oak manor apartments $4,800,000 - joseph bernard · 2019. 5. 15. · oak manor apartments 2288-2376...
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FOR MORE INFORMATION:Joseph ChaplikPresident/Principal Broker
(503) [email protected]
OAK MANOR APARTMENTS2288-2376 Northgate Ave NE, Salem, OR 9730144 units
$4,800,000
PROPERTY ANALYSIS
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BUILDING
Price: $4,800,000Units: 44Price/Unit: $109,091Building Sq Ft: 32,856Price/Sq Ft: $146.09Cap Rate: 5.83%Pro Forma Cap Rate: 7.48%Year Built: 1970*Lot Size: 1.48 acresCounty: Marion
OAK MANOR APARTMENTS2288-2376 Northgate Ave NE, Salem, OR 97301
INVESTMENT SUMMARY
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DESCRIPTION
Oak Manor is a 44 unit apartment community located in North Salem, just off I-5. The building hasundergone numerous upgrades including new flooring and the kitchens feature newercountertops, cabinetry and appliances. The pool has been remodeled in addition to upgradedequipment. Tenants benefit from the convenient parking options, seasonal pool, on-site laundryfacilities and secure common grass area.
Oak Manor is located within the North Gateway Urban Renewal Area, where strategicinfrastructure investments have been made to improve economic vitality, livability and safety forresidents and employees in the area.
* Renovated in 2016
HIGHLIGHTS
• Well managed, turnkey opportunity• North Salem location• Upgraded interiors• New exterior paint• New windows• 2 onsite laundry rooms• Seasonal pool• Ample parking• Onsite management office• Common area lounge/game room• Nearby access to major freeways
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FINANCIAL ANALYSIS
The Professional Approach to Apartment Investing.
OR • WA • AZ • josephbernard.net
Scheduled Monthly Rents
Units Type Est. SFCurrent Average
RentMonthly Income Rent at Market Monthly Income
40 1 BD/1 BA 575 $755 $30,200 $925 $37,000
4 2 BD/1.5 BA 825 $936 $3,744 $1,050 $4,200
44 $33,944 $41,200
Scheduled Gross Income $407,328 $494,400
• Less: Vacancy (3%) -$12,220 -$14,832
Effective Gross Income $395,108 $479,568
• Plus: 2018 Laundry Income +$5,092 1 +$5,092
• Plus: 2018 Fee Income +$18,616 1 +$18,616
Effective Annual Income $418,816 $503,276
Estimated Expenses
Current Budget
%EGI Per/Unit Amount %EGI Per/Unit Amount1 Taxes 7.85% $705 $31,012 6.47% $705 $31,0121 Insurance 1.48% $133 $5,862 1.22% $133 $5,8621 Utilities 6.23% $559 $24,608 5.13% $559 $24,6081 Professional Management 3.00% $269 $11,853 3.00% $327 $14,3871 On-site Management 3.00% $269 $11,853 3.00% $327 $14,3871 Maintenance & Repairs 5.00% $449 $19,742 4.12% $449 $19,7422 Turnover Reserves 1.67% $150 $6,600 1.38% $150 $6,6001 Landscaping 1.59% $143 $6,270 1.31% $143 $6,2702 Administrative 1.67% $150 $6,600 1.38% $150 $6,6002 Pool 0.41% $37 $1,606 0.33% $37 $1,6062 Capital Reserves 3.34% $300 $13,200 2.75% $300 $13,200
Total Est. Annual Expenses 35.23% $3,164 $139,207 30.08% $3,279 $144,274of EGI Per Unit of EGI Per Unit
Investment Summary
Current Projected
Net Operating Income (NOI) $279,610 $359,002
Cap Rate 5.83% 7.48%
Debt Service $200,986 $200,986
Cash Flow $78,624 $158,016
Cash Return 4.68% 9.41%
Footnotes
1. Actual 2018 annualized2. Budget* Current loan is with Opus Bank at 3.9% for 10 years, due 2027.
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Proposed Financing
Down Payment $1,680,000Down Payment % 35%Debt Service $200,986Loan Amount $3,120,000Interest Rate 5.00%*Term 5 yr fixed/30 yr am
EXTERIOR PHOTOS
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INTERIOR PHOTOS
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PROPERTY PHOTOS
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SOLD COMPARABLES
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Oak Manor2288-2376 Northgate Ave NESalem, OR 97301
Subject Property
Year Built: 1970
Price: $4,800,000
Cap Rate:5.48%
Units: 44
Price/Unit: $109,091
Sq Ft: 32,856
Price/Sq Ft: $146.09
Newcastle Place Apartments4770 Conser Way NESalem, OR 97305
Sale Date: 1/4/19
Year Built:
Price: $9,308,250
Cap Rate:
Units: 54
Price/Unit: $172,375
Sq Ft: 66,999
Price/Sq Ft: $138.93
Brookside Terrace749-759 Church St NESalem, OR 97301
Sale Date: 12/19/18
Year Built: 1967
Price: $695,000
Cap Rate:5.75%
Units: 5
Price/Unit: $139,000
Sq Ft: 6,534
Price/Sq Ft: $106.37
Millbrook Terrace761-783 Church St NESalem, OR 97301
Sale Date: 2/25/19
Year Built:
Price: $1,325,000
Cap Rate:
Units: 11
Price/Unit: $120,455
Sq Ft: 25,728
Price/Sq Ft: $51.50
Amelia Apartments502-540 Locust St NESalem, OR 97301
Sale Date: 9/5/18
Year Built:
Price: $1,890,000
Cap Rate:
Units: 18
Price/Unit: $105,000
Sq Ft: 18,432
Price/Sq Ft: $102.54
DPP Apartments3654-3664 47th Ave NESalem, OR 97305
Sale Date: 5/7/18
Year Built: 1979
Price: $1,070,000
Cap Rate:5.80%
Units: 12
Price/Unit: $89,167
Sq Ft: 10,800
Price/Sq Ft: $99.07
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RENT COMPARABLES
The Professional Approach to Apartment Investing.
OR • WA • AZ • josephbernard.net
Ridgecreek Manor2401-2475 Wayside Terrace
Avg Rent: Avg Sq Ft: Rent/Sq Ft:
1 BD $700 690 $1.01
2 BD $915 850 $1.08
Willamette Estates3900 Santiam Pass Way
Avg Rent: Avg Sq Ft: Rent/Sq Ft:
1 BD $972 695 $1.40
2 BD $1,284 1,041 $1.23
4225-4265 Hawthorne Ave NE
Avg Rent: Avg Sq Ft: Rent/Sq Ft:
1 BD $961 728 $1.32
2 BD $1,087 952 $1.14
Autumn Chase Apartments3211-3343 Autumn Chase Way
Avg Rent: Avg Sq Ft: Rent/Sq Ft:
1 BD $807 715 $1.13
2 BD $982 969 $1.01
SUBJECT PROPERTY – Oak Manor
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Avg Rent: Avg Sq Ft: Rent/Sq Ft:
1 BD $755 575 $1.31
2 BD $936 825 $1.13
RENT COMPARABLES
The Professional Approach to Apartment Investing.
OR • WA • AZ • josephbernard.net
North Park Apartments4356 25th Ave NE
Avg Rent: Avg Sq Ft: Rent/Sq Ft:
1 BD $854 750 $1.14
2 BD $959 896 $1.07
Sandalwood Apartments3963 Etta Dr NE
Avg Rent: Avg Sq Ft: Rent/Sq Ft:
1 BD $827 648 $1.28
2 BD $957 910 $1.05
Cascade Pointe3760 32nd Pl NE
Avg Rent: Avg Sq Ft: Rent/Sq Ft:
1 BD $750 638 $1.18
2 BD $931 753 $1.24
Salem Parkway Apartments2540 Hyacinth St NE
Avg Rent: Avg Sq Ft: Rent/Sq Ft:
1 BD $750 535 $1.40
2 BD $902 735 $1.23
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AWARDS & RECOGNITIONS
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OR • WA • AZ • josephbernard.net10
America's Fastest Growing Private Companies
Fastest Growing Private 100 Companies
Top 40 Business Leader Under 40
Investment Broker of the Year
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Top Corporate Philanthropy
Top Commercial Real Estate Firm
All Star Award for Advertising and Marketing Excellence
Oregon Ethics in Business
CONTACT INFO
The Professional Approach to Apartment Investing.
OR • WA • AZ • josephbernard.net11
FOR MORE INFORMATION:Joseph Chaplik
President/Principal Broker(503) 546-9390
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
The information contained in this package has been obtained from sources we believe to be reliable. While we do not doubt its accuracy, we make noguarantee, warranties or representation, expressed or implied, as to the accuracy. It is the buyers’ sole responsibility to independently confirm itsaccuracy and completeness and bears all risk for any discrepancies. Any projections, square footage, age, opinions, assumptions, or estimates used arefor example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax andother factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independentinvestigation of the property to determine your satisfaction and the suitability of the property for your needs. Parties that receive this information fromoutside of Joseph Bernard, LLC representatives will not be recognized. Owner is a licensed real estate Broker in the state of Oregon.