Buying, selling and operating apartments in Portland

Portland Apartment Sales – August 20

2 October 2020
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To download the individual sales report, right-click the link below and “Save As”:

 

<<<Portland_ApartmentSales_Aug20>>>

 

Highlights:

  • Gross $ Aug 20 YTD = $855M is a 47% DECREASE from Aug 19 YTD = $1602M

  • $/unit Aug 20 YTD = $207.5K is a 12.2% INCREASE over Aug 19 YTD = $184.8K.

  • $/SqFt Aug 20 YTD = $231.72 is a 9.2% INCREASE over Aug 19 YTD = $212.13

 

 

The 2014-2019 Portland Apartment Market History is available on the WEBsite at:

 

 

https://portlandapartmentsales.com/2020/03/12/portland-apartment-market-2014-2019-annual-report/

 

 

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


Portland Apartment Sales – July 20

28 August 2020
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To download the individual sales report, right-click the link below and “Save As”:

 

<<<portland_july20vsjuly19_aptsales>>>

 

Highlights:

  • Gross $ July 20 YTD = $806M is a 12.9% DECREASE from July 19 YTD = $925M

  • $/unit July 20 YTD = $202.5K is a 12.7% INCREASE over July 19 YTD = $180.1K.

  • $/SqFt July 20 YTD = $231.40 is a 11.9% INCREASE over July 19 YTD = $206.87

 

 

The 2014-2019 Portland Apartment Market History is available on the WEBsite at:

 

 

https://portlandapartmentsales.com/2020/03/12/portland-apartment-market-2014-2019-annual-report/

 

 

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


Portland Apartment Sales – June 20

31 July 2020
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To download the individual sales report, right-click the link below and “Save As”:

 

<<<Portland_June20vsJune19_AptSales>>>

 

Highlights:

  • Gross $ June 20 YTD = $775M is a 3.4% DECREASE from June 19 YTD = $802M

  • $/unit June 20 YTD = $206.2K is a 15.6% INCREASE over June 19 YTD = $178.2K.

  • $/SqFt June 20 YTD = $234.48 is a 4.8% INCREASE over June 19 YTD = $207.54

 

The 2014-2019 Portland Apartment Market History is available on the WEBsite at:

 

 

https://portlandapartmentsales.com/2020/03/12/portland-apartment-market-2014-2019-annual-report/

 

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


Portland Apartment Market – 2014-2019 Annual Report

12 March 2020
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To download the individual sales report, right-click the link below and “Save As”:

 

<<<PortlandAptHistory_2014-2019_12Mar20>>>

 

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


Portland Apartment Sales – May 19

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

<<<Portland_May19vsMay18_AptSales>>>

Highlights:

  • Gross sales dollars May 19 YTD = $653.7M is a 13.6% INCREASE over May 18 YTD = $575M
  • $/unit May 19 YTD = $177K is a 0.3% DECREASE over May 18 YTD = $177K.
  • $/SqFt May 19 YTD = $203.91 is a 17.6% DECREASE over May 18 YTD = $220.69
  • CapRate May 19 YTD = 5.47% is a 13.6% INCREASE over May 18 YTD = 5.24%

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 | Principal Broker
SMI Commercial Real Estate
Phone: 503.970.4593 
steve@smicre.com | www.smicre.com
OR License # 200202054 | WA License # 24512


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


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

 


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 – April 18

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

<<<Portland_Apr18vApr17_AptSales>>>

Highlights:

  • Gross sales dollars April 18 YTD = $550M is a 33% INCREASE over April 17 YTD = $413M
  • $/unit April 18 YTD = $175K is a 3% INCREASE over April 17 YTD = $169K.
  • $/SqFt April 18 YTD = $226.95 is a 23% INCREASE over April 17 YTD = $185.29

We had a weak month vs. April 17.  At $40M 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 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:

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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