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900 SW 5th Ave • 17th Floor • Portland, OR 97204503.223.3171 • norris-stevens.com
INVESTMENT REAL ESTATE SERVICES
OFFERING MEMORANDUM
FIR CREST APARTMENTS1351-1385 NE 162nd Avenue
Portland, OR 97230
David C. ChatfieldMultifamily Investment Broker
503.225.8487 • [email protected]
$2,900,000 • 18-UNITS
Information contained herein has been obtained from others and considered to be reliable; however, a prospective purchaser or lessee is expected to verify all information to his/her own satisfaction.
503.223.3171norris-stevens.com
2
FIR CREST APARTMENTS OFFERING MEMORANDUM
INVESTMENT REAL ESTATE SERVICES
Exclusively Marketed By
David C. ChatfieldMultifamily Investment Broker
TABLE OF CONTENTS
Investment Overview .....................................................................................3
Executive Summary .......................................................................................4
Aerial Map ..................................................................................................5
Financial Analysis .........................................................................................6
Sales Comparables .......................................................................................7
Information contained herein has been obtained from others and considered to be reliable; however, a prospective purchaser or lessee is expected to verify all information to his/her own satisfaction.
503.223.3171norris-stevens.com
3
FIR CREST APARTMENTS OFFERING MEMORANDUM
INVESTMENT REAL ESTATE SERVICES
Fir Crest Apartments is a well maintained 18-unit garden-court community situated in a low-density residential setting in northeast Portland. The property is made of up of four spacious one-bedroom/one-bathroom units at 624 square feet and fourteen two-bedroom/one-bath-room units at 855 square feet. Fir Crest has recently undergone replacement of all new vinyl windows and sliding doors. The interiors have been well-maintained with updates to flooring, countertops, and every unit is equipped with washer/dryer hookups and a balcony or patio.
Fir Crest offers convenient access to I-84 and I-205 and is also situated near some of Portland area’s largest employers, including Boeing of Portland, Albertsons Distribution Center, Microchip and the new Amazon.com fulfillment center locat-ed in Troutdale. The Gresham/ Troutdale market has seen very little new construc-tion during the current cycle and hosts one of the lowest vacancy rates in the Portland Metro Region at approximately 3%.
INVESTMENT OVERVIEW
DOWNTOWN PORTLAND
PROPERTY HIGHLIGHTS• Washer/dryer hookups in every unit• Additional laundry room• Balcony/patio on all units• Four double car garages• Four single car garages• Condominimized with eighteen
individual tax lots • New Vinyl Windows• New LVT Flooring & additional
upgrades (partial)• 4-units are sprinklered • Improved decks & patios
FIR CREST APARTMENTS
NE 162ND AVE
NE H
ALSEY ST
Information contained herein has been obtained from others and considered to be reliable; however, a prospective purchaser or lessee is expected to verify all information to his/her own satisfaction.
503.223.3171norris-stevens.com
4
FIR CREST APARTMENTS OFFERING MEMORANDUM
INVESTMENT REAL ESTATE SERVICES
PROPERTY OVERVIEWProperty Fir Crest Apartments
Address 1351-1385 NE 162nd Avenue
City/State/Zip Portland, OR 97230
County Multnomah
Total Units 18
Year Built 1973
RBA 14,466 SF
Lot Size 0.38 Acres (16,553 SF)
Stories 2
Total Buildings 3
Heating Type Baseboard Electric
Roof Type Pitched/Composition
Siding Type Aluminum
Foundation Type Crawl
Offering Price $2,900,000
Price per Unit $161,111
Price per SF $200.47
Cap Rate (Actual) 5.88%
PRICING SUMMARY
Purchase Price $2,900,000
Loan Amount $2,175,000
Down Payment $725,000
Loan-to-Value 75%
Interest Rate4.20% 3 years interest only available
Annual Debt Service (P/I) $127,633
Cash-on-Cash Return (Year 1) 6.00%
Total Return (Year 1) 11.01%
AVAILABLE FINANCING
EXECUTIVE SUMMARY
(25+ basis points lower if less than 70% LTV)
Available financing as of 7/31/2019 Provided by Michael Coffee of Commerical Lending [email protected] | (503) 866-8817
Information contained herein has been obtained from others and considered to be reliable; however, a prospective purchaser or lessee is expected to verify all information to his/her own satisfaction.
503.223.3171norris-stevens.com
5
FIR CREST APARTMENTS OFFERING MEMORANDUM
INVESTMENT REAL ESTATE SERVICES
AERIAL
N
ALBERTSONS DISTRIBUTION
CENTER
GLENDOVEERGOLF & TENNIS
GLENFAIRELEMENTARY
NE HALSEY ST
NE 162ND AVE
Information contained herein has been obtained from others and considered to be reliable; however, a prospective purchaser or lessee is expected to verify all information to his/her own satisfaction.
503.223.3171norris-stevens.com
6
FIR CREST APARTMENTS OFFERING MEMORANDUM
INVESTMENT REAL ESTATE SERVICES
FINANCIAL ANALYSIS
Property Name Fir Crest Apartments Property Type Multifamily Price $2,900,000Address 1351-1385 NE 162nd Ave
Portland, OR 97230Total Units 18 Price/Unit $161,111 Year Built 1973 Price/SF $200.47
Market Wilkes Total RBA 14,466 Cap Rate (Actual)
5.88%
ESTIMATED INCOMESTABILIZED
POTENTIAL GROSS INCOME $247,332 PLUS: Laundry 720 PLUS: Other 1,000 GROSS OPERATING INCOME $249,052 LESS: Vacancy/Credit Loss 5.0% (12,453) PLUS: Garage Rent 15,900 EFFECTIVE GROSS INCOME $252,499
ESTIMATED EXPENSESANNUAL
FIXED
Real Estate Taxes 2018-2019 20,094Property Insurance 7,792Landscaping 1,500Replacement Reserves 4,500TOTAL VARIABLE EXPENSES $33,886Variable Repairs/Maintenance 12,000Professional Management Approx. 4.5% of EGI 11,500Estimated Turnover 2,000Water/Sewer 11,500Garbage 6,400Electricity 700Marketing/Advertising 500Fire Alarm/Phone Line 1,530Miscellaneous/Admin 2,000TOTAL FIXED EXPENSES $48,130
TOTAL ANNUAL EXPENSES $82,016
NET OPERATING INCOME $170,483 Expense Ratio (% of EGI): 32.5%
Expenses/Unit: $4,556
Information contained herein has been obtained from others and considered to be reliable; however, a prospective purchaser or lessee is expected to verify all information to his/her own satisfaction.
503.223.3171norris-stevens.com
7
FIR CREST APARTMENTS OFFERING MEMORANDUM
INVESTMENT REAL ESTATE SERVICES
FINANCIAL ANALYSIS
SCHEDULE OF MONTHLY RENTSUNIT TYPE # OF UNITS APROX. SF PRICE/SF SCHEDULED RENT TOTAL RENT
1 Bed/1 Bath 1 624 $1.48 $925 $925
1 Bed/1 Bath 1 624 $1.60 $1,000 $1,000
1 Bed/1 Bath 1 624 $1.68 $1,050 $1,050
1 Bed/1 Bath 1 624 $1.71 $1,070 $1,070
2 Bed/1 Bath 2 855 $1.24 $1,060 $2,120
2 Bed/1 Bath 2 855 $1.28 $1,098 $2,196
2 Bed/1 Bath 1 855 $1.29 $1,100 $1,100
2 Bed/1 Bath 1 855 $1.35 $1,150 $1,150
2 Bed/1 Bath 2 855 $1.43 $1,225 $2,450
2 Bed/1 Bath 5 855 $1.46 $1,250 $6,250
2 Bed/1 Bath 1 855 $1.52 $1,300 $1,300
TOTAL 18 14,466 $24,375
Information contained herein has been obtained from others and considered to be reliable; however, a prospective purchaser or lessee is expected to verify all information to his/her own satisfaction.
503.223.3171norris-stevens.com
8
FIR CREST APARTMENTS OFFERING MEMORANDUM
INVESTMENT REAL ESTATE SERVICES
SALES COMPARABLES
THE ANCHOR15340 SE STARK STPORTLAND, OR 97233
Sale Date 3/14/2019
Sale Price $2,129,000
Price per Unit $141,933
Price PSF $160.47
Cap Rate 6.33%
# of Units 15
Year Built 1973
RBA 13,267 SF
POWELL COURT VILLA12540 SE POWELL CTPORTLAND, OR 97236
Sale Date 5/1/2019
Sale Price $5,195,000
Price per Unit $129,875
Price PSF $212.94
Cap Rate 5.55%
# of Units 40
Year Built 1970
RBA 24,396 SF
127 SE 148TH AVE127 SE 148TH AVEPORTLAND, OR 97233
Sale Date 3/27/2019
Sale Price $1,580,000
Price per Unit $131,666
Price PSF $144.42
Cap Rate 5.67%
# of Units 12
Year Built 1953
RBA 10,940 SF
THE COURTYARDS AT PARK PALCE2755 NE HOGAN DRGRESHAM, OR 97030
Sale Date 10/10/2018
Sale Price $1,675,000
Price per Unit $128,846
Price PSF $134.35
Cap Rate 5.43%
# of Units 13
Year Built 1974
RBA 12,467 SF
PATRICIA ANNE737 SE 187TH AVEGRESHAM, OR 97233
Sale Date 6/27/2018
Sale Price $2,635,000
Price per Unit $188,214
Price PSF $136.34
Cap Rate 6.33%
# of Units 14
Year Built 1966
RBA 19,326 SF
HIDDEN VILLA911 SE 187TH AVEGRESHAM, OR 97233
Sale Date 9/28/2018
Sale Price $2,125,000
Price per Unit $132,812
Price PSF $164,37
Cap Rate 5.84%
# of Units 16
Year Built 1971
RBA 12,928 SF
Information contained herein has been obtained from others and considered to be reliable; however, a prospective purchaser or lessee is expected to verify all information to his/her own satisfaction.
503.223.3171norris-stevens.com
9
FIR CREST APARTMENTS OFFERING MEMORANDUM
INVESTMENT REAL ESTATE SERVICES
SALES COMPARABLESFir Crest Comps - Chatfield
Untitled layer
15340 SE Stark St
911 SE 187th Ave
737 SE 187th Ave
12540 SE Powell Ct
127 SE 148th Ave
2755 NE Hogan Dr
SUBJECT PROPERTY
900 SW 5th Ave • 17th Floor • Portland, OR 97204503.223.3171 • norris-stevens.com
INVESTMENT REAL ESTATE SERVICES
For more information, please contact:
David C. ChatfieldMultifamily Investment Broker