12 Units Sold for $1,250,000
PORTLAND, Oregon: Recently sold for $1,250,000, this twelve unit multifamily building located on SE 119th and SE Powell featured twelve townhouse units with one and a half baths. The property was in very good condition at the time of sale and had a number of positive features: off-street parking, townhouse style units, quality flooring, clean units with separate backyards. The property was built in the 2000’s, and had little or no deferred maintenance other than some typical roof repair and maintenance.
Overall, the units were below market rent, and based on the rent restrictions in place at the time of sale, the property would need approximately two years of modest rent increases (less than 10% rent increases per year) to be at market rate levels.
PROPERTY SUMMARY:
Price: $1,250,000
Price per unit: $104,166
Price per square foot: $127
Estimated cap rate (actuals): 5.14%
Estimated cap rate (stabilized): 8.20%
Over the past year in Portland, Oregon, there have been many apartment sales in the SE Powell corridor (from SE 112th to SE 143rd). A few of these sales were properties built around 2003 (similar vintage as the sold property in the post), and they ranged from $122,000 per unit to $137,000 per unit. At $104,000 a unit, this purchase represents a “good deal” in the hot Portland market.
Bernard Gehret of Joseph Bernard Investment Real Estate represented the buyer
The average for Portland multifamily sales over the first three quarters (in city limits) has been approximately $150,000 per unit. This is a dramatic jump from the past two years where the average was right around $100,000 per unit. Of course, some multifamily units are in worse condition and require work (and money), and those properties typically are going for much less than the average.
Rental Management Services (RMS) is slated to be the property management firm, see their website here:
Jack Stephens of HFO represented the sellers and Bernard Gehret of Joseph Bernard Investment Real Estate represented the buyer.
