10 Unit Apartment Complex in a Desirable LocationParkside Apartments

883 SE 11th St * Hillsboro * OR * 97123

N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

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Confidentiality and DisclaimerThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus &Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to providesummary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not asubstitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income orexpenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence orabsence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financialcondition or business prospects of any tenant, or any tenant's plans or intentions to continue its occupancy of the subject property. The information contained in this MarketingBrochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor hasMarcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of theinformation provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & MillichapReal Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.

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Parkside ApartmentsPortland, ORACT ID ZAA0210041

Broker of Record: Adam Lewis, OR 201209561

the INVESTMENT OVERVIEW

EXECUTIVE SUMMARYParkside APARTMENTS

Price $1,395,000 10 Apartments Units

MIX: 10- Two Bedroom / One Bath Flats

VITAL DATA

Price $1,395,000 CURRENT PRO FORMA

Down Payment30% /

$418,500CAP Rate 5.17% 6.42%

Loan Amount $976,500 GRM 11.13 9.73

Loan TypeProposed

New

Net Operating Income

$72,131 $89,563

Interest Rate / Amortization

3.75% / 30 Years

Net Cash Flow After Debt Service

4.27% / $17,8638.43% / $35,295

Price/Unit $139,500Total Return

8.56% / $35,81912.89% / $53,936

Price/SF $208.21

Number of Units 10

Rentable Square Feet

6,700

Year Built 1966

Lot Size 0.59 acre(s)

▪ - 6.42% Pro Forma Cap Rate▪ - Desirable Single-Level Living▪ - Rapidly Growing Submarket▪ - Value-Add Opportunity▪ - Brand-New Parking Lot

Marcus & Millichap is pleased to exclusively represent the sale of the ParksideApartments, a true value-add opportunity in the growing Hillsboro submarket ofPortland, Oregon. The asset is comprised of 10 residential units, each with twobedrooms and one bath. The single level layout and location at the end of a quietresidential street attract tenants looking for an attractive alternative to traditional"stacked" apartments.

Upside can be achieved via several avenues. Rents are approximately 12.6% belowmarket, allowing for significant rent growth. In June 2020, the parking lot wasrepaved. One of the roofs was brand new a few years ago along with new fencingalongside the back of the property. Total rents are about 10% below the highestalready achieved, with additional upside through improvement to curb appeal andinterior finishes. Various units have been upgraded with luxury vinyl plank flooring, andgranite counter tops. The community features off-street parking, a communityplayground and a shared laundry facility as both a tenant amenity and an additionalincome stream.

the PROPERTY

Parkside APARTMENTS

- -Various Units with LVP and Granite Counter- Tops- -All Desirable Two Bedroom Units with Private Patios- -Walking distance to Shute Recreation Center and Park- - Walking distance to Restaurants, Retail and Shopping - -On-Site Laundry Facility- -New Fencing Along Back- -Playground

Site Description:Number of Units 10 ApartmentsYear Built 1966Zoning A-2Number of Buildings 3Number of Stories 1Rentable Square Feet 6,700Lot Size 0.59 acresParking 16 SpacesParking Ratio 1.6 Landscaping Grassy with Small BushesTopography Flat

Utilities:Water/Sewer Paid by OwnerElectric Paid by TenantTrash Paid by Owner

Construction:Foundation CrawlspaceFraming WoodExterior T1-11Roof Pitched Composite Shingle

Parkside APARTMENTS

Parkside APARTMENTS

The Parkside Apartments is

Walking Distance to Recreation and Retail

About the Property Location:

The Downtown Hillsboro neighborhood offers asuburban lifestyle with urban accessibility and amenities.Hillsboro is the home of international tech powerhouseIntel, which is a top employer in all of Oregon. The areais experiencing significant growth, with the developmentof the long-awaited South Hillsboro Project, a majordevelopment repurposing 1,400 acres of agricultural landas a master community. This development fills in aprevious gap between Beaverton and downtownHillsboro, and further ties the submarket in to the greaterPortland MSA.

The Parkside Apartments is walking distance to ShutePark and Aquatic & Recreation Center, as well as severalrestaurants, including local options alongside regionaland national chains.Residents of Parkside enjoy excellent access to keypoints throughout the area:

• Downtown Portland – 20 miles• Tualatin Community Hospital – 0.9 miles• Nike World Headquarters – 8.3 miles• Orenco Station – 4.0 miles• PCC Hillsboro Center – 0.9 miles• Hillsboro Farmers Market – 0.9 miles

Despite the proximity to major corridors Tualatin ValleyHwy/SR 8 and Sunset Hwy/SR 26, Parkside is tucked backfrom the bustle, providing both peace and convenience.

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Residential Feel with Close Proximity to Downtown Hillsboro

Uber/Lyft Drive Time- 20-minute Radius

Walking Distance to:Trimet Station, Shute Park and Stage,

Schute Park Aquatic & Recreation CenterCommunity Senior Center, Hillsboro Seafood Market,

Ocean Plays Indoor Playground, Nail Spa, Juan Colorado Restaurant,

Planet Fitness, Black Rock Coffee Bar,Jim’s Ice Cream, Izzy’s Pizza

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the MARKET OVERVIEW

15

DEMOGRAPHICS

77,790Total Populations within

Three Mile Radius

GENDER

Average Household Income

in One Mile Radius

Median Housing Value within

One Mile Radius

5,908Total Households in One Mile Radius

32.4%From 2000

$70,202 $246,110

51.8%

48.19%

Source: © 2018 ExperianSource: © 2019 Experian

Created on May 2020

POPULATION 1 Miles 3 Miles 5 Miles

▪ 2024 Projection

Total Population 18,771 81,733 158,215

▪ 2019 Estimate

Total Population 18,273 77,790 148,105

▪ 2010 Census

Total Population 17,102 71,016 132,120

▪ 2000 Census

Total Population 14,593 56,928 107,712

▪ Daytime Population

2019 Estimate 16,726 82,084 147,594

HOUSEHOLDS 1 Miles 3 Miles 5 Miles

▪ 2024 Projection

Total Households 6,102 28,414 57,299

▪ 2019 Estimate

Total Households 5,908 26,829 52,939

Average (Mean) Household Size 3.05 2.85 2.75

▪ 2010 Census

Total Households 5,484 24,128 46,190

▪ 2000 Census

Total Households 4,462 18,892 37,411

Growth 2015-2020 3.28% 5.91% 8.24%

HOUSING UNITS 1 Miles 3 Miles 5 Miles

▪ Occupied Units

2024 Projection 6,102 28,414 57,299

2019 Estimate 6,019 27,306 54,019

Owner Occupied 2,869 16,971 31,948

Renter Occupied 3,039 9,858 20,991

Vacant 112 476 1,080

▪ Persons In Units

2019 Estimate Total Occupied Units 5,908 26,829 52,939

1 Person Units 22.75% 21.60% 23.36%

2 Person Units 26.24% 30.96% 31.93%

3 Person Units 15.44% 16.53% 16.43%

4 Person Units 15.01% 15.74% 14.52%

5 Person Units 10.19% 8.27% 7.53%

6+ Person Units 10.34% 6.90% 6.24%

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles

▪ 2019 Estimate

$200,000 or More 1.82% 5.05% 4.35%

$150,000 - $199,000 4.21% 8.79% 7.82%

$100,000 - $149,000 16.52% 21.41% 20.42%

$75,000 - $99,999 15.99% 18.98% 19.41%

$50,000 - $74,999 18.19% 18.16% 18.94%

$35,000 - $49,999 12.24% 9.35% 10.69%

$25,000 - $34,999 9.11% 6.76% 6.97%

$15,000 - $24,999 9.91% 5.90% 6.03%

Under $15,000 12.00% 5.62% 5.36%

Average Household Income $70,202 $96,032 $91,770

Median Household Income $58,375 $80,476 $77,543

Per Capita Income $23,517 $33,420 $33,014

POPULATION PROFILE 1 Miles 3 Miles 5 Miles

▪ Population By Age

2019 Estimate Total Population 18,273 77,790 148,105

Under 20 30.45% 28.21% 27.18%

20 to 34 Years 25.50% 21.96% 23.52%

35 to 39 Years 8.35% 8.54% 8.78%

40 to 49 Years 13.49% 14.45% 14.14%

50 to 64 Years 13.27% 16.18% 15.73%

Age 65+ 8.93% 10.67% 10.64%

Median Age 31.79 34.91 34.61

▪ Population 25+ by Education Level

2019 Estimate Population Age 25+ 11,380 51,105 98,541

Elementary (0-8) 12.82% 5.13% 4.29%

Some High School (9-11) 10.50% 6.79% 6.04%

High School Graduate (12) 22.21% 20.98% 21.06%

Some College (13-15) 23.04% 22.60% 23.11%

Associate Degree Only 7.35% 9.24% 10.11%

Bachelors Degree Only 14.51% 21.19% 21.21%

Graduate Degree 6.09% 12.57% 12.49%

▪ Population by Gender

2019 Estimate Total Population 18,273 77,790 148,105

Male Population 51.81% 51.00% 50.44%

Female Population 48.19% 49.00% 49.56%

MARKETING TEAM

Income

In 2019, the median household income for your selected geography is

$58,375, compare this to the US average which is currently $60,811.

The median household income for your area has changed by 44.97%

since 2000. It is estimated that the median household income in your

area will be $68,429 five years from now, which represents a change

of 17.22% from the current year.

The current year per capita income in your area is $23,517, compare

this to the US average, which is $33,623. The current year average

household income in your area is $70,202, compare this to the US

average which is $87,636.

Population

In 2019, the population in your selected geography is 18,273. The

population has changed by 25.22% since 2000. It is estimated that

the population in your area will be 18,771.00 five years from now,

which represents a change of 2.73% from the current year. The

current population is 51.81% male and 48.19% female. The median

age of the population in your area is 31.79, compare this to the US

average which is 38.08. The population density in your area is

5,800.41 people per square mile.

Households

There are currently 5,908 households in your selected geography. The

number of households has changed by 32.41% since 2000. It is

estimated that the number of households in your area will be 6,102

five years from now, which represents a change of 3.28% from the

current year. The average household size in your area is 3.05 persons.

Employment

In 2019, there are 9,199 employees in your selected area, this is also

known as the daytime population. The 2000 Census revealed that

39.39% of employees are employed in white-collar occupations in

this geography, and 60.93% are employed in blue-collar occupations.

In 2019, unemployment in this area is 5.37%. In 2000, the average

time traveled to work was 30.00 minutes.

Race and Ethnicity

The current year racial makeup of your selected area is as follows:

64.78% White, 1.61% Black, 0.36% Native American and 3.72%

Asian/Pacific Islander. Compare these to US averages which are:

70.07% White, 12.87% Black, 0.19% Native American and 5.66%

Asian/Pacific Islander. People of Hispanic origin are counted

independently of race.

People of Hispanic origin make up 49.63% of the current year

population in your selected area. Compare this to the US average of

18.17%.

Housing

The median housing value in your area was $246,110 in 2019,

compare this to the US average of $212,058. In 2000, there were

2,183 owner occupied housing units in your area and there were

2,278 renter occupied housing units in your area. The median rent at

the time was $570.

Source: © 2019 Experian

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The Portland-Hillsboro metro is located near the confluence of the

Columbia and Willamette rivers and stretches across the Oregon border

into Washington State. The region is composed of Multnomah,

Clackamas, Columbia, Washington and Yamhill counties in Oregon, and

Clark and Skamania counties in Washington. Mount Hood and the

Cascade Range stand to the east, and the Oregon Coast Mountain

Range lies to the west. The metro contains approximately 2.4 million

residents, with more than 640,000 people residing in Portland, the area’s

most populous city.

Overview

[ Portland-Hillsboro]METRO HIGHLIGHTS

HIGH POPULATION GROWTH

The Portland-Vancouver metro has recorded more

than 20 years of positive net migration thanks to

expanding industries.

ALTERNATIVE-ENERGY INDUSTRY

Alternative-energy companies are attracted to the

local educated workforce and research institutions

and are moving to the region.

LOW BUSINESS COSTS

The cost of doing business is among the lowest on

the West Coast, supported by no state income tax

in Washington and no sales tax in Oregon.ECONOMY

▪ Lower land costs than other West Coast metros, a skilled labor

pool and affordable, abundant power attract companies to the

region. The favorable tax structure, with no state income taxes

in Washington and no sales tax in Oregon, also lures

businesses.

▪ The metro’s economy has shifted from timber to industries that

include athletic and outdoor activities, clean tech, advanced

manufacturing and software.

▪ A diverse group of companies based in the metro include Nike,

Daimler, Oregon Iron Works, Intel and IBM.

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DEMOGRAPHICS

DEMOGRAPHICS

SPORTS

EDUCATION

ARTS & ENTERTAINMENT

▪ The metro is expected to add nearly 163,200 people over the next five years,

resulting in the formation of nearly 74,400 households.

▪ A median home price well above the U.S. level means 59 percent of households can

afford to own their home, which is above the national rate of 57 percent.

▪ Of residents age 25 and older, 37 percent hold bachelor’s degrees, and 14 percent

have also obtained a graduate or professional degree.

The metro contains more than 37,000 acres of parks and provides numerous outdoor

opportunities, including activities at Mount Hood and on the Hood River. The metro lies

60 miles east of the Pacific Ocean, with 330 miles of beaches along the Oregon coast.

The metro has professional basketball, soccer and hockey teams. Cultural activities can

be found at various local venues, including the Portland Art Museum, World Forestry

Center Discovery Museum and the Portland Children’s Museum, and plays are staged at

the Portland’5 Centers for the Arts. Major colleges and universities include Lewis and

Clark, Pacific University, the University of Portland and Portland State University. The

University of Oregon and Oregon State University are nearby.

QUALITY OF LIFE

* Forecast

Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s

Analytics; U.S. Census Bureau

2019 Population by Age

0-4 YEARS

6%5-19 YEARS

18%20-24 YEARS

6%25-44 YEARS

30%45-64 YEARS

26%65+ YEARS

14%

38.1

2019MEDIAN AGE:

U.S. Median:

38.1

$72,100

2019 MEDIAN HOUSEHOLD INCOME:

U.S. Median:

$60,800

2.5M

2019POPULATION:

Growth2019-2024*:

6.5%

985K

2019HOUSEHOLDS:

7.4%

Growth2019-2024*:

20

DEMOGRAPHICS

propertyname

Wave of Young Professionals, Healthy Local Economy

Maintain Investor Sentiment Despite New Rent Cap

Competition for talent motivates strong migration trends. The Portland apartment sector enters the

next decade on solid footing as an influx of new residents call the metro home, many being young

professionals drawn by a large corporate presence. A highly skilled workforce encourages tech titans

Amazon, Google and Apple to increase their hiring efforts in the metro on top of large contributions to

the employment base by Nike, Adidas and Under Armour. In addition to a healthy job outlook and

growing economy this year, young workers are enticed by a lower cost of living in contrast to other

West Coast metros, bolstering demand for rental housing. Many of these are choosing to lease an

apartment longer as they are not ready to commit to a 30-year mortgage, motivating developers to

boost apartment inventory substantially as the market contends with a shortage of housing. More

than 9,000 market-rate units were underway at the onset of 2020, with the greatest focus placed on

areas near major employers and transit access including Central and East Portland.

No shortage of investment opportunities following new regulations. Oregon made headlines last year

as the first state in the nation to enact statewide rent control, causing some investors to reevaluate

their strategies. Despite increased local and statewide regulations, investor sentiment holds strong

against a backdrop of robust underlying demand, tight operations across the metro and another year

of favorable rent growth. Elevated initial yields also grab the attention of investors as the market

average is the highest on the West Coast, falling in the mid-5 percent band. Fewer restrictions and

returns that are 50 to 100 basis points above the market average will keep buyers active in Portland’s

suburbs this year, including Beaverton, Vancouver and East Portland. Institutional groups have

become a major participant in recent years, boosting liquidity in the market for large and modern

complexes positioned toward higher-income renters.

* Estimate; ** Forecast

Sources: Marcus & Millichap Research Services; BLS; CoStar Group, Inc.

Best Beer State in America (Thrillist) - #2 Oregon

10 Best Foodie Cities in America (WalletHub) - #1 Portland, OR

22

DEMOGRAPHICS

propertyname

2020 Market Forecast

Employers add 15,100 workers to company payrolls in 2020, a modest

slowdown from the 1.7 percent pace posted last year.

A wave of rentals are scheduled for delivery this year, accounting for the

strongest increase to supply in more than two decades and outpacing the

2019 total by nearly 2,000 units.

A robust influx of young professionals ensures stable demand for new

apartments, compressing the vacancy rate to 3.9 percent after falling 40

basis points last year.

After rising 4.5 percent in 2019, rent growth holds strong this year, bringing

the average effective rent up to $1,480 per month.

Major commercial investments in Vancouver are rapidly transforming the

area, attracting new tenants and investors to a submarket with minimal

regulations.

* Estimate; ** Forecast

Sources: CoStar Group, Inc.; RealPage, Inc.; Real Capital Analytics

Employment

up 1.2%

Construction

5,600 units

Vacancy

down 10 bps

Rent

up 4.1%

Investment

the FINANCIAL OVERVIEW