Buying, selling and operating apartments in Portland

Portland Apartment Sales – Jan 19

1 March 2019
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To download the individual sales report, right-click the link below and “Save As”:

 

<<<Portland_Jan19vsJan18_AptSales>>>

 

Highlights:

  • Gross sales dollars Jan 19 YTD = $97M is a 41% DECREASE over Jan 18 YTD = $163M
  • $/unit Jan 19 YTD = $161K is a 7% DECREASE over Jan 18 YTD = $174K.
  • $/SqFt Jan 19 YTD = $199.75 is a 27% DECREASE over Jan 18 YTD = $271.89
  • CapRate Jan 19 YTD = 5.33% is a 0.2% INCREASE over Jan 18 YTD = 5.32%

Biggest item is the effect of the newest OR rent control law passed by the Legislature.  Interest rates and strength of the rental market in Portland (especially for new construction) are the biggest threats/motivators.

I should have a 2013-2018 Portland Apartment Market History by mid-Mar 19.  If you’d like more information on 2012-2017 Portland Apartment Market history.  Is posted at:

https://portlandapartmentsales.com/2018/03/22/portland-apt-market-2017-annual-report/

If you like numbers, you’ll find this recap of the market for the past 5 years of interest.  You can eMail me for a copy also.

– Free financial analysis of your property, eMail/call me for a SAMPLE report.  It will be helpful if you’re making decisions about futures or operations and includes I&E comparison to neighboring properties along with recent sales and rent comparables.

Steve Morris | Vice-President
IMG Northwest
1234 SW 18th, Suite 102
Portland, OR 97205
Phone: 503.970.4593 
steve@imgnorthwest.com | www.imgnorthwest.com
OR License # 200202054 | WA License # 24512

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Portland Apartment Sales – Dec 18

1 February 2019
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To download the individual sales report, right-click the link below and “Save As”:

<<<portland_dec18vsdec17_aptsales>>>

Highlights:

  • Gross sales dollars Dec 18 YTD = $2523M is a 44% INCREASE over Dec 17 YTD = $1750M
  • $/unit Dec 18 YTD = $187K is a 6% INCREASE over Dec 17 YTD = $177K.
  • $/SqFt Dec 18 YTD = $222.37 is a 10% INCREASE over Dec 17 YTD = $201.63
  • CapRate Dec 18 YTD = 5.37% is a 0.2% INCREASE over Dec 17 YTD = 5.36%

Including all sales, we are at a prelim number of $2.5B in annual sales rate (vs. $1.7B for 2017 and $2.95B for 2016).  Interest rates and strength of the rental market in Portland (especially for new construction) are the biggest threats/motivators.

I should have a 2013-2018 Portland Apartment Market History by mid-Feb 19.  If you’d like more information on 2012-2017 Portland Apartment Market history.  Is posted at:

https://portlandapartmentsales.com/2018/03/22/portland-apt-market-2017-annual-report/

If you like numbers, you’ll find this recap of the market for the past 5 years of interest.  You can eMail me for a copy also.

– Free financial analysis of your property, eMail/call me for a SAMPLE report.  It will be helpful if you’re making decisions about futures or operations and includes I&E comparison to neighboring properties along with recent sales and rent comparables.

Steve Morris | Vice-President
IMG Northwest
1234 SW 18th, Suite 102
Portland, OR 97205
Phone: 503.970.4593 
steve@imgnorthwest.com | www.imgnorthwest.com
OR License # 200202054 | WA License # 24512


Portland Apartment Sales – Nov 18

21 December 2018
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<<<Portland_Nov18vsNov17_AptSales>>>

Highlights:

  • Gross sales dollars Nov 18 YTD = $2163M is a 62% INCREASE over Nov 17 YTD = $1335M
  • $/unit Nov 18 YTD = $188K is a 10% INCREASE over Nov 17 YTD = $171K.
  • $/SqFt Nov 18 YTD = $219.22 is a 12% INCREASE over Nov 17 YTD = $195.91
  • CapRate Nov 18 YTD = 5.32% is a 1.3% DECREASE over Nov 17 YTD = 5.39%

Including all sales, we are at a run rate of $2.4B in annual sales rate (vs. $1.7B for 2017 and $2.95B for 2016).  Interest rates and strength of the rental market in Portland (especially for new construction) are the biggest threats/motivators.

If you’d like more information on 2012-2017 Portland Apartment Market history.  Is posted at:

https://portlandapartmentsales.com/2018/03/22/portland-apt-market-2017-annual-report/

If you like numbers, you’ll find this recap of the market for the past 5 years of interest.  You can eMail me for a copy also.

– Free financial analysis of your property, eMail/call me for a SAMPLE report.  It will be helpful if you’re making decisions about futures or operations and includes I&E comparison to neighboring properties along with recent sales and rent comparables.

Steve Morris | Vice-President
IMG Northwest
1234 SW 18th, Suite 102
Portland, OR 97205
Phone: 503.970.4593 
steve@imgnorthwest.com | www.imgnorthwest.com
OR License # 200202054 | WA License # 24512


Portland Apartment Sales – Oct 18

29 November 2018
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To download the individual sales report, right-click the link below and “Save As”:

<<<Portland_Oct18vsOct17_AptSales>>>

Highlights:

  • Gross sales dollars Oct 18 YTD = $1986M is a 170% INCREASE over Oct 17 YTD = $1232M
  • $/unit Oct 18 YTD = $188K is a 10% INCREASE over Oct 17 YTD = $171K.
  • $/SqFt Oct 18 YTD = $222.25 is a 13% INCREASE over Oct 17 YTD = $196.3

We had the strongest month on record ($450M) vs. Oct 17 due to several large sales.  

Including all sales, we are at a run rate of $2.4B in annual sales rate (vs. $1.7B for 2017 and $2.95B for 2016).  Interest rates and strength of the rental market in Portland (especially for new construction) are the biggest threats/motivators.

If you’d like more information on:

– 2012-2017 Portland Apt Market history.  Is posted at 

https://portlandapartmentsales.com/2018/03/22/portland-apt-market-2017-annual-report/

If you like numbers, you’ll find this recap of the market for the past 5 years of interest.  You can eMail me for a copy also.

– Free financial analysis of your property, eMail/call me for a SAMPLE report.  It will be helpful if you’re making decisions about futures or operations and includes I&E comparison to neighboring properties along with recent sales and rent comparables.

Steve Morris | Vice-President
IMG Northwest
1234 SW 18th, Suite 102
Portland, OR 97205
Phone: 503.970.4593 
steve@imgnorthwest.com | www.imgnorthwest.com
OR License # 200202054 | WA License # 24512

 


Portland Apartment Sales – Sept 18

26 October 2018
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To download the individual sales report, right-click the link below and “Save As”:

<<<Portland_Sept18vsSept17_AptSales>>>

Highlights:

  • Gross sales dollars Sept 18 YTD = $1527M is a 44% INCREASE over Sept 17 YTD = $1060M
  • $/unit Sept 18 YTD = $190K is a 11% INCREASE over Sept 17 YTD = $171K.
  • $/SqFt Sept 18 YTD = $222.34 is a 14% INCREASE over Sept 17 YTD = $195.55

We had a stronger month vs. Sept 17 due to several large sales.  Including all sales, we are at a run rate of $2.1B in annual sales rate (vs. $1.7B for 2017 and $2.95B for 2016).  Interest rates and strength of the rental market in Portland (especially for new construction) are the biggest threats.

If you’d like more information on:

– 2012-2017 Portland Apt Market history.  Is posted at 

https://portlandapartmentsales.com/2018/03/22/portland-apt-market-2017-annual-report/

If you like numbers, you’ll find this recap of the market for the past 5 years of interest.  You can eMail me for a copy also.

– Free financial analysis of your property, eMail/call me for a SAMPLE report.  It will be helpful if you’re making decisions about futures or operations and includes I&E comparison to neighboring properties along with recent sales and rent comparables.

– Details/background on individual sales in the report or a breakdown by neighborhood

– Free copy of our 80-page book – Buying, Selling and Operating Apartments Using Financial Analysis

Please contact me:

Steve Morris | Vice-President
IMG Northwest
1234 SW 18th, Suite 102
Portland, OR 97205
Phone: 503.970.4593 
steve@imgnorthwest.com | www.imgnorthwest.com
OR License # 200202054 | WA License # 24512

For the Oregon Real Estate Agency Pamphlet click here.
For the Washington Real Estate Agency Pamphlet click here. 


Portland Apartment Sales – Aug 18

27 September 2018
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To download the individual sales report, right-click the link below and “Save As”:

<<<Portland_Aug18vsAug17_AptSales>>>

Highlights:

  • Gross sales dollars Aug 18 YTD = $1355M is a 43% INCREASE over Aug 17 YTD = $950M
  • $/unit Aug 18 YTD = $190K is a 11% INCREASE over Aug 17 YTD = $171K.
  • $/SqFt Aug 18 YTD = $2216.87 is a 10% INCREASE over Aug 17 YTD = $197.19

We had a stronger month vs. Aug 17 due to several large sales.  Including all sales, we are at a run rate of $2.0B in annual sales rate (vs. $1.7B for 2017 and $2.95B for 2016).  Interest rates and strength of the rental market in Portland (especially for new construction) are the biggest threats.

If you’d like more information on:

– 2012-2017 Portland Apt Market history.  Is posted at 

https://portlandapartmentsales.com/2018/03/22/portland-apt-market-2017-annual-report/

If you like numbers, you’ll find this recap of the market for the past 5 years of interest.  You can eMail me for a copy also.

– Free financial analysis of your property, eMail/call me for a SAMPLE report.  It will be helpful if you’re making decisions about futures or operations and includes I&E comparison to neighboring properties along with recent sales and rent comparables.

– Details/background on individual sales in the report or a breakdown by neighborhood

– Free copy of our 80-page book – Buying, Selling and Operating Apartments Using Financial Analysis

Please contact me:

Steve Morris | Vice-President
IMG Northwest
1234 SW 18th, Suite 102
Portland, OR 97205
Phone: 503.970.4593 
steve@imgnorthwest.com | www.imgnorthwest.com
OR License # 200202054 | WA License # 24512

For the Oregon Real Estate Agency Pamphlet click here.
For the Washington Real Estate Agency Pamphlet click here. 


Portland Apartment Sales – July 2018

31 August 2018
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To download the individual sales report, right-click the link below and “Save As”:

<<<Portland_July18vsJuly17_AptSales>>>

Highlights:

  • Gross sales dollars July 18 YTD = $1092M is a 44% INCREASE over July 17 YTD = $759M
  • $/unit July 18 YTD = $189K is a 13% INCREASE over July 17 YTD = $167K.
  • $/SqFt July 18 YTD = $222.62 is a 15% INCREASE over July 17 YTD = $194.15

BESIDES TWO LARGE SALES – We had a weak month vs. July 17.  Without these, we’d be at $61M gross sales for July 18.  Including all sales, we are at a run rate of $1.8B in annual sales rate (vs. $1.7B for 2017 and $2.95B for 2016).  Interest rates and strength of the rental market in Portland (especially for new construction) are the biggest threats.

The $206M sale will probably be about 11-12% of total year gross sales for 2018.

If you’d like more information on:

– 2012-2017 Portland Apt Market history.  Is posted at 

https://portlandapartmentsales.com/2018/03/22/portland-apt-market-2017-annual-report/

If you like numbers, you’ll find this recap of the market for the past 5 years of interest.  You can eMail me for a copy also.

– Free financial analysis of your property, eMail/call me for a SAMPLE report.  It will be helpful if you’re making decisions about futures or operations and includes I&E comparison to neighboring properties along with recent sales and rent comparables.

– Details/background on individual sales in the report or a breakdown by neighborhood

– Free copy of our 80-page book – Buying, Selling and Operating Apartments Using Financial Analysis

Please contact me:

Steve Morris | Vice-President
IMG Northwest
1234 SW 18th, Suite 102
Portland, OR 97205
Phone: 503.970.4593 
steve@imgnorthwest.com | www.imgnorthwest.com
OR License # 200202054 | WA License # 24512

For the Oregon Real Estate Agency Pamphlet click here.
For the Washington Real Estate Agency Pamphlet click here. 


Portland Apartment Sales – June 18

26 July 2018
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To download the individual sales report, right-click the link below and “Save As”:

<<<Portland_June18vsJune17_AptSales>>>

Highlights:

  • Gross sales dollars June 18 YTD = $793M is a 30% INCREASE over June 17 YTD = $612M
  • $/unit June 18 YTD = $186K is a 13% INCREASE over June 17 YTD = $164K.
  • $/SqFt June 18 YTD = $226.71 is a 23% INCREASE over June 17 YTD = $185.10

We had a weak month vs. June 17.  At $83M gross sales we are at $1.5B in annual sales rate (vs. $1.7B for 2017 and $2.95B for 2016).  Interest rates and strength of the rental market in Portland (especially for new construction) are the biggest threats.

If you’d like more information on:

– 2012-2017 Portland Apt Market history.  Is posted at 

https://portlandapartmentsales.com/2018/03/22/portland-apt-market-2017-annual-report/

If you like numbers, you’ll find this recap of the market for the past 5 years of interest.  You can eMail me for a copy also.

– Free financial analysis of your property, eMail/call me for a SAMPLE report.  It will be helpful if you’re making decisions about futures or operations and includes I&E comparison to neighboring properties along with recent sales and rent comparables.

– Details/background on individual sales in the report or a breakdown by neighborhood

– Free copy of our 80-page book – Buying, Selling and Operating Apartments Using Financial Analysis

Please contact me:

Steve Morris | Vice-President
IMG Northwest
1234 SW 18th, Suite 102
Portland, OR 97205
Phone: 503.970.4593 
steve@imgnorthwest.com | www.imgnorthwest.com
OR License # 200202054 | WA License # 24512

For the Oregon Real Estate Agency Pamphlet click here.
For the Washington Real Estate Agency Pamphlet click here. 


Appraisals – Why, What and How?

26 July 2018
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When we have a well-informed buyer and seller agreed on a price why/when do we need an appraisal and what goes into one?

Why do appraisals exist:

  1. Usually at the request of a 3rd party like a lender who needs to assure (their shareholders) a property in their portfolio has “true” value.
  2. Part of the sales agreement.  Sometimes an appraisal is used to set the price or (like most sales contracts) there is a clause stating a sales price must “meet or beat” appraisal.
  3. Risk-averse buyers – Governmental or non-profits chartered with the stewardship of public funds or donations in a prudently need to ensure they are paying a “fair” price for an asset.

An appraisal is an estimate of value made by an objective disinterested (i.e. neither in favor of the buyer or seller) party and considers multiple market factors.

What does an appraiser look at to establish real-world value?  The object is to see if there is an “average” value of a similar property that has been recently purchased.  They do this by looking at:

  1. The operating numbers, condition and current use (i.e. can it be repurposed and bring higher value) of the property.  This is used to determine a rate of return since commercial property is bought for investment purposes.
  2. Comparable sales of similar properties to normalize/adjust pricing of the appraisal.

What makes a property “comparable” to the appraised property?

  1. Proximity to appraised property (location makes a big difference in value).
  2. Condition of the property (does it need a lot of CapEx just to make it average) will affect sales price.
  3. AgeThe average 70s vintage property sells for the min $/unit compared to other decades.  [cf. The 5-year Portland sales history (on this WEBsite)]
  4. SizeYou have different types of buyers dependent on property size.  Smaller buyers may place aesthetics over investment return.
  5. Unit mix – Comparing an apartment with all studios vs. one with all 3 bed units is not representative.

Whether for an appraisal, your investment return or max sales price, you need to keep your property in good shape (for buyer/tenant appeal), stay on top of maintenance and maximize your NOI.

Steve Morris | Vice-President
IMG Northwest
1234 SW 18th, Suite 102
Portland, OR 97205
Phone: 503.970.4593 
steve@imgnorthwest.com | www.imgnorthwest.com
OR License # 200202054 | WA License # 24512

For the Oregon Real Estate Agency Pamphlet click here.
For the Washington Real Estate Agency Pamphlet click here. 


Portland Apartment Sales – May 18

29 June 2018
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To download the individual sales report, right-click the link below and “Save As”:

<<<Portland_May18_AptSales>>>

Highlights:

  • Gross sales dollars May 18 YTD = $713M is a 33% INCREASE over May 17 YTD = $500M
  • $/unit May 18 YTD = $175K is a 5% INCREASE over May 17 YTD = $167K.
  • $/SqFt May 18 YTD = $221.22 is a 18% INCREASE over May 17 YTD = $187.95

We had a strong month vs. May 17.  At $138M gross sales we are at $1.6B in annual sales rate (vs. $1.7B for 2017 and $2.95B for 2016).  Interest rates and strength of the rental market in Portland (especially for new construction) are the biggest threats.

If you’d like more information on:

– 2012-2017 Portland Apt Market history.  Is posted at 

https://portlandapartmentsales.com/2018/03/22/portland-apt-market-2017-annual-report/

If you like numbers, you’ll find this recap of the market for the past 5 years of interest.  You can eMail me for a copy also.

– Free financial analysis of your property, eMail/call me for a SAMPLE report.  It will be helpful if you’re making decisions about futures or operations and includes I&E comparison to neighboring properties along with recent sales and rent comparables.

– Details/background on individual sales in the report or a breakdown by neighborhood

– Free copy of our 80-page book – Buying, Selling and Operating Apartments Using Financial Analysis

Please contact me:

Steve Morris | Vice-President
IMG Northwest
1234 SW 18th, Suite 102
Portland, OR 97205
Phone: 503.970.4593 
steve@imgnorthwest.com | www.imgnorthwest.com
OR License # 200202054 | WA License # 24512

For the Oregon Real Estate Agency Pamphlet click here.
For the Washington Real Estate Agency Pamphlet click here. 


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