I Represented the Buyer in the Sale of the Park Terrace Apartments in Late 2011
The news is littered with how the market is “red-hot” for the multifamily sector, but it is unclear on viagra prescription order exactly what that means. The assumption is that apartment projects are producing well, but what does that really mean? I was involved with 19 of the 99 transactions that were in the 5-99 unit range, and the data suggest the market is moving. Here is a quick snapshot at the transactions from 2011 within 15 miles of downtown Portland:
Approximate number of transactions from 5-100 units: 99
Approximate number of transactions from 5-50 units: 75
Approximate percentage of “rehab” transactions: 25%
Approximate percentage of “trophy” properties: 20%
Average cap rate: 7.07%
The
top two lenders for new purchases: Chase, Sterling (both by a landslide)
There were a number of new lenders back on the scene, but most lenders had 1-2 transactions only, with the exception of Chase and Sterling Savings which had 30-40% of the market share.
Other data points such as sales volume, in-state vs. out of state buyers, etc., seem to indicate the local market is sustaining itself and is not dependent on outside markets to artificially inflate the price. Even in this economy, the mantra appears to be the same- buyers are seeking out quality properties to purchase. As always, stay tuned for the latest on the Portland apartment market!
