Buying, selling and operating apartments in Portland

Portland Apartment Sales – October 2011 | 28 November 2011

 

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Attached is a table of Portland-area sales of apartment complexes greater than $450,000 in October 2011. We’ve included $/unit, $/sqft , unit count, year built and CapRate (as reported) and a comparison to Oct 10 averages.

Overall apartment sales have shown a marked increase. Demand by large investors for high-end properties (greater than 100 units in A/B+ locations and build) have driven a lot of the sales and average $/unit pricing.   It finally looks like smaller complexes are also starting to generate more interest.

I’d like to address one sale, the Beverley, in NE Portland.  This was a recent construction condo / mixed use project.  HOWEVER, in addition to rental units, the building does have one large tenant at street level (Whole Foods) and off-street, above-ground parking in the building.  The $/unit does not reflect an accurate picture and does skew the average pricing markedly. 

As a teaser, in November an urban property (all residential rentals) did close at a record high pricing ($350K/unit). Details next month (or you can contact me individually for details.)

Smaller investors are still hesitant, but are coming back into the market. The factors driving growth in sales include:

– Low vacancy rates (<4% in Portland proper)

– Low interest rates (7-/10-year money available at <5%).  Right now, the spread between CapRates and prevailing interest rates is at high point which bodes well for buyers.

If you’d like more information on:

– Analyzing your property to maximize your income to see how you can make more money or get a higher sales price, or

– Details/background on individual sales in the report, or

— Free copy of our 80-page book – Buying, Selling and Operating Apartments

Please contact me:

Steve Morris – Senior Advisor Multi-Units
Sperry Van Ness – Bluestone & Hockley
steve.morris@svn.com (503) 970-4593

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