COMMONWEALTH TOWNHOMES SW Butner Road Beaverton, Oregon

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EXCLUSIVE LISTING COMMONWEALTH TOWNHOMES 12590-12600 SW

1 EXCLUSIVE LISTING COMMONWEALTH TOWNHOMES SW Butner Road Beaverton, Oregon 8 Units $1,950,000 Beaverton, OR

EXECUTIVE SUMMARY ASSET SUMMARY Property Address County Washington Total Units 8 Year Built 1970 Lot Size 0.68 acres Stories 2 story Approximate NR Sq. Ft.

2 EXECUTIVE SUMMARY ASSET SUMMARY Property Address County Washington Total Units 8 Year Built 1970 Lot Size 0.68 acres Stories 2 story Approximate NR Sq. Ft. 9,256 Average Unit Sq. Ft. 1, SW Butner Road Beaverton, Oregon PRICING Price $1,950,000 Per Unit $243,750 Per Sq. Ft. $211 Avg. Rent $1,691 Avg Rent Per Sq. Ft. $1.46 Capitalization Rate 5.96% (Projected) All tours and inquiries regarding Commonwealth Townhomes are to be directed to HFO Investment Real Estate at (503) Tyson Cross tyson@hfore.com 2 HFO INVESTMENT REAL ESTATE

INVESTMENT OVERVIEW INVESTMENT OVERVIEW Commonwealth Townhomes offers an investor the opportunity to acquire a unique townhome property nestled in the woods surrounding the north side of Commonwealth

3 INVESTMENT OVERVIEW INVESTMENT OVERVIEW Commonwealth Townhomes offers an investor the opportunity to acquire a unique townhome property nestled in the woods surrounding the north side of Commonwealth Lake in the Cedar Hills neighborhood. This 8-unit property features spacious duplex townhouses. Each townhome is 3 bedrooms and 1 ½ bathrooms with an attached directentry garage and remote door openers. The townhomes offer greenspace views and low-density living less than one-mile from Nike s world headquarters and Highway 26. Every unit has updated kitchens and bathrooms and a washer/dryer hookup. The asset offers an investor stable cash flow with an option to reposition the units for sale as condos in the future. Investors who are looking for property in a high-demand location will find Commonwealth Townhomes an exceptional opportunity. Amenities of Commonwealth Townhomes include: An outstanding location in Cedar Hills Near Nike world headquarters Spacious duplex townhouses Washer and dryer hookups Attached garages with remote openers Updated kitchens and bathrooms Adjacent to Commonwealth Lake Park Some fenced yards

4 OPERATIONS ANALYSIS Commonwealth Townhomes is valued using pending rents and projected operations. The operations have been adjusted for capital improvements completed at the asset. INCOME Current scheduled rents for the Commonwealth Townhomes average $1,685 per unit, or $1.46 per sq. ft. Three units have pending rent increases. The new leases will bring average rents to $1,691 per unit. Unit Type Unit Count RENT ROLL ANALYSIS Square Feet Average Scheduled Rent Average Scheduled Rent PSF Average Market Rent Average Market Rent PSF 3 Bedroom / 1.5 Bathroom Townhome 8 1,157 $1,685 $1.46 $1,691 $1.46 Totals / Averages 8 1,157 $1,685 $1.46 $1,691 $1.46 VACANCY/CREDIT LOSS Commonwealth Townhomes operations have been adjusted for a market-rate 3.0% vacancy rate based on lender underwriting requirements. Vacancy in Beaverton has averaged less than 3.0% since OTHER INCOME Commonwealth Townhomes collects approximately $8,652 per year in other income. Other income includes resident utility billing (RUBs) and miscellaneous fees. RUBs collections are the majority of the other income and capture 64.2% of water and sewer costs. Residents are responsible for their own trash and electric service. EXPENSES Commonwealth Townhomes projected operating expenses assume the asset will be managed by a professional third-party management company. The projected operations represent stabilized operations and have been adjusted for one-time, capital costs. PROPERTY TAXES INSURANCE The property taxes reflect projected 2016/2017 gross property taxes, per the Washington County assessors office. In-place operations reflect the current premium of $2,220 annually, or $277 per unit. MANAGEMENT The management fee assumes professional, third-party management at a rate of 10% of GOI. Management includes leasing and administrative oversight. MAINTENANCE/REPAIR AND TURNOVER REPLACEMENT RESERVES Maintenance/repair and turnover costs have been adjusted for renovations of two of the townhomes and installation of a backflow device. Projected operations estimate maintenance/repair and turnover to cost $5,990 annually. Commonwealth Townhomes include a lender-anticipated reserve requirement of $250 per unit, or $2,000 annually. 4 HFO INVESTMENT REAL ESTATE

5 RENT ROLL ANALYSIS Bedroom / Bathroom Unit Count Square Foot Projected Operations Income Projected Operations Per Unit % GOI Scheduled Gross Rent $162,336 $20,292 Less: Vacancy/Credit Loss -$4,870 -$ % Net Rental Income $157,466 $19,683 Incld: Utility Billing (RUBs) $5,033 $ % Plus: Miscellaneous $3,620 $452 Total Other Income $8,652 $1, % Gross Operating Income - Residential $166,118 $20,765 Avg Projected Operations per Sq Ft 3 Bedroom / 1.5 Bathroom Townhome 8 1,157 $1,691 $ ,157 $1,691 $1.46 Expenses Projected Operations Per Unit % GOI Real Estate Taxes $11,237 $1, % Insurance $2,220 $ % Total Utilities $9,632 $1, % Fee Management $16,305 $2, % Landscaping $2,505 $ % Maintenance/Repairs $1,750 $ % Turnover $4,239 $ % Reserves $2,000 $ % Total Expenses -$49,888 -$6,236-30% Net Operating Income (NOI) $116,230 $14,529 70% SW Murray Blvd SW Butner Rd Commonwealth Lake Apartments 26 SW Park Way SW Barnes Rd Peterkort Town Square Tualatin Hills Nature Park SW Jenkins Rd SW Millikan Way SW Walker Rd Cedar Hills Crossing SW Cedar Hills Blvd 217 COMMONWEALTH APARTMENTS 8 UNIT BEAVERTON, OR 5 8

6 PORTLAND MARKET HIGHLY SKILLED WORK FORCE The City of Beaverton (pop. 97,590) is a major economic hub in the Portland metro area, along with being Portland s second-largest suburb and the fifth-largest city in Oregon. Over the past two decades, Beaverton has attracted numerous high-tech businesses, and is one of Oregon s fastest-developing areas. Between 2010 and 2016, the city s population has increased by 8.8%. HIGHLY DIVERSIFIED ECONOMY Beaverton is a large, robust community that is home to major companies as Nike Inc. and Columbia Sportswear. Several high-tech employers including Intel and Genentech are located along the Highway 26/Sunset Corridor, which includes nearby Hillsboro. The growing tech hub west of Portland includes more than 300 high-tech businesses who have made their home in what is called the Silicon Forest. As an increasing number of high skilled workers are drawn to the area, Beaverton rents have been increasing, and are forecasted to continue this trend at a healthy pace. As of June 2017, Beaverton s unemployment rate was 3.5%. Nike is currently undergoing a major expansion rumored to cost approximately $1 billion. It plans to open its new 3.2 million square foot building by The new additions to Nike s campus include more office and parking space as well as landscaping improvements. In addition, Intel recently completed their R4 Building, a seven-story structure on its Ronler Acres complex in Hillsboro. This addition Intel s first in more a decade has brought additional new jobs and residents to the area. These new facilities promise to support up to 1,000 permanent high-tech positions, with an average annual salary of $120,000. LIFESTYLE Beaverton s mix of big businesses and a family-friendly environment makes it a desirable place to live and work. Money magazine ranked Beaverton #9 on its list of Best Places to Live for 2016, for providing ample opportunities for its residents to find employment, raise a family, and stay active. Indeed, Business Week proclaimed the city the best place in the country to raise children, due to its network of public parks, its 25-mile grid of bike paths, and its highly-regarded public and private schools. Tyson Cross tyson@hfore.com (971) Greg Frick greg@hfore.com (971) Lee Fehrenbacher lee@hfore.com (971) Jack Stephens jack@hfore.com (971) Todd Tully todd@hfore.com (971) SE 11th Avenue Portland, OR Phone: (503) Fax: (503) This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Parties who receive this information from unauthorized parties shall not be recognized HFO Investment Real Estate LLC. Build your legacy is a service mark of HFO Investment Real Estate.

WEST MAIN AT THE PARK

WEST MAIN AT THE PARK 40 Units - Hillsboro, Oregon OFFERING MEMORANDUM INVESTMENT SUMMARY ASSET SUMMARY Property West Main at the Park Location 1025 W Main Street Hillsboro, Oregon 97123 County Washington