PORTLAND, Oregon: Eight units sold in the Sellwood neighborhood for a WHOPPING $2,150,000!
If you ever wondered if Portland is an overheated market, wonder no more because this sale is evidence! We see many properties on the market that are under-performing, in bad shape, and you guessed it- overpriced. This Sellwood neighborhood 8 unit gem is NOT an example of that commonplace occurrence, as it is in GREAT condition, with GREAT financial history, with a GREAT tenant base.
No surprise, but that all adds up to a GREAT price!
Price per unit: $268,750
Price per square foot: $309
Estimated cap rate: 5.34%
Even though the price per unit was higher than average (substantially), the cap rate was a solid market cap rate of 5.34% based on the actual current rents and past twelve month expenses (including a budget for management).
The sellers of the property maintained the apartments really well, as they purchased the remodeled 1963 property a few years ago and really did a great job operating it. All the units were in immaculate condition, with hardwood flooring, updated (condo level) kitchens, with one and a half bathrooms. Rents for the two bedroom townhouses averaged $1,600.
The buyer of this property is stepping into a turnkey property with a strong rental history, plus it is in a great close in neighborhood. There are other new developments for multifamily properties in Sellwood, but this one has definite “mid century” charm.
Each unit has a private exterior space, vinyl windows, and laundry. The property also contains a storage room with individual storage units for the tenants and a common area courtyard, with five off-street parking spots.
Thanks to Steven Zimmerman for the great photos.
Greg Frick of HFO represented the buyer, For more information about this sale, call Bernard Gehret at 503-546-9390.