SOLD! Ten units sold for $1,100,000, the property is located at 141 Hrubetz Rd. SE, Salem, Oregon. The well maintained property featured a laundry room, large two bedroom units, and a large parking lot one block from a large traffic thoroughfare.
Price Per Unit: $110,000
Price Per Square Foot: $122*
Estimated Cap Rate (actual): 6.60%
Overall, the property was in good condition and was well maintained. The units were in “average” condition, and all ten units are two bedroom, one bath units. Most of the units had some level of upgrade on turnover.
-Upside potential in rents
-Large parking lot
-Close to shops and public transit lines
-New exterior paint
The Salem, Oregon apartment market has heated up over the past two to three years. Rents are increasing, and more and more owners are upgrading their units as tenants are paying for higher quality units. In the past in Salem, vacancies had been an issue with vacancy rates between five and ten percent, the past few years the rate is similar to Portland’s vacancy rate at below five percent. In addition, it appears more tenants are commuting to Portland and living in Salem due to lower prices. There was a lot of buyer interest in this property, even with the $110,000 per unit price tag.
Bernard Gehret of Joseph Bernard Investment Real Estate represented the buyers, and Jared Stasch of SMI Commercial Real Estate LLC represented the sellers. For more information about the Salem apartment market or this specific deal, call Bernard Gehret at 503-706-4713. For more information about apartment listings and apartments for sale, click on Joseph Bernard Investment Real Estate’s website here.