Buying, selling and operating apartments in Portland

Portland Apartment Sales Detailed – January 2012 | 6 March 2012

<<<Jan12vsJan11 Portland-Area AptSales>>>

RIGHT-CLICK ABOVE LINK (and SAVE TARGET) TO DOWNLOAD THE DETAILED REPORT

Attached is a table of Portland-area sales of apartment complexes greater than $450,000 in January 2012. We’ve included $/unit, $/sqft , unit count, year built and CapRate (as reported) and a comparison to January 2011 averages.  The overall increase in apartment sales continues.

There were 2 large transactions >200 units.  We’ve set another record in the $/unit pricing of $395,000.  However, this property (Museum Place) has one floor of retail (Safeway) which would probably drop the $/unit price to something around $375K which is still impressive.  In addition, a large complex in the South Waterfron neighborhood sold.

Unfortunately, this ardor has not transferred to smaller (<80 units) buyers and is contributing to an ongoing bid-ask spread between buyers and sellers.

The ongoing love affair with larger urban properties continues.  Is this a “hot” market?  Well, if you own larger Class A apartments, the answer is yes and your only issue is selecting the best offer.

Sellers – If the market is not as hot as you’d like, in any case, you need to make sure your NOI is the best it can be if you want top dollar and demand.  We can help you:

– Find out where you stand today compared to your competition

– What to work on to increase income

Buyers – A ‘hot” market can be good or bad.  The main thing is you need to understand what you are buying and have a game plan to make it profitable for you.

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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