Buying, selling and operating apartments in Portland

Apartment Sales since 2006 thru 2010 1H | 6 August 2010

Shown are the Multi-Unit apartment sales in the Portland Metro and Salem area since 2006 (Downloadable information) 

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This is for actual sales transactions of complexes  > $450,000.  2010 transaction count is closings thru 1 July 2010.

An interpretation (2010 Year-To-Date numbers shown):

Average of $/Per Unit = $71,819

This number was skewed in 2010 by several large complexes transacting in Multnomah county.  However, the trend Is down since 2008 and remains at 2006 levels.

Average of $/Square Foot = $92.44

This is also trending down, however, it remains cheaper than construction costs for new apartments.

Average of  Capitalization Rate = 7.39%

After bottoming in 2008/2007, it has crept up to > 7%

Number of Transactions = 54 (thru 1 Jul 10)

The one bright point – 2009 full year transactions were 97.  At this rate, 2010 should have 108 transactions which is an increase.

While the market may not be turning around, it does look to have bottomed.  So far, there have been few commercial mortgage defaults in the local multi-unit market.  Meanwhile, the operating dynamics of apartments have firmed up over the past year.  Vacancy rates in the Portland area are 5% or less (with some exception such as Gresham, Beaverton and Milwaukie).  2011 should allow landlords to start raising rents.

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