected](971) 717.6336

Rob [email protected](971) 717.6335


COMMUNITY AMENITIES • Landscaped courtyards with mature trees• Outdoor lounge area with gas fireplace• Community garden boxes• BBQ, patio and picnic area• Surrounding greenspace• Enclosed bark park (dog friendly)• Located in an exceptional school district• Convenient location along Highway 43• Immediately south of Lake Oswego and north of

Oregon City

APARTMENT HIGHLIGHTS• Significant exterior updates including new windows,

siding and signage• Generously sized townhomes and apartments• Stainless steel appliances• Tiled back splashes• Glass-topped ranges with modern range hoods• Fashionable open shelving• In-unit washer/dryer• Plank flooring• Large private decks or patios• Modern color scheme throughout every apartment

UNIT MIX SUMMARY

Unit Type Unit Count Avg Sq Ft Total Sq Ft % of Total UnitsStudio 1 506 506 2.3%

2 Bedrooms 38 1,070 40,647 88.4%

3 Bedrooms 4 1,208 4,832 9.3%

Total / Averages 43 1,069 45,985 100.0%

DETAILED UNIT MIX

Unit Type Unit Count Avg Sq Ft Apprx. NR Sq Ft% of Total

UnitsStudio 1 506 506 2.3%

2 Bedroom / 1 Bathroom Flat 10 876 8,760 23.3%

2 Bedroom / 1.5 Bathroom Townhome Center Unit 15 1,130 16,950 34.9%

2 Bedroom / 1.5 Bathroom Townhome End Unit 13 1,149 14,937 30.2%

3 Bedroom / 2 Bathroom Flat End Unit 4 1,208 4,832 9.3%

Totals / Averages 43 1,069 45,985 100.0%

INVESTMENT SUMMARY

2.33%Studios

88.37%2 Bedrooms

9.30%3 Bedrooms


Downtown Portland

Downtown Lake Oswego

Willamette River

Larkspur West Linn

OR 43


SITE MAP

A

B

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C

C

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Robi

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Robin Pl

North


LARKSPUR WEST LINN HAS COMPLETED EXTENSIVE EXTERIOR AND INTERIORS UPDATES

Budget Summary Total Per Unit

Common Area Additions $335,308 $7,798

Interior Renovations $1,565,012 $36,396

Exterior Envelope $1,866,844 $43,415

Total $3,767,164 $87,608

• Completely re-sided and painted

• New windows, roofs, and gutters

• Deck and stair system replacement

• New signage and extensive landscape improvements

• Complete interior renovation including adding a washer/dryer to all units

• New community amenities including an enclosed dog park, outdoor fire pit and community BBQ area


SUPPLY CONSTRAINEDLarkspur West Linn is one of only six apartment communities in the city that are more than 40 units. Most of West Linn’s apartments are more than 30 years old and nothing new has been built since 1998. There is limited land available to build competing multifamily.

SCHOOLLarkspur is served by Cedaroak Park Primary, Athey Creek or Rosemont Ridge Middle, and West Linn High. Cedaroak Park Primary has an 8/10 overall ranking on Great Schools, and a 9/10 ranking for test scores. Students there outperform their peers in exams for Math, English, and Science. Both Rosemont Ridge and Athey Creek Middle Schools also rank 9/10 for test scores. West Linn High School gets a perfect score of 10/10 from Great Schools, and its students outperform their state-wide peers on all metrics of college readiness. In fact, US News and World Report ranks West Linn the second best high school in Oregon. The high school has a 98% graduation rate, and 74% of students pass at least one AP Exam.

JOBSWest Linn’s unemployment rate is 3.1%, below the statewide average of 4.3%. The largest industries in West Linn are Health Care & Social Assistance, Professional Scientific & Technical Services, and Retail Trade. Between 2016 and 2017, the median household income in West Linn grew 11.6%. Over that same period, employment grew by 1.77%, beating out the national rate of 1.5%.

West Linn has a reputation as an excellent family community. Its schools in the West Linn-Wilsonville School District are routinely rated as among the best in the state—and the nation. With one high school, two middle schools and six primary schools, West Linn students are taught by award-winning teachers in top-notch facilities.

With a population of 26,756, West Linn is a small suburban community in Clackamas County located along the Willamette River south of Portland. Between 2010 and 2018, the city’s population grew by 6.5%. 97.4% of West Linn residents have a high school degree, and 57.8% have a bachelor’s degree or higher.

Its population enjoys access to 600 acres of park land—impressive for a city that is slightly less than 8 square miles in size. Its abundant green space gives local families room to play, hike, exercise and relax. West Linn’s parks and recreation department offers a year-round slate of sports, classes, camps and activities. They also sponsor such ongoing events as the Old Time Fair and Movies and Concerts in the Park.

#3 on Niche’s Places with the Best Public Schools in Oregon

#4 on Niche’s Best Suburbs to Raise a Family in Oregon

A southern suburb within the Portland Metropolitan Area, West Linn has early roots in Oregon state history. West Linn is known as the City of hills, trees and rivers. Nestled next to the Willamette and Tualatin Rivers, the city has scenic vistas in almost every direction. With an impressively high median income ($100,188 according to the most recent Census estimate) it is an affluent community, and according to the Spring 2019 Multifamily NW Apartment Report the average rent per square foot in the West Linn-Lake Oswego submarket is $1.60.

WEST LINN SNAPSHOT


LIFESTYLE CONVENIENCES

Mary S. Young Park

Bridgeport Village

Cedar Oak boat ramp

Rose Farm Museum

Oswego Hill VineyardOrangetheory

Fitness

Lakeridge High School

Gladstone High School

West Linn High SchoolRosemont Ridge Middle School

Oswego La

ke

Willam

ette Riv

er

205

5

99E

43

Larkspur West Linn

SW Borland Dr

SW 65th Ave

Staffor

d Dr

SW Child Dr

SE River RdSW Bergis Dr

SE McLoughlin Blvd

S. Shore Blvd

Rosemont Dr

SW Johnson Dr

Willamette Dr

Lake Oswego

Shadowood

Stafford

Marylhurst

Oak Grove

Oregon City

Johnson City

Oakfield

Downtown Oregon City

Arch Bridge Taphouse


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%.

The Multifamily NW Apartment Report survey proved average Spring 2018-19 year-over-year rent growth at 7.7%.

SKILLED WORKFORCE AND 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


PORTLAND MARKET SNAPSHOTPORTLAND METRO AREA The Portland Metro Area is one of the strongest apartment markets in the nation, as reflected in strong year-over-year rent growth and consistently tight vacancy. The area’s strong job market and high quality of life continues to attract new residents; approximately 65 people move here per day. New apartment construction has not caught up to the housing demand created by in-migration.

4.95% Metro-area vacancy

#2 for Oregon in Migration

in US

3.84% Year-over-year rent growth*

$68,125 Median household

income

3.8% Unemployment rate

(June 2019)

48.2% Portland residents age 25+ years (with a bachelor’s degree or higher)

21,345 New Portland residents

(2016-2018)

38.3% Metro area renter-

occupied housing rate

4,474 Portland residents

per square mile

*Multifamily NW Apartment Report (April 2018-2019)


TOP AREA EMPLOYERS

20,000 area employees 10,269 area employees 12,000 area employees

12,955 area employees


5,200 Oregon employees

Intel is the area’s largest private employer. Recently, following a five year, $6 billion expansion, the company unveiled vast, long-term plans for future growth.

Kaiser has 35 medical facilities, 18 dental offices and 1,400 doctors in the Pacific Northwest. It employs more than 10,000 in the Portland metro region and serves 11.8 million members nationally. Kaiser is headquartered in Oakland, California.

In April of 2016, Nike announced a $1 billion expansion of its Beaverton world headquarters. The company is adding 1.3 million square feet of office space and parking for 3,300 vehicles. Construction on the final parts of this expansion will wrap up in 2019.

Legacy is a locally-owned nonprofit based in Portland, Oregon. It is the only health system covering the Portland/Vancouver area south to Salem with multiple hospitals and a hospital dedicated to exclusively serving children.

With nearly 50,000 students, Portland Public Schools is Oregon’s largest district. Portland is currently in the midst of a massive voter-approved high school and middle school reconstruction and modernization program.

In 2017 voters approved $790 million in taxes to rebuild one middle school and three high schools. The bond was in addition to a $480 million bond in 2012 for a similar program.

Fred Meyer offers one-stop shopping at 133 multi-department stores in four western states.

17,543 area employeesProvidence is a non-profit network of hospitals, health plans, physicians, clinics and related services. It operates in Alaska, Washington, Oregon, Montana and California. It was originally founded by the Sisters of Providence in Montreal Quebec in 1843.


Oregon Health Sciences University (OHSU) leads the way in government-funded healthcare — and secures numerous grants for the advancement of health sciences. OHSU recently acquired a $1 billion gift for cancer research.

Grants from the National Institutes of Health have held steady from around $184 million in 2011 to $219 million in 2017. This infuses the economy with jobs and income from outside the Portland MSA.


Among the influx of companies to the Portland metropolitan area—including many who have transplanted their world, North American or U.S. headquarters here—are Adidas, Daimler Trucks, KinderCare and Keen.

Other significant companies in the close-in Portland metro area include Umpqua Holdings, Weiden+Kennedy, NW Natural, PacifiCorp, PGE, New Seasons, Storables, McMenamins, McCormick & Schmick’s, Franz Bakery, Portland Brewing, Powell’s Books, ZGF Architects, and two major West Coast law firms: Stoel Rives and Schwabe, Williamson & Wyatt.

Full time employment increased 1.8% between March 2018 – March2019, an increase of 21,800 positions. Below is an overview of net job creation by industry from March 2018 through March 2019:

According to the State of Oregon Employment Department, the Portland Metro region created jobs at the rate of 1.6% in 2018. Portland ranks 16th among the 50 largest metropolitan areas in the United States.

JOB GROWTH BY INDUSTRYMSA PORTLAND

2,800 Construction, Mining, Logging

3,200Trade, Transportation & Utilities

Leisure & Hospitality

4,500 Manufacturing

2,000

2,500

Healthcare & Social Assistance

6,100Education & Health Services


Robin Pl

Robin Pl


Washington Square

Willam

ette Riv

er

205

5

99E

224

43Staffor

d Dr

Willamette Dr

Lake Oswego

Shadowood

Oak GroveSofi Lake Oswego

Cascade Summit

Edgewater at the Cove

Summerlinn

Milo at Mountain ParkThe Bluffs at Mountain Park

Westlake Meadows

Larkspur West Linn

Hidden Village

Properties

Larkspur West Linn19500 SW Hidden Springs RoadWest Linn, ORCascade Summit22100 Horizon DriveWest Linn, OREdgewater at the Cove19937 Main StreetOregon City, ORHidden Village4001 SW Robin PlaceWest Linn, ORMilo at Mountain Park2 Jefferson ParkwayLake Oswego, ORSofi Lake Oswego15000 SW Davis LaneLake Oswego, ORSummerlinn400 Springtree LaneWest Linn, ORThe Bluffs at Mountain Park50 Kerr ParkwayLake Oswego, ORWestlake Meadows5300 Parkview DriveLake Oswego, OR

RENT COMPARABLESLARKSPUR WEST LINN • 43 UNITS • WEST LINN, OR

Tryon Creek State Natural Area

Mary S. Young Park

Oswego La

ke



LARKSPUR WEST LINN19500 SW Hidden Springs Road, West Linn, ORTotal Units: 43 Avg SF: 1,069Year Built: 1978 Avg Rent: $1,618Renovated: 2018 Avg Rent/SF: $1.51

S

Unit type Units Sq Ft Rent Rent/Sq Ft0 BED / 1 BATH Flat 1 506 $1,118 $2.21

2 BED / 1 BATH Townhome 10 876 $1,417 $1.62

2 BED / 1.5 BATH Townhome 28 1,139 $1,659 $1.46

3 BED / 2 BATH Townhome 4 1,208 $1,958 $1.62

Average 43 1,069 $1,618 $1.51

1

THE BLUFFS AT MOUNTAIN PARK50 Kerr Parkway, Lake Oswego, ORTotal Units: 128 Avg SF: 1,118Year Built: 1974 Avg Rent: $1,817Renovated: 2013 Avg Rent/SF: $1.62

Unit type Units Sq Ft Rent Rent/Sq Ft1 BED / 1 BATH Townhome 35 789 $1,475 $1.87




Average 128 1,118 $1,817 $1.62



2

MILO AT MOUNTAIN PARK2 Jefferson Parkway, Lake Oswego, ORTotal Units: 129 Avg SF: 964Year Built: 1991 Avg Rent: $1,730Renovated: 2017 Avg Rent/SF: $1.79

WESTLAKE MEADOWS5300 Parkview Drive, Lake Oswego, ORTotal Units: 162 Avg SF: 922Year Built: 1984 Avg Rent: $1,708

Avg Rent/SF: $1.85

3


1 BED / 1 BATH Loft 20 863 $1,675 $1.94

2 BED / 2 BATH Flat 56 1,083 $1,794 $1.66

2 BED / 2 BATH Loft 11 1,259 $2,100 $1.67

Average 129 964 $1,730 $1.79


1 BED / 1 BATH Loft 8 624 $1,565 $2.51

2 BED / 2 BATH Flat 48 928 $1,625 $1.75

2 BED / 2 BATH Loft 41 1,037 $1,875 $1.81


2 BED / 1.75 BATH Loft 34 881 $1,695 $1.92

Average 162 922 $1,708 $1.85


RENT COMPARABLES

4

SOFI LAKE OSWEGO15000 SW Davis Lane, Lake Oswego, ORTotal Units: 82 Avg SF: 903Year Built: 1987 Avg Rent: $1,635Renovated: 2016 Avg Rent/SF: $1.81


2 BED / 2 BATH Flat 70 940 $1,675 $1.78

Average 82 903 $1,635 $1.81

LARKSPUR WEST LINN • 43 UNITS • WEST LINN, OR

5

HIDDEN VILLAGE4001 SW Robin Place, West Linn, ORTotal Units: 98 Avg SF: 854Year Built: 1987 Avg Rent: $1,424Renovated: 2018 Avg Rent/SF: $1.67


2 BED / 2 BATH Flat 27 924 $1,525 $1.65


Average 98 854 $1,424 $1.67


RENT COMPARABLES

6 7

EDGEWATER AT THE COVE19937 Main Street, Oregon City, ORTotal Units: 244 Avg SF: 968Year Built: 2018 Avg Rent: $1,616Renovated: New Construction Avg Rent/SF: $1.67

CASCADE SUMMIT22100 Horizon Drive, West Linn, ORTotal Units: 294 Avg SF: 1,093Year Built: 1977 Avg Rent: $1,808

Avg Rent/SF: $1.65


Unit type Units Sq Ft Rent Rent/Sq Ft0 Bed / 1 Bath Flat 45 535 $1,083 $2.03

1 Bed / 1 Bath Flat 79 795 $1,443 $1.81

2 Bed / 2 Bath Flat 50 1,074 $1,675 $1.56

3 Bed / 2 Bath Flat 70 1,365 $2,113 $1.55

Average 244 968 $1,616 $1.67


2 BED / 2 BATH Flat 125 1,068 $1,675 $1.57


3 BED / 2 BATH Flat 20 1,284 $2,313 $1.80


Average 294 1,093 $1,808 $1.65



Unit type Units Sq Ft Rent Rent/Sq Ft1 BED / 1 BATH Townhome 20 798 $1,350 $1.69



Average 94 1,258 $1,972 $1.57

SUMMERLINN400 Springtree Lane, West Linn, ORTotal Units: 94 Avg SF: 1,258Year Built: 1998 Avg Rent: $1,972Renovated: 2016 Avg Rent/SF: $1.57

8


TWO-BEDROOM LOFT AND TOWNHOME FLOOR PLANS

Average Rent Average Unit Size (Sq Ft)

$0

$500

$2,500

$2,000

$1,500

$1,000

Aver

age R

ent –

Aver

age S

q Ft

$1,538 $1,578

$1,798 $1,823$1,975

$2,075 $2,100

Hidden Village Milo at Mountain Park

Larkspur West Linn

Casade Summit SummerlinnThe Bluffs at Mountain Park

Westlake Meadows



PROJECTED OPERATIONSLARKSPUR WEST LINN • 43 UNITS • WEST LINN, OR

Income Current Scheduled Rents (Lease-up) Per UnitProjected Operations

(Stabilized Yr 1) Per Unit Note

Potential Gross Market Rent $895,488 $20,825 $895,488 $20,825 1Less: Loss to Lease -$60,691 -$1,411 -6.78% -$25,818 -$600 -2.88% 1

Scheduled Gross Rent $834,797 $19,414 $869,670 $20,225Less: Vacancy/Credit Loss -$41,740 -$971 -5.00% -$43,484 -$1,011 -5.00% 2

Net Rental Income $793,058 $18,443 $826,187 $19,214 Includes: Utility Billing (RUBs) $38,227 $889 70% $38,227 $889 70%

Includes: Miscellaneous $19,350 $450 $19,350 $450Total Other Income $57,577 $1,339 $57,577 $1,339 3Effective Annual Income - Residential $850,635 $19,782 $883,764 $20,553

Expenses Projected Operations Per Unit % GOI Projected Operations Per Unit % GOIReal Estate Taxes $55,432 $1,289 6.5% $55,432 $1,289 6.3% 4Insurance $9,460 $220 1.1% $9,460 $220 1.1%Total Utilities $54,610 $1,270 6.4% $54,610 $1,270 6.2%Administrative $8,506 $198 1.0% $8,838 $206 1.0%Advertising $4,253 $99 0.5% $4,419 $103 0.5%Fee Management $25,519 $593 3.0% $26,513 $617 3.0% 5On-site Payroll $63,798 $1,484 7.5% $63,711 $1,482 7.2%Landscaping $5,700 $133 0.7% $5,700 $133 0.6%Maintenance/Repairs $10,105 $235 1.2% $10,105 $235 1.1%Turnover $7,525 $175 0.9% $7,525 $175 0.9% 6Reserves $10,750 $250 1.3% $10,750 $250 1.2% 7

Total Estimated Expenses -$255,658 -$5,946 -30% -$257,062 -$5,978 -29%Total Estimated NOI $594,976 $626,701


PROJECTED OPERATIONSLARKSPUR WEST LINN • 43 UNITS • WEST LINN, OR

1. RENTS AND LTL Larkspur West Linn is in lease-up after completing extensive renovations. The table found on the previous page summarizes operations for the asset assuming full stabilization based on market-rate operations found within the Portland market for townhome properties. Rents are based on currently achieved leases, which are carried across vacant units. Projected scheduled rents of $1,618 per unit or $1.51 per sq ft.

2. VACANCY/CREDIT LOSS, CONCESSIONS, AND BAD DEBT

Operations assume a 5.0% vacancy rate based on lender underwriting requirements. Lenders consider the long-term nature of a property and the market in which it is located. Lenders typically underwrite to 5.0% vacancy. Per Multifamily NW’s Spring Apartment report, the Lake Oswego/West Linn submarket vacancy rate was 3.4%; the lowest vacancy rate of all submarkets in the Portland Metro area.

3. OTHER INCOME The projected operations assume Larkspur West Linn will generate additional income. Other income includes pet rent, month-to-month premiums, administrative fees and utility charges (RUBs). Larkspur West Linn could generate approximately $57,577 in Other Income.

RENT ROLL ANALYSIS: SCHEDULED RENTS

Unit Type Unit CountSquare

FeetLowest

Achieved Rent

Highest Achieved

Rent% Diff

Average Scheduled

Rent

Average Scheduled

Rent per Sq FtStudio 1 506 $1,149 $1,149 0.0% $1,149 $2.272 Bedroom / 1 Bathroom Flat 10 876 $1,299 $1,535 18.2% $1,487 $1.702 Bedroom / 1.5 Bathroom Townhome 15 1,130 $1,449 $1,749 20.7% $1,634 $1.452 Bedroom / 1.5 Bathroom Townhome 13 1,149 $1,499 $1,699 13.3% $1,612 $1.403 Bedroom / 2 Bathroom Flat 4 1,208 $1,999 $2,049 2.5% $2,023 $1.67Totals / Averages 43 1,069 $1,479 $1,636 10.9% $1,618 $1.51


OPERATIONS ANALYSISLARKSPUR WEST LINN • 43 UNITS • WEST LINN, OREXPENSESThe Larkspur West Linn’ expenses are projected base on market-rate operations for townhome properties in the metro area.

4. PROPERTY TAXES Property tax values for the 2018/2019 tax year were published October 15, and Larkspur West Linn’ taxes increased 3.9% over 2017/2018 taxes. In Oregon, property taxes are not reassessed on sale and are limited to a 3.0% annual increase at the state level. The gross property taxes for Larkspur West Linn for the 2018/2019 tax year total $57,146. The projected operations include the net property taxes – after the 3.0% discount for payment by November 1 – which total $55,432.

5. FEE MANAGEMENT Projected Operations have been adjusted for a management fee of 3.5% of GOI, which is reflective of typical management costs for assets like Larkspur West Linn in the Portland metro area.

6. TURNOVER Turnover assumes approximately 30% of the apartments will turn each year. Turnover cost is for make-ready processes only and does not include any capital repairs. The turnover costs assume $583 will be spent to turn an apartment.

7. 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.

Tax Year2017/2018 2018/2019

Account #

R00373134 $54,056 $56,237

R00373143 $718 $747

R01353298 $156 $162

Total $54,930 $57,146

% Change 4.48% 3.88%

Estimated Turnover Costs Budget

Total Units 43

% of units 30%

Expected Turnovers 13

Annual Turnover Cost $7,525

Per Unit Turnover Cost $175

Cost per Turnover $583


OFFER TERMS

QUESTIONS & TOUR REQUESTS:

Please do not disturb tenants.

All tours and inquiries regarding Larkspur West Linn are to be directed to HFO Investment Real Estate at (503) 241.5541.

Greg Frick • [email protected]

Tyler Johnson • [email protected]

Rob Marton • [email protected]

Jack Stephens • [email protected]

Lee Fehrenbacher • [email protected]

Todd Tully • [email protected]

Adam Smith • [email protected]

Khari Gates • [email protected]

Rand Hoffman • [email protected]

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

Brokers licensed in the States of Oregon and Washington.


PRICINGPrice $11,900,000

Per Unit $276,744

Per Sq Ft $259

Cap Rate 5.0%

Avg Square Foot 1,069

Projected Rent $1,615

Projected Rent per Sq Ft $1.51

ASSET SUMMARYProperty Larkspur West Linn

Location 19500 SW Hidden Springs Road

City, State West Linn, OR 97068

County Clackamas

Year Built 1978 / 2018 Renovation

Total Units 43

Approx NR Sq Ft 45,985 Sq Ft

Avg Unit Size 1,069 Sq Ft

Acreage 2.48 acres


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.

43 units • west linn, oregon › d2 › ifjsnkfzw3csxksmnr0...2 bedrooms 38 1,070 40,647 88.4% 3...

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