ANKENY NEST 12 Units • Portland, Oregon
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OFFERING MEMORANDUM ANKENY NEST 12 Units • Portland, Oregon www.hfore.com • (503) 241.5541 2 HFO INVESTMENT REAL ESTATE OFFERING MEMORANDUM ANKENY NEST 2441 SE Ankeny Street • Portland, OR 97214 TABLE OF CONTENTS I. Investment Summary 5 II. Location 17 III. Operations Analysis 29 IV. Offer Terms 35 HFO INVESTMENT REAL ESTATE Jack Stephens 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 ANKENY NEST 12 Units • Portland, Oregon INVESTMENT HIGHLIGHTS PROPERTY HIGHLIGHTS ANKENY NEST • Highly walk-able, A+ location 2441 SE Ankeny Street • Portland, OR 97214 • Award-winning design + • Luxurious units 12 2014 /- 8,969 TOTAL UNITS YEAR BUILT APPROX. NR SQ FT • High-end finishes and amenities + • Peaceful off-street courtyard with private 0.18 66.67 /- 747 decks/balconies LOT SIZE (ACRES) DENSITY (UNITS PER ACRE) AVG UNIT SIZE (SQ FT) 6 HFO INVESTMENT REAL ESTATE INVESTMENT SUMMARY OFFERING SUMMARY The Ankeny Nest offering is a rare opportunity to acquire a one-of-a-kind, high-end new construction apartment building in one of Portland’s hippest neighborhoods. Designed by prominent Portland-based Colab Architecture + Urban Design, Ankeny Nest features ASSET SUMMARY a contemporary, west coast modern style and was a recipient of the 2015 American Property Ankeny Nest Institute of Architects’ Citation Award and the 2015 Mayor’s Award. The property consists Location 2441 SE Ankeny Street of six duplexes on three tax lots woven together by a pedestrian alleyway and mid-block courtyard. Private decks and balconies dot the landscaping, as do permeable paving and City, State Portland, Oregon 97214 low-water plantings, water-efficient green roofs and custom art installations. County Multnomah Units feature modern conveniences such as: Year Built 2014 • Black and stainless steel appliances Total Units 12 • Gas ranges Approximate Sq Ft 8,969 • In-unit washers and dryers Average Unit Sq Ft 747 • Gas forced-air heating and air conditioning • Expansive walk-in closets and storage lockers PRICING • Large decks and balconies with panoramic views Price $4,750,000 Ankeny Nest’s live/work design is intended to attract a community of creatives. Current Per Unit $395,833 tenants include a brand manager for a global sportswear company, web designers, a Per Sq Ft $530 director of photography, three media production agencies — afterall.tv, luckyday. tv and narrativelab.com — and a Northwest indigenous art space, quintanagalleries. Projected Cap Rate 4.20% com.Another prominent amenity of Ankeny Nest lies just beyond its property lines.The property is located within walking distance to the restaurant row along SE 28th Avenue – what some locals call “Portland’s Most Delicious Half-Mile.” The property is also walkable Tours and Inquiries: to one of the city’s premier green spaces, Laurelhurst Park, and is a short jaunt away from All tours and inquiries regarding the Ankeny first-run films at the Laurelhurst Theatre. Southeast Ankeny Street is a designated bicycle Nest are to be directed to HFO Investment boulevard, allowing cyclists from Ankeny Nest to reach downtown in just ten minutes. Real Estate at (503) 241.5541. Ankeny Nest is a stable, highly desirable and unique apartment community that will continue to differentiate itself from other apartments in the area for years to come. Jack Stephens Lee Fehrenbacher UNIT MIX [email protected] [email protected] (971) 717.6334 (971) 717.6346 Unit Type Unit Count Avg Sq Ft Total Sq Ft % of Total Units 0 Bedroom / 1 Bathroom 7 627 4,388 58.3% 1 Bedroom / 1 Bathroom 5 916 4,581 41.7% Total / Averages 12 747 8,969 100.0% 7 8 HFO INVESTMENT REAL ESTATE ANKENY NEST • 12 UNITS • PORTLAND, OR 9 93 60 99 Walk Score Transit Score Bike Score 10 HFO INVESTMENT REAL ESTATE ANKENY NEST • 12 UNITS • PORTLAND, OR 11 12 HFO INVESTMENT REAL ESTATE 13 14 HFO INVESTMENT REAL ESTATE 15 LOCATION WASHINGTON VANCOUVER 11 min COL UMBIA RIVER 8 min 2 min Portland 5 International Airport Forest Park 99E OREGON 405 84 PORTLAND HILLSBORO 26 ANKENY NEST 26 GRESHAM 8 213 BEAVERTON 219 10 205 5 217 210 TIGARD 224 LAKE OSWEGO 212 CLACKAMAS 16 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 3.84% 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 (April 2018-2019) ANKENY NEST • 12 UNITS • PORTLAND, OR 17 18 HFO INVESTMENT REAL ESTATE LOCATION ANKENY NEST 12 Units • Portland, Oregon LIFESTYLE CONVENIENCES AND EMPLOYERS The following establishments are NE Multnomah St within walking distance to the Ankeny Nest Apartments: NE 33rd Ave NE 33rd 84 • Laurelhurst Market • Music Millennium • 50 Licks Ice Cream • Whole Foods Market NE Sandy Blvd NE Glisan St • Laurelhurst Theatre Buckman Field Park SE 24th Ave • Bamboo Sushi • Ken’s Artisan Pizza 5 • Central Catholic High School E Burnside St NE Grand Ave NE Grand • Screen Door Restaurant SE Ankeny St • Boxer Ramen • Tusk • The Matador Laurelhurst SE Stark St Ankeny Nest SE 11th Ave Park • Coalition Brewing • Cheese and Crack Snack Shop Lone Fir Cemetary SE Morrison St • Langbaan SE Belmont St • Pambiche SE 12th Ave • Migration Brewing • Han Oak • Nostrana SE Madison St • Revolution Hall SE Hawthorne Blvd • Stammtisch 20 HFO INVESTMENT REAL ESTATE LIFESTYLE CONVENIENCES AND EMPLOYERS NE Killingsworth St PARKROSE ALBERTA NE Prescott St The Grotto 205 5 NE 82nd Ave NE Williams NE Williams Ave NE Fremont St NE 15th Ave NE 33rd Ave NE 33rd MADISON SOUTH Rocky Butte Park NE 42nd Ave NE Knott St NE 102nd Ave NE 122nd Ave NE 24th Ave NE 57th Ave 99E Rose City NE Sandy Blvd Golf Course Grant Park NE Broadway St NE Halsey St 84 Gateway Shopping Center NE Glisan St DOWNTOWN E Burnside StMONTAVILLA PORTLAND 213 SE Stark St NE 60th Ave Laurelhurst Park MT TABOR Mall 205 Ankeny Nest SE Hawthorne Blvd Mt Tabor Park SE Division St SE Powell Blvd 26 Kelly Butte Natural Park SE Holgate Blvd ANKENY NEST • 12 UNITS • PORTLAND, OR 21 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. 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. 22 HFO INVESTMENT REAL ESTATE PORTLAND RANKINGS Portland consistently receives glowing reviews and rankings from the media. 2019 lists include: No.4 No.7 No.7 Best City for an Active Lifestyle Healthiest Cities to Live Best Cheap Destinations in the U.S. – Wallethub – – Thrillist.com – – U.S. News and World Report – No.8 No.8 No.9 Best Place to Live in the U.S. Fittest Cities in America Best Foodie Cities in the USA – U.S. News and World Report – – CBS News – – U.S. News and World Report – 2018 lists include: No.1 No.1 No.3 No.4 No.5 Restaurant City of the Year Best Foodie City in America Healthiest City in the U.S. Best City for Biking Best Bike City in America – Bon Appetit – – Wallethub & Travelpulse – – Active.com – – Fast Company – – Bicycling Magazine – No.6 rank by Jetsetter No.5 No.9 No.10 No.10 No.15 Fittest Cities in America Top City for Entrepreneurs & Most Entrepreneurial State Greenest City in America Most Educated City in – American College of Start-Ups – Amazon.com – – Newsweek – America Sports Medicine – – Business.org – – Wallethub – No.23 rank by CNBC ANKENY NEST • 12 UNITS • PORTLAND, OR 23 PORTLAND MAJOR EMPLOYERS GOVERNMENT HEALTHCARE AND RESEARCH The U.S.