Buying, selling and operating apartments in Portland

Portland Apartment Market Sales 2006-2011 | 16 February 2012

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RIGHT-CLICK ABOVE LINK (and save target) TO DOWNLOAD COMPLETE REPORT

Attached is a chart of Portland-area (Multnomah, Washington,Clackamas,Marion and Clark (WA) counties) cumulative sales of apartment complexes > $450,000 from 2006 thru 2011.  We’ve included $/unit, $/sqft and CapRate (where reported) total and by county and a few comments.

Portland as an apartment sales market – Demand for larger complexes, especially Class A urban seems to be hitting some limits with push-backs on offerings of larger complexes.  However, >100 unit sales have been driving transaction volume in 2010 and 2011 and the recovery of the market.

Demand for smaller complexes should continue to pick up as smaller investors let go of cash.  Based on price gains in commodities and stocks and bank rates paid, there seems to be plenty of money in the system.  The issue is enough confidence in investments to actually tie it up in long-term investments like multi-unit housing.  However, the appeal of apartments as an investment that they will always generate income, will keep them at the top of commercial RE investors view.

Another cloud on the horizon will be loan interest rates which may not increase immediately, but seem to have gotten as low as they can go.  An increase in interest rates will drive Cap Rates higher which will put pricing pressure on existing apartment stock.

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

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

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