Buying, selling and operating apartments in Portland

Individual Portland Apartment Sales >$450K – Aug 2012 | 15 October 2012

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Above is a table of individual Portland-area sales of apartment complexes greater than $450,000 in August  2012. We’ve included $/unit, $/sqft , unit count, year built and CapRate (as reported) and a comparison to August 2011 averages.  August 2011 had 2 sales that totaled almost $70M which skews the averages.

Aug 2012 had one large (202 units) sale.  In comparison to Aug 2011 there were 2 large (>100 unit) sales (one senior housing project at a high cap rate and one market-rate complex).

However, we look to be about 75% of what was sold in 2011 in terms of projected total sales dollars by year end.  Other indicators:

CapRate = 6.86% (vs. 6.84% in FY2011)

$/unit = $91,776 (vs. $83,898 in FY2011)

$/unit = $91,776 (vs. $83,898 in FY2011)

$/sqft = $106.53 (vs. $96.06 in FY2011).

While CapRates remain constant, price inflation can be attributed to a very healthy rental market with low vacancies which means more income.

While there are lots (approx. 8,000) of units planned, due to 2012 soft costs, it’ll be hard for them to compete with existing rental stock (i.e. a new 2 bed may have to rent for $2000/month to pay the mortgage).

If you’d like more information on:

– A comparative analysis of your property vs. your neighborhood with specific comp properties for sale and listed and a rent survey, or

– 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 Using FInancial Analysis

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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