Portland Apartment Sales – March 19

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

<<<Portland_Mar19vsMar18_AptSales>>>

Highlights:

Gross sales dollars March 19 YTD = $367.2M is a 29% DECREASE over March 18 YTD = $515M
$/unit March 19 YTD = $178K is a 4% INCREASE over March 18 YTD = $171K.
$/SqFt March 19 YTD = $203.44 is a 13% DECREASE over March 18 YTD = $232.77
CapRate March 19 YTD = 5.56% is a 6.7% INCREASE over March 18 YTD = 5.21%

The big drop in $/unit and gross dollars is due to NO large (>100 unit) sales.

City of Portland rules are also giving pause to owners. Pricing is getting hardest hit on new construction (excess of inventory) and older (pre-1927 URM) buildings along with Portland proper.

However, even with pricing pressure there are positive things making apartments an attractive investment:

Interest rates are still low and in the low 4% range
Rents are still increasing and vacancies are about 5% on average

The 2013-2018 Portland Apartment Market History is available on the WEBsite at:

https://portlandapartmentsales.com/2019/04/11/portland-apartment-market-2013-2018-annual-report/

– 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

Posted in Apartment Buying, Apartment Selling, Portland, Portland, Salem and Vancouver Apartment Market Issues
Tags: invest, investment, portland, sales, transactions

Portland Apartment Sales – Feb 19

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

<<<Portland_Feb19vsFeb18_AptSales>>>

Highlights:

Gross sales dollars Feb 19 YTD = $337.9M is a 4% DECREASE over Feb 18 YTD = $351M
$/unit Feb 19 YTD = $186K is a 10% INCREASE over Feb 18 YTD = $169K.
$/SqFt Feb 19 YTD = $217.85 is a 12% DECREASE over Feb 18 YTD = $248.28
CapRate Feb 19 YTD = 5.54% is a 3.5% INCREASE over Feb 18 YTD = 5.35%

The big jump in $/unit is 3 large sales = 69% of ttal gross sales.

Biggest item is the effect of the newest OR rent control law passed by the Legislature. City of Portland rules are also giving pause to owners. Interest rates (stable to flat) 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-Apr 19. 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.

Posted in Apartment Buying, Apartment Selling, Portland, Portland, Salem and Vancouver Apartment Market Issues
Tags: History, invest, portland, sales

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.

Posted in Apartment Buying, Apartment Selling, Portland, Portland, Salem and Vancouver Apartment Market Issues
Tags: invest, investment, portland, sales, Washington

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.

– 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:

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

Posted in Apartment Buying, Apartment Selling, Portland, Portland, Salem and Vancouver Apartment Market Issues
Tags: buying, History, invest, portland, sales, transactions, Washington

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.

– 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:

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

Posted in Apartment Buying, Apartment Selling, Portland, Portland, Salem and Vancouver Apartment Market Issues, Salem and Vancouver Apartment Market Issues
Tags: History, invest, portland, rates, sales, transactions, Washington

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:

Usually at the request of a 3^rd 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.

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

Posted in Apartment Buying, Apartment Selling, Apartments - Other Topics, Financing Commercial Property
Tags: financials, invest, investment, location, sales

Portland Apt Sales – March 18

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

**<<<Portland_Mar18vMar17_AptSales>>>**

Highlights:

Gross sales dollars March 18 YTD = $514M is a 44% INCREASE over March 17 YTD = $357M
$/unit March 18 YTD = $175K is a 3% INCREASE over March 17 YTD = $171K.
$/SqFt March 18 YTD = $237.14 is a 22% INCREASE over March 17 YTD = $195.02

We had a pretty good up month over March 17. At $160M gross sales we are at $1.9B in annual sales rate (vs. $1.7B for 2017 and $2.95B for 2016) so hoping this continues.

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 an early copy

– 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

Please contact me:

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

Posted in Apartment Buying, Apartment Selling, Portland, Portland, Salem and Vancouver Apartment Market Issues
Tags: History, invest, portland, sales, transactions

Portland Apt Market – 2017 Annual Report

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

<<<PortlandAptHistory_2012-2017_14Mar18>>>

Highlights / Contents:

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:

– 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:

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

Portland Apt Sales – Nov 17

29 December 2017
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To download the individual sales report, right-click the link below and “Save As”:

<<<Portland_Nov17vsNov16_AptSales>>>

Highlights:

Gross sales dollars Nov 17 YTD = $1306M is a 43% DECREASE over NOV 16 YTD = $2301M
$/unit Nov 17 YTD = $172K is a 18% INCREASE over Nov 16 YTD = $145K.
$/SqFt Nov 17 YTD = $198.43 is a 20% INCREASE over Nov 16 YTD = $165.88

Overall YTD gross dollars are down mainly due to lack of large (>100 units) investors interest in Portland. Nov 16 + Dec 16 alone had almost $1B in total sales.

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

Please contact me:

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

Posted in Apartment Buying, Apartment Selling, Portland, Portland, Salem and Vancouver Apartment Market Issues
Tags: invest, portland, sales

Portland Apartment Sales – Aug 17

28 September 2017
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To download the individual sales report, right-click the link below and “Save As”:

<<<Portland Apt Sales – Aug 17 vs Aug 16 >>>

Highlights:

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:

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

Posted in Apartment Operations, Apartment Selling, Portland, Portland, Salem and Vancouver Apartment Market Issues
Tags: buying, financials, invest, portland, sales, transactions

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