ALBERTA ARTS APARTMENTS - LoopNet€¦ · EXECUTIVE SUMMARY ASSET SUMMARY Location 4950 NE 7th...

OFFERING MEMOR ANDUM18 Units • Portland, Oregon

ALBERTA ARTS APARTMENTS

www.hfore.com(503) 241.5541

2 HFO INVESTMENT REAL ESTATE

EXECUTIVE SUMMARYASSET SUMMARYLocation 4950 NE 7th Avenue

City, State Portland, OR 97211

County Multnomah

Total Units 18

Year Built 2019

Approx. NR Sq Ft 11,739Average Unit Size 652 Sq. Ft.Acreage 0.18 acres

PRICE SUMMARYPrice $4,193,000

Price Per Unit $232,944

Per Square Foot $365

Projected Cap Rate 5.15%

DETAILED UNIT MIXUnit Type Unit Count Average Sq Ft Total Sq Ft % of Total Units1 Bed / 1 Bath 1 521 521 5.6%1 Bed / 1 Bath 2 605 1,210 11.1%1 Bed / 1 Bath 1 623 623 5.6%1 Bed / 1 Bath 2 624 1,248 11.1%1 Bed / 1 Bath 2 646 1,292 11.1%1 Bed / 1 Bath 8 647 5,176 44.4%2 Bed / 1 Bath 2 711 1,422 11.1%Total / Averages 18 638 11,492 100.0%

TOURS AND INQUIRIES Lee Fehrenbacher • [email protected]

Jack Stephens • [email protected]

2424 SE 11th Avenue, Portland, Oregon 97214www.hfore.com • (503) 241.5541 • Fax: (503) 241.5548

Please do not disturb tenants.

Alberta Arts Apartments is a newly built 18-unit apartment community located in the heart of Northeast Portland’s popular Alberta Arts District. The property boasts modern one- and two-bedroom floor plans and is near one of Portland’s most popular neighborhood commercial thoroughfares.

With lease-up rents averaging $1,363 per unit, or $2.13 per sq ft., Alberta Arts Apartments’s comfortable units and outstanding location make the property an especially attractive investment opportunity. This newly constructed building benefits from minimal expenses and is exempt from rent control.

Alberta Arts Apartments is adjacent to the Alberta Street transportation corridor – which provides frequent public transportation – and boasts easy access to numerous grocery anchored shopping centers and major employment centers throughout Portland and Vancouver. The vibrant Alberta Arts District is also filled with many eclectic local restaurants, cafe’s and bars, and locals and tourists alike rave about popular neighborhood staples like Bamboo Sushi and Salt & Straw.

The Alberta Arts Apartments offering is a rare opportunity to acquire a high-quality, new construction building in a hip and up-and-coming corner of close-in Portland.

3ALBERTA ARTS APARTMENTS • 18 UNITS • PORTLAND, OREGON

• All units have air conditioning

• Washer and dryer in each unit

• Each apartment has a balcony or patio

• Modern finishes throughout the apartment

• New, stainless steel appliances

• Property is rent control exempt

• New construction building with low expenses


With an increasing network of restaurants, breweries, shops and markets, it’s no wonder Northeast Portland has been growing in popularity. Not only did rents continue to appreciate in this market last year, but home values were also up nearly 12 percent as more and more people sought to make Northeast Portland their backyard.

Alberta Arts Apartments is central to Portland hot spots like the Alberta Arts District, the Dekum Triangle, North Mississippi and the North Williams/Vancouver Avenue corridor.

Alberta Arts Apartments is located in a highly sought after “20-Minute Neighborhood”. Nearby lifestyle amenities within one mile include:

GREAT CLOSE-IN LOCATION

• Knockout Taco

• The Original Halibuts

• Radio Room

• Blue Bean Coffee & Tea

• Starbucks

• Breakside Brewery

• The Firehouse

• The Bye and Bye

• King Farmers Market

• Alberta Farmers Market

• Alberta Co-op Grocery

• Cheery Sprout Produce

• Sugar Mountain Vintage

• Hankins Hardware True Value


AMENITY MAP1. Javier’s Tacos2. Black Rock Coffee3. Sutton’s Tire & Chain4. Lombard Animal Hospital 5. Georgie’s Ceramic & Clay6. Taco Bell7. Teriyaki Heaven8. Mongolian Grill9. Sturgeon Frank’s Guide Services10. Sit Stay Fit11. Willamette Valley Aquatic Club12. Double J Tire Center13. The High Water Mark14. Firehouse15. Classic Foods16. Upcycles17. Koken Market18. Oregon Kombucha19. Woodlawn Coffee & Pastry20. Breakside Brewery21. Cafe Eleven22. Henry V23. Parr Lumber24. Starbucks25. Walgreens26. Ta-Dah27. Popeye’s Louisiana Kitchen28. Safeway29. Western Union30. Fluff & Gravy Records31. Bank of America 32. Fish Fusion33. Wells Fargo 34. Bennie’s Little Kicker BBQ35. Wing’s World Chicken & Waffles36. KFC37. Subway38. Boost Mobile39. Dream Nails40. US Bank41. Van’s Auto Shop42. ReClaim It!43. Rose City Ballet School

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1

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Restaurants and Dining Shopping/Entertainment Lifestyle Services

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8

3

2 5

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12

NE Killingsworth St

99E

99E

30

NE Ainsworth St

NE Dekum St

NE Alberta St

N Van

couv

er Av

eN W

illiam

s Ave

NE 15

th Av

e

6

4

13

10

17 18 19

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15

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27 28 29

32

37

46

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47 48

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30 34 35

38 39

4443

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44. Top Nails45. Nana’s Scoop Shop46. U-Haul47. Knockout Taco48. Catalina’s49. Piedmont Station Food Carts50. Salvation Army51. PDX Tea52. Multnomah County Health

Department53. Portland Police Department54. J P’s Framing & Gallery55. US Post Office56. Gino’s Teriyaki57. Amigo’s Produce Market58. Norell Design59. Elevated Coffee60. Boys & Girls Club61. O’Reilly Auto Parts62. Curious Comedy Theater63. Horn of Africa64. Old Town Brewing65. Scout & Co.66. 7-Eleven67. Southern Styles & Barber68. Pizza Hut69. Wing Street70. AAA Heating & Cooling, Inc71. Motorcycle Tire & Wheel72. Caravan - The Tiny House Hotel73. Dog Gone Happy74. I Am Yoga75. Cupcake Jones76. Gumba77. Carioca Bowls78. Gojo79. The Grilled Cheese Grill80. Radio Room81. Bamboo Sushi NE82. DesiPDX83. Lula’s Breakfast Cart84. Natural Grocers

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5552 53 54

68 69 70

56 57

605958

62 63 64

61

65 66 67 71

77 78 79 80

72 73

81 8382

74 7675

84

ALBERTA ARTS DISTRICT

DEKUM TRIANGLE

MISSISSIPPI DISTRICT

30

Rosa Parks Way

Alberta Arts Apartments


APARTMENT MARKETThe Portland Metro Area consistently ranks among the nation’s lowest for apartment vacancy rates according to the U.S. Census Bureau and other third-party services like REIS, MPF Research, and Axiometrics. The U.S. Census Bureau pegged Portland’s Q3 2018 vacancy rate at 4.5% and the U.S. average at 7.1%.

REIS forecast 2018 Portland metro year-over-year rents growth at 3.0% and the Multifamily NW Apartment Report survey proved average Spring 2018-19 year-over-year rent growth at 7.7%.

SKILLED WORKFORCE & STRONG EMPLOYMENTIn a 2018 WalletHub report comparing 150 of the largest U.S. metros, Portland is listed as the 15th most educated city in America. More than half of Multnomah County workers have a college degree, well ahead of the national average of 38.5%.

According to the State of Oregon’s Employment Department, Portland enjoys one of the fastest job growth rates in the Pacific Northwest, and the entire nation. Data indicates the area added 31,000 jobs in 2016, 28,000 jobs in 2017, and 29,000 in 2018.

TOP 10 LISTS

Portland consistently receives glowing reviews and rankings from the media.

2018 lists include: • #1 Restaurant City of the Year (Bon Appetit)

• #1 Best Foodie City in America (Wallethub & Travelpulse) #6 (Jetsetter)

• #3 Healthiest City in the U.S. (Active.com)

• #4 Best City for Biking (Fast Company)

• #5 Best Bike City in America (Bicycling Magazine)

• #5 Fittest Cities in America (American College of Sports Medicine)

• #6 Best Place to Live in the U.S. (CNBC/U.S. News)

• #9 Top City for Entrepreneurs and Start-Ups (Business.org) #23 (CNBC)

• #10 Greenest City in America (Newsweek)

• #10 Most Entrepreneurial State (Amazon.com)

• #15 Most Educated City in America (Wallethub)

• #19 Best Large City in America, 59th best city in the World (Best Cities.org)

DIVERSIFIED ECONOMYPortland is home to the headquarters of Fortune 500 companies Nike and Llithia Motors. Fortune 1000 companies headquartered here include Columbia Sportswear, Greenbrier Cos. and Portland General Electric. Fortune 500 companies based outside Oregon with major operations here are Precision Castparts and Intel.

Tech and software companies continue to relocate their operations here or open major outposts in Portland. These companies enjoy Portland’s educated workforce, affordable high quality of life, and a low cost of doing business compared to the Bay Area.

Companies which have opened major branches in Portland include Airbnb, Google, Squarespace, Mozilla, Simple, Survey Monkey, SalesForce and New Relic, Inc. Portland’s tech startup companies include Viewpoint, Jama Software, Thetus, Urban Airship, Acquia, Elemental Technologies, Act-On, Puppet Labs, and The Clymb.

PORTLAND REGIONOregon’s largest city, Portland, is near the confluence of the Willamette and Columbia Rivers. The Portland Metro Area consists of four counties: Multnomah, Washington, Clackamas, and Clark County, Washington.

PORTLAND METRO SNAPSHOT


Alberta Arts Apartments is in the King neighborhood in Portland, near the amenity-rich MLK and Williams corridors, as well as the Alberta Arts District.

The Alberta Arts District centers on NE Alberta Street in Northeast Portland. It connects with the Concordia, King and Vernon neighborhoods. Though not officially cited as a neighborhood, the attractions of Alberta make it a prominent location for Bridge City artists, and for those who enjoy a more colorful lifestyle.

An eclectic blend of restaurants is one of the district’s highlights. Favorite spots include the Tin Shed, Bollywood Theater, and Pine State Biscuits. Among the area’s array of other businesses are the Alberta Co-Op Grocery, the crafts supply store Collage, Green Bean Books and the Screaming Sky Gallery—one of many art galleries in the area.

Alberta’s monthly Last Thursday street party draws tens of thousands in search of “creatives, artists, musicians and performers,” according to the event’s website. Hand-crafted work blends with live music, food and drink and a bustling local spirit. The only thing you won’t find on Alberta during Last Thursday are cars. Visitors are urged to use public transit or bicycles. Nothing better defines the appeal of the Alberta Arts District than Last Thursday’s crowded, vibrant feel.

Along with the Alberta Arts District, the property is also proximate to Martin Luther King Jr. Boulevard, a major commercial thoroughfare. In 2018, Natural Grocers opened its fourth Portland location on the corner of NE Alberta and MLK.

Just west of the property is N Williams Avenue, which is known as one of the best bike corridors in the city, as well as an emerging hot spot for food and drink. Williams is home to a variety of well-regarded bars, shops, and eateries, including local brunch hot-spots Radar and Bad Habit Room.

ALBERTA NEIGHBORHOOD


OPERATIONS ANALYSISIncome Current Scheduled Rents Projected Operations Note

Scheduled Gross Rent $294,300 $16,350 $309,015 $17,168 1Less: Vacancy/Credit Loss -$14,715 -$818 -5.0% -$15,451 -$858 -5.0% 2

Net Rental Income $279,585 $15,533 $293,564 $16,309 Other Income $6,339 $352 $6,339 $352 3

Includes: Utility Billing (RUBs) $3,684 $205 42% $3,684 $205 42% Includes: Miscellaneous $2,655 $148 $2,655 $148

Gross Operating Income $285,924 $15,885 $299,903 $16,661

Expenses Projected Operations

Per Unit % GOI Projected Operations

Per Unit % GOI

Real Estate Taxes $32,742 $1,819 11.5% $32,742 $1,819 10.9% 4Insurance $2,985 $166 1.0% $2,985 $166 1.0%Total Utilities $8,760 $487 3.1% $8,760 $487 2.9% Fee Management $14,296 $794 5.0% $14,995 $833 5.0% 5Maintenance/Repairs $4,000 $222 1.4% $4,000 $222 1.3%Turnover $2,700 $150 0.9% $2,700 $150 0.9%Reserves $4,500 $250 1.6% $4,500 $250 1.5% 6

Total Expenses -$69,983 -$70,682 Expenses per Unit -$3,888 -$3,927% of Gross Operating Income -24% -24%

Net Operating Income (NOI) $215,941 $229,211


OPERATIONS ANALYSIS1. RENTS Rents are based on a June 2019 rent roll. Current scheduled rents average $1,363 per unit or $2.13 per sq ft.

Projected rents are based off of a 5% increase off of current scheduled in place rents.

2. VACANCY The projected operations include a market-rate vacancy of 5.0%.

3. OTHER INCOME Other Income includes administrative, miscellaneous, and utility charges (RUBs).

• RUBs. Residents are charged an average of $17 per unit per month for water, sewer and garbage expenses. The property is individually metered for electric.

4. PROPERTY TAXES Oregon’s property taxes are evaluated on a fiscal year starting July 1. In Oregon, property taxes are not reassessed on sale and are limited to a 3.0% annual increase at the state level. Property taxes paid prior to November 1 each year receive a 3.0% discount. Alberta Arts Apartments’s projected operations include the projected property taxes for the 2019-2020 tax year totaling $32,742.

5. FEE MANAGEMENT The management fee has been projected to 5.0% of GOI or $14,296 which represents standard independent, third-party management costs for properties in the metro area similar to Alberta Arts Apartments.

6. RESERVES Lenders require reserves be set aside to address future capital costs associated with any property as it ages. The projected operations include reserves of $250 per unit or $4,500 annually.

Type Units Count Avg Sq Ft Current Scheduled Rent Rents per Sq ft Projected Rent Projected Rent per Sq ft1 Bedroom / 1 Bathroom 1 521 $1,295 $2.49 $1,360 $2.49

1 Bedroom / 1 Bathroom 2 605 $1,348 $2.23 $1,415 $2.23






Total / Average 18 638 $1,363 $2.13 $1,431 $2.24


OFFER TERMS

QUESTIONS & TOUR REQUESTS:

All tours and inquiries regarding Alberta Arts Apartments are to be directed to HFO Investment Real Estate at (503) 241.5541.Please do not disturb tenants.

Jack Stephens • [email protected]

Lee Fehrenbacher • [email protected]

Greg Frick • [email protected]

Todd Tully • [email protected]

Adam Smith • [email protected]

Khari Gates • [email protected]

HFO Investment Real Estate 2424 SE 11th AvenuePortland, Oregon 97214

www.hfore.com(503) 241.5541Fax: (503) 241.5548Brokers licensed in the States of Oregon and Washington.

ASSET SUMMARYLocation Alberta Arts Apartments

City, State Portland, OR 97211

Total Units 18

PRICE SUMMARYPrice $4,193,000

Price Per Unit $232,944

Per Square Foot $365

Cap Rate 5.15%

LOAN QUOTE Term 20 Years 7 Year Fixed

Amortization 30 Years

Loan Amount $3,125,000

Rate 3.65% - 7 Years

Debt Coverage Ratio 1.20x

*Loan quote provided by AMF Capital*

*Other loan options are available for both term and LTV*


HFO Investment Real Estate

2424 SE 11th Avenue • Portland, OR 97214www.hfore.com • 503.241.5541

Passion • Collaboration • Specialization

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. ©2019 HFO Investment Real Estate LLC. Build your legacy is a service mark of HFO Investment Real Estate. Licensed in the states of Oregon and Washington.

ALBERTA ARTS APARTMENTS - LoopNet€¦ · EXECUTIVE SUMMARY ASSET SUMMARY Location 4950 NE 7th...

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