PORTLAND, Oregon: Recently this summer, we sold 75 units for Multnomah University, the property consisted of two buildings: a fifty two unit and twenty three unit apartments. The sale price was $11,250,000.
The properties were in excellent condition, and were built in two phases: 1996 and 2003. The properties were utilized by the seller as student housing for the university. The offering created a tremendous market response and resulted in approximately twenty offers.
Price per unit: $150,000
Estimated cap rate: N/A (due student housing use)
The fifty two unit building has a mix of one and two bedroom flats, plus two and three bedroom townhouse units. Each of the properties has a laundry room (two total at the entire complex), with plenty of off-street parking. The properties were extremely well maintained, as ownership ensured all repairs were made efficiently.
The townhouse units featured a large living room with spacious kitchens and a downstairs bathroom. Each unit has a back porch area and is in a quiet setting, and all of the tenants were really nice!
The twenty three unit building, built in 2003, all contained two bedroom, one bath units. All units have a large interior “living room” with two large bedrooms, perfect for a roommate setting. The property contained a laundry room. This building also contained high efficiency heating for the tenants.
Overall, this sale is a variance from a “typical” market rate deal as the university housed students who would vacate after graduation. However, since these properties received so much attention from the multifamily market, the demand is clearly high for apartments to purchase in Portland (understatement of the year!).
For more information on the sale of the property, call Bernard Gehret at Joseph Bernard Investment Real Estate at 503-546-9390.