HFO INVESTMENT REAL ESTATE OFFERING MEMORANDUM CITY LINK 4147 SE 37Th Avenue • Portland, OR 97202
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OFFERING MEMORANDUM CITY LINK 14 Units • Portland, Oregon www.hfore.com • (503) 241.5541 2 HFO INVESTMENT REAL ESTATE OFFERING MEMORANDUM CITY LINK 4147 SE 37th Avenue • Portland, OR 97202 TABLE OF CONTENTS I. Executive Summary 5 II. Location 11 III. Comparables 19 IV. Operations Analysis 27 V. Offer Terms 33 HFO INVESTMENT REAL ESTATE Greg Frick Lee Fehrenbacher [email protected] [email protected] (971) 717.6332 (971) 717.6346 www.hfore.com • 503.241.5541 Licensed in the States of Oregon and Washington 4 HFO INVESTMENT REAL ESTATE INVESTMENT SUMMARY CITY LINK 14 Units • Portland, Oregon INVESTMENT HIGHLIGHTS Property Highlights CITY LINK • Close-In East Portland Location 4147 SE 37th Avenue • Portland, OR 97202 • Rent Upside + • Well Maintained Units 14 1972 /- 12,892 TOTAL UNITS YEAR BUILT APPROX. NR SQ FT • On-Site Parking + • Spaciously Sized Units 0.83 16.87 /- 921 LOT SIZE (ACRES) DENSITY (UNITS PER ACRE) AVG UNIT SIZE (SQ FT) 6 HFO INVESTMENT REAL ESTATE INVESTMENT SUMMARY OFFERING SUMMARY City Link is a 14-unit apartment building on a picturesque tree-lined street in close-in ASSET SUMMARY southeast Portland. This well-maintained asset offers spacious two- and three-bedroom floor plans amongst green landscaping and off-street parking. The property recently Property City Link received new fiber cement siding and exterior paint, and select units feature updated Location 4147 SE 37th Avenue appliances, insulated windows, luxury vinyl tile flooring, newer countertops and cabinetry. Nearby neighborhood rent comparables demonstrate considerable room to City, State Portland, Oregon 97202 increase income at the property. Additionally, City Link sits on nearly an acre of land and County Multnomah the zoning could potentially allow for the construction of approximately four additional Year Built 1972 apartment units (interested parties should verify development options with the city). Total Units 14 Located just a few of blocks from the heart of the Richmond neighborhood, City Link is Zoning R2 within walking and biking distance to dozens of popular local restaurants and retailers. Whether grabbing drinks at the Gladstone Street Pub, or groceries at the nearby Safeway, Property Sq Ft 38,086 the property’s walkable location makes it a desirable destination for tenants. Situated Approximate Sq Ft 12,892 off SE Gladstone Street near Cesar Chavez Boulevard, the property also provides easy commuter access to downtown Portland and public transportation throughout the Average Unit Sq Ft 921 metro area. PRICING City Link’s desirable close-in location, well-maintained condition and below-market rental rates make it a rare opportunity for investors looking to add value to a quality asset Price $2,650,000 in the growing Portland metro area. Per Unit $189,286 Per Sq Ft $206 UNIT MIX Projected Cap Rate 5.30% Unit Type Unit Count Avg Sq Ft Total Sq Ft % of Total Units 2 Bedrooms / 1 Bath 2 710 1,420 14.3% Tours and Inquiries: 2 Bedrooms / 1 Bath 8 916 7,328 57.1% All tours and inquiries regarding the City Link are to be directed to HFO Investment Real 3 Bedrooms / 1 Bath 4 1,036 4,144 28.6% Estate at (503) 241.5541. Total / Averages 14 921 12,892 100.0% Greg Frick Lee Fehrenbacher [email protected] [email protected] (971) 717.6332 (971) 717.6346 CITY LINK • 14 UNITS • PORTLAND, OR 7 8 HFO INVESTMENT REAL ESTATE CITY LINK • 14 UNITS • PORTLAND, OR 9 LOCATION WASHINGTON VANCOUVER 11 min COL UMBIA RIVER 8 min 2 min Portland 5 International Airport Forest Park 99E OREGON 405 PORTLAND 84 HILLSBORO 26 205 26 GRESHAM 8 213 BEAVERTON 219 10 5 217 210 TIGARD 224 LAKE OSWEGO CITY LINK 212 CLACKAMAS 10 HFO INVESTMENT REAL ESTATE PORTLAND MARKET SNAPSHOT PORTLAND METRO AREA The Portland Metro Area is one of 4.95% 38.3% 3.8% the strongest apartment markets Metro-area vacancy Metro area renter- Unemployment rate occupied housing rate (June 2019) in the nation, as reflected in strong year-over-year rent growth and consistently tight vacancy. The area’s strong job market and high quality of life continues to attract $68,125 7.4% 48.2% Median household Year-over-year Portland residents age 25+ years new residents; approximately 65 income rent growth* (with a bachelor’s degree or higher) people move here per day. New apartment construction has not caught up to the housing demand created by in-migration. 21,345 4,474 #2 New Portland residents Portland residents for Oregon in Migration (2016-2018) per square mile in US *Multifamily NW Apartment Report (October 2018-2019) CITY LINK • 14 UNITS • PORTLAND, OR 11 NEED UPDATE 12 HFO INVESTMENT REAL ESTATE LOCATION CITY LINK 14 Units • Portland, Oregon LIFESTYLE CONVENIENCES SE Belmont St SE 60th Ave Mall 205 SE 82nd Ave Hawthorne Blue Star Donuts Mt Tabor Park SE 50th Ave McMenamins Baghdad Portland Campus Theater & Pub César E. Chávez Blvd E. Chávez César 205 Stumptown Coffee Roasters SE Division St Pok Pok Petite Provence 213 Fubonn Shopping Center Powell Street Station SE Powell Blvd SE 26th Ave 26 SE 52th Ave Creston Park Century 16 Eastport Plaza SE 92nd Ave City Link SE Holgate Blvd SE Foster Rd SE 28th Ave HK Cafe Lent Park SE Steele St Woodstock Park Mt Scott Community Center & Indoor Pool Crystal Spring Rhododendron Garden SE Woodstock Blvd Mt Scott Park 14 HFO INVESTMENT REAL ESTATE IN THE VICINITY Restaurants and Dining Shopping/Entertainment Lifestyle Services Richmond Elementary School 40 45 41 42 43 39 49 48 46 70 SE Division St 66 63 62 60 59 56 54 52 51 44 38 47 71 69 68 67 65 64 61 58 57 55 53 50 37 72 73 74 Blvd E. Chávez César SE 26th Ave 36 Franklin High School 75 SE 50th Ave 22 76 77 26 24 35 78 81 Cleveland High School 9 10 St Ignatius School 83 8 25 26 27 28 32 82 85 13 12 11 2 3 26 SE Powell Blvd 1 29 31 Powell Park 84 15 14 5 6 7 87 4 Creston Annex Head Start 30 33 16 17 18 34 SE 52nd Ave 79 80 SE Gladstone St 19 Creston Park SE Foster Rd 86 88 City Link 21 Creston Elementary School 20 23 1. Safeway 16. Oregon Buddist Temple 31. Burger King 45. Tasty n Daughter 60. Ava Gene’s 75. People’s Food Co-op 2. Brown Lumber 17. Portland Taiko 32. Taco Time 46. New Thai Blues 61. Olympia Provisions Public House 76. US Postal Service 3. Tecos Fresh Mexican Food 18. Holy Trinity Barbecue 33. Speedboat Coffee 47. Tea Bar SE 62. Salt & Straw 77. Teutonic Wine Company 4. Dank Snacks and Supplies 19. Gladstone Street Pub 34. Little Caesars Pizza 48. Marino Cafe 63. Blue Star Donuts 78. Bullseye Glass Co 5. T-Moble 20. Hapa PDX Ramen 35. Planned Parenthood - SE 49. Loprinzi’s Gym 64. Artigiano 79. Portland General Electric 6. Petco Grooming 21. Smith PDX 36. K & M Auto Service 50. Tropical Hut 65. Pok Pok 80. Fred Meyer Main Office 7. Wells Fargo Bank 22. Loyola Jesuit Center 37. Bete-Luka | Ethiopian 51. Rite Aid 66. Whiskey Soda Lounge 81. Burgerville 8. Rapid Cash 23. Coffee Beer 38. North Bar 52. Tom’s 67. Imperial Bottle Shop & Taproom 82. Catholic Charities 9. O’Reilly Auto Parts 24. Rhododendron Society Portland 39. Smaaken Waffle Sanwiches 53. 7-Eleven 68. Bollywood Theater 83. McDonald’s 10. Les Schwab Tire Center 25. Fireston Complete Auto Care 40. Fern Kitchen 54. Authentic Thai Cuisine 69. Papa G’s Vegan 84. Hopworks Urban Brewery 11. Path Twyman’s Car Center 26. Pho Hung 41. Good Coffee 55. Yataimura Maru 70. Pastini 85. Target / CVS Pharmacy 12. Starbucks 27. Thai BBQ 42. Landmark Saloon 56. Xico 71. New Seasons Market 86. C Bar 13. Rose City Pediatrics 28. La Bama 43. Los Gorditos 57. Division Do it Best Hardware 72. Clinton Community Garden 87. Pacific Fish & Oyster 14. Denicolas’s 29. Taco Bell 44. Tokio Table - Japanese 58. Atlas Pizza 73. Yama Sushi & Izakaya 88. Multnomah County Clinics 15. Naomi’s Organic Farm Supply 30. US Postal Service Steakhouse 59. Townshend’s Teahouse 74. Jacquelin CITY LINK • 14 UNITS • PORTLAND, OR 15 PORTLAND REGION Oregon’s largest city, Portland, APARTMENT MARKET The Portland Metro Area consistently ranks among the nation’s lowest for apartment vacancy rates is near the confluence of the according to the U.S. Census Bureau and other third-party services like REIS, MPF Research, and Willamette and Columbia Rivers. Axiometrics. The U.S. Census Bureau pegged Portland’s Q3 2018 vacancy rate at 4.5% and the U.S. average at 7.1%. The Portland Metro Area consists The Multifamily NW Apartment Report survey proved average Spring 2018-19 year-over-year of four counties: Multnomah, rent growth at 7.7%. Washington, Clackamas, and SKILLED WORKFORCE & STRONG EMPLOYMENT Clark County, Washington. In 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. DIVERSIFIED ECONOMY Portland is home to the headquarters of Fortune 500 companies Nike and Lithia Motors. Fortune 1000 companies headquartered here include Columbia Sportswear, Greenbrier Cos.