Tilbury Ferguson. BARBERRY VILLAGE in Gresham, Oregon 180 Unit apartment community

Transcription

1 Tilbury Ferguson INVESTMENT REAL ESTATE, INC 1231 NW Hoyt Street, Suite 201,, OR Liz Tilbury, CCIM (0) (f) BARBERRY VILLAGE in Gresham, Oregon 180 Unit apartment community

2 BARBERRY VILLAGE APARTMENT HOMES 224 SE 188th Ave. Gresham, Oregon Property Highlights Conveniently located adjacent to MAX light rail connecting Gresham to 21 two-story garden court style buildings on approximately 6.75 acres of landscaped grounds Built in 1974, per county records Many units with attractive garden views, more than half with updated interiors % occupancy! Trailing 11 month vacancy and delinquent rents just 1.8% Exterior painted summer of 2013 and some siding replacement Four roofs replaced in 2013 and five in 2011 New trash enclosures being installed Growing income. Scheduled rent increases being phased in monthly beginning February, 2014 Swimming pool and hot tub and on-site laundry centers. Located in the Rockwood Urban Renewal District with grants to businesses and property owners for property improvements Within easy walking distance of bus lines, neighborhood parks and restaurants TOTAL UNITS 180 YEAR BUILT 1974 TOTAL SQUARE FOOT 134,720 PRICE $11,750,000 PRICE PER UNIT $65,278 PRICE PER SQUARE FOOT $87 2

3 GRESHAM, OREGON MARKET ANALYSIS Gresham Mayor Shane Bemis Gresham is Growing Gresham is more than just a suburb of. The U.S. Conference of Mayors showcased its programs as examples of best practices, and Esquire Magazine touted Mayor Shane Bemis as one of those who define our time. 1 The article cited his Garage to Storefront Program that eased the way for 144 small businesses to move into vacant commercial properties as a way to spark economic activity. Bemis, the youngest mayor in Gresham s history when first elected, told The Oregonian Our downtown is as vibrant as I ve seen it in 25 years. 2 Gresham has what business wants: excellent transportation infrastructure, affordable land, ready workforce and plenty of low-cost water. Food processing companies in particular are locating in Gresham. According to The Oregonian, combined, 10 of the largest food-makers and distributors in Gresham and neighboring communities east of employ roughly 900 people and pay more than $25 million in annual wages and benefits. They are good jobs and good companies to work for, said Shannon Stadey, Gresham s business recruitment specialist who tries to lure these businesses to the city. We consider (food companies) a pretty vital part of our city. 3 And food companies like working with the city. The city of Gresham has been terrific, said Rob Miller, president and chief executive officer of Trailblazer Foods. They ve really been a great partner for us. Organically Grown would probably agree. Last year the city offered a five-year tax reduction to bring 160 jobs to Gresham. Previously, Teeny Foods and Specialty Baking received tax abatements under the city s Enterprise Zone for investing in Gresham. 1 Esquire touts Gresham s Mayor Bemis in list of people, concepts and things that define our time. The Oregonian, September 17, Sane Bemis, the regions it mayor, could be bigger news elsewhere, The Oregonian, September 19, Food makers find a lot to like about locating in East Multnomah County, The Oregonian, August 7,

4 GRESHAM, OREGON MARKET ANALYSIS Traded Sector Employers Specialty Baking received tax abatements under the city s Enterprise Zone for investing in Gresham. 4 The city focuses on traded sector industries, which sell products outside the area, bringing wealth back to Gresham. Food processing is not the only traded sector growing in Gresham: Boeing invested more than $100 million in a 64,000-square-foot plant and additional expanded quarters. It now employs 1,800 in Gresham, up 300 in three years. The company has plans for another $300 million in new equipment installed at the site. 5 ON Semiconductors invested $7 million in new equipment and added 150 employees in It continues to move jobs to Gresham from its other locations. 6 Owens Corning opened a LEED Gold certified facility to make insulation four years ago. 7 Physicians Capital Investments, LLC will build a new 11,000-square-foot building in Gresham Vista Business Park. The new clinic will be open and operational in early PCI has built more than 20 medical facilities throughout the United States. 8 Over the past three years private county employers have created EMPLOYER EMPLOYEES US Bank Columbia Center Check Processing Boeing of Aircraft Frame Structures ON Semiconductor Semiconductors Microchip Technology Microcontrollers ACS Call Center Albertson s Distribution Center Food Distribution Cascade Corporation Hydraulics Equipment RR Donnelly Northwest Inc. Publisher Pella Vinyl Metal Frames and Windows Boyd Coffee Company Food Processing Odom Corporation Beer Wine Spirits Distribution Rolling Frito Lay Food Distibution Specialty Baking Food Distibution Wright Business Graphics Commercial Printing Teeny Foods Food Processing Staples Distribution Center Distribution 16 additional companies employing , 51 employing under 50 Source: City of Gresham May ,900 jobs; a five percent increase. 9 4 Ibid. 5 Gresham Oks $12M in Boeing incentives, Business Journal, February 20, ON Semiconductor continues hiring in Gresham, The Oregonian, June 24,, Owens Corning s Gresham Ore. Plant becomes first LEED Gold certified insulation facility in the United States, Owens Corning, October 22, Accessed November 25, New digs in Gresham Vista Business Park, Portside, Port of, Summer Data from July 2010 to July 2013, Oregon Employment Department, October

5 BIG CITY LIFE, SMALL TOWN FEEL Life in Gresham A survey conducted in 2008 reported that most residents were satisfied with the city, and praised its small-town feel and convenient location. 10 Gresham is the fourth largest city in Oregon, the second largest in the area and is the gateway to the Columbia River Gorge. Now, at over 105,000 residents, it has averaged 2.4% annual growth over the past twenty-three years. 11 Without losing a sense of community, Gresham has transformed from a quiet farming town to a thriving urban area with attractive amenities, including: Outdoor fun An extensive network of parks, trails, and natural areas Parks offering golf, swimming, camping, biking, and more Easy access to skiing on Mt. Hood International windsurfing in the Columbia River Gorge Educational opportunities Mt Hood Community College Excellent network of public and private schools for K-12 education Lively arts scene Five theater companies Summer concert series Mt. Hood Jazz Festival Museums, galleries, and Gresham Center for the Arts Shopping Locally owned shops, salons, and restaurants downtown Fifty stores, large and small, at Gresham Station The outdoor shopping center Gresham Town Fair hosts thirty shops, services and restaurants Columbia Gorge Outlet Mall is in nearby Troutdale 10 Gresham Citizen Survey, conducted for the City of Gresham. Accessed July 28, Oregon Population Report, Population Research Cente 5

6 TRANSPORTATION Moving Around Seventy percent of working residents commute outside of the city using the excellent transportation infrastructure. All of Gresham is only minutes from the major east-west Interstate 84, and the north-south Interstate 205. Every day, 563 Tri-Met buses serve travelers. 12 Gresham is served by the Blue Line of the Metropolitan Area Express (MAX) light rail, and nearly 5,800 people use it to commute. 13 A new light rail station anchors a planned mixeduse community in the Gresham Civic Neighborhood. 14 The Rockwood Station has been redesigned and is being renovated for safety and appearance. Other existing light rail stations have also been updated. 15 Also, the International Airport is just 20 minutes away. Rockwood Rockwood is a small, working-class neighborhood in the northwest of Gresham. It has exciting possibilities, as it is located at the juncture of main thoroughfares and the intersection of several cultures. It is served by the MAX Blue Line, and is the site of a Multnomah County Library Branch. The area has several parks, and is developing new programs for children. According to The Business Journal, The Rockwood Boys & Girls Club and Friends of the Children East County will develop side-by-side facilities at the site of the former Police Activities League Center. 16 Rockwood sends 65.4% of its residents out to work each day. Most drive to work, but 12.4% use public transit. The top three occupation categories are: service, 27%; sales and office, 21%; and production, transportation and material moving, 19%. The mean household income is $47,130, and the mean family income is $51, Rockwood has a bright future. It is part of an urban renewal area, and the city is committed to its improvement. A sign of this is the choice of Kia Selley, a Development Commission development specialist, to be the urban design and planning director. 18 The Oregonian reports High-profile projects Selley has been associated with include the South Waterfront Greenway Master Plan; Tanner Springs Park in the Pearl District; public outreach for the Burnside Bridgehead process; and strategy development for s Rose Quarter redevelopment effort Gresham Community Profile, Infrastructure Finance Authority. Accessed November 25, Tri-Met Passenger Census Spring Provided by Tri-Met. 14 Tri-Met opens new Gresham MAX station, featuring arm-busting interactive art, The Oregonian, December 1, Interview with Shannon Lopez, Economic Development Specialist for the city of Gresham, July 28, Friends of Children, Boys & Girls Club, give Rockwood kids a boost, Business Journal, June 11, Zip code 97233, American Community Survey. Accessed November 25, Selley joins Gresham planning team, Business Journal, May 25, Former Development Commission advisor Kia Selley named to oversee Gresham s Urban Renewal program, The Oregonian, June 1,

7 URBAN RENEWAL IN ROCKWOOD What is Urban Renewal? In 2003, voters in What is Urban Renewal? Gresham approved the establishment of the Rockwood-West Gresham Urban Renewal Area, to make targeted investments in Rockwood, create jobs and attract new private investment and development. Urban Renewal Area Urban Renewal encourages private investment by strategically partnering with business and property owners to create jobs, increase investment, and to raise property values throughout the Urban Renewal Area. Funding for Urban Renewal comes from property tax revenue on new value created in Rockwood over the life of the Urban Renewal Area: Not a new tax, but a tool to invest in the Urban Renewal Area to create jobs, new development and higher property values Taxes going to the City, County and other jurisdictions are frozen according to 2003 Total Assessed Value in the Urban Renewal Area taxes on new Assessed Value over that amount are used to fund Urban Renewal projects Funds must be spent within the Urban Renewal Area Goals in the Urban Renewal Plan Develop Public Safety & Community Service Facilities Help Create and Retain Family Wage Jobs by Improving Industrial and Commercial Areas Promote Quality Development Urban Renewal Financing Improve Rockwood Town Center Improve Transportation Increase Availability of Quality Housing Public Involvement Parks and Recreation Facilities 7

8 PEOPLE AT HOME AND AT WORK Gresham s Households There are about 39,000 households in Gresham. Families comprise 67% of this total; the rest are primarily people living alone. There is a significant population of immigrants, as indicated by the 23% who speak a language other than English at home. Most of these (71%) speak Spanish. Multnomah/Washington County Employment Projections Industry Title Total Nonfarm Employment 667, , Total Private 570, , Construction 26,100 34, Manufacturing 72,800 83, Trade, Transportation, and Utilities 126, , Information 17,300 20, Financial Activities 44,800 51, Professional and Business Services 95, , Educational and Health Services 93, , Leisure and Hospitality 65,000 79, Other Services 23,800 27, Government 97, ,600 9 Source: Oregon Employment Department Employment 2010 Employment 2020 % Change Job Losses & Gains by Wage Range * Job Losses (June June 2010) Job Gains (June June 2013) Gresham offers a stable rental pool. Over 47% of residents rent. In Rockwood, the percentage is even higher: 54% rent, and only 46% own their home. 20 Gresham is consistent with the nation in that 84% of people over 25 are at least high school graduates. Total school enrollment is 28,000, of which 7,100 are in college or graduate school. 21 The largest employment sectors for Multnomah County are Education and Health Services, and Retail. Local educational services employers include Mt. Hood Community College employing 1, and the Gresham-Barlow School District employing 1, In health care, Legacy Mount Hood Medical Center employs 591. In 2009 Legacy Mount Hood doubled the size of its Emergency department, and a new short stay unit opened in Adventist Medical Center is located fifteen minutes from downtown Gresham where it employs more than 2, The state is divided into regions for job growth analysis. Gresham is part of the region which includes Multnomah and Washington Counties. Employment growth is expected to grow across the board, as shown in the table. The metro area lost 80,000 jobs in the Great Recession. The good news is that as Q2 2013, the metro was only a few thousand jobs away from a complete recovery. Further, the jobs are not all low wage: the chart below shows strong gains in jobs paying over $50, Roughly half of the jobs created since the end of the recession are in industries that pay over $50,000 annually. -38, ,400 More than $50, Zip code 97233, American Community Survey. Accessed November 25, Gresham city, Oregon, American Factfinder, U.S. Census Bureau, Accessed November 25, , ,500 $30,000 $50, MHCC Fact sheet, Mt Hood Community College, Accessed November 25, District Profile, Gresham-Barlow School District. Accessed November 25, Interview with Megan Vidal, Legacy public relations, August 4, , ,700 Less than $50, About Adventist Medical Center, Adventist Medical Center. Accessed August 26, Oregon Labor Trends, Oregon Employment Department, September 1, Accessed August 26, ,000-30,000-10,000 10,000 30,000 50,000 *2012 Annual Average Covered Wage by industry, Oregon portion of the Metro Area 8

9 APARTMENT FACTS Trends and Forecast Asking Rent Growth Analysts at REIS divide the market into submarkets, with most of Gresham in the market called East Gresham. Rent growth rates have paralleled the growth rates of the larger markets, as shown below. The downside scenarios are based on moderate and more severe downside predictions from Moody s. Period ending 12/31/17 Vacancy Rate Vacancy rates, on the other hand, are remarkably low. East Gresham leads the metro in this metric, and REIS expects that to continue. Period ending 12/31/17 Inventory Growth Inventory is also tight, with no apartment construction in the past three years. Period ending 12/31/17 Number of Units Vacancy Rate (%) Construction/Absorption and Vacancy The number of units is predicted to rise beginning in Period ending 12/31/17 9

10 BARBERRY VILLAGE apartment homes 10

11 BARBERRY VILLAGE Rent Comparables ROCKWOOD STATION E. Burnside St. Year built 1990 Total Units Bed/1 Bath: Sq. ft. 717 Rent $700 Sq. ft. $ Bed/1-2 Bath: Sq. ft Rent $815 Sq. ft. $0.81 Occupancy 99% WAVERLY GARDENS SE Stark St. Year built 1982 Total Units Bed/1 Bath: Sq. ft. 620 Rent $685 Sq. ft. $ Bed/1-2 Bath: Sq. ft. 906 Rent $825 Sq. ft. $ Bed/1-1.5 Bath: Sq. ft. 1,126 Rent $995 Sq. ft. $0.88 Occupancy 99% VILLAGE COURT NE Oregon St. WOODCREEK NE Halsey St. Year built 1973 Total Units 84 1 Bed/1 Bath: Sq. ft. 500 Rent $660 Sq. ft. $ Bed/1-2 Bath: Sq. ft. 884 Rent $765 Sq. ft. $ Bed/1-2 Bath: Sq. ft. 950 Rent $860 Sq. ft. $ Bed/1-1.5 Bath: Sq. ft. 1,210 Rent $995 Sq. ft. $0.82 Year built 1993 Total Units 70 2 Bed/1-2 Bath: Sq. ft. 985 Rent $820 Sq. ft. $ Bed/1-2 Bath: Sq. ft. 985 Rent $860 Sq. ft. $0.87 Occupancy 96% Washer/Dryer In some units Occupancy 97% Conces. None SUNPOINTE SE Stark St. Year built 1990 Total Units 88 2 Bed/1-2 Bath: Sq. ft Rent $895 Sq. ft. $0.87 Occupancy 99% Conces. None EAST FAIR TERRACE 500 NW Division St. Year built 1981 Total Units Bed/1 Bath: Sq. ft. 695 Rent $654 Sq. ft. $ Bed/1-2 Bath: Sq. ft. 750 Rent $748 Sq. ft. $1.00 Occupancy 100% Washer/Dryer On-site Conces. None HOGAN WOODS 1645 NE 20th St. Year built 1998 Total Units Bed/1 Bath: Sq. ft. 619 Rent $748 Sq. ft. $ Bed/1-2 Bath: Sq. ft. 881 Rent $889 Sq. ft. $ Bed/1-1.5 Bath: Sq. ft. 1,018 Rent $1,068 Sq. ft. $1.05 Occupancy 98% GRESHAM PARK 805 NE Kane Drive. Gresham Year built 1991 Total Units 51 2 Bed/1-2 Bath: Sq. ft. 855 Rent $800 Sq. ft. $ Bed/1-1.5 Bath: Sq. ft. 1,080 Rent $1,050 Sq. ft. $0.97 Occupancy Utilities SUNRISE VILLAGE 912 NE 183rd Ave. Gresham Year built 1972 Total Units 63 1 Bed/1 Bath: Sq. ft. 575 Rent $565 Sq. ft. $ Bed/1-2 Bath: Sq. ft. 850 Rent $670 Sq. ft. $ Bed/1-2 Bath: Sq. ft. 950 Rent $745 Sq. ft. $0.78 Occupancy 98% Utilities Tenant pays $30/40/45 Continue next page 11

12 BARBERRY VILLAGE Rent Comparables VISTA AT NE 23rd Road. Gresham Year built 1990 Total Units Bed/1 Bath: Sq. ft. 832 Rent $778 Sq. ft. $ Bed/1-2 Bath: Sq. ft Rent $888 Sq. ft. $ Bed/1-1.5 Bath: Sq. ft. 1,178 Rent $835 Sq. ft. $0.71 Occupancy 98% Utilities Tenant pays $30/40/45 EAST WIND 2950 NE 23rd Street. Gresham Year built 1971 Total Units Bed/1 Bath: Sq. ft. 570 Rent $660 Sq. ft. $ Bed/1-2 Bath: Sq. ft. 670 Rent $735 Sq. ft. $ Bed/1-1.5 Bath: Sq. ft. 790 Rent $835 Sq. ft. $1.06 Occupancy 98% Utilities Tenant pays $30/40/45 TOWNFAIR 1167 NW Wallula Ave. Gresham Year built 1990 Total Units Bed/1 Bath: Sq. ft. 730 Rent $715 Sq. ft. $ Bed/1-2 Bath: Sq. ft. 922 Rent $780 Sq. ft. $ Bed/1-2 Bath: Sq. ft. 966 Rent $810 Sq. ft. $0.84 Occupancy 98% Utilities Tenant pays $30/40/45 THE PINES 140 SE 188th Ave. Year built 1971 Total Units 66 1 Bed/1 Bath: Sq. ft. 624 Rent $585 Sq. ft. $ Bed/1-2 Bath: Sq. ft. 768 Rent $701 Sq. ft. $ Bed/1-1.5 Bath: Sq. ft. 875 Rent $750 Sq. ft. $0.86 Occupancy 100% Washer/Dryer On-site Conces. None HIGHLAND PARK SE Stark St. Year built 1990 Total Units Bed/1 Bath: Sq. ft. 581 Rent $600 Sq. ft. $ Bed/1 Bath: Sq. ft. 603 Rent $625 Sq. ft. $ Bed/1-2 Bath: Sq. ft. 792 Rent $675 Sq. ft. $ Bed/1-2 Bath: Sq. ft. 936 Rent $800 Sq. ft. $0.85 Occupancy 95% Washer/Dryer On-site Utilities Gas included Tenant pays WS Conces. None TOTAL & AVERAGE 1 Bed/1 Bath: Sq. ft. 639 Rent $665 2 Bed/1-2 Bath: Sq. ft. 897 Rent $793 3 Bed/1-2 Bath: Sq. ft. 1,040 Rent $933 BARBERRY VILLAGE 224 SE 188th Ave. Year built 1974 Total Units 180 Current Scheduled Rent 1 Bed/1 Bath: Sq. ft. 610 Rent $586 2 Bed/1 Bath: Sq. ft. 826 Rent $661 3 Bed/1-2 Bath: Sq. ft. 917 Rent $816 Current Re-rents 1 Bed/1 Bath: Sq. ft. 610 Rent $600 2 Bed/1 Bath: Sq. ft. 826 Rent $685 3 Bed/1-2 Bath: Sq. ft. 917 Rent $825 Occupancy 100% Washer/Dryer On site Please note: square footages and rents have been obtained from sources we deem reliable however is not guaranteed. 12

13 BARBERRY VILLAGE Sales Comparables EAST WIND 2950 NE 23rd Street Gresham, OR Washington County TOTAL UNITS BUILT SALE DATE SALE PRICE PER SF PER UNIT /18/2013 $11,400,000 $ $68,874 FOUNTAIN PARK APARTMENTS 4550 SW Murray Blvd Beaverton, OR Washington County TOTAL UNITS BUILT SALE DATE SALE PRICE PER SF PER UNIT /05/2013 $14,400,000 $61.68 $66,667 PARKSIDE APARTMENT HOMES 2831 SE Palmquist Rd. Gresham, OR Multnomah County TOTAL UNITS BUILT SALE DATE SALE PRICE PER SF PER UNIT /21/2012 $16,450,000 $81.00 $73,111 PIER PARK APARTMENTS 8660 N Columbia Blvd., OR Multnomah County TOTAL UNITS BUILT SALE DATE SALE PRICE PER SF PER UNIT /11/2012 $8,600,000 $62.42 $52,439 THE PARK AT TUALATIN 7800 SW Sagert St. Tualatin, OR Washington County TOTAL UNITS BUILT SALE DATE SALE PRICE PER SF PER UNIT /26/2012 $19,350,000 $ $92,143 TOTAL & AVERAGE PER SF PER UNIT $85.96 $70,647 BARBERRY VILLAGE 224 SE 188th Ave., OR Multnomah County TOTAL UNITS BUILT SALE DATE SALE PRICE PER SF PER UNIT $11,750,000 $87 $65,278 13