KIDDER.COM OFFERING MEMORANDUM | 6015 SE 51ST AVENUE … · 2020. 11. 30. · Sellwood-Moreland neighborhood less than 15 minutes from downtown Portland. Additionally, public amenities

KIDDER.COM

STOCKOFFERING MEMORANDUM | 6015 SE 51ST AVENUE | PORTLAND, OR

http://www.kidder.com/http://www.kidder.com/

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Kidder Mathews and should not be made available to any other person or entity without the written consent of Kidder Mathews.

This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Kidder Mathews has not made any investigation, and makes no warranty 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 any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Kidder Mathews has not verified, and will not verify, any of the information contained herein, nor has Kidder Mathews conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

This information has been secured from sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Recipient of this report must verify the information and bears all risk for any inaccuracies.

01EXECUTIVE SUMMARY

02FINANCIALS

03MARKET OVERVIEW

KIDDER.COM

JORDAN CARTER

[email protected]

EXCLUSIVELY LISTED BY

CLAY NEWTON

[email protected]

TYLER LINN

[email protected]

TABLE OF CONTENTS

http://www.kidder.com/http://www.kidder.com

STOCK OFFERING MEMORANDUM KIDDER MATHEWS 3

01EXECUTIVE

SUMMARY


Located in SE Portland’s trendy Woodstock neighborhood, Stock’s 5 units consist of a newly built fourplex and an extensively remodeled single family home.

PROPERTY INFORMATION

Stock is one of the latest development projects from one of Portland’s most experienced local multifamily developers, WDC Properties. Targeting highly walkable neighborhoods with great amenities, transportation options, and close proximity to downtown Portland, Stock is exactly the type of development WDC Properties excels at. Stock started as a single family home with excess land, zoned for multifamily development. WDC acquired the property, began a full remodel of the existing three bedroom house to upgrade its quality to match WDC’s new construction properties, and they

EXECUTIVE SUMMARY

built a fourplex consisting of two 2 bed/1 bath units and two 3 bed/2 bath units. Together, they combine to make five spacious rental units in a neighborhood that lacks desirable smaller rental properties. All four new units were pre-leased prior to completion, and the house was rented at the beginning of the fourplex construction, where the developer offered a discount of nearly $500 off the market rent as the tenants would be living next to an active construction site.

The four new units have all been carefully designed or renovated to let in abundant natural light, and incorporate stainless steel appliances, modern finishes, in-unit washer/dryers, vinyl hardwood floors, and ceiling fans. All units have high ceilings, creating a spacious feel.

Stock is located directly on SE Woodstock Blvd. One of Portland’s

most charming and easily accessible neighborhoods. Residents benefit from highly rated schools and a bustling restaurant, bar, and coffee shop scene. This area has been given a Walker’s Paradise Walk Score of 92 and a Biker’s Paradise score of 95 from WalkScore.com. Commuting to Portland (a 10 to 15-minute drive), or anywhere else in the Portland Metro is made simple with easy access to public transit and major roadways, including the nearby MAX orange line and regular bus service.

Residents have quick and easy access to Reed College, Woodstock Park, New Seasons Market, and Grand Central Bakery (all located less within a 15-minute walk of the property).

Stock is a unique opportunity to acquire a brand new asset in a neighborhood where very few smaller rental properties have been constructed. During the Covid-19 pandemic, these smaller rentals that have become the most active of all rental properties, given their low density and the relatively few neighbors a tenant has to come into contact with. This trend isn’t likely to go away anytime soon.

PROPERTY OVERVIEW

Address 6005 & 6015 SE 51st Ave Portland, OR 97206

Property ID R208749

Units 5

Year Built 2020 / 1916

NRSF 5,271 SF

Avg. Apt Size 1,054 SF

Avg Apt Rent $2,209.60

Price $1,998,000

Cap Rate 5.10%

STOCK FOURPLEX

SCHEDULED FOR COMPLETION and occupancy of the Fourplex in late September, 2020

TURN-KEY OPPORTUNITY - Four brand new units and a renovated single family home

SPACIOUS two and three-bedroom apartment homes with modern amenities and finishes

CENTRALLY located in the heart of Woodstock and close to many popular SE Portland neighborhoods

EXCELLENT LOCATION - less than four miles to Downtown Portland

INVESTMENT HIGHLIGHTS

92 WALK SCORE

95 BIKE SCORE

2 MINUTES FROM ORANGE MAX LINE

STOCK HOUSE STOCK HOUSE

STOCK HOUSE


STOCK FOURPLEX

STOCK FOURPLEXSTOCK FOURPLEX

STOCK FOURPLEX


APARTMENT HOME AMENITIESOPEN two and three-bedroom apartment home layouts

ABUNDANCE of natural light

MODERN FINISHES with stainless steel appliances, dishwashers, breakfast bars, and fireplaces

HIGH CEILINGS with ceiling fans and hardwood floors in all units

WASHER/DRYERS in all units

UNIT MIX

Unit TypeNo. of Units SF

Average Rent

Average Rent/SF

2 BR / 1 BA 2 790 $1,899 $2.40

3 BR / 1 BA (House) 1 1,131 $2,150 $1.90

3 BR / 2 BA 2 1,280 $2,550 $1.99

Total / Avg 5 5,271 $11,048 $2.10

STOCK HOUSE

STOCK HOUSESTOCK HOUSE


SAMPLE FLOOR PLANS

TWO BED / ONE BATH


Avg Rent

Avg Rent / SF

2 Bed / 1 Bath 2 790 $1,899 $2.40

Total 2 1,580 $3,798 $2.40

STOCK FOURPLEX


SAMPLE FLOOR PLANS

THREE BED / TWO BATH


Avg Rent

Avg Rent / SF

3 Bed / 1 Bath (House) 1 1,131 $2,150 $1.90

3 Bed / 2 Bath 2 1,280 $2,550 $1.99

Total 2 3,691 $7,250 $1.96

STOCK HOUSE



AERIAL

STOCK APARTMENTS

SE WOODSTOCK BLVD

SE

52

ND

AV

E

SE

51

ST

AV

E


AMENITIES MAP

1 Safeway

2 New Seasons Market

3 Bi-Mart

4 Woodstock Wine & Deli

5 Otto’s Sausage Kitchen & Meat Market

6 Reed College

7 PURE Nail Bar & Organic Spa

8 CrossFit Woodstock

WOODSTOCK / SE PORTLAND: SELECTED AMENTIES

9 Bergerac

10 Bridge City Pizza

11 Ate-Oh-Ate Grill

12 7-Eleven

13 Proper Pint Taproom

14 Dick’s Primal Burger

15 Pizza Roma

16 Lutz Tavern

17 Starbucks

18 Papaccino’s

19 Multnomah County Library – Woodstock

20 Cloud City Ice Cream

21 Double Mountain Taproom

22 Nudi Noodle Place

23 Laughing Planet

24 Grand Central Bakery

11

3

7

6

10

N

SE

39

TH

AV

E

SE

46

TH

AV

E

SE

52

ND

AV

ESTOCK

APARTMENTS

8

9

SE WOODSTOCK BLVD

SE DUKE ST

5423 22

2021

1

17

18 16 15

24 2

14

19

13

12

Woodstock Park

Brentwood City Park

REED LAKE

PORTLAND INTERNATIONAL AIRPORT

NORTHEAST PORTLAND

IRVINGTON

ALBERTA

BOISE

OVERLOOK

HOLLYWOOD

ROSE CITY PARK

SOUTHEAST PORTLAND

MT. TABOR

RICHMOND

HAWTHORNE

BUCKMAN

GATEWAY

LENTS

PARKROSE

BROOKLYN

SELLWOOD

WOODSTOCK

LAURELHURST

DOWNTOWN PORTLAND

NORTHWEST PORTLAND

SOUTHWEST PORTLAND

STOCK APARTMENTS



02FINANCIALS

CURRENT FINANCIAL ANALYSIS

INCOME Annual Per-Unit

Potential Rental Income $132,576 $26,515

Other Income $200 $40

Utility Reimbursement $4,080 $816

Gross Operating Income $136,856 $27,371

Vacancy ($6,629) ($1,326)

Effective Operating Income $130,227 $26,045

UNIT MIX

Quantity Type Avg SF Avg Rent $ / SF

2 2x1 790 $1,899 $2.40

1 3x1 House 1,131 $2,150* $1.90

2 3x2 1,280 $2,550 $1.99

5 Total / Avg 5,271 $11,048 $2.10

EXPENSES Annual Per-Unit

Real estate taxes Est ($7,800) ($1,560)

Property insurance Est ($1,500) ($300)

Water/Sewer Est ($4,200) ($840)

Electricity Est ($400) ($80)

Garbage Est ($1,800) ($360)

Portland Per-Unit Tax Actual ($300) ($60)

Landscaping Est ($600) ($120)

Maint/Repair Est ($1,750) ($350)

Turnover Est ($750) ($150)

Professional Management Est ($7,814) ($1,563)

Office/Admin Est ($750) ($150)

Reserves Est ($750) ($150)

Total Operaing Expenses ($28,414) ($5,683)

Net Operating Income $101,814 $20,363

*The House was rented at a $500/month discount due to the tenant living there during construction of the 4-plex. Significant upside exists by raising the house rent to market rates upon lease expiration.

STOCK FOURPLEX

STOCK FOURPLEX



03MARKET

OVERVIEW

WOODSTOCK NEIGHBORHOOD

Nestled among the coffee shops, boutiques, restaurants, and old craftsman homes, Woodstock is surrounded by an abundance of amenities for residents to enjoy. Whether you’re a foodie who wants to experience fine dining, or on-the-run wanting fast and casual cuisine, this neighborhood has it all.

SE Woodstock Boulevard serves as the primary commercial corridor of the neighborhood and is home to a variety of restaurants, coffee shops, food markets, bakeries, fitness studios, and shopping, just minutes to the popular Sellwood-Moreland neighborhood less than 15 minutes from downtown Portland. Additionally, public amenities include several schools, a variety of parks, and access to public transportation, including regular bus routes and a nearby MAX Orange Line station. This charming community boasts a score of 85/100 – a “Walker’s Paradise” designation from Walkscore.com® and a nearly perfect “Biker’s Paradise” score of 99.

At the center of the neighborhood you’ll find Woodstock Park, a sprawling greenspace that is home to horseshoe pits, a playground, soccer and baseball field, tennis courts, and even an off-leash dog area. Woodstock Park offers yet another communal space for residents and visitors.

Reed College, referred to as one of the most intellectual colleges in the country, is located at the Western border of the Woodstock neighborhood, and offers over 1,400 students more than 40 different majors and programs.

SUBMARKET OVERVIEW


REED COLLEGEFounded in 1908, Reed college is one of the Northwest’s most exemplary independent liberal arts and sciences universities. There are currently 1,400 students enrolled at Reed.

Reed College offers its students more than 40 degrees and programs and boasts a 10 to 1 student to faculty ratio.

1908 FOUNDED

1911 FIRST CLASSES

1,400 STUDENT

+40 BA & MA DEGREE PROGRAMS OFFEREDSTOCK OFFERING MEMORANDUM KIDDER MATHEWS 17

SW WATERFRONT & SE PORTLAND

Located mintues away from the Sellwood Bridge, residents have easy access to some of Portland’s largest employer pools: Central Business District (CBD), Oregon Health & Science University, Portland State University the Central Eastside Industrial District. Combined, these districts and employers provide nearly 100,000 jobs.

The Central Business District hosts over 26,200,000 square feet of office space and close to 100,000 daytime employers. The CBD features a diverse concentration of industries that include legal and

SELLWOOD BRIDGE

MAJOR EMPLOYERS & ACCREDITED UNIVERSITIESfinancial services, government, professional services, and retail trade. Major employers include Wells Fargo, US Bancorp, Standard Insurance, NW Natural, Puppet, and Stoel Rives. The CBD is also gaining traction with tech firms such as Amazon leasing 100,000 square feet recently and other notable companies like Microsoft and Google are choosing Portland’s downtown for their satellite offices as well.

The Central Eastside Industrial District is a 681-acre district that contains over 1,100 business and over 17,000 employees. The district is formed of creative office space and specialized manufacturing. Major employers include Simple, Viewpoint Construction Software, and New Seasons market.

Within Portland’s city center, two major universities compete for the spotlight. Portland State University (PSU) is Oregon’s largest college institution with nearly 30,000 students and has been recognized as one of America’s Greenest Universities for 2015 by Bestcolleges.com. Additionally, OHSU is one of the nation’s renowned research universities. OSHU is undergoing a $500 million expansion of its facilities, including the Phil Knight Cancer Institute, and recently completed a $295 million expansion of the Oregon Life Science Building. OHSU is also one of Oregon’s largest employers and is within a short drive from Woodstock.

DOWNTOWN PORTLAND CBD±13 mins

CENTRAL EASTSIDE±10 mins

LLOYD DISTRICT±14 mins

SOUTH WATERFRONT±10 mins

DOWNTOWN SELLWOOD±5 mins

±12 mins

±11 mins

±2 mins


SELLWOOD SUBMARKET OVERVIEW

On a bluff overlooking the Willamette River, the Sellwood-Moreland neighborhood is located in the Southeast Portland quadrant and bordered by the river and the Brooklyn and Eastmoreland neighborhoods. Sellwood-Moreland, less than a ten-minute drive to Downtown, has a self-sustaining commercial center featuring many unique local businesses, fabulous antique shopping, fine dining, microbreweries and century-old homes. Just a few of the most popular destinations include the New Seasons Market, a local grocery chain, Grand Central Bakery & Café, Gino’s, Portofino, and The Muddy Rudder Public House.

The area’s mature tree-lined streets contain many restored Victorian and colonial homes, attracting primarily young families and professionals. Like most Portland neighborhoods, Sellwood-Moreland’s traditional

LOCATION OVERVIEW

“main street” dynamic makes this community feel warm and connected. This small town tucked inside a larger city is a neighborhood where people hang out at the coffee shops on the weekend, and couples can be seen pushing strollers and walking their dogs. This area is family friendly, walkable, and livable with a keen sense of community pride.

On weekends, residents can take a spin on the carousel at Oaks Park, the historic amusement park, or hike through the wildlife refuge at Sellwood Park. Sellwood Park also includes baseball and soccer fields, basketball and tennis courts, excellent views of downtown, access to the riverfront, walking trails, playgrounds, and summertime concerts.

Bicyclists can enjoy easy access to the 21 mile Springwater Trail, which connects Sellwood to a broader bikeway infrastructure system expanding across Portland. Additionally, in September of 2015, TriMet’s award winning MAX Orange Line opened services along McLoughlin Boulevard/Highway

99E corridor, connecting Portland’s inner Southeast neighborhoods, like Sellwood, to the Portland commuter rail line. The line travels from downtown Portland across the new Tilikum Crossing transit bridge with service to Milwaukie and Oak Grove, to the south.

More growth continues in the surrounding areas with the

$538,769MEDIUM HOME PRICE

10MINUTES TO DOWNTOWN PORTLAND

A-PUBLIC SCHOOL RATING

redevelopment of several small storefront buildings, and local independent retail has continued south on SE Milwaukie Avenue to the established high-end Garthwick and Waverly neighborhoods. Nearby, downtown Milwaukie Avenue is undergoing early stages of revitalization and will likely see the benefits of the adjacent, prospering Moreland business district. In comparison to downtown Portland, its affordable rental rates and a stable tight-knit community keep this neighborhood retail balanced and ever expanding.

SELLWOOD PARK - A "WALKER'S PARADISE"


THE SPRINGWATER CORRIDOR

Portland’s growing multi-modal infrastructure planning pushed the city forward as it achieve a 1st place ranking for highest rate of bicycling commuters. Sellwood-Moorland most popular connection point is through the Springwater Corridor where bicyclist and joggers alike can enjoy a scenic landscape while traveling within the city.

The 21-mile Springwater Corridor Trail is part of a larger, regional trail system that creates a bike-able network stretching over 120 miles. Starting at the Sellwood Riverfront Park Trailhead and ending in Boring, OR, the Springwater Corridor is a multi-use asphalt trail separated from the public road for increased safety and usability. The trail has a 10-to-12 foot wide asphalt path that accommodates two lanes of foot and bicycle traffic and has a second path for equestrian riders when the topography allows. This scenic route encompasses wetlands, buttes, agricultural fields and pastures, as well as residential and industrial neighborhoods.

Summer sees an explosion of wild blackberries while winding along the trail and back and forth across Johnson Creek’s ten river crossings. Attractions along

LOCATION OVERVIEW

the trail include the Oaks Bottom Wildlife Refuge, Tideman Johnson Nature Park, the Powell Butte Nature Park, and old trolley stations. The refurbished Linneman Station Trailhead is an excellent stop to use the amenities and learn more about the trail’s history. Trail users have access to restrooms, wildlife observation, scenic viewpoints, and picnic areas throughout the corridor.

Originally envisioned by Charles and Frederick (Jr.) Olmsted, in their 1903 city plan of connected parkways, boulevards and parks, the Springwater Corridor Trail is an important piece of the expanding green network throughout Portland. Although not directly designed by the famous duo, their vision

emerges from within the old Portland Railway right-of-way.

In 1903, Portland Railway Light began its service hauling passengers and farm produce between the cities that sprung up along the line. During this period, attractions like the Oaks Amusement Park, and five city parks were developed to increase railway traffic. Passenger service was discontinued in 1958 and was used for freight until 1989 when the process for converting these rails to trails took root.

An estimated 400,000 Oregon residents use the Springwater Corridor annually, especially as a bicycle commute lane during rush-hour. Whether the user's goal is to get in a workout or stop and admire the breathtaking wildlife, the Springwater Corridor Trail is an essential part of life in Southeast Portland.


Portland is considered one of the nation’s most livable cities.

CITY OF PORTLAND

Located on the banks of the Willamette River only 90 minutes from snow-capped peaks and the Pacific Ocean, one might not realize Portland’s bustling downtown and waterfront are the heart of a metropolitan region with more than 2 million people. Twelve bridges span a wide elbow of the Willamette River, connecting the east and west sides of town. Throughout the metro area are thriving neighborhoods filled with restaurants, record shops,

bars, funky clothing stores, antique malls and art galleries.

Portland is known for its progressive bike-friendly attitude, lively music and restaurant scenes, food carts, farmers’ markets, and endless recreation possibilities. Beyond the metro area residents enjoy the Pacific Northwest’s natural beauty via slopes, sails, surf and trails.

Portland is a walkable and bikable city. Within walking distance of most parts of downtown is the campus of Portland State University, the world-class Portland Art Museum,

MARKET OVERVIEW

Waterfront Park, Pioneer Courthouse Square, the Oregon Historical Society, a performing arts complex and a concert hall. For the sports-minded, Portland is home of the MLS Timbers, NBA Trail Blazers, and WHL Winterhawks. Outdoor enthusiasts love Forest Park, the largest city park in the nation, with 5,000 acres of hiking and biking trails, a zoo, public gardens and beautiful old-growth woods. The downtown core is connected by one of the world’s leading public transportation systems, a combination of buses, streetcars, and light-rail trains, putting the entire metro area only a couple stops away.


INVESTING IN PORTLAND

ULI 2018 Investment Prospects ranks Portland #2 in the Pacific region

IN 2018, at 5.2% Oregon personal income growth was above the national average of 4.1%

PORTLAND ranked #6 on Business Insider's Top 50 Best Places to Live in 2018

PORTLAND MSA multifamily vacancy is below 4.95%

PORTLAND’S CURRENT unemployment rate is 3.8%, a 42-year low

INTEL announced plans for a multi-billion-dollar expansion of their Hillsboro lab

GROWING POPULATION

OREGON was the #2 moving destination in 2018 for people moving from one state to another, according to a United Van Lines Study in 2019

PORTLAND has added 42,000 residents over the last three years, an increase of 1.7%; above national average

PORTLAND ranked 19th in the nation in population growth ahead of San Francisco, Boston, and New York City

PORTLAND was named the 25th largest city in the U.S. in 2019

MORE THAN 34% of Portland residents have a bachelor's degree or higher, above the national average of 28%

MARKET OVERVIEW



2,753,168POPULATION

$22.3BEXPORTED SHIPMENTS

IN 2018

$423,200MEDIAN HOME VALUE

#1 BEST PLACE FOR BUSINESS & CAREERS — FORBES

#1 MOST DESIRABLE PLACE TO LIVE — US NEWS, 2019

#1 IN US FOR PUBLIC PARK SPENDING — TRUST FOR PUBLIC LAND, 2018

#1 SAFEST PLACE TO LIVE— RENTAL HOUSING JOURNAL, 2017

#2 MOVING DESTINATION OF 2019— UNITED VAN LINES, 2020

Portland Rankings

MARKET OVERVIEW

34%PORTLAND AREA RESIDENTS WITH A BACHELOR'S DEGREE

AWARD-WINNING SERVICES

PSBJ Largest Commercial Real Estate Firms 21

PSBJ Fastest Growing Companies 6

Seattle Business 100 Best Companies 3

PSBJ Best Places to Work 13

OR Business Magazine 100 Best Companies 12

Bay Area News Group Top Work Places 8

SOUTH SEATTLE

PORTLAND

SACRAMENTO

OLYMPIA TACOMA

SEATTLE

BELLEVUE

RENO

SAN FRANCISCO

SILICON VALLEYREDWOOD SHORES

ROSEVILLE

PHOENIX

SAN DIEGO

PASADENA/TRI-CITIES

EL SEGUNDO

INLAND EMPIRE

ORANGE COUNTY

CARLSBAD

DOWNTOWN LA

WEST LA

PLEASANTON

KIDDER MATHEWS OVERVIEW

COMMERCIAL BROKERAGE

$9.6BANNUAL TRANSACTION VOLUME

440+NO. OF BROKERS

VALUATION ADVISORY

1,680+ASSIGNMENTS ANNUALLY

38/23TOTAL NO. OF APPRAISERS / MAIS

PROPERTY MANAGEMENT

70M+SF UNDER MANAGEMENT

We know the West Coast. In fact , we’re i ts largest independent commercial real estate firm. Our team boasts 900 local market specialists and top-producing professionals—serving out of 22 offices across five states. The expertise of each local office is reinforced by the relationships, intelligence, and experience of our entire firm.

WE DON’T JUST KNOW THE MARKET, WE DRIVE IT

It’s no secret that having a team deeply embedded in your market gives you the edge. Our professionals

deliver insights that go beyond data and identify unexpected avenues for growth. This ensures our clients are armed to capitalize on market trends in the most competitive real estate markets in the West.

We offer a complete range of brokerage, appraisal, property management, consulting, project

and construction management, and debt and equity finance services for all property types, giving our clients the competitive edge they need.


KIDDER.COM

EXCLUSIVELY REPRESENTED BY

JORDAN CARTER

[email protected]

CLAY NEWTON

[email protected]

TYLER LINN

[email protected]
http://www.kidder.com/http://www.kidder.com/

Documents

KIDDER.COM OFFERING MEMORANDUM | 6015 SE 51ST AVENUE … · 2020. 11. 30. · Sellwood-Moreland neighborhood less than 15 minutes from downtown Portland. Additionally, public amenities