Mountain Crest Apartments 24 Units

Transcription

1 INVESTMENT REAL ESTATE SERVICES FOR SALE Mountain Crest Apartments 24 Units 1519 SE Roberts Drive Gresham, Oregon Exclusively Represented By: Cameron Mercer Multifamily Investment David Chatfield Multifamily Investment 900 SW 5th Avenue 17th Floor Portland, OR

2 Table of Contents Executive Summary 1 Investment Overview 2 Photos 3 Floor Plans 5 Submarket Overview 6 Financial Analysis 7 Aerial Maps 8 Sale Comps 10 Rent Survey 11 Exclusively Represented By: Cameron Mercer Multifamily Investment Broker CameronM@norris-stevens.com David Chatfield Multifamily Investment Broker DavidC@norris-stevens.com 900 SW 5th Avenue, 17th Floor, Portland, OR

3 Executive Summary LISTING PRICE PRICE/UNIT PRICE/SF PROFORMA CAP RATE $3,800,000 $158,333 $ % PROPERTY HIGHLIGHTS Located in Low Density Residential Setting Mix of 1 Bed/1Bath & 2 Bed/2 Bath Spacious Interiors Ranging from 681 SF to 939 SF Washer and Dryer in Every Unit Ample Off-Street Parking with 1 Carport per Unit Easy Access to Highway 26 5 Minutes from Downtown Gresham Blocks from hiking/biking trail MOUNTAIN CREST APARTMENTS 900 SW 5th Avenue, 17th Floor, Portland, OR

4 Investment Overview Mountain Crest Apartments is a 24 unit apartment community built in 1998 located in Gresham, Oregon. This investment offers many attractive features as well as tremendous upside to a future investor. The property has ample off-street parking which provides each unit with one covered and one uncovered parking space. Attractive Floor Plans: The apartment homes consist of three different floor plans. There are fifteen 1-bedroom/1-bath ranging from SF and nine 2-bedroom/2-bath consisting of 939 SF of living space. Each unit is equipped with a full size washer & dryer as well as a large balcony where residents can BBQ and enjoy the peaceful park like setting. Convenient Location: Mountain Crest Apartments is situated in a low density quiet residential setting in Southeast Gresham just 5 minutes from the downtown area. It offers excellent access to Highway 26 and Powell Boulevard retail corridor and is just 4 miles from I-84. Mountain Crest Apartments is 1.5 miles from the Gresham Central TC MAX Station and just 12 miles from downtown Portland. Property Name Property Address Property City Units 24 # of Buildings 2 Lot Size Building Size Parking Spaces Garages Heating Laundry Mountain Crest Apartments 1519 SE Roberts Drive Gresham 1.18 Acres (51,401 SF) 19,140 SF 25 Uncovered, 24 Carports 3 Detached Garages Electric Year Built 1998 Number of Stories 3 Foundation Windows Siding Washer & Dryer in Each Unit Slab Vinyl Vinyl Roof Pitched/Composition 900 SW 5th Avenue, 17th Floor, Portland, OR

5 Property Photos 900 SW 5th Avenue, 17th Floor, Portland, OR

6 Interior Photos 900 SW 5th Avenue, 17th Floor, Portland, OR

7 Unit Floor Plan One Bedroom/One Bath 681 Square Feet D Dining Room Bath Patio/Deck W Welcome to Living Room Closet Storage Storage Patio/ Deck Mountain Crest Apartments One Bedroom/One Bath 760 Square Feet Dining Room Kitchen Living Room D W Two Bedrooms/Two Baths 939 Square Feet Dining Room Kitchen Patio/Deck Living Room Storage Bedroom Closet Bath Closet Bath Bath Closet D W Bedroom Closet Bedroom Closet Bedroom Walk In Closet 900 SW 5th Avenue, 17th Floor, Portland, OR

8 Gresham Submarket Portland-Vancouver Market Area: Mountain Crest Apartments is situated in the Portland-Vancouver Metropolitan Statistical Area, which has a population of approximately 2.4 million people. The Portland-Vancouver MSA is the 13th fastest growing metro area in the country with Gresham being the 4th largest city in the state of Oregon and 3rd largest city in the MSA. Portland is surrounded by recreational amenities including the Oregon Coast, Mt. Hood Ski area and the Columbia Gorge National Scenic Area. Tight Apartment Rental Market: With Portland s urban core experiencing high degrees of gentrification, affordability has become a major concern to renters throughout the Metro region. This has created a large in-migration effect pushing residents further out into the suburbs making areas like Gresham a desirable and affordable place to live. The average vacancy rate in the Troutdale/Gresham area is one of the lowest in the MSA sitting at just 2.5%. Population Growth: According to the United States Census Bureau, in Gresham s population consisted of 105,594 people. The Portland region grew by 41,000 people in 2015 (1.72% over 2014) which is equivalent to two full TriMet buses every day for a year. Over the past 20 years Gresham has gone from a farming community to a burgeoning urban center. TOP EMPLOYERS 1. Albertson s Distribution Center (approx. 1,500 employees) 2. Microchip (approx. 400) 3. ON Semiconductor (approx. 800 employees) 4. Mt. Hood Community College (approx. 1,400 employees) 5. Boeing of Portland (approx. 2,000 employees) 6. Legacy Health - Gresham Location 900 SW 5th Avenue, 17th Floor, Portland, OR

9 Financial Analysis ANNUAL GROSS INCOME % GOI $/UNIT/YR. CURRENT PRO FORMA POTENTIAL RENTAL INCOME $11,847 $284,328 $324,000 Plus: Garage Income $113 $2,700 $2,700 Plus: RUBS $500 $12,000 $18,000 Plus: Fees & Retained Income $42 $1,000 $1,000 Plus: Miscellaneous $4 $100 $100 GROSS OPERATING INCOME $12, $300,128 $345,800 Less: Vacancy/Credit Loss -5% -$592 (14,216) (16,200) EFFECTIVE GROSS INCOME $24,418 $285,912 $329,600 Estimated Annual Expenses Real Estate Taxes Est % $1,214 $29,133 $29,133 Insurance Estimated 1.68% $ $4,800 $4,800 Water/Sewer/Garbage 2018 Projected 5.60% $ $16,000 $16,000 Telephone/Cable/Internet 2017 Projected 0.67% $80 $1,915 $1,915 Electricity 2017 Projected 0.82% $98 $2,350 $2,350 Estimated Fixed Expenses Professional & On-Site Management 8.5% of EGI 8.48% $1,010 $24,235 $25,725 Advertising 2018 Projected 0.07% $8 $200 $200 Landscaping 2018 Projected 2.45% $292 $7,000 $7,000 Turnover 10 Turnovers X $ % $131 $3,150 $3,150 Replacement Reserves $250/Unit 2.10% $250 $6,000 $6,000 Repair 2018 Projected 5.27% $628 $15,065 $15,065 Miscellaneous/Administrative 2018 Projected 0.14% $17 $400 $400 TOTAL ESTIMATED ANNUAL EXPENSES 38.56% $4,594 $110,248 $111,738 TOTAL ESTIMATED NET OPERATING INCOME (before debt service) $19,825 $175,664 $217,862 CAP Rate: 4.57% 5.73% Rent Roll NUMBER UNIT TYPE APPROX. SF RENT RANGE AVG. RENT SF CURRENT MONTHLY INCOME HIGHEST ACHIEVED MONTHLY MARKET RENTS 15 1 BD/1 BA $825 - $ $14,023 $14,985 $15, BD/2 BA 939 $999 - $ $10,084 $10,431 $11,250 TOTAL 24 18,903 $24,107 $25,326 $27,000 Rent Upside 2 BD / 2 BA 1 BD / 1 BA $1,200 $1,200 $1,150 $1,000 $1,100 $800 $1,050 $600 $1,000 $400 $950 $200 $900 Minimum Average Maximum $0 Minimum Average Maximum 900 SW 5th Avenue, 17th Floor, Portland, OR

10 Plat Map 900 SW 5th Avenue, 17th Floor, Portland, OR

11 ham Google Maps Aerial Maps 1 mile MT. HOOD COMMUNITY COLLEGE MAX BLUE LINE STOP DOWNTOWN GRESHAM LOCAL RESTAURANTS & SHOPPING THOM PARK Gresham - Google Maps SPRINGWATER CORRIDOR TRAIL GRADIN COMMUNITY SPORTS PARK MOUNTAIN CREST APARTMENTS GRESHAM BUTTE SPRINGWATER TRAIL HIGH SCHOOL Imagery 2016 Google, Map data 2016 Google 1000 ft 1/1 PORTLAND GRESHAM 900 SW 5th Avenue, 17th Floor, Portland, OR

12 Sale Comps 805 NE Kane Dr - Gresham Park Apartments Gresham, OR # of Units 51 Sale Price $8,800,000 Year Built 1991 Sale Date 11/20/17 RBA 46,582 SF Price Per Unit $172,549 Cap Rate Price Per SF $ SE Powell Valley Rd - Sierra Point Apartments Gresham, OR # of Units 24 Sale Price $4,750,000 Year Built 2017 Sale Date 09/07/17 RBA 28,890 SF Price Per Unit $197,917 Cap Rate 5.52% (proforma) Price Per SF $ SE 6th St Gresham, OR # of Units 8 Sale Price $1,300,000 Year Built 1999 Sale Date 4/26/17 RBA 8,120 SF Price Per Unit $162,500 Cap Rate Price Per SF $ SW 5th Avenue, 17th Floor, Portland, OR

13 Current Rent Survey THIS SURVEY OF RENTS AND COMMUNITY AMENITIES AMONG COMPETING GRESHAM APARTMENT COMMUNITIES WAS PREPARED JANUARY 04, 2018 APARTMENT YEAR BUILT NUMBER OF UNITS UNIT TYPE UNIT SIZE (SQ FT) AVERAGE ASKING RENT APPROX RENT/SQ FT CARPORT GARAGE POOL COMMUNITY RM FITNESS CENTER WASHER/DRYER IN UNIT W/S/G CHARGED PLAYSET BALCONY/DECK SUBJECT PROPERTY MOUNTAIN CREST BD/1BA 681 $ $ SE ROBERTS DRIVE 1BD/1BA 760 $ $40 GRESHAM, OREGON 2BD/2BA 939 $ $50 THREE GARAGES AVAILABLE AIR CONDITIONING NORRIS & STEVENS NORRIS & STEVENS NORRIS & STEVENS NORRIS & STEVENS NORRIS & STEVENS NORRIS & STEVENS NORRIS & STEVENS NORRIS & STEVENS HOGAN WOODS Norris 1BD1BA & Stevens Norris 619 & Stevens Norris $1032 & Stevens - $1246 Norris & 1.67 Stevens $ 1645 NE 20TH 2BD2BA 881 $ $ BY USAGE GRESHAM, OREGON Norris 3BD2BA & Stevens Norris 1018 & Stevens Norris & $1574 Stevens Norris & Stevens 1.55 $ NORRIS & STEVENS NORRIS & STEVENS NORRIS & STEVENS NORRIS & STEVENS NORRIS & STEVENS NORRIS & STEVENS NORRIS & STEVENS NORRIS & STEVENS CHELSEA LANE Norris 2BD2BA & Stevens Norris 968 & Stevens Norris & $1250 Stevens Norris & Stevens 1.29 $ $ NE CLEVELAND AVENUE 2BD2BA 1114 $ $ $55 GRESHAM, OREGON Norris 2BD2BA & Stevens Norris 1090 & Stevens Norris & $1250 Stevens Norris & Stevens 1.15 $ $55 BASKETBALL COURT 3BD2BA 1162 $ $ $75 AIR CONDITIONING 900 SW 5th Avenue, 17th Floor, Portland, OR

14 Current Rent Survey THIS SURVEY OF RENTS AND COMMUNITY AMENITIES AMONG COMPETING GRESHAM APARTMENT COMMUNITIES WAS PREPARED JANUARY 04, 2018 APARTMENT YEAR BUILT NUMBER OF UNITS UNIT TYPE UNIT SIZE (SQ FT) AVERAGE ASKING RENT APPROX RENT/SQ FT CARPORT GARAGE POOL COMMUNITY RM FITNESS CENTER WASHER/DRYER IN UNIT W/S/G CHARGED PLAYSET BALCONY/DECK GRESHAM PARK BD1BA 800 $ $ 805 NE KANE RD 3BD2BA 1080 $ $ GRESHAM, OREGON NORRIS & STEVENS NORRIS & STEVENS NORRIS & STEVENS NORRIS & STEVENS NORRIS & STEVENS NORRIS & STEVENS NORRIS & STEVENS NORRIS & STEVENS FOOTHILLS Norris 2BD2BA & Stevens Norris 985 & Stevens Norris & $1235 Stevens Norris & Stevens 1.25 $ $ 4114 SE 174TH AVENUE GRESHAM, OREGON NORRIS & STEVENS NORRIS & STEVENS NORRIS & STEVENS NORRIS & STEVENS NORRIS & STEVENS NORRIS & STEVENS NORRIS & STEVENS NORRIS & STEVENS PARK PLACE BD/1BA Norris & Stevens Norris 940 & Stevens Norris & $1195 Stevens Norris & Stevens 1.27 $ 2628 NE RED SUNSET DRIVE 2BD/1BA 950 $ $ $ GRESHAM, OREGON 3BD/2BA 1040 $ $ $ Norris & Stevens Norris & Stevens Norris SPECIAL & Stevens Norris & Stevens AIR CONDITIONING + FIREPLACES NORRIS & STEVENS NORRIS & STEVENS NORRIS & STEVENS NORRIS & STEVENS NORRIS & STEVENS NORRIS & STEVENS NORRIS & STEVENS NORRIS & STEVENS PARKSIDE BD/1BA[36] Norris & Stevens Norris 724 & Stevens Norris & $1300 Stevens Norris & Stevens 1.80 $ $ Norris & Stevens Norris & Stevens FULLY Norris REMODELED & Stevens Norris & Stevens 2831 SE PALMQUIST RD 2BD/2BA [108] 933 $ $ $ $ NOT REMODELED GRESHAM, OREGON AIR CONDITIONING; FIREPLACES AVAILABLE SPORTS COURT; SAUNA NORRIS & STEVENS NORRIS & STEVENS NORRIS & STEVENS NORRIS & STEVENS NORRIS & STEVENS NORRIS & STEVENS NORRIS & STEVENS NORRIS & STEVENS 900 SW 5th Avenue, 17th Floor, Portland, OR