Buying, selling and operating apartments in Portland

Individual Portland Apartment Sales >$450K – June 2013 | 19 July 2013

<<<Portland Apartment Market – June 2013 Sales>>>


Attached is a list of individual Portland-area sales of apartment complexes greater than $450,000 in June 2013.  We’ve included $/unit, $/sqft , unit count, year built and Cap Rate (as reported) and a comparison to June 2012 averages.

COMMENTS – While there is a paucity of reported Cap Rates, the market looks flat with no appreciable change.  There were no large (>100 unit) sales in either June 2012 or 2013.  However, June 2012 had several close-in sales which skewed the $/unit number.

Future directions will be determined by two things:

1) Interest rates – Are gradually increasing which means Cap Rates usually track.

2) Rents – For the next year, we will be hitting a ceiling in rent increases, however demand should stay steady.  This means owners need to focus on two things:

a. Getting/keeping good tenants – Even if this means waiting longer on vacancies.  If you’ve spent money making your apartments better do advertise this.

b. Managing expenses – The rise in utility rates is inexorable for now, especially water since most water is from the City of Portland which does not need regulatory approval for rate increases.  While bill-backs are popular, sub-metering is an option you may want to consider since it encourages tenants to use less water as opposed to a flat fee.

CapRate will vary by location/condition of property.  If you’d like a more detailed 5-year summary of 2007-2012 apartment sales sorted by neighborhood, size and age, contact me and I can eMail it or you can find it at:

Side note for apartment owners – The Oregon legislature has passed a bill which will not allow a landlord to base tenant acceptance on whether they use an individual Section 8 voucher for rent payment.  Details are at:

This will become effective 1 Jul 2014.

If you’d like more information on:

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

– a 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  / (503) 970-4593

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