Download - 6256-6258 SOUTHEAST F ROAD
6256-6258 SOUTHEAST FOSTER ROADPORTLAND, OR 97206
Exclusively Listed By:
Nicholas R. Bushong
Senior Associate
503.200.2078
License: OR 2012209785
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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
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by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo
or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of
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ACTIVITY ID:
C O N F I DE N T I A L I T Y A N D DI S C L A I M E R
6256-6258 Southeast Foster Rd.
PORTLAND OR 97206
6256-6258 SE Foster Rd.
P O R T L A N D O R E G O N 9 7 2 106
EXECUTIVE SUMMARY
Price $1,200,000
Gross Leasable Area 6,100 SF
Lot Size 0.80 Acres (3,485 SF)
YearBuilt 1928
Zoning CM2
EXECUTIVE SUMMARY
SBA FINANCING QUOTE
Loan To Value $ 1,020,000 (85%)
Down Payment $ 180,000 (15%)
Interest Rate 4.85%
Term 5 Year Fixed
Amortization 25 Years
Monthly Payments $5,874
Marcus and Millichap has been exclusively selected to
market for sale the mixed use commercial building
located at 6256-6258 SE Foster Road. The property is
strategically located between the Foster/Powell,
Woodstock and Creston neighborhoods on the going-
home side of the street and benefits from outstanding
visibility on SE Foster Road. The property is a 6,100 SF
concrete block commercial building with approx. 3,300
square feet of ground floor retail space that could be
demised into 2-3 different units. The second level is
approx. 2,800 square feet and consists of a 2-bedroom
apartment and eight (8) small offices with a kitchen.
This property presents an opportunity for either an
investor to re-tenant the property and increase both rents
for the retail suites along with significantly increase the
income from the second floor offices and apartment unit.
This is also a fantastic opportunity for an owner/user or
live/work buyer to acquire a flexible building that would
accommodate a myriad of different businesses and
provide additional income for the user.
INVESTMENT HIGHLIGHTS
• Close-In Southeast Portland Location
• Attractive Commercial Zoning (CM2)
and Mixed Use
• Add Value Opportunity on SE Foster Road
• High Street Visibility at Lighted Intersection
• New TPO Roof (2017)
PROPERTY OVERVIEW
RENT ROLLLease Dates
Tenant Name SF Comm. Exp.Rent Per
Sq. Ft.
Total Rent
Per Month
Total Rent
Per Year
Lease
Type
Upstairs Master Lease 2,800 MTM MTM $10.71 $2,500 $30,000 G
Occupied Retail 800 3/1/2019 2/28/2020 $12.00 $950 $11,400 G
Vacant Retail 2,500
Total 6,100 $3,400 $40,800
EXPENSE STATMENTOperating Expenses $
Property Tax $6,638
Insurance $2,300
Water/Sewer/Garbage $2,500*
Electric $ 1,000*
HVAC Maintenance $ 1,000*
General Maintenance $ 2,500*
Management Fee (3%) $ 1,242
Reserves $ 1,145
Total $ 18,325
*normalized to market
5
Foster Rd
“Occupied Retail” on Rent Roll
5
PORTLAND-VANCOUVEROVERVIEW
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.
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.
DEMOGRAPHICS
SPORTS
ARTS & ENTERTAINMENT
▪ 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%
PORTLAND METRO AREA
Influx of new residents and visitors to Portland boosts demand for retail.
Approximately 21,000 individuals are expected to migrate to the metro this year,
drawn by the market’s vibrant job creation. Tourism has also risen for eight straight
years. The growing consumer base is contributing to a 7.7 percent jump in retail
sales, well above the U.S. level of 5.4 percent. As revenue improves, retailers are on
the lookout for quality space. Total completions for 2018 will surpass last year’s
deliveries but are still below the annual average for the cycle. Construction is taking
place largely outside the urban core, with almost 80 percent of arrivals going to the
submarkets of Southwest Portland, the I-5 Corridor and Clark County.
Extremely low vacancy supports healthy rent gains. Favorable demographics and
below-average construction activity have enabled vacancy to decline steadily over
the past seven years to a rate of 3.3 percent in 2018. Several areas of the market
have minimal availability of sub-2 percent, with almost no vacancy for multi-tenant
space in the centrally located CBD and Lloyd District submarkets. As availability falls,
rents are improving. Acute vacancy and minimal completions are driving above-
market growth rates in Northwest Portland and on the Westside.
• Retail properties in central Portland continue to perform well amid less
supply-side pressure. The average cap rate for assets downtown and in the
surrounding neighborhoods compressed below 6 percent over the past four
quarters, with an average sale price of $325 per square foot, just above the
market average of $313 per square foot.
• Transaction velocity roughly doubled in the Southwest submarket during the
12 months prior to July. Assets in the Portland-adjacent community of
Beaverton, itself the sixth largest city in Oregon, changed hands at an
average sale price of $400 per square foot.
• The strength of the Portland retail market is drawing investment from
elsewhere in the country, including Michigan and Minnesota. Foreign
investors from Canada are also targeting Portland, as evidenced by two
multi-property acquisitions that were made in August.
Retail 2018 Outlook
New Development Has No Impact on Tight
Vacancy; Rent Growth Continues
540,000 sq. ft.
will be completed
3.2% increase in
asking rents
40 basis point
decrease in vacancy
Construction:
Less vacant space is contributing to the
average monthly rent payment improving to
$19.93 per square foot this year. In 2017
rents appreciated 6.9 percent.
Net absorption improves year over year to
roughly 970,000 square feet, compressing
vacancy to 3.3 percent in 2018.
* Cap rates trailing 12 months through 2Q18; 10-Year Treasury up to June 29.
Sources: CoStar Group, Inc.; Real Capital Analytics
A total of 540,000 square feet will be
completed during 2018, up from 345,000
square feet last year. Roughly 85 percent of
this year’s inventory is pre-leased.
Vacancy:
Rents:
Investment Trends
Income
In 2018, the median household income for your selected geography is
$80,949, compare this to the US average which is currently $58,754.
The median household income for your area has changed by 61.11%
since 2000. It is estimated that the median household income in your
area will be $92,202 five years from now, which represents a change
of 13.90% from the current year.
The current year per capita income in your area is $50,857, compare
this to the US average, which is $32,356. The current year average
household income in your area is $112,631, compare this to the US
average which is $84,609.
Population
In 2018, the population in your selected geography is 23,944. The
population has changed by 9.36% since 2000. It is estimated that the
population in your area will be 24,215.00 five years from now, which
represents a change of 1.13% from the current year. The current
population is 48.59% male and 51.41% female. The median age of
the population in your area is 40.93, compare this to the US average
which is 37.95. The population density in your area is 7,600.49 people
per square mile.
Households
There are currently 10,788 households in your selected geography.
The number of households has changed by 12.29% since 2000. It is
estimated that the number of households in your area will be 10,999
five years from now, which represents a change of 1.96% from the
current year. The average household size in your area is 2.22 persons.
Employment
In 2018, there are 11,186 employees in your selected area, this is also
known as the daytime population. The 2000 Census revealed that
71.84% of employees are employed in white-collar occupations in
this geography, and 28.33% are employed in blue-collar occupations.
In 2018, unemployment in this area is 2.50%. In 2000, the average
time traveled to work was 25.00 minutes.
Race and Ethnicity
The current year racial makeup of your selected area is as follows:
85.04% White, 3.33% Black, 0.14% Native American and 5.57%
Asian/Pacific Islander. Compare these to US averages which are:
70.20% White, 12.89% Black, 0.19% Native American and 5.59%
Asian/Pacific Islander. People of Hispanic origin are counted
independently of race.
People of Hispanic origin make up 4.46% of the current year
population in your selected area. Compare this to the US average of
18.01%.
Housing
The median housing value in your area was $434,186 in 2018,
compare this to the US average of $201,842. In 2000, there were
6,444 owner occupied housing units in your area and there were
3,163 renter occupied housing units in your area. The median rent at
the time was $564.
Source: © 2018 Experian
Exclusively Listed By:
Nicholas R. Bushong
Senior Associate
503.200.2078
License: OR 2012209785