the edison - loopnet...tech and software companies continue to relocate their operations here or...

OFFERING MEMOR ANDUM7 Units • Portland, OregonTHE EDISON

www.hfore.com(503) 241.5541

2 HFO INVESTMENT REAL ESTATE

EXECUTIVE SUMMARY

PRICE SUMMARYPrice $1,750,000

Price Per Unit $250,000

Per Square Foot $366

Projected Cap Rate 4.78%

TOURS AND INQUIRIES Lee Fehrenbacher • [email protected]

Greg Frick • [email protected]

2424 SE 11th Avenue, Portland, Oregon 97214www.hfore.com • (503) 241.5541 • Fax: (503) 241.5548

Please do not disturb tenants.

The Edison is a new, high-end apartment building located in the picturesque Cathedral Park neighborhood of St. Johns. Constructed in 2015, the building features modern and efficient designs. Every unit features high-efficiency appliances, including:

• Washers and dryers• Forced air heating & air conditioning • Luxury vinyl and tile flooring• Solid-surface countertops• Bike storage and a central vaccum system• LED lighting

Additional insulation in the state-of-the-art modular construction keeps units comfortable in summer and winter and minimizes sound between walls. Units also feature sensors that monitor CO2 and humidity to ensure the inside environment is cozy and performing efficiently.

The Edison features private decks and balconies with views of the Willamette River and the St. Johns Bridge, and is just a short walk away from the numerous restaurants, breweries, parks, and retail amenities that dot the downtown main street of St. Johns.

ASSET SUMMARY

Property The Edison

Location 8905 N Edison Street

City, State Portland, OR 97203

County Multnomah

Year Built 2015

Total Units 7

Approx NR Sq Ft 4,775

Avg Unit Size 682

Acreage 0.14

UNIT MIX SUMMARY - THE EDISONUnit Type Unit Count Avg Square Feet Total Square Feet % of Total Units0 Bedroom / 1 Bathroom 1 625 625 14.3%

1 Bedroom / 1 Bathroom 2 625 1,250 28.6%

1 Bedroom / 1 Bathroom 2 675 1,350 28.6%

2 Bedroom / 1 Bathroom 1 750 750 14.3%

2 Bedroom / 1 Bathroom 1 800 800 14.3%

Total / Averages 7 682 4,775 100%

3THE EDISON • PORTLAND, OREGON

PORTLAND REGIONOregon’s largest city, Portland, is near the confluence of the Willamette and Columbia Rivers. The Portland Metro Area consists of four counties: Multnomah, Washington, Clackamas, and Clark County, Washington.

APARTMENT MARKETThe Portland Metro Area consistently ranks among the nation’s lowest for apartment vacancy rates according to the U.S. Census Bureau and other third-party services like REIS, MPF Research, and Axiometrics. The U.S. Census Bureau pegged Portland’s Q3 2018 vacancy rate at 4.5% and the U.S. average at 7.1%.

The Multifamily NW Apartment Report survey proved average Spring 2018-19 year-over-year rent growth at 7.7%.

SKILLED WORKFORCE & STRONG EMPLOYMENTIn a 2018 WalletHub report comparing 150 of the largest U.S. metros, Portland is listed as the 15th most educated city in America. More than half of Multnomah County workers have a college degree, well ahead of the national average of 38.5%.

According to the State of Oregon’s Employment Department, Portland enjoys one of the fastest job growth rates in the Pacific Northwest, and the entire nation. Data indicates the area added 31,000 jobs in 2016, 28,000 jobs in 2017, and 29,000 in 2018.

DIVERSIFIED ECONOMYPortland is home to the headquarters of Fortune 500 companies Nike and Lithia Motors. Fortune 1000 companies headquartered here include Columbia Sportswear, Greenbrier Cos. and Portland General Electric. Fortune 500 companies based outside Oregon with major operations here are Precision Castparts and Intel.

Tech and software companies continue to relocate their operations here or open major outposts in Portland. These companies enjoy Portland’s educated workforce, affordable high quality of life, and a low cost of doing business compared to the Bay Area.

Companies which have opened major branches in Portland include Airbnb, Google, Squarespace, Mozilla, Simple, Survey Monkey, SalesForce and New Relic, Inc. Portland’s tech startup companies include Viewpoint, Jama Software, Thetus, Urban Airship, Acquia, Elemental Technologies, Act-On, Puppet Labs, and The Clymb.


PORTLAND RANKINGS

Restaurant City of the Year– Bon Appetit –

Best City for an Active Lifestyle– Wallethub –

Most Entrepreneurial State – Amazon.com –

Greenest City in America– Newsweek –

Best Foodie City in America– Wallethub & Travelpulse –

No.6 rank by Jetsetter

Healthiest Cities to Live– Thrillist.com –

No.3

No.7

No.5

No.9

No.15No.10

No.1

No.7

No.1

No.4

No.4

No.8

No.5

No.8

No.9 No.10Top City for Entrepreneurs &

Start-Ups– Business.org –

No.23 rank by CNBC

Healthiest City in the U.S.– Active.com –

Best Cheap Destinations in the U.S.– U.S. News and World Report –

Fittest Cities in America– American College of

Sports Medicine –

Best Foodie Cities in the USA– U.S. News and World Report –

Most Educated City in America

– Wallethub –

Best City for Biking– Fast Company –

Best Place to Live in the U.S.– U.S. News and World Report –

Best Bike City in America– Bicycling Magazine –

Fittest Cities in America– CBS News –

Portland consistently receives glowing reviews and rankings from the media.

2019 lists include:

2018 lists include:


N Willamette Blvd

N Polk

Ave

N Cha

rlesto

n Ave

N Ivanhoe St

N Willamette Blvd

N Terminal Rd

N Lombard St

N Lombard St

N Columbia Blvd

N Edison St

N Alta Ave

N Trumbull Ave

N Central St

N Smith St

N Fessenden St

N Crawford St

N Philadelphia Ave

St. Johns Bridge

N Lombard St

N Buc

hana

n Ave

N Reno Ave

WILLAMETTE RIVER

Cathedral Park

St Johns City Park

Pier Park

The Edison

30

LOCATION

N Ida

Ave


DOWNTOWN ST. JOHNS

With a unique collection of boutique businesses, a vibrant farmers market, and a nationally recognized main street program, St. Johns is a walkable, urban neighborhood with a small-town vibe. It boasts two movie theaters, an array of coffee shops and restaurants, three supermarkets, a community center, a racquetball center and funky Portland shops such as Vinyl Resting Place. Minutes from downtown Portland, it’s also a center for growth in the city of Portland.


ST. JOHNS (WEST)

1. 7-Eleven2. Subway3. Lombard Street Tattoo4. Baxter Auto Parts5. Rock N Roo Bottle Taproom6. St Johns Liquor Store7. Two Stroke Coffee Co8. Kazumi Sushi

9. Companion Pet Clinic10. ShantiOm Yoga11. Wishing Well12. The Sudra13. St Johns Racquet Center14. 87th and Meatballs15. Marie’s16. Moonshine Hair Studio

17. Blue Bird Tavern18. Crouchley Plumbing19. The Olive & Vine20. It’s a Dog’s Life Playcare/Boarding21. Anna Bananas St Johns22. St Johns Twin Cinemas23. Therapy Stores, Inc24. RoM Shoes

25. Comic Cave PDX26. Proper Eats27. Slim’s Restaurant & Lounge28. Tienda Santa Cruz29. Thai Cottage30. Starbucks31. Farmers Insurance32. Burgerville

8

2

4

St Johns City Park

N Saint Louis Ave

Restaurants and Dining Shopping/Entertainment Lifestyle Services

9

33. Optimystical Studios - PDX34. Hoplandia35. St Johns Farmer’s Market36. Zimmer’s Grooming & Pet Store37. The Man’s Shop38. Patties Home Plate Cafe39. US Bank40. Portland City Police

7

3

5

1

6

10

1112

13

24

27

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181914

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16

17

22

25

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29

3234

3335

39

31

30

3837

3628

40

N New York Ave

N Chicago Ave

N Baltimore Ave

N Alta Ave

N Ivanhoe St

N Lombard St

N Ivanhoe StN Syracuse St

N Willamette Blvd

N Edison St

N Central St

N Leonard St

N Cha

rlesto

n Ave

N Lea

vitt A

ve

The Edison


ST. JOHNS (EAST)

44

4241 43

Restaurants and Dining Shopping/Entertainment Lifestyle Services

56

41. Block Bikes PDX42. St Johns Coffee Roasters43. Bestow PDX44. Vinnie’s Pizza45. Girasole Restaurant and Bar46. Blue Moon Camera & Machine47. Plew’s Brews48. Circa Vintage PDX49. Salty Teacup

50. Sabatino Vintage Moped/Scooter51. SOMA Kombucha Speakeasy52. Johns Street Cafe53. Tre Bone Pet Supply54. Tulip Pastry Shop55. Signal Station Pizza 56. Portland Miracle Revival Church57. US Post Office

58. Wells Fargo Bank59. Starbucks60. Safeway61. The Fixin’ To62. McMenamins Theater & Pub63. Verizon Wireless64. Zen Nails65. Hustad Funeral Home

66. Bank of America67. Nature’s Pet Market68. 7-Eleven69. Jung Food70. Mama San Soul Shack71. Leisure Public House72. St Johns Deli73. Gabagool

51

45 4746

49

4850

5255

54

60

53

57

5864

6559

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63

62

66

6768 69

70

71

72

73 7475

76

7778

79

80

81

74. Cotter Pin Gear75. St Johns Ace Hardware76. Oregonians Credit Union77. Madison Automotive78. Dollar Tree79. Grocery Outlet Bargain Market80. City Farm81. West Coast Fitness

N Jersey St

N Ivanhoe St

N Lombard St

N Central St

N Princeton St

N Tyle

r Ave

N Polk

Ave

N Rich

mond A

ve

N Willamette Blvd

N Kellogg St

N Jersey St

N Rich

mond

Ave

N Cha

rlesto

n Ave

N Joh

n Ave

N Osw

ego A

ve

N Lea

vitt A

ve


THE EDISON

Income Current Scheduled Rents Projected Operations Note

Scheduled Gross Rent $116,526 $16,647 $125,400 $17,914 1Less: Vacancy/Credit Loss -$3,496 -$499 -3.0% -$3,762 -$537 -3.0% 2

Net Rental Income $113,030 $16,147 $121,638 $17,377 Other Income $1,610 $230 $5,342 $763 3

Includes: Utility Billing (RUBs) $0 $0 $3,732 $533 Includes: Miscellaneous $1,610 $230 $1,610 $230

Gross Operating Income $114,640 $16,377 $126,980 $18,140

Expenses Projected Operations

Per Unit % GOI Projected Operations

Per Unit % GOI

Real Estate Taxes $16,864 $2,409 14.7% $16,864 $2,409 13.3% 4Insurance $1,400 $200 1.2% $1,400 $200 1.1%Total Utilities $10,681 $1,526 9.3% $10,681 $1,526 8.4% Fire System Monitoring $972 $139 0.8% $972 $139 0.8% Fee Management $6,878 $983 6.0% $7,619 $1,088 6.0% 5Landscaping $1,200 $171 1.0% $1,200 $171 0.9%Maintenance/Repairs $1,750 $250 1.5% $1,750 $250 1.4%Turnover $1,050 $150 0.9% $1,050 $150 0.8%Reserves $1,750 $250 1.5% $1,750 $250 1.4% 6

Total Expenses -$42,546 -$6,078 -37.1% -$43,286 -$6,184 -34% Net Operating Income (NOI) $72,094 $10,299 62.9% $83,694 $11,956 66%


OPERATIONS ANALYSIS1. RENTS Rents are based on a October 2019 rent roll and average $1,387 per unit or $2.03 per sq ft. Projected rents

are based on a market-rate increase.

2. VACANCY The projected operations include a market-rate vacancy of 3.0%.

3. OTHER INCOME Other Income includes miscellaneous charges. The property is not charging for RUBs currently. Projections show the property recapturing 75% of the property’s total utility expense.

4. PROPERTY TAXES Oregon’s property taxes are evaluated on a fiscal year starting July 1. In Oregon, property taxes are not reassessed on sale and are limited to a 3.0% annual increase at the state level. Property taxes paid prior to November 15 each year receive a 3.0% discount. The Edison’s gross taxes total $17,386. For underwriting purposes, projected operations include the property taxes for the 2019-2020 tax year with the 3.0% discount totaling $16,864.

5. FEE MANAGEMENT The management fee has been projected at 6.0% of GOI, which represents standard independent, third-party management costs for properties in the metro area similar to The Edison.

6. RESERVES Lenders require reserves be set aside to address future capital costs associated with any property as it ages. The projected operations include reserves of $250 per unit or $1,750 annually.

Type Units Count Avg Sq FtAverage Scheduled

RentsScheduled Rents

per Sqft Projected Rents Projected Rents per Sq Ft

0 Bedroom / 1 Bathroom 1 625 $1,200 $1.92 $1,250 $2.00





Total / Average 7 682 $1,387 $2.03 $1,493 $2.19


OFFER TERMS

QUESTIONS & TOUR REQUESTS:

All tours and inquiries regarding The Edison are to be directed to HFO Investment Real Estate at (503) 241.5541. Please do not disturb tenants.

Lee Fehrenbacher • [email protected]

Greg Frick • [email protected]

Tyler Johnson • [email protected]

Rob Marton • [email protected]

Jack Stephens • [email protected]

Todd Tully • [email protected]

Adam Smith • [email protected]

Rand Hoffman • [email protected]

HFO Investment Real Estate 2424 SE 11th AvenuePortland, Oregon 97214

www.hfore.com(503) 241.5541Fax: (503) 241.5548Brokers licensed in the States of Oregon and Washington.

ASSET SUMMARYLocation 8905 N Edison Street

City, State Portland, OR 97203

Total Bedrooms 7

PRICE SUMMARYPrice $1,750,000

Price Per Unit $250,000

Per Square Foot $366

Projected Cap Rate 4.78%


HFO Investment Real Estate

2424 SE 11th Avenue • Portland, OR 97214www.hfore.com • 503.241.5541

Passion • Collaboration • Specialization

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Parties who receive this information from unauthorized parties shall not be recognized. ©2020 HFO Investment Real Estate LLC. Build your legacy is a service mark of HFO Investment Real Estate. Licensed in the states of Oregon and Washington.

the edison - loopnet...tech and software companies continue to relocate their operations here or...

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