BARBUR PLACE 24 Units • Portland, Oregon OFFERING MEMORANDUM INVESTMENT SUMMARY Barbur Place is a 24-unit community in Southwest Portland that offers Barbur Place has been well cared for over the years. Dishwashers have an investor an exceptionally well maintained asset with the potential to been added to one-bedroom units on turnover (each two-bedroom increase rents. Completed in 1969, Barbur Place consists of two adjacent already included a dishwasher) and kitchens have recently been upgraded buildings offering nicely designed one- and two-bedroom units with with granite countertops. The owners have spent a significant amount of private decks or patios. time and money on capital improvements in the past year, including: Barbur Place’s rents currently average $1,000 per unit or $1.50 per square • New roof foot. Rents have grown significantly over the past several months—an average increase of $58 over 2017 year-end leases. Barbur Place’s nicely • New siding planned units—with updated finishes and amenities throughout—make • Parking lot re-striping this an attractive home for tenants. • New cabinets, appliances, carpets, and fixtures • Landscaping upgrades 2 HFO INVESTMENT REAL ESTATE INVESTMENT SUMMARY ASSET SUMMARY Property Barbur Place Location 8924 SW 30th Ave Portland, OR 97219 County Multnomah 66.67% 33.33% Total Units 24 1 Bedroom 2 Bedroom Year Built 1969 Stories 3 stories Approx. NR Sq Ft 16,000 Average Sq Ft 667 Acreage 0.63 PRICING FOR MORE INFORMATION Price $3,725,000 Greg Frick • [email protected] Price Per Unit $155,208 HFO Investment Real Estate Per Square Foot $233 2424 SE 11th Avenue, Portland, Oregon 97214 www.hfore.com • (503) 241.5541 • Fax: (503) 241.5548 Projected Cap Rate 5.20% Brokers licensed in Oregon and Washington. BARBUR PLACE • 24 UNITS • PORTLAND, OR 3 4 HFO INVESTMENT REAL ESTATE Barbur Place features 24 spacious one-and two- bedroom units. Nestled in the heart of Southwest Portland, each resident at Barbur Place enjoys the luxury of their own parking spot and a private balcony or patio. BARBUR PLACE • 24 UNITS • PORTLAND, OR 5 LOCATION Peterkort Towne Square PORTLAND St Vincent Hospital Oregon Zoo Mt Tabor Park 26 SE Division St SE Powell Blvd 8 26 BEAVERTON SW Hamilton St SE Holgate Blvd Beaverton 10 SE 17th Ave Town Square Jesuit High SW 30th Ave School SW Allen Blvd SW Vermont St SE 45th Ave 217 Oaks Amusement Park 210 SE Tacoma St Willamette River 99E Barbur Place SW 33th Ave SE King Rd Washington Square SW Hall Blvd 5 SW 121st Ave SW Stephenson St 43 Sylvania Tryon Creek State Natural Area 224 99W Lake Oswego High School SW Macadam Ave SW McDonald Rd SW Kruse Way TIGARD SW Bonita Rd Lake Oswego 6 HFO INVESTMENT REAL ESTATE SW CORRIDOR MAX - PLANNED 2027 OPENING The Metro council, which represent cities and counties in the Portland In August 2018, the Metro Steering Committee recommended a route Metro Area, is planning a light rail line that would connect Southwest for the proposed MAX line. Per the committee’s recommendation, the Portland to Tigard, Tualatin, and Sherwood. The so-called Southwest line would go down the middle of Barbur Boulevard from Downtown Corridor project would also include roadway, bicycle, and pedestrian Portland to SW 70th Avenue, then follow 70th to Elmhurst Street, crossing projects that would help local residents access the new transit over Highway 217 and running east of Hall Boulevard, then traveling next opportunities. Metro initially planned to include a bond measure for the to existing tracks until splitting off toward Bridgeport Village. The plan new MAX line on the 2018 ballot but has chosen instead to wait until would also build continuous bike lanes and sidewalks on Barbur until 2020. The council hopes to acquire federal funding for the project around 60th Avenue. This route is now included as part of the Southwest Corridor the same time and complete the new MAX line by 2027. Plan, which requires approval from the Metro Council. BARBUR PLACE • 24 UNITS • PORTLAND, OR 7 PORTLAND METRO SNAPSHOT PORTLAND REGION Oregon’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. APARTMENT MARKET DIVERSIFIED ECONOMY TOP 10 LISTS The Portland Metro Area consistently ranks Portland is home to the headquarters of Fortune among the nation’s lowest for apartment 500 companies Nike, Precision Castparts Portland consistently receives glowing reviews and vacancy rates according to the U.S. Census and Lithia Motors. Fortune 1000 companies rankings from the media. Bureau and other third-party services like REIS, headquartered here include Stancorp Financial, 2018 lists include: MPF Research, and Axiometrics. The U.S. Census Greenbrier Companies, Columbia Sportswear, • #4 Best City for Biking (Fast Company) ranked Portland as having the 6th lowest Schnitzer Steel Industries, and Portland General • #6 Best Place to Live (U.S. News and World Report) vacancy rate in the nation for the first quarter of Electric. • #10 Most Entrepreneurial State (Amazon.com) 2018 at 3.6%. Tech and software companies continue to 2017 lists include: REIS reports 2017 Portland metro year-over-year relocate their operations here or open major rents grew 3.3%. Overall rents have increased • #3 City with Best Opportunities for Job Seekers outposts in Portland. These companies enjoy This Year (Fast Company) every quarter since Q1 2010. Portland’s educated workforce, affordable high SKILLED WORKFORCE & STRONG EMPLOYMENT quality of life, and a low cost of doing business 2016 lists include: compared to the Bay Area. 54% of Portland workers have an associate’s • America’s Best City for Summer Travel (Travel + degree or higher, outpacing the national Companies which recently opened major Leisure) average of 38%. branches in Portland include Airbnb, Google, • Best City for Electric Cars in the U.S. Squarespace, Mozilla, Simple, Survey Monkey, (The Christian Science Monitor) According to the State of Oregon’s Employment SalesForce and New Relic, Inc. Portland’s • Best Places to Live 2016 (Money Magazine) Department, Portland enjoys one of the fastest tech startup companies include Viewpoint, • #8 Greenest City in the Nation (Wallethub) job growth rates in the Pacific Northwest, and Jama Software, Thetus, Urban Airship, Acquia, • #8, World’s Best Cities for Millennials (Matador the entire nation, having added 31,000 jobs in Elemental Technologies, Act-On, Puppet Labs, Network) 2016 and 28,000 jobs in 2017. and The Clymb. • Food and Drink Capital of America (The Telegraph – London) The Portland Metro Area’s unemployment rate • World’s #10 Best City to Live In (Metropolis Magazine) as of May 2018 is 3.7%—the lowest since 1995. 8 HFO INVESTMENT REAL ESTATE PORTLAND MARKET SNAPSHOT MAJOR EMPLOYERS GOVERNMENT SPORTSWEAR HEALTHCARE AND RESEARCH The U.S. Federal Government is Portland Nike has its world headquarters in Beaverton Health services are another major employment metro’s overall largest employer, with 20,500 and employs 12,000 Portland-area residents. sector for the Portland area. The top healthcare workers. The State of Oregon gives employment The company designs, develops and employers in the area are Providence Health to an additional 14,000 residents. manufactures footwear, apparel, equipment Systems, with 17,543 employees, and The and accessories. From here, Nike orchestrates Oregon Health Sciences University (OHSU), HIGH TECH & CHIP MANUFACTURING production and design for one of the world’s with 16,200 workers. OSHU is the recent Attracted by the Portland area’s educated most recognizable brands. In January, 2015, recipient of a total of $1 billion in donations workforce and relative low cost of doing Nike began a $1 billion expansion of its for cancer research from over 10,000 Oregon business, tech companies continue moving Washington County campus, adding three donors. Grants from the National Institutes of to Portland—opening major branches and, in buildings with a collective 1.3 million square Health totaled $182.7 million in 2016. some cases, relocating to the area entirely. feet and more than 3,300 parking stalls. Nike recently released artists’ renderings of the MANUFACTURING With over 19,300 employees, Intel is the area’s In trucking and transportation, Daimler largest private employer. Intel acquired its completed expansion, which is estimated to open in 2018. Trucks—with nearly 3,000 area workers—has first Portland location in 1974. The company big plans for the Portland area. The company is currently expanding its presence with Nike’s two key competitors have a major local recently spent $150 million renovating its forthcoming D1X microprocessor chip facilities presence as well. Those employers include the Portland facility and invests heavily in research at the Ronler Acres Campus in Hillsboro. This North American headquarters of Adidas’ with and development, including autonomous is part of a five-year, $6 billion expansion, and 1,200 employees, and a new 70,000 SF outpost driving. is part of the company’s long-term plans for of Under Armour. Under Armour has moved growth. Intel is the largest property taxpayer 100 employees into an iconic former YMCA. in Washington County, with payments of approximately $30 million a year. Other notable Portland-area high-tech companies include ON Semiconductor and Tektronix. BARBUR PLACE • 24 UNITS • PORTLAND, OR 9 OPERATIONS ANALYSIS BARBUR PLACE • 24 UNITS • PORTLAND, OREGON Income Current Scheduled Rents