Buying, selling and operating apartments in Portland

Portland Apartment Market Sales 2006-2010 | 26 January 2011

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Attached is a chart of Portland-area (Multnomah, Washington,Clackamas,Marion and Clark (WA) counties) sales of apartment complexes > $450,000 from 2006 thru 2010.  We’ve included $/unit, $/sqft and CapRate (where reported) and a few comments.

The biggest issue has been the marked decline in Count of Complexes Sold and Total Sales Volume. For reference, the 2010 total dollar volume ($364M) is a little more than 1/3 of what it was 2006 ($1025M).  In addition, there were 104 complexes sold in 2010 vs. 265 in 2006.

2010 shows encouraging signs.  Total sales volume is up >10% from 2009 to 2010.  The price per unit has remained relatively flat for ACTUAL transactions (not listings) and from 2009 to 2010, it increased.

The price per unit has been affected by the quality of sales.  In 2010, there have been more large (>100 unit) complex sales as a percentage of total sales.  Larger complexes usually command a higher price per unit because of square footage and amenities.

REMEMBER – Whether you are selling or keeping your apartments, maximizing Net Operating Income (NOI) is paramount.

Bluestone & Hockley has offered apartment brokerage, analysis, market valuations and property management – For more than 35 years!

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