Four Units-Gladstone $875,000. Western Equities. Kevin Wingate-Pearse, Consultant

Size: px

Start display at page:

Download "Four Units-Gladstone $875,000. Western Equities. Kevin Wingate-Pearse, Consultant"

Curtis Murphy
6 years ago
Views:

$875,000 4 Units Property Close in SE Location Ample Onsite Parking

hardwood floors and well appointed finishes All units have a 6x6

Units-Gladstone 3968-3974 SE Gladstone Street, Portland, OR 97232

1 $875,000 4 Units Property Close in SE Location Ample Onsite Parking Hardwood Floors 3 Two bed/1 bath and 1 bed 1 bath units with hardwood floors and well appointed finishes All units have a 6x6 storage locker In basement R1 Zone 10 units possible Four Units-Gladstone SE Gladstone Street, Portland, OR Western Equities Kevin Wingate-Pearse, Consultant kevinwp@westernequities.com

Electric oilwall Heaters Washer/Dryer In Basement Property: Consisting of 3 Two Bed/1 Bath units and a 1 bed 1 bath unit (706 average Sf).

2 Investment Overview Sale Price $875,000 $957,000 Number of Units 4 Lot Size 10,086 Sf. Building Size 3,886 Sf. Average SF Units 706 Sf. Year Built 1950 Zoning R1 Medium Density Sub Market SE Portland Cross Street SE 39th Ave/SE Gladstone Renovated 2016 Windows Roof 3 Tab Composition Framing Wood Heat Forced High Effeciency Air Electric oilwall Heaters Washer/Dryer In Basement Property: Consisting of 3 Two Bed/1 Bath units and a 1 bed 1 bath unit (706 average Sf). All units are all on the single story main floor and with a ¾ basement housing the washer and dryer for tenant usage and each tenant has a 6 x6 Storage locker. Each unit has a off street parking space while the property features a serene landscaped front entry and private back yard for barbecues or relaxing in the sun. Location: This apartment community is in the Cleveland School District, served by Grout elementary, Creston middle school, and Cleveland high school. There is easy access to downtown along Powell & Holgate blvd s and north/south along Ceasar Chavez Blvd. The property is very well located close in SE Gladstone and within a ½ mile of many retail and entertainment venues including a Trader Joes within 2 walkable blocks, Safeway at 40 th /Powell and a Natural Grocers store. Opportunity: The rental market is thriving and so is anything close in south east Portland. Current rents have boosted the profitability of the opportunity and this is a great stable rental property in a consistently desirable area. The area is surrounded with quality SFR homes, other multifamily rentals and tenants can easily walk the 2 blocks to the SE Powell Blvd where ample busses are running. Upgrades: Exterior painting in 2017, New Windows 2008; Attic insulation and floor insulation. Oil heat removed and new cadet forced air wall units installed. Oiltankinprocessofbeingdecommissioned.2 units fully turned, one in process

3 FINANCIAL Financial Overview Summary Rent Roll Current Proforma No. Unit Avg Unit Average Avg Monthly Avg Market Monthly Unit Tot Type % Total SF Total SF Rent Rent/SF Total Annual Total Mkt Rent Rent/SF Total Annual Total x1 26.1% $1,375 $1.87 $1,375 $16, $16, x1 19.1% $900 $1.67 $900 $10, $13, x1 24.3% $1,325 $1.93 $1,325 $15, $16, x1 30.5% $1,390 $1.62 $1,390 $16, $18, % 706 2,822 $4,990 $1.77 $4,990 $59,880 $5, $5,450 $65,395 Operating Income Scheduled Rental Income * Less Physical Vacancy Scheduled Gross Rental Income 3.00% $59,880 $65,395 ($1,796) 3.00% ($1,962) $58,084 $63,434 Other Income $/Mo $/Mo. Laundry Income $29 $1,346 $29 $1,392 Forfeitures and Misc. Income $14 $652 $59 Add $25 Utility bill back $2,832 Total Other Income $1,997 $4,224 EFFECTIVE GROSS INCOME $60,081 $67,658 Fixed Expenses $/SF $/Unit % of EGI $/SF $/Unit % of EGI Real Estate Taxes $2.63 $1, % $7,417 $2.67 $1, % $7,528 Insurance $0.42 $ % $1,190 $0.39 $ % $1,095 **Professional Management $0.00 $0 0.0% $0 $0.84 $ % $2,368 Subtotal $3.05 $2, % $8,607 $3.89 $2, % $10,991 Variable Expenses Utilities (electric/garbage/oil) $0.65 $ % $1,824 $0.23 $ % $637 Water/Sewer $1.01 $ % $2,862 $1.67 $1, % $4,705 *Maintenance and Labor $0.83 $ % $2,331 $0.78 $ % $2,215 Landscaping $0.62 $ % $1,745 $0.28 $ % $787 *Turnover $0.75 $ % $2,123 $0.39 $ % $1,100 Supplies/Other $0.11 $78 0.5% $311 $0.11 $80 0.5% $320 Subtotal $3.97 $2, % $11,196 $3.46 $2, % $9,764 Capital Expenditures *Replacement Reserves TOTAL OPERATING EXPENSES NET OPERATING INCOME CAP Rate INDICATED VALUE $0.21 $ % $600 $0.35 $ % $1,000 $7.23 $5, % $20,403 $7.71 $5, % $21,756 $14.06 $9, % $39,678 $16.27 $11, % $45, % 5.25% $/SF $/ Unit GRM $/SF $/Unit GRM $ $218, $875,000 $ $218, $875,000 * Budget ** Self Managed Proposed Financing NOI $39,678 NOI $45,902 $437,500 Mortgage ($25,981) Mortgage ($25,981) 50% LTV 30 yrs amor. at 4.30% Cashflow $13,697 Cashflow $19,921 Annual payment $25,981 LTV 70.0% LTV 50.0% Min DSC: 1.20 DSC 1.53 DSC 1.77 Down payment $478,500 C/C Return 2.36% C/C Return 4.55% CAP 4.53% CAP 5.25%

4 LOCATION

5 INTERIORS

6 INTERIORS

7 SALE COMPAREABLES 4323 SE 16th Ave., Portland OR SE 16th Ave., Portland OR Sale Price $749,900 Year Built 1915 No Units 4 Price per Unit $249,966 CAP/GRM Gross Income $50, SE Clay Street, Portland OR SE Clay Street, Portland OR Sale Price $800,000 Year Built 1978 No Units 3 Price per Unit $266,666 CAP/GRM Gross Income $55, NE Rosa Parks Way, Portland OR NE Rosa Parks Way, Portland OR Sale Price $835,000 Year Built 1943 No Units 4 Price per Unit $208,750 CAP/GRM 4.89 Gross Income $59, SE 73rd Ave, Portland OR 218 SE 73rd Ave, Portland OR Sale Price $915,000 Year Built 1954 No Units 4 Price per Unit $228,750 CAP/GRM NOI $41,340

8 SALE COMPAREABLES 3030 SE Ankeny, Portland OR SE Ankeny, Portland OR On Market Sale Price / Year Built 1947 No Units 3 Price per Unit $298,750 CAP/GRM Gross Rents $43,200 (est) 8725 SE 11TH AVE Portland SE 11TH AVE Portland Sale Price $875,000 Year Built 1926 No Units 4 Price per Unit $211,250 CAP/GRM 4.54/16.04 Gross Rents $52, SE 11TH AVE Portland SE 11TH AVE Portland Sale Price $1,195,000 Year Built 1971 No Units 4 Price per Unit $291,666 CAP/GRM 4.9 Gross Rents $56, SE 61ST AVE Portland SE 61ST AVE Portland Sale Price $949,000 Year Built 1967 No Units 4 Price per Unit $212,500 CAP/GRM 5.2 Gross Rents $66,500

AREA DEVELOPMENT What area Developments are proposed? Project: 3610 SE 29th apartments Address: 3610 SE 29TH AVE, Portland, OR Description: 62 apartments in three buildings of three or four stories.

9 AREA DEVELOPMENT What area Developments are proposed? Project: 3610 SE 29th apartments Address: 3610 SE 29TH AVE, Portland, OR Description: 62 apartments in three buildings of three or four stories. A second phase would include a 25-unit hostel. Status: Proposed Project: 1807 SE Insley apartments Address: 1807 SE Insley St., Portland, OR Description: Three-story, 18-unit apartment building. Status: Proposed Project: 2025 SE Harold apartments Address: 2025 SE HAROLD ST, Portland, OR Description: Three-story, six-unit apartment building. Status: Proposed Project: 1636 SE Harold apartments Address: 1636 SE Harold St., Portland, OR Description: Permit sought for three-story, 14-unit apartment building. Status: Proposed Project: 5624 SE 22nd apartments Address: 5624 SE 22ND AVE, Portland, OR Description: Three-story, 15-unit apartment building. Status: Proposed Also in for early assistance is a proposal to consolidate three tax lots at 3956 SE Gladstone for construction of 21 townhomes. This should have a very upgrading effect on this block with the net effect of solid rent gains in the foreseeable future.

10 Broker Profile Kevin Wingate-Pearse, Investment Advisor Kevin has been in the real estate industry for the past 16 years as a commercial real estate broker and developer. Since 2000 he has represented buyers and sellers of investment real estate, through acquisition, disposition and/or leasing. His expertise spans all facets of commercial real estate; however he now specializes in investment sales, development & consulting with an emphasis on multi-family. Licensed in Washington and Oregon, his immediate area of focus is Vancouver Washington and Portland, Oregon, but he has worked on properties in several states when he has found more lucrative investments for his clients. Prior to re-joining Western Equities in December 2016, Kevin was with SVN/Bluestone & Hockley since He was a broker with Coldwell Banker Commercial, JBA in Vancouver WA, developed commercial projects with Keys Property Group, did leasing & sales at the Sheldon Company in Vancouver WA and initiated his commercial career at Western Equities in Portland Oregon, way back in Active in the local community, he has been a board member, secretary and vice chair on the board of REACH Community Development. He is an avid reader, soccer fan, loves hiking, yoga and traveling.

Emma Manor. Price: $1,750, SW Barbur Blvd., Portland, OR 97219

Emma Manor. Price: $1,750, SW Barbur Blvd., Portland, OR 97219 Price: $1,750,000 Emma Manor 7934 SW Barbur Blvd., Portland, OR 97219 Price Summary Price: $1,750,000 Price/Unit: $175,000 Price/Sq Ft: $163.15 Cap Rate: 4.83% Proforma Cap Rate: 5.31% Building Summary