golfside apartments - loopnet

OFFERING MEMOR ANDUM53 Units • Gresham, Oregon

GOLFSIDE APARTMENTS

www.hfore.com(503) 241.5541

INVESTMENT SUMMARYGolfside Apartments is a 53-unit apartment property centrally located in Gresham, Oregon. The asset has demonstrated consistent rent increases and completed numerous capital improvements. All roofs and siding have been replaced within the past ten years. Recent capital upgrades include the pool deck and installation of a new garbage collection area. Golfside Apartments has a conveniently located leasing office. Each apartment has either a large, enclosed deck or private patio. Several apartments are situated around a seasonal, outdoor pool and have poolside views. The majority of the floor plans – approximately 79.3% - are generously sized two-bedroom flats. The upper-story apartments have unique vaulted ceilings with exposed beams.

The asset is located at the intersection of NE Division Street and Hogan Drive—major thoroughfares connecting Gresham and Portland. The Cleveland Avenue MAX Station is just 0.6 miles away, and numerous retail

services are in the immediate area. A Safeway grocery store is across the street, and Fred Meyer and WinCo foods are less than one mile away. Major retailers like Marshalls and Walgreens and restaurants, including Subway, Starbucks, and Jimmy John’s are walking distance from the property.

Golfside Apartments is expected to benefit from Gresham’s commitment to establishing itself as the area’s manufacturing and industrial hub. New employers that have entered the Gresham market include Amazon and Subaru. The city has focused on expanding businesses, and there has been limited apartment construction in Gresham. Golfside Apartments’ current rents average $1,112 per unit or $1.25 per sq ft. Rents have increased by 7.3% over September 2019 TTM average rents. Investors looking for an asset outside of the city of Portland with a strong employment base will find the Golfside Apartments an exceptional investment opportunity.

2 HFO INVESTMENT REAL ESTATE

EXECUTIVE SUMMARYPRICE SUMMARYPrice $7,750,000

Price per Unit $146,226

Price per Sq Ft $163

Cap Rate 5.70%

TOURS AND INQUIRIES Greg Frick • [email protected]

www.hfore.com(503) 241.5541Fax: (503) 241.5548

Broker licensed in Oregon.

Please do not disturb tenants.

ASSET SUMMARY

Property Golfside Apartments

Location 1999 NE Division St

City, State Gresham, OR 97030

County Multnomah

Year Built 1969

Total Units 53

Stories 2 stories

Approx NR Sq Ft +/- 47,642 sq ft

Avg Unit Size 899 sq ft

Acreage 2.12 acres

Density 25.00 units per acre

UNIT MIX SUMMARY

Unit Type Unit Count Avg Sq Ft Total Sq Ft % of Total Units

Studios 2 524 1,048 3.8%

1 Bedrooms 8 687 5,496 15.1%

2 Bedrooms 42 954 40,068 79.2%

3 Bedrooms 1 1,030 1,030 1.9%

Total / Averages 53 899 47,642 100.0%

PROPERTY HIGHLIGHTS

• Significant exterior updates including new roofs and siding

• Seasonal outdoor pool with a new deck

• Large patios and decks with storage

• Centrally located manager’s office

• Stable Gresham location adjacent to Gresham Golf Course

• Diverse unit mix

• Upstairs units with unique vaulted ceilings

• Select units have washer/dryer hookups

3GOLFSIDE APARTMENTS • 53 UNITS • GRESHAM, OR

ASSET OVERVIEWCONSTRUCTION SUMMARY

Year Built 1969

No. Of Buildings 8 residential buildings

Stories 2 stories

Construction Type Wood frame on slab

Foundation Concrete

Electrical Copper

Siding HardiePlank

Roofing Asphalt Shingle – Roll-out, torch-down

Laundry 46 units have hookups

Plumbing Galvanized and cast iron

Heating Cadet wall units and baseboard

Heating Electric forced air

PARKING SUMMARY

Total Parking Spaces 60

Parking Ratio 1.13 parking spaces per unit

SITE SUMMARY

City Gresham

County Multnomah County

Jurisdiction City of Gresham

Acreage +/- 2.12 acres

Density 25.00 unit per acre

Tax Lot Numbers R337274


NEARBY TRANSIT & POINTS OF INTERESTCOLLEGES Drive DistanceMount Hood Community College 5 min 1.7 mi

AIRPORTS Drive DistancePortland International 24 min 14.3 mi

SHOPPING CENTER Walk DistanceHogan Plaza 3 min 0.1 miStrip Center at 877 NE Hogan Dr 3 min 0.1 miHogan Center 4 min 3.0 mi

PARKS AND RECREATION Drive DistanceSpringwater Corridor 5 min 1.6 miPlanetarium Sky Theater 6 min 1.7 miNadaka Nature Park 11 min 4.3 miLewis and Clark State Recreation Site 9 min 4.4 miDabney State Recreation Area 11 min 4.9 mi

MILITARY BASES Drive DistanceCamp Withycombe National Guard 23 min 13.2 miPortland Airport Air Guard Station 24 min 13.5 miCamp Bonneville Military Reservation 48 min 28.2 mi

TRANSIT Drive DistanceCleveland Avenue 3 min 0.7 miGresham Central Transit Center 3 min 0.9 miGresham City Hall 5 min 1.5 mi

Disclaimer: The information in this report is from Apartments.com


Golfside Apartments1999 NE Division Street, Gresham, Oregon

LOCATION

Golfside Apartments is in a convenient area. Some daily errands in this location require a car and most major services are within 1 mile.

Nearby lifestyle conveniences:

0.5 mile

0.4 mile

0.3 mile 0.8 miles

0.8 miles 0.4 mile0.5 miles

0.4 mile

.9 mile

0.4 mile

GROCERIES

SCHOOL

DININGBANK ENTERTAINMENT

PARK SHOPPING HOME IMPROVEMENT

COFFEE

MEDICAL


NEIGHBORHOOD EATS

Type # of placesAmerican (New) 9

American (Traditional) 30

Asian Fusion 7

Breakfast & Brunch 18

Burger 32

Chinese 17

Italian 9

Japanese 14

Mexican 55

Pizza 31

Sandwiches 29

Seafood 7

Sushi 13

Type # of placesRestaurants 271

Fast Food 45

Delivery 25

Takeout 201

Disclaimer: The information in this report is from Yelp*.com

271WITHIN 5 MILES

Golfside Apartments1999 NE Division Street, Gresham, Oregon

Golfside Apartments has 271 restaurants within 5 miles.


Golfside Apartments1999 NE Division StreetGresham, Oregon

MT. HOOD COMMUNITY COLLEGE

REYNOLDS SCHOOL DISTRICT

GRESHAM-BARLOW SCHOOL DISTRICT

Mt. Hood Community College (MHCC) is located on a 260-acre campus in Gresham and offers more than 120 professional and technical programs.

The college enrolls approximately 9,258 full- and part-time students each year. Students of MHCC typically take personal enrichment courses to continue their education or as a stepping-stone to a four-year institution.

• MHCC interacts with its community through a large number of programs and places, including its:

• Aquatic Center with a 25-yard, six-lane competitive pool

• Planetarium Sky Theater

• KMHD 89.1 student radio station

• Sports teams

• A dental hygiene clinic offering affordable dental care for students and Gresham residents

The college offers programs in administrative office, business management, computer information systems and engineering technologies, as well as more than 90 Associate of Applied Science degrees and certificates.

Established in 1954, the Reynolds District serves the Portland, Gresham, Fairview, Wood Village, and Troutdale areas. Currently enrolling over 10,000 students, the district comprises 11 elementary schools, three middle schools, and two high schools.

This district serves families living in Oregon’s fourth-largest city, with a diverse population of over 106,000. The school district currently has 11 elementary schools, five middle schools, three high schools, and five charter schools. The district has a student population of over 11,700. Students in this district consistently score above the national average on standardized exams.

GRESHAM: SCHOOLS


NE Halsey St

NE Glisan St

NE Stark St

SE Division St

SE Powell St

NE Burnside St

SW 257th Ave

Sandy River

SE 223rd Ave

NE Hogan Dr

GRESHAM

MAX Blue line

84

26

30

Cherry Park Market

Reynolds High School

Gresham High School

LIFESTYLE CONVENIENCES AND EMPLOYERS

Golfside Apartments


4.3% Population growth

(2010-April 2018)

110,158 Population

(2018)

GRESHAM SCHOOLSIn November 2016, Gresham voters approved a $291M bond for the Gresham-Barlow school district. The vote occurred after the Reynold’s School District, which also serves Gresham, announced that it would replace three elementary schools and work on improvements to Reynolds High School with money raised from the 2015 school bond. As of December 2018, construction at Barlow High School was underway – when complete, the school will have a number of new classrooms along with significant renovations to existing classrooms. There will also be a new sports stadiums, as well as updated track facilities and expanded arts and theater spaces.

LIMITED RESIDENTIAL CONSTRUCTIONMost of the available land in Gresham is slated for commercial development as the city is focused on establishing itself as the metro area’s industrial employer.

There has been effectively no new apartment inventory in the City of Gresham over the last five years with 0.1% average growth.

There is projected to be no new supply added to the market in the next five years. (Source: REIS)

LOW VACANCY AND HIGH HOUSING DEMANDThe entire Portland/Vancouver metro area is experiencing historically low vacancy; this is especially true in the City of Gresham.

Apartment vacancy in Gresham averaged 0.8% for 2015 and its historical five year average is 2.0%.

The five-year forecast anticipates that the vacancy will remain low at an average of 1.5%. (Source: REIS)

EXPONENTIAL RENT GROWTHGresham has benefited from the significant in-migration and increased demand for housing seen throughout the Portland/Vancouver metro area.

Average rents in Gresham increased approximately 21.2% since 2010 and the last two years have experienced a combined growth of nearly 10%.

GRESHAM MARKET DRIVERSThe vacancy rate in Gresham remains low but is beginning to increase slowly. As of April 2019, the vacancy rate for the Gresham/Troutdale/Fairview submarket was 3.4% overall, below the metro area average of 4.95%. This submarket has seen below-market average vacancy rates since 2010. The average rent per square foot is $1.36, up from $1.31 in April 2018. Year over year, this represents a 3.8% increase in rents for this submarket. Source: Multifamily NW Spring 2019 Report

Approximately 46.8% of Gresham’s 39,281 households rent, and the average number of persons per household is 2.76.


COLUMBIA RIVER

26

26

Forest Park

WASHINGTON

OREGON

LOCATION

VANCOUVER

BEAVERTON

HILLSBORO

WILSONVILLE

CLACKAMASLAKE OSWEGOTIGARD

PORTLAND

Portland International Airport

Hillsboro Airport

12 miles (23 min.)

25.1 miles (35 min.)



14.8 miles (30 min.)26.4 miles (40 min.)26.2 miles (42 min.)



COLUMBIA RIVER

217210

213

224212

99E

8

10

14

Golfside Apartments

Commute to Downtown

Gresham, OR

8 min

3 min

30 min

24 min

Commute to Downtown

Portland28 min17.1 miles

90 min 72 min

30 min


GRESHAM DISTRIBUTION AND MANUFACTURINGAmazon announced plans to build a warehouse in Troutdale in 2017, and it opened the $180 million, 855,000 square foot PDX9 facility in late 2018. The facility now employs 2,000 workers, over 30% more than initially forecast. Amazon raised the minimum wage to $15 per hour in the Fall of 2018, around the time the facility first opened.

Manufacturing is a large sector of Gresham’s employment. Boeing, ON Semiconductor, and Microchip Technology are the city’s major manufacturing employers, and several other firms have operations in Gresham. Arnprior/QPM Aerospace, Cascade Controls, Cascade Corporation, Celestica, and Pella Vinyl each employ more than 100 people. Smaller manufacturers include NW Retreaders, Capsa Solutions, Precision Plumbing Products, and Imperial Brown.

Gresham’s food manufacturers include Teeny Foods, Boyd Coffee Company, and Portland Specialty Baking.

Other major employers in the Gresham area include U. S. Bank and the Xerox-owned ACS.

CURRENT & FUTURE GROWTH: GRESHAM VISTA BUSINESS PARK – DISTRIBUTION & MANUFACTURINGThe 221-acre Gresham Vista Business Park surrounding ON Semiconductor is owned jointly by the City of Gresham and the Port of Portland. The Port has managed development of the site into a thriving jobs center for clean technology, manufacturing, food processing, logistics, professional services, and other traded-sector companies. Tenants include:

• Subaru of America, with 39 acres of land and a 600,000 SF distribution facility

• Element Six has opened a $94 million facility on eight acres to manufacture over a half-million carats of lab-grown diamonds annually. The lab is expected to be fully operational by January 2021.

GRESHAM EMPLOYMENT

Established in 1905, Gresham (pop. 110,500) borders the eastern edge of the City of Portland. Gresham is Oregon’s fourth-largest city and the second-largest in the Portland/Vancouver metro area.

The snow-capped spire of Mt. Hood looms over the Gresham landscape and is a constant reminder of the area’s rugged natural beauty. Gresham residents are a 40-minute drive from the Mt. Hood National Forest boundary and 30-minutes to the Columbia Gorge National Scenic Area. From hiking, camping, biking, and fishing, Gresham offers many options for outdoor adventurers.

GATEWAY TO MT. HOOD NATIONAL FOREST

PUBLIC TRANSIT Numerous TriMet bus routes and the MAX light rail Blue Line serve Gresham.


GRESHAM TRADED SECTOR EMPLOYERS (AS OF JUNE 2018 – FROM CITY OF GRESHAM)

Employer Product/Services Employee Count RangeAmazon Distribution Center 1500-2000Boeing of Portland Aerospace Manufacturer 1500-2000US Bank Processing Services Check Processing 1500-2000ON Semiconductor Semiconductor Manufacturing 700-1499Albertson’s Distribution Center Food Distribution 500-699Microchip Technology Semiconductor Manufacturing 500-699Conduent Call Center 500-699Christenson Electric Electrical Contractor 400-499Celestica Semiconductor Equipment Manufacturer 200-399Cascade Controls Control Systems Manufacturer 200-399Cascade Corporation Hydraulics Equipment Manufacturer 200-399Organically Grown Food Distribution 100-199Portland Specialty Baking Groceries/Related Products Manufacturer 200-399Arnprior/QPM Aerospace Aerospace Manufacturer 100-199Boyd Coffee Company Specialty Foods Manufacturer 100-199Capsa Health Care Medical Equipment Manufacturer 100-199Frito-Lay NA Food Distribution 100-199Northwest Handling Systems Material Handling Distribution 100-199Imperial Brown Refrigeration Manufacturer 100-199International Paper Paper Production 100-199Pella Vinyl Metal Frames/Windows Manufacturer 100-199Performance Food Service Pacific NW Food Distribution 100-199Staples Distribution Center Distribution 100-199Teeny Foods Specialty Food Manufacturer 100-199Wright Business Graphics, Inc. Business Forms 100-199

GRESHAM TRADED SECTOR EMPLOYERS


With a charming, village-like atmosphere, Gresham Station Shopping Center is located AT 1135 NW Civic Drive and is directly accessible by MAX light rail’s Blue Line.

Gresham Station is currently home to 57 shops, including 7 restaurants. It has a blend of well-known national and regional chain stores, locally-owned boutiques, salons and bistros, including Panda Express, Bishops Cuts and Colors, Red Robin, Orangetheory, and Umpqua Bank.

The shopping center’s national anchor stores and services are LA Fitness, Sprint PCS, Verizon Wireless, Bed Bath & Beyond, Best Buy, Old Navy, Cost Plus World Market, Ulta, and Craft Warehouse.

Gresham Station opened in 2001 and was the first part of a plan to revitalize the areas surrounding the MAX Blue Line. Even more construction along the line has begun on the nearby Rockwood Rising Project, which will include an international grocery marketplace and community plaza.

GRESHAM MAJOR RETAILERSGRESHAM STATION SHOPPING CENTER (2.0 Miles from Golfside Apartments)


HISTORIC DOWNTOWN GRESHAM(11.9 miles from Golfside Apartments)

A century ago, downtown hosted a blacksmith shop, a feed mill, a school, a church, and a five-and-dime store. Today, the tree-lined streets of Historic Downtown Gresham bustle, enticing visitors to amble among specialty shops and restaurants, to grab a coffee and a book, to sip a specialty craft brew, or sample the flair of a variety of ethnic cuisines.

Historic Gresham is home to the city’s

• History Museum• Public Library • Farmers Market• Art Walk• Car Show

Gresham has been active for decades in preserving and enhancing the livability of its downtown.

Source: City of Gresham

GRESHAM MAJOR RETAILERS


PORTLAND REGIONOregon’s largest city, Portland, is near the confluence of the Willamette and Columbia Rivers. The Portland Metro Area consists of four counties: Multnomah, Washington, Clackamas, and Clark County, Washington.

APARTMENT MARKETThe Portland Metro Area consistently ranks among the nation’s lowest for apartment vacancy rates according to the U.S. Census Bureau and other third-party services like REIS, MPF Research, and Axiometrics. The U.S. Census Bureau pegged Portland’s Q3 2018 vacancy rate at 4.5% and the U.S. average at 7.1%.

The Multifamily NW Apartment Report survey proved average Spring 2018-19 year-over-year rent growth at 7.7%.

SKILLED WORKFORCE & STRONG EMPLOYMENTIn a 2018 WalletHub report comparing 150 of the largest U.S. metros, Portland is listed as the 15th most educated city in America. More than half of Multnomah County workers have a college degree, well ahead of the national average of 38.5%.

According to the State of Oregon’s Employment Department, Portland enjoys one of the fastest job growth rates in the Pacific Northwest, and the entire nation. Data indicates the area added 31,000 jobs in 2016, 28,000 jobs in 2017, and 29,000 in 2018.

DIVERSIFIED ECONOMYPortland is home to the headquarters of Fortune 500 companies Nike and Lithia Motors. Fortune 1000 companies headquartered here include Columbia Sportswear, Greenbrier Cos. and Portland General Electric. Fortune 500 companies based outside Oregon with major operations here are Precision Castparts and Intel.

Tech and software companies continue to relocate their operations here or open major outposts in Portland. These companies enjoy Portland’s educated workforce, affordable high quality of life, and a low cost of doing business compared to the Bay Area.

Companies which have opened major branches in Portland include Airbnb, Google, Squarespace, Mozilla, Simple, Survey Monkey, SalesForce and New Relic, Inc. Portland’s tech startup companies include Viewpoint, Jama Software, Thetus, Urban Airship, Acquia, Elemental Technologies, Act-On, Puppet Labs, and The Clymb.


PORTLAND RANKINGS

Restaurant City of the Year– Bon Appetit –

Best City for an Active Lifestyle– Wallethub –

Most Entrepreneurial State – Amazon.com –

Greenest City in America– Newsweek –

Best Foodie City in America– Wallethub & Travelpulse –

No.6 rank by Jetsetter

Healthiest Cities to Live– Thrillist.com –

No.3

No.7

No.5

No.9

No.15No.10

No.1

No.7

No.1

No.4

No.4

No.8

No.5

No.8

No.9 No.10Top City for Entrepreneurs &

Start-Ups– Business.org –

No.23 rank by CNBC

Healthiest City in the U.S.– Active.com –

Best Cheap Destinations in the U.S.– U.S. News and World Report –

Fittest Cities in America– American College of

Sports Medicine –

Best Foodie Cities in the USA– U.S. News and World Report –

Most Educated City in America

– Wallethub –

Best City for Biking– Fast Company –

Best Place to Live in the U.S.– U.S. News and World Report –

Best Bike City in America– Bicycling Magazine –

Fittest Cities in America– CBS News –

Portland consistently receives glowing reviews and rankings from the media.

2019 lists include:

2018 lists include:


PORTLAND MAJOR EMPLOYERSGOVERNMENTThe U.S. Federal Government is Portland metro’s overall largest employer, with 20,500 workers. The State of Oregon gives employment to an additional 14,000 residents.

HIGH TECH & CHIP MANUFACTURINGAttracted by the Portland area’s educated workforce and relative low cost of doing business, tech companies continue moving to Portland—opening major branches and, in some cases, relocating to the area entirely.

With over 19,300 employees, Intel is the area’s largest private employer. Intel acquired its first Portland location in 1974. The company is currently expanding its presence with forthcoming D1X microprocessor chip facilities at the Ronler Acres Campus in Hillsboro. This is part of a five-year, $6 billion expansion, and is part of the company’s long-term plans for growth. Intel is the largest property taxpayer in Washington County, with payments of approximately $30 million a year.

Other notable Portland-area high-tech companies include ON Semiconductor and Tektronix.

SPORTSWEARNike has its world headquarters in Beaverton and employs 12,000 Portland-area residents. The company designs, develops and manufactures footwear, apparel, equipment and accessories. From here, Nike orchestrates production and design for one of the world’s most recognizable brands. In 2019 Nike will complete a $1 billion expansion of its Washington County campus.

Nike’s two key competitors have a major local presence as well. Those employers include the North American headquarters of Adidas with 1,200 employees, and a new 70,000 SF outpost of Under Armour. Under Armour has moved 100 employees into an iconic former YMCA.

HEALTHCARE AND RESEARCHHealth services are another major employment sector for the Portland area. The top healthcare employers in the area are Providence Health Systems, with 17,543 employees, and The Oregon Health Sciences University (OHSU), with 16,200 workers. OHSU is the recent recipient of a total of $1 billion in donations for cancer research from over 10,000 Oregon donors. Grants from the National Institutes of Health totaled $182.7 million in 2016.

MANUFACTURINGIn trucking and transportation, Daimler Trucks—with nearly 3,000 area workers—has big plans for the Portland area. The company recently spent $150 million renovating its Portland facility and invests heavily in research and development, including autonomous driving.


TOP AREA EMPLOYERS

20,000 area employees 10,269 area employees 12,000 area employees

12,955 area employees


5,200 Oregon employees

Intel is the area’s largest private employer. Recently, following a five year, $6 billion expansion, the company unveiled vast, long-term plans for future growth.

Kaiser has 35 medical facilities, 18 dental offices and 1,400 doctors in the Pacific Northwest. It employs more than 10,000 in the Portland metro region and serves 11.8 million members nationally. Kaiser is headquartered in Oakland, California.

In April of 2016, Nike announced a $1 billion expansion of its Beaverton world headquarters. The company is adding 1.3 million square feet of office space and parking for 3,300 vehicles. Construction on the final parts of this expansion will wrap up in 2019.

Legacy is a locally-owned nonprofit based in Portland, Oregon. It is the only health system covering the Portland/Vancouver area south to Salem with multiple hospitals and a hospital dedicated to exclusively serving children.

With nearly 50,000 students, Portland Public Schools is Oregon’s largest district. Portland is currently in the midst of a massive voter-approved high school and middle school reconstruction and modernization program.

In 2017 voters approved $790 million in taxes to rebuild one middle school and three high schools. The bond was in addition to a $480 million bond in 2012 for a similar program.

Fred Meyer offers one-stop shopping at 133 multi-department stores in four western states.

17,543 area employeesProvidence is a non-profit network of hospitals, health plans, physicians, clinics and related services. It operates in Alaska, Washington, Oregon, Montana and California. It was originally founded by the Sisters of Providence in Montreal Quebec in 1843.


Oregon Health Sciences University (OHSU) leads the way in government-funded healthcare — and secures numerous grants for the advancement of health sciences. OHSU recently acquired a $1 billion gift for cancer research.

Grants from the National Institutes of Health have held steady from around $184 million in 2011 to $219 million in 2017. This infuses the economy with jobs and income from outside the Portland MSA.


Among the influx of companies to the Portland metropolitan area—including many who have transplanted their world, North American or U.S. headquarters here—are Adidas, Daimler Trucks, KinderCare and Keen.

Other significant companies in the close-in Portland metro area include Umpqua Holdings, Weiden+Kennedy, NW Natural, PacifiCorp, PGE, New Seasons, Storables, McMenamins, McCormick & Schmick’s, Franz Bakery, Portland Brewing, Powell’s Books, ZGF Architects, and two major West Coast law firms: Stoel Rives and Schwabe, Williamson & Wyatt.

Full time employment increased 1.8% between March 2018 – March2019, an increase of 21,800 positions. Below is an overview of net job creation by industry from March 2018 through March 2019:

According to the State of Oregon Employment Department, the Portland Metro region created jobs at the rate of 1.6% in 2018. Portland ranks 16th among the 50 largest metropolitan areas in the United States.

JOB GROWTH BY INDUSTRYMSA PORTLAND

2,800 Construction, Mining, Logging

3,200Trade, Transportation & Utilities

Leisure & Hospitality

4,500 Manufacturing

2,000

2,500

Healthcare & Social Assistance

6,100Education & Health Services


The Portland/Vancouver metro area including Clackamas county and the City of Happy Valley, is well served by an outstanding public transit system. In 2015, TriMet, the area’s public transit agency, made a number of upgrades to the area’s transit options. These upgrades addressed the concerns of residents and workers who depend on bus and light-rail train service to get to and from jobs, schools and other daily events.

Golfside Apartments is about one mile from the Cleveland Ave MAX Station Westbound, Gresham, OR, which is served by Portland’s MAX light rail Blue Line.

The MAX Blue Line was the first of the light rail’s five separate projects to be built, and was the first federally funded light rail project that used money initially earmarked to build freeways. The initial 15 miles of the Blue Line opened in 1986, with 30 rail stops that connect downtown Portland with the City of Gresham.

The Green Line was completed 2009 connecting Clackamas, along Interstate 205, to the Gateway Transit Center. The 8.3 miles of track provides transportation between 8 additional stations before connecting to the previously built I-84 track.

• The Blue Line continues through downtown Portland to the cities of Beaverton and Hillsboro

• The Red Line terminates at the Portland International Airport

• The Green Line connects to Clackamas Town Center

• The Orange Line is the MAX’s newest extension and connects to the City of Milwaukie

WIL LAM

ETTE R I V ER

CLACKAMAS

WILLAM

ETTE RIVER

GRESHAM

BEAVERTONHILLSBORO

MAX Blue Line

MAX Green Line

MAX Orange Line

MAX Red line

MAX Yellow Line

Portland Streetcar A Loop

Portland Streetcar B Loop

Portland Streetcar North South Line

TRANSPORTATION SYSTEMS

DOWNTOWN PORTLAND

Golfside Apartments


RENT COMPARABLESGOLFSIDE APARTMENTS • 53 UNITS • GRESHAM, OR

Burnside St

SE Stark St

SE Division St

NE 223rd Ave

SE Hogan Dr

Powell Blvd

Powell Valley Rd

SE Troutdale Rd

NE Kane St

NE Cleveland Ave

Gresham

The GrovesRoyal Green Apartments

Parkwood Apartments

Timber Ridge Apartments

Kane Garden Court

PineWood Commons Gresham Park Apartments

Kelly Green Apartments

Gradin Community Sports Park

Main City Park

26

MAX Blue line

Golfside Apartments


Unit type Units Sq Ft Rent Rent/Sq FtStudio 2 524 $898 $1.71

1 Bed / 1 Bath 8 687 $1,021 $1.49

2 Bed / 1 Bath 42 954 $1,146 $1.20

3 Bed / 1 Bath 1 1,090 $1,350 $1.24

Average 53 900 $1,122 $1.25

1

ROYAL GREEN APARTMENTS2001 NE 19th Street, Gresham, ORTotal Units: 90 Avg Sq ft: 959Year Built: 1971 Avg Rent: $1,296

Avg Rent/Sq ft: $1.35

GOLFSIDE APARTMENTS1999 NE Division Street, Gresham, ORTotal Units: 53 Avg Sq ft: 900Year Built: 1969 Avg Rent: $1,122


S

RENT COMPARABLES

Unit type Units Sq Ft Rent Rent/Sq Ft2 Bed / 1 Bath 72 920 $1,268 $1.38

2 Bed / 2 Bath 15 983 $1,363 $1.39

3 Bed / 2.5 Bath 3 1,787 $1,650 $0.92

Average 90 959 $1,296 $1.35

GOLFSIDE APARTMENTS • 53 UNITS • GRESHAM, OR


THE GROVES3500 NE 17th Street, Gresham, ORTotal Units: 201 Avg Sq ft: 855Year Built: 1971 Avg Rent: $1,332


PARKWOOD APARTMENTS1616 NE 16th Way, Gresham, ORTotal Units: 85 Avg Sq ft: 890Year Built: 1991 Avg Rent: $1,248


2 3

RENT COMPARABLES


2 Bed / 1 Bath 96 865 $1,249 $1.44

3 Bed / 2 Bath 57 1,029 $1,625 $1.58

Average 201 855 $1,332 $1.56


2 Bed / 1 Bath 24 890 $1,265 $1.42

2 Bed / 2 Bath 37 1,004 $1,320 $1.31

Average 85 890 $1,248 $1.40



5

GRESHAM PARK APARTMENTS805 NE Kane Drive, Gresham, ORTotal Units: 51 Avg Sq ft: 899Year Built: 1991 Avg Rent: $1,319


PINEWOOD COMMONS2710 NE Division Street, Gresham, ORTotal Units: 39 Avg Sq ft: 819Year Built: 1978 Avg Rent: $1,040


4


Unit type Units Sq Ft Rent Rent/Sq Ft1 Bed / 1 Bath 4 640 $950 $1.48

2 Bed / 1 Bath 35 840 $1,050 $1.25

Average 39 819 $1,040 $1.27


3 Bed / 2 Bath 18 1,080 $1,545 $1.43

Average 51 899 $1,319 $1.47


KELLY GREEN APARTMENTS252 NE Kane Drive, Gresham, ORTotal Units: 25 Avg Sq ft: 898Year Built: 1978 Avg Rent: $1,125


TIMBER RIDGE APARTMENTS155 NE Kane Drive, Gresham, ORTotal Units: 32 Avg Sq ft: 900Year Built: 1974 Avg Rent: $1,250


6 7


Unit type Units Sq Ft Rent Rent/Sq Ft1 Bed / 1 Bath 7 750 $975 $1.30

2 Bed / 1 Bath 14 942 $1,150 $1.22

3 Bed / 1 Bath 4 1,000 $1,300 $1.30

Average 25 898 $1,125 $1.25


Average 32 900 $1,250 $1.39


KANE GARDEN COURT3235 SE 1st Street, Gresham, ORTotal Units: 19 Avg Sq ft: 850Year Built: 1973 Avg Rent: $1,325


8



Average 19 850 $1,325 $1.56



Average Rent

$0

$600

$400

$200

$1,000

$800

$1,600

$1,400

$1,200

Aver

age R

ent –

Aver

age S

q Ft

$1,050$1,146 $1,150 $1,195 $1,249 $1,250 $1,255

$1,315 $1,329

Pine Wood Commons

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Overall AverageAverage Rent per Sq Ft

TWO-BEDROOM FLOOR PLANS


OPERATIONS ANALYSISGOLFSIDE APARTMENTS • 53 UNITS • GRESHAM, OR

Income September 2019 T3-months Annualized Current Scheduled Rents Projected Operations Note

Scheduled Gross Rent $645,398 $712,320 $13,440 $744,240 $14,042 1 Less: Vacancy/Credit Loss $0 0.0% -$35,616 -$672 -5.0% -$37,212 -$702 -5.0% 2

Net Rental Income $645,398 $676,704 $12,768 $707,028 $13,340 Other Income $60,011 $53,278 $1,005 $53,278 $1,005 3

Includes: Utility Billing (RUBs) $24,014 57.4% $23,403 $442 55.9% $23,403 $442 55.9% Includes: Miscellaneous $35,997 $29,875 $564 $29,875 $564

Gross Operating Income $705,408 $729,982 $13,773 $760,306 $14,345

Expenses September 2019 TTM % GOI Projected Operations

Per Unit % GOI Projected Operations

Per Unit % GOI

Real Estate Taxes $49,930 $52,366 $988 7.2% $52,366 $988 6.9% 4

Insurance $8,933 $8,112 $153 1.1% $8,112 $153 1.1% 5

Total Utilities $53,774 $53,774 $1,015 7.4% $53,774 $1,015 7.1%

Administrative/Advertising $17,685 $17,685 $334 2.4% $17,685 $334 2.3%

Fee Management $27,235 3.9% $29,199 $551 4.0% $30,412 $574 4.0% 6

Asset Management Fee $6,796 1.0% $0 $0 0.0% $0 $0 0.0% 6

On-site Payroll $50,972 7.2% $50,972 $962 7.0% $50,972 $962 6.7%

Landscaping $10,796 $7,429 $140 1.0% $7,429 $140 1.0% 7

Maintenance/Repairs $57,493 $42,572 $803 5.8% $42,572 $803 5.6% 8

Turnover $12,846 $12,846 $242 1.8% $12,846 $242 1.7%

Reserves $13,250 $13,250 $250 1.8% $13,250 $250 1.7% 9

Total Expenses -$309,710 -$288,206 -$289,419

Expenses per Unit -$5,844 -$5,438 -$5,461

% of Gross Operating Income 43.9% 39.5% 38.1%

Net Operating Income (NOI) $395,698 $441,777 $470,888



1. RENTS Golfside Apartments current scheduled rents average $1,122 per unit or $1.25 per square foot. Current rents are an average of $80 per unit, or 7.3% higher than September 2017 TTM rents. Rents found at Golfside Apartments’ competitors indicate the asset has the potential to continue to increase rents. Average rents for two-bedroom comparables average $1,236 per unit, or $1.37 per square foot; approximately 7.2% higher than Golfside Apartment’s current average two-bedrooms, which average $1,146 per unit or $1.20 per sq ft. Golfside Apartments’ market rents are projected at an average of $1,170 per unit or $1.30 per sq ft based on rents the asset has achieved and comparable market rents.

2. VACANCY/CREDIT LOSS The historical operations for the Golfside Apartments do not include vacancy. The current rents have been adjusted for a market-rate 5.0% vacancy, based on lender underwriting requirements.

3. OTHER INCOME Other income is based on September 2019 TTM operations at Golfside Apartments. The largest source of additional income is monthly utility charges (RUBs). Residents are charged flat fees for utilities, which generated $24,014 for September 2019 T3M annualized operations. The RUBs cost averages $46.80 per unit and covers water and sewer. The property pays for garbage services.

Utility Service Provider Responsibility

Electrical PGE Resident

Water/Sewer City of Gresham Resident

Garbage Gresham Sanitary Service Property


Current Rents Studio 1 Bed687 Sq Ft

2 Bed954 Sq Ft

$800 1

$975 1 1

$995 1 1

$1,020 1

$1,025 1

$1,035 5

$1,095 2

$1,100 2

$1,125 4

$1,145 2

$1,150 8

$1,165 10

$1,185 2

$1,190 1

$1,195 4

Total * 2 8 37

* Includes rent for occupied, non-employee units.


Studio 1 bedroom 2 bedroom

Sche

dule

d Re

nt

Average Rent Maximum RentMinimum Rent

$700

$800

$900

$1,000

$1,300

$1,100

$1,200

RENT VARIATION


RENT ROLL ANALYSIS: MARKET RENTS

Unit Type Unit Count Square Feet Average Scheduled Rent

Average Scheduled Rent

per Sq FtProjected Rent Projected Rent

per Sq Ft % Change

Studio 2 524 $898 $1.71 $995 $1.90 9.8%

1 Bedroom / 1 Bathroom 8 687 $1,021 $1.49 $1,035 $1.51 1.3%

2 Bedroom / 1 Bathroom 42 954 $1,146 $1.20 $1,200 $1.26 4.5%

3 Bedroom / 1 Bathroom 1 1,030 $1,350 $1.31 $1,350 $1.31 0.0%

Totals / Averages 53 899 $1,122 $1.25 $1,170 $1.30 4.1%

RENT ROLL ANALYSIS: SCHEDULED RENTS

Unit Type Unit Count Square Feet Lowest Achieved Rent

Highest Achieved Rent % Diff Average

Scheduled RentAverage

Scheduled Rent per Sq Ft

Studio 2 524 $800 $995 24.4% $898 $1.71

1 Bedroom / 1 Bathroom 8 687 $975 $1,035 6.2% $1,021 $1.49

2 Bedroom / 1 Bathroom 42 954 $975 $1,200 23.1% $1,146 $1.20

3 Bedroom / 1 Bathroom 1 1,030 $1,350 $1.31

Totals / Averages 53 899 $917 $1,077 17.9% $1,122 $1.25



EXPENSES

Unless otherwise noted below, operations for Golfside Apartments’ costs are based on September 2019 TTM operations.

4. PROPERTY TAXES Oregon’s property taxes are evaluated on a fiscal year starting July 1. Property taxes were published on October 15. The gross property taxes for Golfside Apartments total $53,986 for the 2019-2020 tax year. In Oregon, property taxes are not reassessed on sale and are limited to a 3.0% annual increase at the state level. Property taxes paid before November 1 each year receive a 3.0% discount. Most owners take advantage of the savings, and the projected operations include net property taxes for the 2019-2020 tax year, which total $52,366.

5. INSURANCE The property insurance is based on the current policy of $8,112 annually, or $153 per unit.

6. FEE MANAGEMENT The fee management is based on rent collections and averages 4.0% of GOI. An asset management fee that applies to the current ownership has been removed from projected operations.

7. LANDSCAPING Landscaping is based on the current contract of $619 monthly.

8. MAINTENANCE/REPAIR

Maintenance/Repair has been adjusted for one-time costs associated with the pool deck replacement.

9. RESERVES Lenders require reserves to be set aside to address future capital costs associated with any property as it ages. The projected operations include reserves of $250 per unit.

OPERATIONS ANALYSIS

TAX HISTORYTax Year

2017/2018 2018/2019 2019/2020Account #

R337274 $49,385 $51,474 $53,986

Total $49,385 $51,474 $53,986

% Change 11.83% 4.06% 4.65%



OFFER TERMS

QUESTIONS & TOUR REQUESTS:

Please do not disturb tenants.

All tours and inquiries regarding Golfside Apartments are to be directed to HFO Investment Real Estate at (503) 241.5541.

Greg Frick • [email protected]

Jack Stephens • [email protected]

Lee Fehrenbacher • [email protected]

Todd Tully • [email protected]

Adam Smith • [email protected]

Khari Gates • [email protected]

Rand Hoffman • [email protected]

Investment Real Estate 2424 SE 11th Avenue • Portland, Oregon 97214www.hfore.com • (503) 241.5541 • Fax: (503) 241.5548

Brokers licensed in the States of Oregon and Washington.

PRICE SUMMARYPrice $7,750,000

Per Unit $146,226

Per Sq Ft $163

Cap Rate 5.70%

Avg Square Foot 899 sq ft

Avg Rent $1,120 per unit

Avg Rent per sq ft $1.25


ASSET SUMMARY

Property Golfside Apartments

Location 1999 NE Division St

City, State Gresham, OR 97030

Year Built 1969

Total Units 53

Stories 2 stories

Approx NR Sq Ft +/- 47,642 sq ft

Avg Unit Size 899 sq ft

Acreage 2.12 acres


Golfside Apartments


HFO Investment Real Estate

2424 SE 11th Avenue • Portland, OR 97214www.hfore.com • 503.241.5541

Passion • Collaboration • Specialization

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Parties who receive this information from unauthorized parties shall not be recognized. ©2019 HFO Investment Real Estate LLC. Build your legacy is a service mark of HFO Investment Real Estate. Licensed in the states of Oregon and Washington.

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