the oliver · 46. new thai blues 47. tea bar se 48. marino cafe 49. loprinzi’s gym 50. tropical...

OFFERING MEMOR ANDUM21 Units • Portland, OregonTHE OLIVER

2 HFO INVESTMENT REAL ESTATE

EXECUTIVE SUMMARY

PRICE SUMMARYPrice $5,850,000

Price Per Unit $278,571

Per Square Foot $431

Projected Cap Rate 4.52%

TOURS AND INQUIRIES Greg Frick • [email protected]

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

Please do not disturb tenants.

The Oliver is a new, high-end apartment building located in the picturesque Richmond neighborhood of Portland. This newer building features modern and efficient designs. Unit amenities include high-efficiency washers and dryers and air conditioning, plus hardwood and cement flooring, solid-surface countertops, and bike storage.

The Oliver consists of one- and two-bedroom homes in an extremely desirable location in SE Portland. The up-and-coming Richmond neighborhood offers dozens of restaurants, coffee shops, and bars that will make any tenant happy. Inside the building is a retail tenant, Tea Bar, making it a quick trip for residents to grab a snack.

With rents averaging $1,382 per unit or $2.42 per square foot, The Oliver has shown strong demand for one- and two-bedroom units in the Portland metro area. The Oliver offers a rare opportunity to acquire a new construction building with a proven rental history in Portland’s urban core.

ASSET SUMMARYProperty The Oliver

Location 4330 SE Division Street

City, State Portland, OR 97206

County Multnomah

Year Built 2015

Total Units 21

Approx NR Sq Ft 13,568

Avg Unit Size 572

Acreage 0.16

UNIT MIX SUMMARY - THE OLIVERUnit Type Unit Count Avg Square Feet Total Square Feet % of Total Units

1 Bed / 1 Bath 6 472 2,832 28.6%

1 Bed / 1 Bath 6 544 3,264 28.6%

1 Bed / 1 Bath 6 616 3,696 28.6%

2 Bed / 1 Bath 2 684 1,368 9.5%

2 Bed / 1 Bath 1 854 854 4.8%

Total / Averages 21 572 12,014 100%

3THE OLIVER • PORTLAND, OREGON

Property Highlights:• Washer & Dryer in Units• Unique Floorplans• Community Patio

Overlooking Portland• Ground Floor Retail Tenant


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.

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. The U.S. Census Bureau pegged Portland’s Q3 2019 vacancy rate at 4.7% and the U.S. average at 6.8%.

The Multifamily NW Apartment Report survey proved average Fall 2018-19 year-over-year rent growth—not accounting for concessions—at 7.4%.

SKILLED WORKFORCE & STRONG EMPLOYMENTThe city of Portland was the 6th best educated major city in the U.S. in 2017, with 21% of adults having an advanced college degree, lagging behind only Washington DC, Seattle, Boston, Atlanta and San Francisco.

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.

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 RANKINGS

• No.1 Restaurant City of the Year – Bon Appetit• No.3 Healthiest City in the U.S. – Active.com• No.4 Best City for Biking – Fast Company• No.5 Fittest Cities in America – American College of Sports Medicine

Healthiest Cities to Live– Thrillist.com –

No.7

Best City for an Active Lifestyle– Wallethub –

No.4

No.7Best Cheap Destinations in the U.S.

– U.S. News and World Report –

No.9Best Foodie Cities in the USA


No.2Fiscally Fit Cities

– Sperling’s 2019 (FISCALLY not physically) –

No.1Best Food City in America

– WalletHub (2019) –

No.8Best Place to Live in the U.S.


No.5Best Cities to Work from Home

– Yahoo Finance (2020) –

No.4Best Cities for a Healthy Retirement

– Sperling’s (2019) –

No.7U.S. Cities with Lowest Startup Costs

– Embroker (2019) –

No.8Fittest Cities in America

– CBS News –

No.5Best Places for Business and Careers

– Forbes (2015-2019) –

No.2Best Cities for Foodies

– Sperling’s (2019) –

Portland consistently receives glowing reviews and rankings from the media.

2019 lists include:

2018 lists include:


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

The Oliver


1. Safeway2. Brown Lumber3. Tecos Fresh Mexican Food4. Dank Snacks and Supplies5. T-Mobile6. Petco Grooming7. Wells Fargo Bank8. Rapid Cash9. O’Reilly Auto Parts10. Les Schwab Tire Center11. Pat Twyman’s Car Center12. Starbucks13. Rose City Pediatrics14. DeNicola’s15. Naomi’s Organic Farm Supply

SE 26th Ave SE 50th Ave

SE Division St

16. Oregon Buddhist Temple17. Portland Taiko18. Holy Trinity Barbecue19. Gladstone Street Pub20. Hapa PDX Ramen21. Smith PDX22. Loyola Jesuit Center23. Coffee Beer24. Rhododendron Society Portland25. Firestone 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 Sandwiches40. 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. C Bar87. Pacific Fish & Oyster88. Multnomah County Clinics

326 27

2928 32

3738

4544

3946 4348

50 475254

55565960

6168 6766

65696270

71

73

7781

84

86

87

74

6364 58

4140

3334

3112

14

18

19

10

72

76 22

30

35

36

4249

111382

16

9

65 7

8115

75

78

79 80

85

17

20

2188

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

The Oliver

SE 52nd Ave

SE Foster Rd

SE Powell Blvd

César E. Chávez Blvd

26

2683

SE Gladstone St


THE OLIVERIncome Current Scheduled Rents Per Unit % GOI Highest Achieved Per Unit % GOI Notes

Scheduled Gross Rent $348,276 $16,585 $362,100 $17,243 1

Less: Vacancy/Credit Loss -$17,414 -$829 -5.0% -$18,105 -$862 -5.0% 2Net Income $330,862 $15,755 $343,995 $16,381

Includes: Utility Billing (RUBs) $13,208 $629 $13,208 $629

Includes: Miscellaneous $9,307 $443 $9,307 $443

Total Other Income $22,518 $1,072 4.4% $22,518 $1,072 4.3% 3Effective Annual Income - Residential $354,060 $16,860 $367,193 $17,485

Expenses Projected Operations Per Unit % GOI Projected Operations Per Unit % GOI Notes

Real Estate Taxes $68,505 $3,262 17.2% $68,505 $3,262 16.6% 5Insurance $8,400 $400 2.1% $8,400 $400 2.0%

Total Utilities $26,589 $1,266 6.7% $26,589 $1,266 6.4%

Fee Management $21,244 $1,012 6.0% $22,032 $1,049 6.0% 6Elevator Service $4,200 $200 1.1% $4,200 $200 1.0%

Maintenance/Repairs $9,450 $450 2.4% $9,450 $450 2.3%

Turnover $3,150 $150 0.8% $3,150 $150 0.8%

Reserves $5,250 $250 1.3% $5,250 $250 1.3% 7Total Estimated Expenses -$146,788 -$6,990 -36.8% -$147,575 -$7,027 -36%

Total Estimated NOI $252,337 $12,016 63.2% $264,682 $12,604 64%

Commercial Income Projected Operations Per SF % GOI Projected Operations Per SF % GOI Notes

Base Rent $47,436 $31 $47,436 $31

Less: Vacancy/Credit Loss -$2,372 -$2 -5% -$2,372 -$2 -5%

Effective Annual Income $45,064 $29 11% $45,064 $29 11% 4Gross Operating Income $399,125 $19,006 $412,257 $19,631


OPERATIONS ANALYSIS1. RENTS Rents are based on a January 2020 rent roll and average $1,382 per unit or $2.42 per sq ft. Projected rents are

based on a market-rate increases.

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

3. OTHER INCOME Other Income includes miscellaneous charges consisting of late fees, damages, and other administrative charges. The property is currently recapturing 80% of its total utility expenses.

4. COMMERCIAL INCOME Tea Bar currently occupies the retail space. Due to lender underwriting standards we implemented a 5% vacancy factor.

5. PROPERTY TAXES Oregon’s property taxes are evaluated on a fiscal year starting July 1. In Oregon, property taxes are not reassessed on sale and are limited to a 3.0% annual increase at the state level. Property taxes paid prior to November 15 each year receive a 3.0% discount. The Oliver’s gross taxes total $70,624. For underwriting purposes, projected operations include the property taxes for the 2019-2020 tax year with the 3.0% discount totaling $68,505.

6. FEE MANAGEMENT The management fee has been projected at 6.0% of GOI, which represents standard independent, third-party management costs for properties similar to The Oliver in the Portland metro area.

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 or $5,250 annually.

Type Units Count

Average Sq Ft

Average Scheduled

Rents

Scheduled Rents per Sqft

Projected Rents

Projected Rents per Sq Ft

1 Bedroom / 1 Bathroom 6 472 $1,288 $2.73 $1,350 $2.86





Total / Average 21 572 $1,382 $2.42 $1,437 $2.51


OFFER TERMS

QUESTIONS & TOUR REQUESTS:

All tours and inquiries regarding The Oliver are to be directed to HFO Investment Real Estate at (503) 241.5541. Please do not disturb tenants.

Greg Frick • [email protected] Marton • [email protected] Johnson • [email protected] Stephens • [email protected] Fehrenbacher • [email protected] Tully • [email protected] Smith • [email protected] Rand Hoffman • [email protected]

HFO Investment Real Estate 2424 SE 11th AvenuePortland, Oregon 97214

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

Brokers licensed in the States of Oregon and Washington.

ASSET SUMMARYLocation 4330 SE Division Street

City, State Portland, OR 97206

Total Bedrooms 21

PRICE SUMMARYPrice $5,850,000

Price Per Unit $278,571

Per Square Foot $431

Projected Cap Rate 4.52%


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. ©2020 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.

the oliver · 46. new thai blues 47. tea bar se 48. marino cafe 49. loprinzi’s gym 50. tropical...

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