1607 apartments · 2019. 2. 1. · located in the heart of northwest portland, the 1607 apartments...
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FOR MORE INFORMATION:Andrew HolowetzkiSenior Broker
(503) [email protected]
1607 APARTMENTS1607 NW Davis St., Portland, OR 9720920 units
$7,650,000
PROPERTY ANALYSIS
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BUILDING
Price: $7,650,000Units: 20Price/Unit: $382,500Building Sq Ft: 26,864Price/Sq Ft: $284.77Year Built: 2013Lot Size: 0.22 acresCounty: Multnomah
1607 APARTMENTS1607 NW Davis St., Portland, OR 97209
INVESTMENT SUMMARY
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DESCRIPTION
The 1607 Apartments offer a unique investment opportunity with multiple appreciation strategies. The units were built to condo quality standards, with a mix of 1’s, 2’s, and 3’s; and average over 1,000 sqft. Each unit includes modern finishes and amenities; washers and dryers, AC and heating units, stainless steel appliances, quartz counter tops, gas fireplaces, decks or balconies, and more. The property also has gated underground parking and storage available.
Currently, there is significant upside potential in rents, as market rents range anywhere from 10% to 30%+ above current average building rents. If converted to condos, sales comps indicate a cumulative value of over $11,000,000. Additionally, the upfront cost and quality of the condo construction is significantly greater than standard apartment construction, including double staggered stud walls with 1” air space between units, greatly reducing noise between units and providing a higher quality of living for tenants and future owners.
HIGHLIGHTS
• Desirable NW Portland location• Condo quality construction• AC & washer/dryer in each unit• Large floorplans & modern finishes• Secure, underground parking & storage• Walking distance to MAX light rail• Nearby access to major freeways
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FINANCIAL ANALYSIS
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Scheduled Monthly Rents
Units Type Est. Sq. Ft.Current Average
Re-RentMonthly Income Rent at Market Monthly Income
10 1 + 1 573 $1,540 $15,400 $1,750 $17,500
3 2 + 2 1,251 $2,325 $6,975 $2,700 $8,100
2 2 + 2.5 1,233 $2,300 $4,600 $2,800 $5,600
2 3 + 2 1,633 $2,449 $4,898 $3,250 $6,500
3 3 + 2.5 1,613 $2,820 $8,460 $3,500 $10,500
20 Estimated Total $40,333 $48,200
Scheduled Gross Income $483,996 $578,400
• Less: Vacancy (5%) -$24,200 -$28,920
Effective Gross Income $459,796 $549,480
• Plus: RUBS +$17,220 +$17,220
• Plus: Storage, Parking, Add’l* +$18,321 +$21,600
Effective Annual Income $495,337 $588,300
Estimated Expenses
Current Budget
%EGI Per/Unit Amount %EGI Per/Unit Amount
1 Taxes 17.94% $4,123 $82,469 15.01% $4,123 $82,469
2 Insurance 0.77% $177 $3,533 0.64% $177 $3,533
2 Utilities 4.32% $993 $19,867 3.62% $993 $19,867
3 Professional Management 7.00% $1,609 $32,186 7.00% $1,923 $38,464
3 Maintenance & Repairs 1.30% $300 $6,000 1.09% $300 $6,000
3 Turnover Reserves 0.65% $150 $3,000 0.55% $150 $3,000
3 Capital Reserves 0.65% $150 $3,000 0.55% $150 $3,000
Total Est. Annual Expenses 32.64% $7,503 $150,055 28.45% $7,817 $156,333
of EGI Per Unit of EGI Per Unit
Investment Summary
Current Projected
Net Operating Income (NOI) $345,282 $431,967
Cap Rate 4.51% 5.65%
Footnotes
1. Actual 2017 Tax (after 3% pre-pay discount)
2. Actual 2018 Expense
3. Budget/Expense
* 16 storage units, 14 parking + 1 handicap
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LOCATION OVERVIEW
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LOCATION DESCRIPTION
Located in the heart of Northwest Portland, the 1607 Apartments is situated between the popular neighborhoods of Nob Hill and The Pearl District. There are numerous dining and entertainment options in close proximity to the property given its prime location. Within walking distance, tenants will enjoy many retailers including Powell’s City of Books, REI and Whole Foods Market.
1607 APARTMENTS
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LOCATION HIGHLIGHTS
• Walk Score, 99• Bike Score, 96• Transit Score, 95• Neighborhood offers permit parking,
no meters• Portland Streetcar & MAX Station
within 5 blocks• Quick access to I-405 & Highway 26
PROPERTY PHOTOS
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PROPERTY PHOTOS
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FLOORPLANS
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Couch Davis
Glisan
Everett
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FLOORPLANS
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Flanders
HoytIrving
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SOLD COMPARABLES
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Mississippi Avenue Lofts4216 N Mississippi AvePortland, OR 97217
Sale Date: 12/4/17
Year Built: 2010
Price: $14,500,000
Cap Rate:4.40%
Units: 32
Price/Unit: $453,125
Sq Ft: 36,627
Price/Sq Ft: $395.88
Gaines St Townhome Apts956 SW Gaines StPortland, OR 97239
Sale Date: 6/1/18
Year Built: 2018
Price: $4,916,376
Cap Rate:4.94%
Units: 12
Price/Unit: $409,698
Sq Ft: 17,200
Price/Sq Ft: $285.84
Muse Apartments1315 NW 19th AvePortland, OR 97209
Sale Date: 2/1/17
Year Built: 2017
Price: $20,150,000
Cap Rate:4.50%
Units: 41
Price/Unit: $347,414
Sq Ft: 51,933
Price/Sq Ft: $388.00
11 Marché1115 SW Market StPortland, OR 97201
Sale Date: 4/12/17
Year Built: 2016
Price: $21,000,000
Cap Rate:4.50%
Units: 62
Price/Unit: $235,135
Sq Ft: 53,600
Price/Sq Ft: $391.79
20 on Hawthorne1550 SE 20th AvePortland, OR 97214
Sale Date: 8/11/17
Year Built: 2009
Price: $17,000,000
Cap Rate:4.40%
Units: 20
Price/Unit: $333,333
Sq Ft: 52,840
Price/Sq Ft: $321.73
Corbett Heights3916 SW Corbett AvePortland, OR 97239
Sale Date: 2/1/17
Year Built: 2015
Price: $15,000,000
Cap Rate:4.25%
Units: 48
Price/Unit: $312,500
Sq Ft: 41,328
Price/Sq Ft: $362.95
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SOLD COMPARABLES
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Brim Apartments1206 SE Ankeny StPortland, OR 97214
Sale Date: 7/17/17
Year Built: 2017
Price: $7,800,000
Cap Rate:N/A
Units: 27
Price/Unit: $288,889
Sq Ft: 22,978
Price/Sq Ft: $339.46
The Waterford Apartments3745 SW Water AvePortland, OR 97239
Sale Date: 2/9/18
Year Built: 2014
Price: $3,215,000
Cap Rate:4.23%
Units: 12
Price/Unit: $267,917
Sq Ft: 9,162
Price/Sq Ft: $350.91
Sherm Apartments1101 SE Sherman StPortland, OR 97214
Sale Date: 9/21/17
Year Built: 2011
Price: $2,570,000
Cap Rate:5.12%
Units: 10
Price/Unit: $257,000
Sq Ft: 5,500
Price/Sq Ft: $467.27
The Whitney411 SE 14th AvePortland, OR 97214
Sale Date: 2/23/18
Year Built: 2016
Price: $10,500,100
Cap Rate:4.50%
Units: 58
Price/Unit: $256,100
Sq Ft: 51,933
Price/Sq Ft: $451.75
Link2015-2019 SE 11th AvePortland, OR 97214
Sale Date: 6/11/18
Year Built: 2012
Price: $2,850,000
Cap Rate:N/A
Units: 12
Price/Unit: $237,500
Sq Ft: 6,160
Price/Sq Ft: $462.66
Serrano2250 NE Glisan StPortland, OR 97232
Sale Date: 11/7/17
Year Built: 2017
Price: $8,700,000
Cap Rate:4.97%
Units: 37
Price/Unit: $235,135
Sq Ft: 30,000
Price/Sq Ft: $290.00
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CONDO SALES
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Sold Date Address Bed/Bath Sq Ft Year Built Price/Sq Ft Sold Price
3/22/18 1828 SW 18th Ave 1 + 1 483 2001 $476 $229,900
4/5/18 1410 SW 1th Ave #302 1 + 1 467 2003 $520 $243,000
8/9/18 1926 W Burnside St #1106 1 + 1 723 2006 $469 $339,100
6/20/18 323 NW 13th Ave #406 1 + 1 784 2007 $657 $515,000
Averages 614 2004 $531 $331,750
Sold Date Address Bed/Bath Sq Ft Year Built Price/Sq Ft Sold Price
8/14/18 1926 W Burnside St #601 2 + 2 1,351 2006 $389 $525,000
6/27/18 937 NW Glisan St #436 2 + 2 1,299 2008 $590 $766,000
8/3/18 937 NW Glisan St #1533 2 + 2 1,256 2008 $694 $872,000
Averages 1,302 2007 $558 $721,000
Sold Date Address Bed/Bath Sq Ft Year Built Price/Sq Ft Sold Price
5/11/18 1433 NW 22nd Ave 3 + 2.5 1,846 2008 $420 $775,000
8/31/17 1001 NW Lovejoy St #308 3 + 2 1,734 2006 $557 $965,000
11/17/17 2335 NW Raleigh St #413 3 + 2.5 1,973 2006 $653 $1,288,000
Averages 1,851 2007 $543 $1,009,333
Count Bed/Bath Sq Ft Avg Price/Sq Ft Avg Price/Unit Average Price Cumulative Price
5 1 + 1 436 $498 $236,000 $227,000 $1,135,000
5 1 + 1 709 $567 $427,000 $415,000 $2,075,000
5 2 + 2/2.5 1,244 $554 $721,000 $705,000 $3,525,000
5 3 + 2/2.5 1,621 $545 $1,009,000 $946,000 $4,730,000
$11,465,000
SUBJECT PROPERTY
1 BD Condo’s
2 BD Condo’s
3 BD Condo’s
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RENT COMPARABLES
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Heartline1250 NW Kearney St
Avg Rent: Avg Sq Ft: Rent/Sq Ft:
1 BD $2,198 736 $2.98
2 BD $3,409 1,095 $3.11
3 BD $7,300 2,276 $3.21
Indigo @ Twelve | West430 SW 13th Ave
Avg Rent: Avg Sq Ft: Rent/Sq Ft:
1 BD $2,341 802 $2.92
2 BD $4,149 1,373 $3.02
3 BD $5,745 1,848 $3.11
Couch 9135 NW 9th St
Avg Rent: Avg Sq Ft: Rent/Sq Ft:
1 BD $2,231 709 $3.15
2 BD $2,835 982 $2.89
3 BD $7,300 2,276 $3.21
Vue Apartments1717 SW Park Ave
Avg Rent: Avg Sq Ft: Rent/Sq Ft:
1 BD $1,324 565 $2.34
2 BD $1,783 758 $2.35
3 BD $4,130 1,664 $2.48
Avg Re-Rent
MarketAvg
Sq FtMarket
Rent/Sq Ft
Market
1 BD $1,540 $1,789 573 666 $2.69 $2.69
2 BD $2,315 $2,578 1,242 1,029 $1.86 $2.48
3 BD $2,671 $4,272 1,623 1,606 $1.65 $2.66
SUBJECT PROPERTY 1607 NW Davis St
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RENT COMPARABLES
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Q212112 NW Quimby St
Avg Rent: Avg Sq Ft: Rent/Sq Ft:
1 BD $2,055 647 $3.18
2 BD $2,786 990 $2.82
3 BD $4,114 1579 $2.61
Vista St Clair1000 SW Vista Ave
Avg Rent: Avg Sq Ft: Rent/Sq Ft:
1 BD $1,299 559 $2.32
2 BD $1,697 1,097 $1.55
3 BD $3,355 1,903 $1.76
Cyan PDX1720 SW 4th Ave
Avg Rent: Avg Sq Ft: Rent/Sq Ft:
1 BD $1,702 716 $2.38
2 BD $2,441 982 $2.49
3 BD $3,271 1,257 $2.60
Southpark Square1503-1525 SW Park Ave
Avg Rent: Avg Sq Ft: Rent/Sq Ft:
1 BD $1,518 614 $2.47
2 BD $2,076 1,016 $2.04
3 BD $3,216 1,386 $2.32
The Abigail1650 NW 13th Ave
Avg Rent: Avg Sq Ft: Rent/Sq Ft:
1 BD $2,055 647 $3.18
2 BD $2,786 990 $2.82
3 BD $4,114 1579 $2.61
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AWARDS & RECOGNITIONS
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America's Fastest Growing Private Companies
Fastest Growing Private 100 Companies
Top 40 Business Leader Under 40
Investment Broker of the Year
Commercial Real Estate POWERLIST
Top Corporate Philanthropy
Top Commercial Real Estate Firm
All Star Award for Advertising and Marketing Excellence
CONTACT INFO
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FOR MORE INFORMATION:Andrew Holowetzki
Senior Broker
(503) [email protected]
Oregon Washington Arizona Southern Arizona
5200 SW Macadam Ave, Suite 300
Portland, OR 97239
4400 NE 7th Ave, Suite 275
Vancouver, WA 98662
9927 E Bell Rd,Suite 130
Scottsdale, AZ 85260
One South Church Ave,Suite 1200
Tucson, AZ 85701
(503) 546-9390 (360) 255-0255 (480) 305-5600 (520) 428-0850