1607 APARTMENTS - LoopNet...Located in the heart of Northwest Portland, the 1607 Apartments is situated between the popular neighborhoods of Nob Hill and The Pearl District. There

FOR MORE INFORMATION:Andrew HolowetzkiSenior Broker

(503) [email protected]

1607 APARTMENTS1607 NW Davis St., Portland, OR 9720920 units

$7,750,000

PROPERTY ANALYSIS

The Professional Approach to Apartment Investing.

OR • WA • AZ • josephbernard.net1

BUILDING

Price: $7,750,000Units: 20Price/Unit: $387,500Building Sq Ft: 26,864Price/Sq Ft: $288.49Year Built: 2013Lot Size: 0.22 acresCounty: Multnomah

1607 APARTMENTS1607 NW Davis St., Portland, OR 97209

INVESTMENT SUMMARY


OR • WA • AZ • josephbernard.net

DESCRIPTION

The 1607 Apartments offer a unique investment opportunity with multiple appreciation strategies. The units were built to condo quality standards, with a mix of 1’s, 2’s, and 3’s; and average over 1,000 sqft. Each unit includes modern finishes and amenities; washers and dryers, AC and heating units, stainless steel appliances, quartz counter tops, gas fireplaces, decks or balconies, and more. The property also has gated underground parking and storage available.

Currently, there is significant upside potential in rents, as market rents range anywhere from 10% to 30%+ above current average building rents. If converted to condos, sales comps indicate a cumulative value of over $11,000,000. Additionally, the upfront cost and quality of the condo construction is significantly greater than standard apartment construction, including double staggered stud walls with 1” air space between units, greatly reducing noise between units and providing a higher quality of living for tenants and future owners.

HIGHLIGHTS

• Desirable NW Portland location• Condo quality construction• AC & washer/dryer in each unit• Large floorplans & modern finishes• Secure, underground parking & storage• Walking distance to MAX light rail• Nearby access to major freeways

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FINANCIAL ANALYSIS



Scheduled Monthly Rents

Units Type Est. Sq. Ft.Current

Average RentMonthly Income

Highest Level in Building

Monthly Income

10 1 + 1 573 $1,468 $14,675 $1,750 $17,500

3 2 + 2 1,251 $2,408 $7,225 $2,750 $8,250

2 2 + 2.5 1,233 $2,125 $4,250 $2,125 $4,250

2 3 + 2 1,633 $2,449 $4,898 $2,499 $4,998

3 3 + 2.5 1,613 $2,773 $8,318 $3,020 $9,060

20 $39,366 $44,058

Scheduled Gross Income $472,392 $528,696

• Less: Vacancy (5%) -$23,620 -$26,435

Effective Gross Income $448,772 $502,261

• Plus: RUBS +$15,600 +$16,800

• Plus: Storage, Parking, Add’l* +$13,788 +$21,600

Effective Annual Income $478,160 $540,661

Estimated Expenses

Current Budget

%EGI Per/Unit Amount %EGI Per/Unit Amount

1 Taxes 18.38% $4,123 $82,469 16.42% $4,123 $82,469

2 Insurance 0.79% $177 $3,533 0.70% $177 $3,533

2 Utilities 4.18% $938 $18,760 3.74% $938 $18,760

3 Professional Management 7.00% $1,571 $31,414 7.00% $1,758 $35,158

3 Maintenance & Repairs 1.34% $300 $6,000 1.19% $300 $6,000

3 Turnover Reserves 0.67% $150 $3,000 0.60% $150 $3,000

3 Capital Reserves 0.67% $150 $3,000 0.60% $150 $3,000

Total Est. Annual Expenses 33.02% $7,409 $148,176 30.25% $7,596 $151,920

of EGI Per Unit of EGI Per Unit

Investment Summary

Current Projected

Net Operating Income (NOI) $329,984 $388,741

Cap Rate 4.26% 5.02%

Footnotes

1. Actual 2017 Tax (after 3% pre-pay discount)

2. Actual 2018 Expense Annualized

3. Budget/Expense

* 16 storage units, 14 parking + 1 handicap

3

LOCATION OVERVIEW



LOCATION DESCRIPTION

Located in the heart of Northwest Portland, the 1607 Apartments is situated between the popular neighborhoods of Nob Hill and The Pearl District. There are numerous dining and entertainment options in close proximity to the property given its prime location. Within walking distance, tenants will enjoy many retailers including Powell’s City of Books, REI and Whole Foods Market.

1607 APARTMENTS

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LOCATION HIGHLIGHTS

• Walk Score, 99• Bike Score, 96• Transit Score, 95• Neighborhood offers permit parking,

no meters• Portland Streetcar & MAX Station

within 5 blocks• Quick access to I-405 & Highway 26

PROPERTY PHOTOS



PROPERTY PHOTOS



FLOORPLANS



Couch Davis

Glisan

Everett

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FLOORPLANS



Flanders

HoytIrving

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SOLD COMPARABLES



Mississippi Avenue Lofts4216 N Mississippi AvePortland, OR 97217

Sale Date: 12/4/17

Year Built: 2010

Price: $14,500,000

Cap Rate:4.40%

Units: 32

Price/Unit: $453,125

Sq Ft: 36,627

Price/Sq Ft: $395.88

Gaines St Townhome Apts956 SW Gaines StPortland, OR 97239

Sale Date: 6/1/18

Year Built: 2018

Price: $4,916,376

Cap Rate:4.94%

Units: 12


Sq Ft: 17,200


Muse Apartments1315 NW 19th AvePortland, OR 97209

Sale Date: 2/1/17

Year Built: 2017

Price: $20,150,000

Cap Rate:4.50%

Units: 41


Sq Ft: 51,933


11 Marché1115 SW Market StPortland, OR 97201

Sale Date: 4/12/17

Year Built: 2016

Price: $21,000,000

Cap Rate:4.50%

Units: 62


Sq Ft: 53,600


20 on Hawthorne1550 SE 20th AvePortland, OR 97214

Sale Date: 8/11/17

Year Built: 2009

Price: $17,000,000

Cap Rate:4.40%

Units: 20


Sq Ft: 52,840


Corbett Heights3916 SW Corbett AvePortland, OR 97239

Sale Date: 2/1/17

Year Built: 2015

Price: $15,000,000

Cap Rate:4.25%

Units: 48


Sq Ft: 41,328


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SOLD COMPARABLES



Brim Apartments1206 SE Ankeny StPortland, OR 97214

Sale Date: 7/17/17

Year Built: 2017

Price: $7,800,000

Cap Rate:N/A

Units: 27


Sq Ft: 22,978


The Waterford Apartments3745 SW Water AvePortland, OR 97239

Sale Date: 2/9/18

Year Built: 2014

Price: $3,215,000

Cap Rate:4.23%

Units: 12


Sq Ft: 9,162


Sherm Apartments1101 SE Sherman StPortland, OR 97214

Sale Date: 9/21/17

Year Built: 2011

Price: $2,570,000

Cap Rate:5.12%

Units: 10


Sq Ft: 5,500


The Whitney411 SE 14th AvePortland, OR 97214

Sale Date: 2/23/18

Year Built: 2016

Price: $10,500,100

Cap Rate:4.50%

Units: 58


Sq Ft: 51,933


Link2015-2019 SE 11th AvePortland, OR 97214

Sale Date: 6/11/18

Year Built: 2012

Price: $2,850,000

Cap Rate:N/A

Units: 12


Sq Ft: 6,160


Serrano2250 NE Glisan StPortland, OR 97232

Sale Date: 11/7/17

Year Built: 2017

Price: $8,700,000

Cap Rate:4.97%

Units: 37


Sq Ft: 30,000


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CONDO SALES



Sold Date Address Bed/Bath Sq Ft Year Built Price/Sq Ft Sold Price

3/22/18 1828 SW 18th Ave 1 + 1 483 2001 $476 $229,900

4/5/18 1410 SW 1th Ave #302 1 + 1 467 2003 $520 $243,000

8/9/18 1926 W Burnside St #1106 1 + 1 723 2006 $469 $339,100

6/20/18 323 NW 13th Ave #406 1 + 1 784 2007 $657 $515,000

Averages 614 2004 $531 $331,750


8/14/18 1926 W Burnside St #601 2 + 2 1,351 2006 $389 $525,000

6/27/18 937 NW Glisan St #436 2 + 2 1,299 2008 $590 $766,000

8/3/18 937 NW Glisan St #1533 2 + 2 1,256 2008 $694 $872,000

Averages 1,302 2007 $558 $721,000


5/11/18 1433 NW 22nd Ave 3 + 2.5 1,846 2008 $420 $775,000

8/31/17 1001 NW Lovejoy St #308 3 + 2 1,734 2006 $557 $965,000

11/17/17 2335 NW Raleigh St #413 3 + 2.5 1,973 2006 $653 $1,288,000

Averages 1,851 2007 $543 $1,009,333

Count Bed/Bath Sq Ft Avg Price/Sq Ft Avg Price/Unit Average Price Cumulative Price

5 1 + 1 436 $498 $236,000 $227,000 $1,135,000

5 1 + 1 709 $567 $427,000 $415,000 $2,075,000

5 2 + 2/2.5 1,244 $554 $721,000 $705,000 $3,525,000

5 3 + 2/2.5 1,621 $545 $1,009,000 $946,000 $4,730,000

$11,465,000

SUBJECT PROPERTY

1 BD Condo’s

2 BD Condo’s

3 BD Condo’s

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RENT COMPARABLES



Heartline1250 NW Kearney St

Avg Rent: Avg Sq Ft: Rent/Sq Ft:

1 BD $2,198 736 $2.98

2 BD $3,409 1,095 $3.11

3 BD $7,300 2,276 $3.21

Indigo @ Twelve | West430 SW 13th Ave


1 BD $2,341 802 $2.92

2 BD $4,149 1,373 $3.02

3 BD $5,745 1,848 $3.11

Couch 9135 NW 9th St


1 BD $2,231 709 $3.15

2 BD $2,835 982 $2.89

3 BD $7,300 2,276 $3.21

Vue Apartments1717 SW Park Ave


1 BD $1,324 565 $2.34

2 BD $1,783 758 $2.35

3 BD $4,130 1,664 $2.48

Avg Rent

MarketAvg

Sq FtMarket

Rent/Sq Ft

Market

1 BD $1,468 $1,789 573 666 $2.65 $2.69

2 BD $2,295 $2,578 1,242 1,029 $1.85 $2.48

3 BD $2,643 $4,272 1,623 1,606 $1.63 $2.66

SUBJECT PROPERTY 1607 NW Davis St

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RENT COMPARABLES



Q212112 NW Quimby St


1 BD $2,055 647 $3.18

2 BD $2,786 990 $2.82

3 BD $4,114 1579 $2.61

Vista St Clair1000 SW Vista Ave


1 BD $1,299 559 $2.32

2 BD $1,697 1,097 $1.55

3 BD $3,355 1,903 $1.76

Cyan PDX1720 SW 4th Ave


1 BD $1,702 716 $2.38

2 BD $2,441 982 $2.49

3 BD $3,271 1,257 $2.60

Southpark Square1503-1525 SW Park Ave


1 BD $1,518 614 $2.47

2 BD $2,076 1,016 $2.04

3 BD $3,216 1,386 $2.32

The Abigail1650 NW 13th Ave


1 BD $2,055 647 $3.18

2 BD $2,786 990 $2.82

3 BD $4,114 1579 $2.61

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AWARDS & RECOGNITIONS



America's Fastest Growing Private Companies

Fastest Growing Private 100 Companies

Top 40 Business Leader Under 40

Investment Broker of the Year

Commercial Real Estate POWERLIST

Top Corporate Philanthropy

Top Commercial Real Estate Firm

All Star Award for Advertising and Marketing Excellence

http://www.josephbernard.net/uploads/award_files/1536772556.pdf




CONTACT INFO



FOR MORE INFORMATION:Andrew Holowetzki

Senior Broker

(503) [email protected]

Oregon Washington Arizona Southern Arizona

5200 SW Macadam Ave, Suite 300

Portland, OR 97239

4400 NE 7th Ave, Suite 275

Vancouver, WA 98662

9927 E Bell Rd,Suite 130

Scottsdale, AZ 85260

One South Church Ave,Suite 1200

Tucson, AZ 85701

(503) 546-9390 (360) 255-0255 (480) 305-5600 (520) 428-0850

Documents

1607 APARTMENTS - LoopNet...Located in the heart of Northwest Portland, the 1607 Apartments is situated between the popular neighborhoods of Nob Hill and The Pearl District. There