Highlights / Contents of the report include (for the 4 county METRO are) for sold apartments:
General Market Comments
New Construction Update
Sales by County
Sales by Neighborhood
Sales by Unit Count of project
Sales by Decade Built
Tabulation of Largest Sales by $/unit, $/SqFt. Gross $, County and 2012-2017 Largest sales.
If you’d like more information on:
– Free financial analysis of your property, eMail/call me for a SAMPLE report. It will be very 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
Steve Morris | Principal Broker SMI Commercial Real Estate Phone: 503.970.4593 steve@smicre.com | www.smicre.com OR License # 200202054 | WA License # 24512
If you need any info about apartment sales in the Portland – METRO, we have sales data over the past 15 years +. Feel free to contact me – steve@smicre.com.
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 | Principal Broker SMI Commercial Real Estate Phone: 503.970.4593 steve@smicre.com | www.smicre.com OR License # 200202054 | WA License # 24512
Highlights / Contents of the report include (for the 4 county METRO are) for sold apartments:
General Market Comments
New Construction Update
Sales by County
Sales by Neighborhood
Sales by Unit Count of project
Sales by Decade Built
Tabulation of Largest Sales by $/unit, $/SqFt. Gross $, County and 2012-2017 Largest sales.
If you’d like more information on:
– Free financial analysis of your property, eMail/call me for a SAMPLE report. It will be very 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
Steve Morris | Principal Broker SMI Commercial Real Estate Phone: 503.970.4593 steve@smicre.com | www.smicre.com OR License # 200202054 | WA License # 24512
Whether you’re an owner or manager this article is very useful. Jeff goes over basics like:
Forms and the need to keep current
Delivery options and timelines
30-/90-day notices
Filling in forms correctly
For cause notices
Charges, late and partial payments
Preventing mistakes and giving yourself the best case
Deposits, charges and dealing with tenant requests
I assure you it’ll be the best (not being over-dramatic) 30 minutes of your time invested in your apartments.
The environment for landlords was difficult and new rules don’t make it easier. Being knowledgeable is a minimum requirement for successful landlords today.
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
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.
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:
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.
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.
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:
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.
Comparable sales of similar properties to normalize/adjust pricing of the appraisal.
What makes a property “comparable” to the appraised property?
Proximity to appraised property (location makes a big difference in value).
Condition of the property (does it need a lot of CapEx just to make it average) will affect sales price.
Age. The average 70s vintage property sells for the min $/unit compared to other decades. [cf. The 5-year Portland sales history (on this WEBsite)]
Size – You have different types of buyers dependent on property size. Smaller buyers may place aesthetics over investment return.
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.
Gross sales dollars Sept 17 YTD = $1032M is a 25% DECREASE over Sept 16 YTD = $1378M
$/unit Sept 17 YTD = $172K is a 25% INCREASE over Sept 16 YTD = $137K.
$/SqFt Sept 17 YTD = $197.70 is a 25% INCREASE over Sept 16 YTD = $158.15
Half of Sept 17 sales was one large transaction in Happy Valley that accounted for 52% of the total sales for the month. Overall YTD gross dollars are down mainly due to lack of large (>100 units) investors interest in Portland.
If you’d like more information on:
– Free financial analysis of your property, eMail me for a SAMPLE report. It will be very helpful if you’re making decisions about futures or operations.
– 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
– A very useful financial analysis of your property, call. It will include I&E comparison to neighboring properties along with recent sales and rent comparables.
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.
Gross sales dollars Aug 17 YTD = $919M is a 28% DECREASE over Aug 16 YTD = $1267M
$/unit Aug 17 YTD = $172K is a 26% INCREASE over Aug 16 YTD = $137K.
$/SqFt Aug 17 YTD = $198.21 is a 26% INCREASE over Aug 16 YTD = $157.37
What saved Aug 17 sales was one large transaction in Hillsboro that accounted for 62% of the total sales for the month. Inventory is starting to grow. However, properties priced at a premium to market are sitting. If you’d like a financial analysis / valuation using real numbers contact me.
If you’d like more information on:
– Free financial analysis of your property, eMail me for a SAMPLE report. It will be very helpful if you’re making decisions about futures or operations.
– 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
– A very useful financial analysis of your property, call. It will include I&E comparison to neighboring properties along with recent sales and rent comparables.
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.
Unsolicited offers sometimes work out for a seller. However, what can you ask yourself to rate if it is a GOOD and SOLID offer worth your time to proceed? Here are some questions to ask yourself, in order:
PRICING – A breath-taking price may be not that high if you haven’t done an analysis on your property lately. In 2013, the average sale was $88,934/unit in 2017 YTD = $161,131/unit or a 16% per year increase. While we don’t anticipate this continuing, do a valuation / financial analysis. Actively marketing the property will get you the best price 99% of the time – Unsolicited offers are seeking opportunities.
EARNEST MONEY – CASH OR NOTE? If you accept a note, a buyer may be able to tie your property up until closing with no cash out of their pocket. Worse, they may be able to tie up multiple properties (as in a 1031 search) this way. Without his cash at risk, the buyer loses a lot of motivation to negotiate with a seller.
EXPOSURE/RESUME – Has the buyer seen your property? Does he own property in town? Does he have a financing reference?
WHEREWITHAL – Is the buyer willing to show proof of funds for a down payment? If he is expecting to get a property for less than 25% down (or a LTV > 75%) that is probably unrealistic.
NEGOTIATION – Assume the first number is not the best offer from a buyer on an unsolicited offer. It may be a good test to see how they react to a counter.
We can do a very thorough financial analysis on your property which will point out how to increase your Net Operating Income. We compare your rents and expenses to neighboring properties to address your priorities. In addition, we provide a valuation with comparable sales to correlate value. eMail me if you’d like a sample report to examine.
CapRates reported are still in the mid 5% compared to 2015 in the high 5% range.
$/unit Dec 16 YTD is a 15.6% increase over Dec 15 YTD.
$/SqFt Dec 16 YTD is a 10.6% increase over Dec 15 YTD.
Dec 2016 YTD sales = $2922M vs. Dec 2015 YTD sales of $2360M
We are 24% over 2015 Full Year gross sales which is much higher than I would’ve projected in Sept 16. 50% of 2016’s gross dollar sales happened in Oct, Nov and Dec 16.
Dec 16 would’ve been a good year not that long ago (in 2010 to be specific.)
I’ll be posting a 5 year (2011-2016) Portland apartment sales history by mid-Feb, but if you’d like an earlier copy, eMail me. I sort sales by:
County
Neighborhood
Complex Size
Decade Built
Largest sales per county by total sale, $/SqFt and $/Unit
Interest rates have jumped. My conjecture is there’s a sense of impending rate increases driving a burst of large transactions in Oct-Dec 16. Dec 16 had $668M in transactions (vs. $260M in Dec 15).
If you’d like more information on:
– 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
– A very useful financial analysis of your property, call. It will include I&E comparison to neighboring properties along with recent sales and rent comparables.
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
Buying, selling and operating apartments in Portland 