Buying, selling and operating apartments in Portland

Oct 2015 Apt Sales Portland-Metro

3 December 2015
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For detail on individual sales, please download the PDF at:

<<<Oct15vsOct14Sales>>>

(Right-click link and Save As)

Oct 2015 had $210M in sales in the 4 (OR – Washington, Clackamas and Multnomah and WA – Clark) counties.  This is a 8.4% decrease from Oct 2014 ($230M).

It is official, in terms of total sales dollars, 2015 is highest year ever.  Oct 15 YTD at $2B has easily surpassed 2014 FY sales of $1.6B

Oct 2015 had $210M in total sales.  Highlights:

  • CapRates reported are still in the mid 5% compared to 2014 in the low 6% range. 

  • $/sqft and $/unit. $/unit Oct 15 YTD is a 13% increase over Oct 14 YTD. $/SqFt Oct 15 YTD  is a 17% increase over Oct 14 YTD.

  • Projected FY 2015 sales = $2.35B vs. 2014 sales of $1.6B (previous best ever year)

Interest rate environment – Probabilities favor an increase by the Fed by EOY.  Then again, stop me if you’ve heard this one before.

Portland backlash – City of Portland enacted a 90-day notice rule for rent increases >5%.

YOUR PROPERTY – If you’d like a further breakdown on how in-demand your neighborhood is call.  Be aware of the current value of your apartment with unsolicited offers.  We offer valuations that include expense analysis with rent and sales comparables to back up any pricing.

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
Sperry Van Ness | Bluestone & Hockley
9320 SW Barbur Blvd, Suite 300
Portland, OR 97219
Phone: 503.970-4593 | Fax: 503.222.6459
steve.morris@svn.com | www.svnbluestone.com
OR License # 200202054 | WA License # 24512

All Sperry Van Ness®Offices Independently Owned and Operated

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

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Portland Apartment Sales for August 2015 >$450K

1 October 2015
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For detail on individual sales, please download the PDF at:

<<<Portland Apartments Aug15 vs Aug14 Sales>>>

(Right-click link and Save As)

August 2015 had $168M in sales in the 4 (OR – Washington, Clackamas and Multnomah and WA – Clark) counties.  This is a 55% decrease from August 2014.

Comments on some key indicators:

  • Aug 2015 is the first month in 2015 with lower total monthly sales than the same month in 2014.
  • CapRates reported are still in the high 5% range overall similar to 2014.  However, CapRates suffer from reporting bias and are not as objective as other measures.
  • $/sqft and $/unit are a more objective measure.  Aug 15 YTD $/unit show a 9.3% increase over Aug 14 YTD.  Aug 15 YTD $/SqFt show a 13.7% increase over Aug 14 YTD.
  • Projected FY 2015 sales = $2.15B vs. 2014 sales of $1.6B (previous best ever year)

Interest rate environment – The threatened Sept rate increase failed to materialize due to perceived weakness globally.  However, probabilities favor an increase by the Fed by EOY.  Then again, stop me if you’ve heard this one before.

YOUR PROPERTY – If you’d like a further breakdown on how in-demand your neighborhood is call.  Be aware of the current value of your apartment with unsolicited offers.  We offer valuations that include expense analysis with rent and sales comparables to back up any pricing.

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
Sperry Van Ness | Bluestone & Hockley
9320 SW Barbur Blvd, Suite 300
Portland, OR 97219
Phone: 503.970-4593 | Fax: 503.222.6459
steve.morris@svn.com | www.svnbluestone.com
OR License # 200202054 | WA License # 24512

All Sperry Van Ness®Offices Independently Owned and Operated

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


Portland Apartment Sales >$450K in May 2015

26 June 2015
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<<<May15vsMay14_PortlandAptSales>>>

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

Attached is a list of individual Portland-area sales of apartment complexes greater than $450,000 in May 2015.

Included are $/unit, $/sqft , unit count, year built and Cap Rate (as reported) and a comparison to May 2014 averages.

May 15 had a huge increase in sales over May 14.  May 15 had 20 sales for a $60M total vs 12 sales in May 14 for a $15.6M total.  YTD shows about a 86% increase over 2014 YTD sales in terms of dollar volume.

May 15 had ONE large (>100 units) sales and May 14 had ZERO large sales.

Total apt sales in 2014 were $1.5B.  2015 is forecast, as of today, at about $1.55B.  2014 had the majority of sales from June thru EOY.

Be aware of the current value of your apartment with unsolicited offers.  We offer valuations that include expense analysis with rent and sales comparables to back up any pricing.

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
steve.morris@svn.com  / (503) 970-4593

OR Principal Broker License 2002002054 / WA Managing Broker License 24512


Portland Apartment Market (4 county area) Sales History 2007-2012

21 February 2014
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<<<Portland Apartment Market History_1March14>>>

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

Attached is a history of Portland apartment sales sorted by neighborhood from 2008 – 2013 of transactions > $450K.

The report covers the Portland Metro area – Clark (WA), Clackamas (OR), Multnomah (OR) and Washington (OR) counties

Contents Include

2008 – 2013 Portland Apartment Market History w/ Comments

2013 Portland Operating Dynamics Trends

2008 – 2013 Sales by County

2008 – 2013 Sales by Neighborhood

2008 – 2013 Sales by Complex Size

2008 – 2013 Sales by Decade Built

2008-2013 Summary by County and Totals


Individual Portland Apartment Sales >$450K – August 2013 + 1H2013 Summary

26 September 2013
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<<<Aug13vsAug12_PortlandAptSales>>>

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

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

2013 First Half Summary and Projections:

1H2013SUmmary

2013 should be about the same volume as 2012 with the exception of fewer large complex sales.

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.

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:

http://gov.oregonlive.com/bill/2013/HB2639/

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
steve.morris@svn.com  / (503) 970-4593


Individual Portland Apartment Sales >$450K – July 2013

29 August 2013
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<<<Portland Apartment Sales_July2013>>>

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

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

COMMENTS – The number of transactions tailed off comparing July 2012 vs. July 2013.  There is a paucity of reported Cap Rates, the few reported are in lower demand areas.  There were no large (>100 unit) sales in  July  2013.  However, July 2012 had several close-in sales which skewed the $/unit number.

We’ll send out a 1H2013 summary and annual project within two weeks, but 2013 looks lower volume than 2012.  If you’d like an earlier copy under separate cover, eMail me.

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:

https://portlandapartmentsales.com/2013/02/27/portland-apartment-market-sales-by-neighborhood-2007-2012/

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:

http://gov.oregonlive.com/bill/2013/HB2639/

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
steve.morris@svn.com  / (503) 970-4593


Portland Apartment Market Summary – July 2013

9 August 2013
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<<<PortlandAptMarketReview_WesternBusinessREJournal_Jul13>>>

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

Western Real Estate Business was kind enough to publish an article we submitted on the Portland apartment market which you can download at the above link.

Included as topics:

1) New Construction

2) Buyer Focus

3) Tenant Growth

4) Developer Focus

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:

https://portlandapartmentsales.com/2013/02/27/portland-apartment-market-sales-by-neighborhood-2007-2012/

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:

http://gov.oregonlive.com/bill/2013/HB2639/

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
steve.morris@svn.com  / (503) 970-4593


Individual Portland Apartment Sales >$450K – June 2013

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

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

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:

https://portlandapartmentsales.com/2013/02/27/portland-apartment-market-sales-by-neighborhood-2007-2012/

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:

http://gov.oregonlive.com/bill/2013/HB2639/

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
steve.morris@svn.com  / (503) 970-4593


Individual Portland Apartment Sales >$450K – May 2013

28 June 2013
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<<<May13vsMay12Sales>>>

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

Attached is a list of individual Portland-area sales of apartment complexes greater than $450,000 in May 2013.  We’ve included $/unit, $/sqft , unit count, year built and CapRate (as reported) and a comparison to April 2012 averages.  May 13 had 1 large sale of 300 units which skews the weighed averages.

COMMENTS – Transaction volume has dropped even though there are willing buyers for properties in avg-good shape located in better neighborhoods.  These neighborhoods include downtown and close-in East and West Portland.  In addition, Hillsboro/Beaverton continue to be the nexus of job growth for the Portland area with Washington county (Beaverton/Hillsboro) expected to exceed the population of Multnomah county (Portland proper) within 20 years.

Sellers are still enjoying net income growth from rent increases due to demand.  However, we feel this will level out by year end and the fight to grow net income will re-focus onto expense management.

Side note for apartment owners – The Oregon legislature is considering 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:

http://gov.oregonlive.com/bill/2013/HB2639/

If you feel strongly either way, please be sure to make your elected representative aware of your feelings.

We’ve issued our 2007-2012 history broken down by county.  If you’d like a copy, eMail me and I can send under separate cover when done.

If you’d like more information on:

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

– 5 year history on the Portland apartment market, 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
steve.morris@svn.com  / (503) 970-4593


Individual Portland Apartment Sales >$450K – April 2013

6 June 2013
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<<<Apr13vsApr12Sales>>>

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

Attached is a list of individual Portland-area sales of apartment complexes greater than $450,000 in April 2013.  We’ve included $/unit, $/sqft , unit count, year built and CapRate (as reported) and a comparison to April 2012 averages.  April 12 had 1 large sale of 460 units which skews the weighed averages.

Side note for apartment owners – The Oregon legislature is considering 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:

http://gov.oregonlive.com/bill/2013/HB2639/

If you feel strongly either way, please be sure to make your elected representative aware of your feelings.

We’ve issued our 2007-2012 history broken down by county.  If you’d like a copy, eMail me and I can send under separate cover when done.

If you’d like more information on:

– 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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