creston villa apartments · 30. the garden spout 31. n.w.i.p.a 32. henry higgins boiled bagels 33....
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OFFERING MEMOR ANDUM44 Units • Portland, Oregon
CRESTON VILLA APARTMENTS
www.hfore.com(503) 241.5541
INVESTMENT SUMMARYCreston Villa Apartments is a well-located 44-unit apartment community in southeast Portland, Oregon. Located near the intersection of Powell Boulevard and Cesar Chavez Boulevard (SE 39th Avenue), Creston Villa Apartments has immediate access to major thoroughfares as well as convenient retail services. Safeway is less than one block away, as is Portland’s newest multiplex movie theatre. Numerous local and national retailers and restaurants are found on Powell Boulevard, along Division Street to the north, and Holgate Boulevard to the south. Creston Park and Creston Elementary are immediately to the east, and Cleveland High School is within walking distance.
Creston Villa Apartments has a diverse unit mix that includes one-, two- and three-bedroom apartments. The majority of the floor plans—approximately 66%—are 776 sq ft two-bed one-bath apartments. Each of the units offers a private patio or deck, and a central laundry room is easily accessible.
Creston Villa Apartments’ rents currently average $1,123, or $1.54 sq ft and have demonstrated a positive trend. Current average rents are approximately 6.5% higher than 2018. Creston Villa Apartments’ convenient location and strong historical operations make the asset an exceptional investment opportunity.
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INVESTMENT HIGHLIGHTS
• Outstanding SE Portland location
• Newer roofs and windows
• Private patios or decks
• On-site laundry and off-street parking
EXECUTIVE SUMMARY
ASSET SUMMARYProperty Creston Villa Apartments
Location 3608 SE 40th Avenue
City, State Portland, OR 97202
County Multnomah
Year Built 1969
Total Units 44
Approx NR Sq Ft 32,002
Avg Unit Size 727
Acreage 0.99
PRICE SUMMARYPrice $7,150,000
Per Unit $162,500
Per Sq Ft $223
Cap Rate 5.10%
TOURS AND INQUIRIES Rob Marton • [email protected]
Greg Frick • [email protected]
www.hfore.com(503) 241.5541Fax: (503) 241.5548
Please do not disturb tenants.
29.6% 65.9% 4.5%1 Bedrooms 2 Bedrooms 3 Bedrooms
UNIT MIX SUMMARY
Unit Type Unit Count Avg Sq Ft Total Sq Ft % of Total Units
1 Bedrooms 13 570 7,409 29.6%
2 Bedrooms 29 776 22,518 65.9%
3 Bedrooms 2 1,038 2,075 4.5%
Total / Averages 44 727 32,002 100.0%
3CRESTON VILLA APARTMENTS • 44 UNITS • PORTLAND, OR
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5CRESTON VILLA APARTMENTS • 44 UNITS • PORTLAND, OR
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7CRESTON VILLA APARTMENTS • 44 UNITS • PORTLAND, OR
LIFESTYLE CONVENIENCES
SE 52th Ave
SE 50th Ave
SE 26th Ave
SE 28th Ave
SE 82nd Ave
SE 60th Ave
SE 92nd Ave
SE Woodstock Blvd
SE Holgate Blvd
SE Steele St
SE Foster Rd
César E. Chávez Blvd
Hawthorne
SE Powell Blvd
SE Division St
SE Belmont St
Mt Tabor Park
Woodstock Park
Creston Park
Lent Park
Mt Scott Park
26
Mall 205
Fubonn Shopping Center
McMenamins Baghdad Theater & Pub
Crystal Spring Rhododendron Garden
205
Century 16 Eastport Plaza
Powell Street Station
Pok Pok
Blue Star Donuts
Stumptown Coffee RoastersPetite Provence
Portland Campus
Mt Scott Community Center & Indoor Pool
HK Cafe
213
Creston Villa Apartments
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1. Safeway2. Brown Lumber3. Tecos Fresh Mexican Food4. Dank Snacks and Supplies5. T-Moble6. Petco Grooming7. Wells Fargo Bank8. Rapid Cash9. O’Reilly Auto Parts10. Les Schwab Tire Center11. Path Twyman’s Car Center12. Starbucks13. Rose City Pediatrics14. Denicolas’s15. Naomi’s Organic Farm Supply
SE 26th Ave SE 50th Ave
SE Division St
16. Oregon Buddist Temple17. Portland Taiko18. Holy Trinity Barbecue19. Gladstone Street Pub20. Plaid Pantry21. Smith PDX22. Loyola Jesuit Center23. Van Veen Nursery24. Rhododendron Society Portland25. Fireston Complete Auto Care26. Pho Hung27. Thai BBQ28. La Bama29. Taco Bell30. US Postal Service
31. Burger King32. Taco Time33. Speedboat Coffee34. Little Caesars Pizza35. Planned Parenthood - SE36. K & M Auto Service37. Bete-Luka | Ethiopian38. North Bar39. Smaaken Waffle Sanwiches40. Fern Kitchen41. Good Coffee42. Landmark Saloon43. Los Gorditos44. Tokio Table - Japanese
Steakhouse
45. Tasty n Daughter46. New Thai Blues47. Tea Bar SE48. Marino Cafe49. Loprinzi’s Gym50. Tropical Hut51. Rite Aid52. Tom’s53. 7-Eleven54. Authentic Thai Cuisine55. Yataimura Maru56. Xico57. Division Do it Best Hardware58. Atlas Pizza59. Townshend’s Teahouse
60. Ava Gene’s61. Olympia Provisions Public House62. Salt & Straw63. Blue Star Donuts64. Artigiano65. Pok Pok66. Whiskey Soda Lounge67. Imperial Bottle Shop & Taproom68. Bollywood Theater69. Papa G’s Vegan70. Pastini71. New Seasons Market72. Clinton Community Garden73. Yama Sushi & Izakaya74. Jacquelin
75. People’s Food Co-op76. US Postal Service77. Teutonic Wine Company78. Bullseye Glass Co79. Portland General Electric80. Fred Meyer Main Office81. Burgerville82. Catholic Charities83. McDonald’s84. Hopworks Urban Brewery85. Target / CVS Pharmacy86. Papa John’s Pizza87. Pacific Fish & Oyster88. Multnomah County Clinics
326 27
2928 32
3738
4544
3946 4348
50 475254
55565960
6168 6766
65696270
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73
7781
8486
87
74
6364 58
4140
3334
3112
14
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19
10
72
76 22
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35
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4249
111382
16
9
65 7
8115
75
78
79 80
85
17
202188
2
23
515357
24
25
4
IN THE VICINITY Restaurants and Dining Shopping/Entertainment Lifestyle Services
Creston Park
Powell Park
Cleveland High School
Franklin High School
St Ignatius School
Creston Elementary School
Creston Annex Head Start
Richmond Elementary School
Creston Villa Apartments SE 52nd Ave
SE Foster Rd
SE Powell Blvd
César E. Chávez Blvd
26
2683
9CRESTON VILLA APARTMENTS • 44 UNITS • PORTLAND, OR
SE 52nd Ave SE 72nd Ave
SE Holgate Blvd
SE Harold St
SE Steele St SE Foster Rd
1. Pho Hung2. Taco Bell3. Taqueria Los Gorditos4. Burger King5. Siri Thai6. U.S. Postal Service7. Speed Boat Coffee8. Subway9. Little Caesars Pizza10. Carts on Foster11. Trap12. Awesome Burger13. An Xuyen Bakery14. New Day Center for the Arts15. George Morlan Plumbing Supply
SE 92nd Ave
205
213
16. Foster Fitness Center17. Po’ Boy Art18. Foster Buds19. Nayar Taqueria20. FoPo Tarven21. Tambayan22. Y Arts / SE Center YMCA23. Assembly Brewing24. 7-Eleven25. Foster Market26. Round Table Pizza27. Laurelwood Park28. SEIU29. K & B Bakery30. The Garden Spout
31. N.W.I.P.A32. Henry Higgins Boiled Bagels33. Bar Carlo34. Starday Tavern35. Off The Griddle36. Euroclassic Furniture37. Dutch Bros38. Garden Home Montessori School39. Dollar Tree40. Everyday Food Mart41. Envirocars42. Maple Leaf43. Portland Mercado44. FoPo Food Carts45. Mt Scott Community Center
46. WorkSource Portland Metro47. McDonald’s48. Popeyes Louisiana Kitchen49. Emmert Cali Saigon Mall50. K-Town Korean BBQ51. Wells Fargo Bank52. Big 5 Sporting Goods53. Standard TV & Appliance54. Harbor Freight Tools55. Super King Buffet56. 82nd Street Bar & Grill57. IHOP58. Shamrock Bar & Grill59. Double Up Bar60. Batteries Plus Bulds
61. Baxter Auto Parts62. Multnomah County Library63. Walgreens64. GameStop65. HK Cafe66. Dollar Tree67. U.S. Bank Branch68. Walmart69. Jack in the Box70. Domino’s Pizza71. Fujiyama Sushi Bar & Grill72. Wingstop73. LA Fitness74. Taco Bell75. Bank of America
76. JOANN Fabrics and Crafts77. Izzy’s Pizza & Buffet78. Ross Dress for Less79. U.S. Postal Services80. Carl’s Jr81. Best Baguette82. KFC83. Pizza Hut84. WinCo Food85. OM Seafood Company86. Chair Outlet87. 7-Elevent88. Powell’s Seafood89. ABC Seafood Company90. Steakadelphia
21 34 5
7 89
11 12 13
18
1920
212423
26 293235
33 3437
42
43 44
49
55 565758
65
6970 71
74
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808283888990
85 81
72
59
4748
50
106
14
2728
67
73
84
8687
62
38
4546
51
17
22
1615
25
30 3136
39 40 41
52
53
60
61
63 6468
75
78 79
76
66
54
IN THE VICINITY Restaurants and Dining Shopping/Entertainment Lifestyle Services
Woodstock Park
Lents Park
Creston Park
Essex ParkKern Park Century 16
Eastport Plaza
SE Powell Blvd26Creston Villa Apartments
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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
11CRESTON VILLA APARTMENTS • 44 UNITS • PORTLAND, OR
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
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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
7.7% Year-over-year rent growth**
$68,125 Median household
income
3.7% Unemployment rate
(November 2018)
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
13CRESTON VILLA APARTMENTS • 44 UNITS • PORTLAND, OR
TOP AREA EMPLOYERS
20,000 area employees 10,269 area employees 12,000 area employees
12,955 area employees
6,780 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.
16,200 area employees
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.
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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 companied 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. Following is a list of net job growth by industry March 2018–2019:
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
15CRESTON VILLA APARTMENTS • 44 UNITS • PORTLAND, OR
RENT COMPARABLESCRESTON VILLA APARTMENTS • 44 UNITS • PORTLAND, OR
Creston Park
Kenilworth Park
SE 42nd Ave
SE Powell Blvd
SE Frances St
SE Franklin St
SE Kelly St
SE Tibbetts St
SE Rhine St
SE Brooklyn St
SE Gladston St
SE Boise St
SE Center St
SE Cora St
SE Mall St
SE Holgate Blvd
César E. Chávez Blvd
SE 36th AveSE 33rd Ave
SE 43rd Ave
SE 38th Ave
SE 37th Ave
26
Maplewood Court
The Oak Tree
Shady Glenn Apartments
Waverly Arms
Gladstone Gardens
Hudson Court Apartments
Cedar Flats
Ravenbourne
Creston Villa Apartments
Properties
Creston Villa3608 SE 40th AvenuePortland, ORCedar Flats3741 SE 40th AvenuePortland, ORGladstone Gardens3937 SE Gladstone StreetPortland, ORHudson Court Apartments4125 SE Cesar Chavez BoulevardPortland, ORMaplewood Court4030 SE Gladstone StreetPortland, ORRavenbourne3685 SE Francis StreetPortland, ORShady Glenn Apartments3710 SE 36th PlacePortland, ORThe Oak Tree3615 SE 40th AvenuePortland, ORWaverly Arms3725 SE Rhine StreetPortland, OR
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RENT COMPARABLESCRESTON VILLA APARTMENTS • 44 UNITS • PORTLAND, OR
1
CRESTON VILLA3608 SE 40th Avenue, Portland, ORTotal Units: 44 Avg SF: 708Year Built: 1969 Avg Rent: $1,122
Avg Rent/SF: $1.59
WAVERLY ARMS3725 SE Rhine Street, Portland, ORTotal Units: 26 Avg SF: 746Year Built: 1964 Avg Rent: $1,083
Avg Rent/SF: $1.45
S
Unit type Units Sq Ft Rent Rent/Sq FtStudio 9 600 $1,003 $1.67
1 Bed / 1 Bath 12 750 $1,033 $1.38
2 Bed / 1 Bath 5 1,000 $1,349 $1.35
Average 26 746 $1,083 $1.45
Unit type Units Sq Ft Rent Rent/Sq Ft1 Bedroom / 1 Bathroom 3 384 $955 $2.49
1 Bedroom / 1 Bathroom 10 626 $963 $1.54
2 Bedroom / 1 Bathroom 29 776 $1,177 $1.52
3 Bedroom / 1 Bathroom 1 950 $1,525 $1.61
3 Bedroom / 1.5 Bathroom 1 1,125 $1,260 $1.12
Average 44 727 $1,123 $1.54
17CRESTON VILLA APARTMENTS • 44 UNITS • PORTLAND, OR
RENT COMPARABLESCRESTON VILLA APARTMENTS • 44 UNITS • PORTLAND, OR
2
THE OAK TREE3615 SE 40th Avenue, Portland, ORTotal Units: 22 Avg SF: 725Year Built: 1961 Avg Rent: $1,112
Avg Rent/SF: $1.53
3
CEDAR FLATS3741 SE 40th Avenue, Portland, ORTotal Units: 47 Avg SF: 888Year Built: 1972 Avg Rent: $1,253
Avg Rent/SF: $1.41
Unit type Units Sq Ft Rent Rent/Sq Ft1 Bed / 1 Bath 10 670 $970 $1.45
2 Bed / 1 Bath 12 770 $1,230 $1.60
Average 22 725 $1,112 $1.53
Unit type Units Sq Ft Rent Rent/Sq FtStudio 2 550 $798 $1.45
1 Bed / 1 Bath 5 775 $978 $1.26
2 Bed / 1 Bath 40 919 $1,311 $1.43
Average 47 888 $1,253 $1.41
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RENT COMPARABLES
5
RAVENBOURNE3685 SE Francis Street, Portland, ORTotal Units: 37 Avg SF: 1,097Year Built: 1973 Avg Rent: $1,085
Avg Rent/SF: $0.99
Unit type Units Sq Ft Rent Rent/Sq Ft1 Bed / 1 Bath 16 533 $561 $1.05
2 Bed / 1 Bath 15 837 $841 $1.00
Average 31 680 $696 $1.02
Unit type Units Sq Ft Rent Rent/Sq Ft2 Bed / 1 Bath 19 1,000 $931 $0.93
3 Bed / 1 Bath 18 1,200 $1,248 $1.04
Average 37 1097 $1,085 $0.99
SHADY GLENN APARTMENTS3710 SE 36th Place, Portland, ORTotal Units: 31 Avg SF: 680Year Built: 1978 Avg Rent: $696
Avg Rent/SF: $1.02
4
CRESTON VILLA APARTMENTS • 44 UNITS • PORTLAND, OR
19CRESTON VILLA APARTMENTS • 44 UNITS • PORTLAND, OR
RENT COMPARABLES
6
GLADSTONE GARDENS3937 SE Gladstone Street, Portland, ORTotal Units: 25 Avg SF: 783Year Built: 1960 Avg Rent: $1,301
Avg Rent/SF: $1.66
Unit type Units Sq Ft Rent Rent/Sq Ft1 Bed / 1 Bath 11 650 $1,094 $1.68
2 Bed / 1 Bath 24 750 $958 $1.28
Average 35 719 $1,001 $1.39
7
HUDSON COURT APARTMENTS4125 SE Cesar Chavez Boulevard, Portland, ORTotal Units: 35 Avg SF: 719Year Built: 1969 Avg Rent: $1,001
Avg Rent/SF: $1.39
Unit type Units Sq Ft Rent Rent/Sq Ft1 Bed / 1 Bath 2 725 $1,258 $1.74
2 Bed / 1 Bath 23 788 $1,305 $1.66
Average 25 783 $1,301 $1.66
CRESTON VILLA APARTMENTS • 44 UNITS • PORTLAND, OR
20 HFO INVESTMENT REAL ESTATE
RENT COMPARABLES
Unit type Units Sq Ft Rent Rent/Sq Ft1 Bed / 1 Bath 10 750 $988 $1.32
2 Bed / 1 Bath 10 836 $1,195 $1.43
Average 20 793 $1,091 $1.38
MAPLEWOOD COURT4030 SE Gladstone Street, Portland, ORTotal Units: 20 Avg SF: 793Year Built: 1971 Avg Rent: $1,091
Avg Rent/SF: $1.38
8
CRESTON VILLA APARTMENTS • 44 UNITS • PORTLAND, OR
21CRESTON VILLA APARTMENTS • 44 UNITS • PORTLAND, OR
ONE-BEDROOM FLOOR PLANS
Average Rent Average Unit Size (Sq Ft)
$0
$600
$400
$200
$1,000
$800
$1,200
Aver
age R
ent –
Aver
age S
q Ft $959 $970 $978 $988
$1,033$1,094
Creston Villa Maplewood Court
Waverly Arms Hudson Court Apartments
The Oak Tree Cedar Flats
RENT COMPARABLESCRESTON VILLA APARTMENTS • 44 UNITS • PORTLAND, OR
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TWO-BEDROOM FLOOR PLANS
Average Rent Average Unit Size (Sq Ft)
$0
$600
$400
$200
$1,200
$1,000
$800
$1,600
$1,400
Aver
age R
ent –
Aver
age S
q Ft
$931 $958
$1,177 $1,195 $1,230$1,300
$1,349
Ravenbourne Creston Villa Maplewood Court
Waverly ArmsHudson Court Apartments
The Oak Tree Cedar Flats
RENT COMPARABLESCRESTON VILLA APARTMENTS • 44 UNITS • PORTLAND, OR
23CRESTON VILLA APARTMENTS • 44 UNITS • PORTLAND, OR
Income December 2018 TTM July 2019 TTM
Scheduled Gross Rent $554,355 $579,536Less: Vacancy/Credit Loss -$29,086 -5.2% -$24,657 -4.3%Less: Concessions -$4,080 -0.7% -$120 0.0%Less: Bad Debt/Recovery -$1,653 -0.3% -$65 0.0%
Net Rental Income $519,536 $554,694Other Income $38,566 $42,443
Includes: Laundry $7,823 $7,104Includes: Utility Billing (RUBs) $21,845 51.6% $23,840 56.3%Includes: Miscellaneous $8,897 $11,498
Gross Operating Income $558,102 $597,137
Expenses December 2018 TTM % GOI December 2018 TTM % GOI
Real Estate Taxes $51,967 $51,967
Insurance $6,806 $6,806
Total Utilities $46,888 $46,888
Administrative $10,797 $10,797
Fee Management $25,155 4.5% $25,155 4.2%
Asset Management $5,590 1.0% $5,590 0.9%
Onsite Payroll $52,796 9.5% $52,796 8.8%
Landscaping $8,290 $8,290
Maintenance/Repairs $47,435 $47,435
Turnover $11,429 $11,429
Reserves $11,000 $11,000
Total Expenses -$278,154 -$278,154Expenses per Unit -$6,322 -$6,322
% of Gross Operating Income 49.8% 46.6%
Net Operating Income (NOI) $279,948 $318,983
HISTORICAL OPERATIONSCRESTON VILLA APARTMENTS • 44 UNITS • PORTLAND, OR
24 HFO INVESTMENT REAL ESTATE
Income Scheduled Rents of as 07/2019 Projected Operations Note
Scheduled Gross Rent $592,990 $13,477 $646,942 $14,703 1Less: Vacancy/Credit Loss -$29,649 -$674 -5.0% -$32,347 -$735 -5.0% 2Less: Concessions $0 $0 0.0% $0 $0 0.0% Less: Bad Debt/Recovery $0 $0 0.0% $0 $0 0.0%
Net Rental Income $563,340 $12,803 $614,595 $13,968 Other Income $42,443 $965 $42,443 $965 3
Includes: Laundry $7,104 $161 $7,104 $161 Includes: Utility Billing (RUBs) $23,840 $542 56.3% $23,840 $542 56.3% Includes: Miscellaneous $11,498 $261 $11,498 $261
Gross Operating Income $605,783 $13,768 $657,038 $14,933
Expenses Projected Operations Per Unit % GOI Projected Operations Per Unit % GOI
Real Estate Taxes $53,449 $1,215 8.8% $53,449 $1,215 8.1% 4
Insurance $6,806 $155 1.1% $6,806 $155 1.0%
Total Utilities $46,888 $1,066 7.7% $46,888 $1,066 7.1%
Administrative $10,797 $245 1.8% $10,797 $245 1.6%
Fee Management $21,202 $482 3.5% $22,996 $523 3.5% 5
Asset Management $0 $0 0.0% $0 $0 0.0% 6
Onsite Payroll $52,796 $1,200 8.7% $52,796 $1,200 8.0%
Landscaping $8,290 $188 1.4% $8,290 $188 1.3%
Maintenance/Repairs $21,328 $485 3.5% $21,328 $485 3.2% 7
Turnover $8,580 $195 1.4% $8,580 $195 1.3% 8
Reserves $11,000 $250 1.8% $11,000 $250 1.7% 9
Total Expenses -$241,137 -$242,930 Expenses per Unit -$5,480 -$5,521
% of Gross Operating Income 39.8% 37.0%
Net Operating Income (NOI) $364,647 $414,107
PROJECTED OPERATIONSCRESTON VILLA APARTMENTS • 44 UNITS • PORTLAND, OR
25CRESTON VILLA APARTMENTS • 44 UNITS • PORTLAND, OR
OPERATIONS ANALYSIS1. RENTS Creston Villa Apartments’ current rents average $1,123 per unit or $1.54 per sq ft based on a rent roll dated July 2019.
Rents have shown a positive trend. The current scheduled rents are nearly $75 per unit higher than 2018 averages.
Projected rents are based on new leases and 3% increases to specific floor plans which have had limited turnover. The market rates are projected at $1,225 per unit or $1.68 per sq ft.
2. VACANCY Operations have been adjusted for 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 in the Portland metro area. The vacancy rate includes both concessions and bad debt.
3. OTHER INCOME Creston Villa Apartments generated $42,443 in Other Income based on July 2019 TTM collections, and the projected operations include this income.
RENT ROLL ANALYSIS: MARKET RENTS
Unit Type Unit Count Square Feet Average Scheduled Rent
Average Scheduled Rent per Sq Ft
Average Market Rent
Average Market Rent per Sq Ft % Change
1 Bedroom / 1 Bathroom 3 384 $955 $2.49 $1,060 $2.76 9.9%1 Bedroom / 1 Bathroom 10 626 $963 $1.54 $1,115 $1.78 13.7%2 Bedroom / 1 Bathroom 29 776 $1,177 $1.52 $1,258 $1.62 6.4%3 Bedroom / 1 Bathroom 1 950 $1,525 $1.61 $1,525 $1.61 0.0%3 Bedroom / 1.5 Bathroom 1 1,125 $1,260 $1.12 $1,570 $1.40 19.7%Totals / Averages 44 727 $1,123 $1.54 $1,225 $1.68 8.3%
RENT ROLL ANALYSIS: SCHEDULED RENTS
Unit Type Unit Count Square Feet Lowest Achieved Rent
Highest Achieved Rent % Diff Average Scheduled
RentAverage Scheduled
Rent per Sq Ft1 Bedroom / 1 Bathroom 3 384 $905 $1,030 13.8% $955 $2.491 Bedroom / 1 Bathroom 10 626 $825 $1,080 30.9% $963 $1.542 Bedroom / 1 Bathroom 29 776 $1,000 $1,350 35.0% $1,177 $1.523 Bedroom / 1 Bathroom 1 950 $1,525 $1,525 0.0% $1,525 $1.613 Bedroom / 1.5 Bathroom 1 1,125 $1,260 $1,260 0.0% $1,260 $1.12Totals / Averages 44 727 $1,103 $1,249 15.9% $1,123 $1.54
CRESTON VILLA APARTMENTS • 44 UNITS • PORTLAND, OR
26 HFO INVESTMENT REAL ESTATE
OPERATIONS ANALYSIS
1 bed – 1 bath 1 bed – 1 bath 2 bed – 1 bath
Sche
duled
Rent
Average Rent Maximum RentMinimum Rent
$900
$700
$1,100
$1,000
$1,200
$1,300
$1,400RENT RANGES BY UNIT TYPE
$800
CRESTON VILLA APARTMENTS • 44 UNITS • PORTLAND, OR
27CRESTON VILLA APARTMENTS • 44 UNITS • PORTLAND, OR
-3.50%
-4.00%
-2.50%
-3.00%
-1.50%
-2.00%
-1.00%
-0.50%
0.00%
-4.50%
Vaca
ncy
RENT TRENDS
Scheduled RentsJuly 2019 T6-Months Annualized
July 2019 T3-Months Annualized
July 2019 TTM$1,080
$1,100
$1,105
$1,090
$1,095
$1,085
$1,115
$1,110
$1,125
$1,120
Aver
age L
ease
Ren
t
$1,098
$1,112
$1,121$1,123
OPERATIONS ANALYSISCRESTON VILLA APARTMENTS • 44 UNITS • PORTLAND, OR
28 HFO INVESTMENT REAL ESTATE
OPERATIONS ANALYSISHISTORICAL INCOME TRENDS
$50,000
$49,000
$49,500
98.0%
100.0%
$48,500
$48,00096.0%
$47,500
$47,000
94.0%
$46,500
$45,500
$46,000
88.0%
90.0%
92.0%
86.0%$45,000
102.0%
Sche
dule
d Re
nt
Occu
panc
y
Dec 2018 Jan 2019Nov 2018Oct 2018 Jul 2019Apr 2019Feb 2019Aug 2018 Jun 2019May 2019Mar 2019Sep 2018
Scheduled Rent Occupancy
CRESTON VILLA APARTMENTS • 44 UNITS • PORTLAND, OR
29CRESTON VILLA APARTMENTS • 44 UNITS • PORTLAND, OR
OPERATIONS ANALYSISEXPENSESCreston Villa Apartments’ expenses are based on December 2018 YE operations, which represent a full year’s operations.
4. PROPERTY TAXES Oregon’s property taxes are evaluated on a fiscal year starting July 1. Property tax values for the 2018-2019 tax year were published October 15. Projected operations include current taxes for the 2018-2019 property tax year.
Creston Villa Apartments’ taxes increased 4.16% over 2017-2018. 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 by November 1 each year receive a 3.0% discount. Oregon’s tax years starts July 1 and anticipation of the pending tax year; net property taxes are used in the projected operations.
5. MANAGEMENT FEE The management fee has been adjusted to a market rate of 3.5% of gross operating income (GOI).
6. ASSET MANAGEMENT FEE The operations include an asset management fee that totals $5,590 annually. The asset management fee is applicable to the current owner and, therefore, removed from projected operations.
7. MAINTENANCE/REPAIR The maintenance repair costs totaled $47,435, or $1,078 per unit for December 2018 YE operations. The operations have been adjusted for capital costs and represent market-rate costs for supplies only.
8. TURNOVER Per move-in dates on the July 2019 rent roll, approximately 10 units turned over in 2018, a turnover rate of 23%. The turnover costs for December 2018 YE operations totaled $11,429, or $260 per unit. This expense equates to a cost of $1,143 per turned unit. The turnover cost may include one-time, capital expenditures. The projected operations have been adjusted to reflect costs for make-ready processes only and not to include any capital costs.
9. 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, a total of $11,000 annually.
TAX HISTORYTax Year 2017/2018 2018/2019Account #
R0624890 $51,227 $53,449
Total $51,227 $53,449
% Change 8.48% 4.16%
CRESTON VILLA APARTMENTS • 44 UNITS • PORTLAND, OR
30 HFO INVESTMENT REAL ESTATE
OFFER TERMSCRESTON VILLA APARTMENTS • 44 UNITS • PORTLAND, OR
QUESTIONS & TOUR REQUESTS:
Please do not disturb tenants.
All tours and inquiries regarding Creston Villa Apartments are to be directed to HFO Investment Real Estate at (503) 241.5541.
Rob Marton • [email protected]
Greg Frick • [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.
PRICE SUMMARYPrice $7,150,000
Per Unit $162,500
Per Sq Ft $223
Cap Rate 5.10%
Avg Square Foot 727
Avg Rent $1,123
Avg Rent per Sq Ft $1.54
ASSET SUMMARYProperty Creston Villa Apartments
Location 3608 SE 40th Avenue
City, State Portland, OR 97202
County Multnomah
Year Built 1969
Total Units 44
Approx NR Sq Ft 32,002
Avg Unit Size 727
Acreage 0.99
31CRESTON VILLA APARTMENTS • 44 UNITS • PORTLAND, OR
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.