Price: $3,600,000 Chelsea Manor Apartments 4039 SE Holgate Blvd., Portland, OR 97202 Price Summary Price: $3,600,000 Price/Unit: $180,000 Price/Sq Ft: $237.66 Cap Rate: 4.60% Proforma Cap Rate: 6.27% Building Summary Units: 20 Building Size: 15,148 sq ft Lot Size: 0.46 acres Year Built: 1977 County: Multnomah FOR MORE INFORMATION CONTACT: Bernard Gehret, Principal Broker (503) 546-9390 bgehret@josephbernard.net 5200 SW Macadam Avenue, Suite 300 Portland, OR 97239
PROPERTY SUMMARY The Chelsea Manor Apartments features twenty, well maintained units with a strong ownership history. Purchased from the developer, the property has had one ownership group since completion in 1977. The unit mix is apprised of two, onebedroom units and eighteen, two-bedroom units. The Chelsea Manor has a laundry room with two pairs of property owned washers and dryers, a storage shed, a storage room for maintenance materials and includes 20 off-street parking spots. The property is well maintained, with room to increase rents as units are upgraded. The Chelsea Manor is a unique offering on the market with strong street appeal, operations, and tenant base.
HIGHLIGHTS Well maintained, good condition One ownership group since 1977 Strong tenant base 20 off street parking spots Property owned laundry machines Fantastic, close in SE Holgate location
INCOME & EXPENSE Scheduled Monthly Rents Units Type Est. Sq. Ft. Current Average Rent Monthly Income Rent at Market Monthly Income 2 1 BR/1 BA 500 $985 $1,970 $1,200 $2,400 18 2 BR/1 BA 760 $1,109 $19,960 $1,400 $25,200 20 Estimated Total $21,930 $27,600 Scheduled Gross Income $263,158 $331,200 Less: Vacancy (5%) -$13,158 -$16,560 Effective Gross Income $250,000 $314,640 Plus: Laundry +$4,000 +$4,000 Effective Annual Income $254,000 $318,640 Estimated Expenses Current Budget %EGI Per/Unit Amount %EGI Per/Unit Amount 1 Taxes 12.28% $1,534 $30,689 9.75% $1,534 $30,689 2 Insurance 1.49% $186 $3,720 1.18% $186 $3,720 3 Utilities 6.82% $853 $17,056 5.42% $853 $17,056 4 Professional Management 7.00% $875 $17,500 7.00% $1,101 $22,025 5 Maintenance & Repairs 4.00% $500 $10,000 3.18% $500 $10,000 5 Turnover Reserves 1.60% $200 $4,000 1.27% $200 $4,000 6 Landscaping 0.58% $73 $1,460 0.46% $73 $1,460 5 Capital Reserves 1.60% $200 $4,000 1.27% $200 $4,000 Total Est. Annual Expenses 35.37% $4,421 $88,425 29.54% $4,647 $92,950 of EGI Per Unit of EGI Per Unit Investment Summary Current Projected Net Operating Income (NOI) $165,575 $225,690 Cap Rate 4.60% 6.27% Debt Service $156,836 $156,836 Cash Flow $8,739 $68,854 Cash Return 0.81% 6.38%
INCOME & EXPENSE Footnotes 1. Actual current property taxes includes state of Oregon 3% prepay discount. 2. Current 2018 Hazard Insurance expense. 3. Actual 2018 utility expense, annualized. 4. Pro forma management fee based on market bid of 7%, call broker for details. Current ownership pays for on-site manager apartment plus salary for management. 5. Pro forma repairs based on market estimate of $500 per unit annually. Actual annualized repairs (including Turnover/Capital) for 2018: $9,696 ($4,848 through June, 2018). Actual 2017 repairs (including repairs/turnover/capital): $26,821. 6. Actual 2017 landscaping expense. Proposed Financing Price $3,600,000 Down Payment $1,080,000 Down Payment % 30% Debt Service $156,836 Loan Amount $2,520,000 Interest Rate 4.70% Term 5 yr. fixed
INTERIOR PHOTOS
The Professional Approach to Apartment Investing FOR MORE INFORMATION CONTACT: Bernard Gehret, Principal Broker (503) 546-9390 bgehret@josephbernard.net The information contained in this package has been obtained from sources we believe to be reliable. While we do not doubt its accuracy, we make no guarantee, warranties or representation, expressed or implied, as to the accuracy. It is the buyers sole responsibility to independently confirm its accuracy and completeness and bears all risk for any discrepancies. Any projections, square footage, age, opinions, assumptions, or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine your satisfaction and the suitability of the property for your needs. Parties that receive this information from outside of Joseph Bernard, LLC representatives will not be recognized.