MEADOW GREEN TOWNHOMES€¦ · Meadow Green is centrally located a short distance from Albany’s...

OFFERING MEMOR ANDUM22 Units • Albany, Oregon

MEADOW GREEN TOWNHOMES

www.hfore.com(503) 241.5541

MEADOW GREENMeadow Green is a 22-unit townhome property a short distance from the city center of Albany, Oregon, a main thoroughfare. Each unit has a large direct-entry garage and two private outdoor spaces. The outdoor spaces consist of an enclosed ground-floor patio and an upstairs deck that serves an extension of the master bedroom. These attractive floor plans include open living rooms with large kitchens and breakfast bars and a half-bath off of the living room. Each of these two-bedroom townhomes offer an attached garage, washer/dryer hookup and access to a private green space between the buildings. Each unit is a private home and residents are responsible for all utilities.

Meadow Green is centrally located a short distance from Albany’s city center which is anchored by national and regional retailers including Target, Costco and Fred Meyer. Highway 99E connects immediately to Interstate 5 with easy access to employers from Eugene and Springfield to Salem and Keizer. Meadow Green is located in a quiet residential neighborhood adjacent to Calapooia Middle School. The city of Albany continues to experience significant population growth due to its convenient location.

All of the Meadow Green Duplexes’ are two-bedroom townhome units with rents currently averaging $1,105 per unit or $1.16 per sq ft.

PROPERTY HIGHLIGHTS

• Private homes with attached, direct-entry garages

• Master suites with private decks

• Enclosed patios and private green space

• Adjacent to Linn Benton Community College

• Separate entrances

• Washer/dryer hookups

• All utilities paid by residents

2 HFO INVESTMENT REAL ESTATE

MEADOW GREEN

DETAILED UNIT MIXUnit Type Unit Count Square Feet Approx. NR Sq Ft % of Total Units

2 Bedroom / 2 Bathroom 22 950 20,900 100.0%

Totals / Averages 22 950 20,900 100.0%

Marion St SE

SE Jackson St

SE 26th Ave

SE 27th Ave

SE 28th Ave

INVESTMENT SUMMARY

PRICINGPrice $3,195,000

Per Unit $145,227

Per Sq Ft $153

Cap Rate 6.49%

FOR MORE INFORMATION Rob Marton • [email protected] Frick • [email protected]

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

Brokers licensed in Oregon and Washington.

ASSET SUMMARYProperty Meadow Green

Location 424 SE 26th Avenue

City, State Albany, Oregon 97322

County Linn

Year Built 1978

Total Units 22

Total Buildings 4

Approximate Sq Ft 20,900

Average Unit Sq Ft 950

3MEADOW GREEN TOWNHOMES • 22 UNITS • ALBANY, OR

Linn County (population 125,047) is home to the cities of Albany and Lebanon, and is located on the I-5 corridor just east of Corvallis. The population of Albany was 54,453 as of 2018, while the smaller city of Lebanon has a population of 17,102. This area has experienced strong population growth over the last several years. Since 2010, Linn County’s population has grown by 9.1%, while Albany has grown by 8.6% and Lebanon has grown by 10%. Over 40% of households in Albany and Lebanon rent their homes.

Between September 2017 and 2018, Linn County saw 3.13% increase in private sector employment. The number of Mining and Logging industry jobs grew by 16.7%, while Construction industry jobs increased by 10.3% and Education and health services jobs increased by 9.8%. As of September 2018, the unemployment rate in the Albany MSA was 4.3%.

Linn County is locally known for its family friendly festivals and celebrations. Events in the area include the Northwest Championship Sheep Dog Trials, the Mud Fest, the Lebanon Strawberry Festival, and the Harrisburg Museum Quilt Show, Craft Fair, and Tractor Show. These events offer residents the chance to show their civic pride and teach newcomers about their local history. The area’s proximity to the Cascade Mountains provides a natural outdoor playground for residents and visitors alike. Outdoor enthusiasts can boat, fish, ski, snow-shoe, or bike in local parks, trails, and scenic areas.

The city of Lebanon is located near the intersection of US Highway 20 and State Highway 34, and is home to both the Samaritan Lebanon Community Hospital and the COMP-Northwest medical school. COMP, or the College of Osteopathic Medicine of the Pacific-Northwest, operates under the umbrella of COMP Pomona, which was founded in 1977 as part of the Western University of Health Sciences. The Lebanon campus opened in 2011. Over 400 students are enrolled at the Lebanon campus, and fewer than 40% of the current first year students are from Oregon.

LINN COUNTY MARKET SNAPSHOTALBANY MAJOR EMPLOYERSCompany Industry # of EmployeesATI Metals Manufacturing 1,600

Linn Benton Community College Education 1,050

Greater Albany Public Schools Education 1,035

Samaritan Health Services Health Care 1,030

Linn County Government 700

Selmet Manufacturing 505

Target Distribution Center Retail Distribution 500

City of Albany Government 402

OFD Foods Food Production 400

Assurant Solutions Call Center 300

Arauco Wood Products 216

National Frozen Foods Food Production 210

Golden West Manufacturing 185

Coastal Farm & Ranch Retail 125Source: https://www.albanychamber.com/employment/

LEBANON MAJOR EMPLOYERSCompany Industry # of EmployeesLowe’s Retail Distribution Center Retail Distribution 650

Samaritan Lebanon Community Hospital Health Care 604

Lebanon Schools Education 484

Walmart Retail 350

ENTEK Manufacturing Manufacturing 310Source: https://www.ci.lebanon.or.us/sites/default/files/fileattachments/economic_development/page/318/fact_sheetjan2016.pdf


LIFESTYLE CONVENIENCES

Meadow Green Duplexes34th Ave SE

Marion St SE

SE Geary St

Queen Ave SE

Waverly Dr SE

Pacific Blvd SE

SE 9th Ave

SE Lyon St

SE Ellsworth St

7 Mile Way SE

Ellingson Rd SE

Looney Ln

Riverside Dr

Pirtle Dr SW

Riverside Dr

Oakv

ille Rd

N

Bryan

t Dr S

W

SE Columbus St

Lochner Rd SE

Kennel Rd Se

Three Lakes Rd SE

Spicer Dr

Grand Prairie Rd SE

Bowers RockState Park

Albany Golf Park

West Albany High School

Willamette River

South Albany High School

Calapooia Middle School

Regal Cinemas Albany 7

Albany Community Pool

Albany Tennis Club

Linn County Fairgrounds

5

99E

20

20


Income Current Scheduled Rents Projected Rents Note

Scheduled Gross Rent $291,846 $13,266 $297,000 $13,500 1Less: Vacancy/Credit Loss -$14,592 -$663 -5.0% -$14,850 -$675 -5.0% 2

Net Rental Income $277,253 $12,602 $282,150 $12,825 Other Income $24,471 $1,112 $24,471 $1,112 3

Gross Operating Income $301,724 $13,715 $306,621 $13,937

Expenses Projected Operations Per Unit % GOI Projected Operations Per Unit % GOI

Real Estate Taxes $22,778 $1,035 7.5% $22,778 $1,035 7.4% 4

Insurance $3,058 $139 1.0% $3,058 $139 1.0% 5

Total Utilities $4,904 $223 1.6% $4,904 $223 1.6%

Administrative $4,937 $224 1.6% $4,937 $224 1.6%

Fee Management $12,031 $547 4.0% $12,226 $556 4.0% 6

On-site Payroll $23,779 $1,081 7.9% $23,779 $1,081 7.8% 7

Landscaping $1,986 $90 0.7% $1,986 $90 0.6%

Maintenance/Repairs $11,651 $530 3.9% $11,651 $530 3.8%

Turnover $3,660 $166 1.2% $3,660 $166 1.2% 8

Reserves $5,500 $250 1.8% $5,500 $250 1.8% 9

Total Expenses -$94,284 -$94,479

Expenses per Unit -$4,286 -$4,295

% of Gross Operating Income 31.2% 30.8%

Net Operating Income (NOI) $207,440 $212,141

OPERATIONS ANALYSISMEADOW GREEN TOWNHOMES • 22 UNITS


1. RENTS The Meadow Green Townhomes’ current rents average $1,105 per unit or $1.16 per sq ft. New leases signed in 2019 has market rents averaging $1,125 per unit, or $1.18 per sq ft. The historical operations have been adjusted for an additional duplex building located approximately 1.0 mile from Meadow Green Townhomes. The individual duplex is managed with the Meadow Green Townhomes.

2. VACANCY/CREDIT LOSS, CONCESSIONS, AND BAD DEBT

Operations have been adjusted for a 5.0% vacancy rate based on lender underwriting requirements. Lenders consider the long-term nature of a property and the market in which it is located. Lenders typically underwrite to 5.0% vacancy. The historical operations for Meadow Green Townhomes do not include vacancy however based on turnover – of which there were 4 new leases signed in 2019 – indicated the asset has experienced some vacancy.

3. OTHER INCOME Meadow Green Townhomes’ Other Income includes charges for damages and cleaning, pet rent, administrative fees, late charges, and lease termination fees.

MEADOW GREEN TOWNHOMES • 22 UNITS

OPERATIONS ANALYSIS

RENT ROLL ANALYSIS: SCHEDULED RENTS

Unit Type Unit Count

Square Feet

Lowest Achieved

Rent

Highest Achieved

Rent% Diff

Average Scheduled

Rent

Average Scheduled

Rent per Sq Ft

2 Bedroom / 2 Bathroom 22 950 $1,075 $1,125 4.7% $1,105 $1.16

Totals / Averages 22 950 $1,075 $1,125 4.7% $1,105 $1.16

RENT ROLL ANALYSIS: SCHEDULED RENTS

Unit Type Unit Count Square Feet

Average Scheduled

Rent

Average Scheduled Rent PSF

Average Market Rent

Average Market Rent

PSF% Change

2 Bedroom / 2 Bathroom 22 950 $1,105 $1.16 $1,125 $1.18 1.7%

Totals / Averages 22 950 $1,105 $1.16 $1,125 $1.18 1.7%


OPERATIONS ANALYSIS

RENT TRENDS

Scheduled RentsMay 2019 T6-Months Annualized

May 2019 T3-Months Annualized

May 2019 TTM

$1,020

$1,030

$1,040

$1,050

$1,010

$1,080

$1,090

$1,060

$1,070

$1,120

$1,100

$1,110

Aver

age L

ease

Ren

t

$1,044$1,050

$1,093

$1,105



OPERATIONS ANALYSISEXPENSESExpenses are based on February 2019 Trailing 12-month (TTM) operations. Unless otherwise noted, actual operations used in the analysis.

4. PROPERTY TAXES Oregon’s property taxes are evaluated on a fiscal year starting July 1. Property tax values for the 2018-2019 tax year are published October 15. Projected operations include current taxes for the 2018-2019 property tax year.

Property tax values for the 2018-2019 tax year were published October 15. Meadow Green Townhomes taxes increased 2.91% over 2017-2018. 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. Meadow Green Townhomes is one tax lot.

5. INSURANCE Property insurance has been adjusted to annual market rate values.

6. FEE MANAGEMENT Projected operations have been adjusted for a management fee of 4.0% of GOI, which is reflective of typical management costs for assets in the Mid-Willamette Valley.

7. PAYROLL Meadow Green Townhomes is managed with other properties. A roving manager is responsible for leasing and oversight. Payroll assumes the asset will include some professional oversight.

8. TURNOVER Based on the move-in dates, Meadow Green Townhomes has had 11 units turned through December 2018 YE. The operations have been adjusted for market-rate turnover costs.

9. 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.


TAX HISTORY

Tax Year2017/2018 2018/2019

Account #

121919 $22,114 $22,778

Total $22,114 $22,778

% Change 2.91%


PRICING Meadow Green is managed with a 38-unit College Green in Albany and the two properties can be purchased together.

OFFER TERMS

Price $3,195,000

Per Unit $145,227

Per Sq Ft $153

Cap Rate 6.49%

ASSET SUMMARYProperty Meadow Green

Location 424 SE 26th Avenue

City, State Albany, Oregon 97322

County Linn

Year Built 1978

Total Units 22

Total Buildings 4

Approximate Sq Ft 20,900

Average Unit Sq Ft 950

QUESTIONS & TOUR REQUESTS:

All inquiries, questions, or tour requests are to be directed to HFO Investment Real Estate at (503) 241.5541.

Please do not disturb the residents.

Greg Frick • [email protected] Marton • [email protected] Stephens • [email protected] Cross • [email protected] Lee Fehrenbacher • [email protected] Tully • [email protected] Smith • [email protected] Gates • [email protected] Rand Hoffman • [email protected]

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

www.hfore.com(503) 241.5541Fax: (503) 241.5548

Brokers licensed in the States of Oregon and Washington.


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.

MEADOW GREEN TOWNHOMES€¦ · Meadow Green is centrally located a short distance from Albany’s...

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