le maison de jardin · and zoned r2.5. le maison de jardin is a stable, highly desirable apartment...

OFFERING MEMOR ANDUM

12 Units + Adjacent 5,000 Square Foot Lot • Portland, ORLE MAISON DE JARDIN

www.hfore.com • (503) 241.5541

Property Highlights

• Outstanding location

• Top-of-the-market rents

• Beautifully designed units

• High-end architectural finishes

• Tasteful historical character

INVESTMENT HIGHLIGHTS

2238 SE Madison Street • Portland, OR 97214LE MAISON DE JARDIN

1923 +/- 5,025

0.23

12

+/- 41952.17TOTAL UNITS YEAR BUILT

AVG UNIT SIZE (SQ FT)DENSITY (UNITS PER ACRE)

APPROX. NR SQ FT

LOT SIZE (ACRES)

2 HFO INVESTMENT REAL ESTATE

The property is being sold with the adjacent parcel of land. The parcel is 5,000 square feet and zoned R2.5. Le Maison de Jardin is a stable, highly desirable apartment community that will continue to differentiate itself from other apartments in the area for years to come and is a truly unique investment opportunity.

Le Maison de Jardin offers a rare opportunity to acquire a vintage apartment building in one of Portland’s hippest neighborhoods. The property consists of ten studios and two one-bedroom units and an on-site laundry care center. Original hardwood floors and unique light fixtures make any tenant feel right at home.

The property is within walking distance of SE Hawthorne Boulevard. The property is also walkable to one of the city’s premier green spaces, Laurelhurst Park, and is a short jaunt away from first-run films at the Cinemagic theater. Whether you are grabbing brunch at Jam or getting dinner at Castagna, the local food scene has something for everyone.

INVESTMENT SUMMARY

Greg [email protected](971) 717.6332

OFFERING SUMMARY

Tours and Inquiries: All tours and inquiries regarding the Le Maison de Jardin are to be directed to HFO Investment Real Estate at (503) 241.5541.

PRICING

ASSET SUMMARYProperty Le Maison de Jardin

Location 2238 SE Madison Street

City, State Portland, Oregon 97214

County Multnomah

Year Built 1923

Total Units 12

Approximate Sq Ft 5,025

Average Unit Sq Ft 419

Total Price $2,350,000

Building Price $2,100,000

Land Price $250,000

Per Unit $175,000

Per Sq Ft (Building) $417

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

0 Bedroom / 1 Bathroom 10 405 4,045 83.3%

1 Bedroom / 1 Bathroom 2 490 980 16.7%

Total / Averages 12 419 5,025 100.0%

3LE MAISON DE JARDIN • 12 UNITS • PORTLAND, OR

COLUMBIA RIVER

26

26

Forest Park

WASHINGTON

OREGON

LOCATION

VANCOUVER

HILLSBORO

BEAVERTON

CLACKAMAS

LAKE OSWEGO

TIGARD

PORTLAND

GRESHAM

Portland International Airport

217210

219

213

224212

99E

8

10

2 min8 min

11 min

LE MAISON DE JARDIN84

205

405

5

5


NE Sandy Blvd

NE Glisan St

NE 122nd Ave

NE 102nd Ave

NE 82nd Ave

NE 57th Ave

NE 42nd Ave

NE 33rd Ave

NE 24th Ave

NE 15th Ave

NE William

s Ave

NE 60th Ave

E Burnside St

SE Division St

SE Powell Blvd

SE Hawthorne Blvd

SE Holgate Blvd

NE Halsey St

Rose CityGolf Course

NE Broadway St

NE Knott St

NE Fremont St

NE Prescott St

SE Stark St

NE Killingsworth StPARKROSE

MT TABOR

MADISON SOUTH

MONTAVILLA

ALBERTA

Grant Park

Laurelhurst Park

Mt Tabor Park

Kelly Butte Natural Park

Rocky Butte Park

The Grotto

Gateway Shopping Center

Mall 205

205

84

5

DOWNTOWN PORTLAND

213

99E

26

LIFESTYLE CONVENIENCES AND EMPLOYERS

Le Maison de Jardin


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 METRO AREA The Portland Metro Area is one of the strongest apartment markets in the nation, as reflected in strong year-over-year rent growth and consistently tight vacancy. The area’s strong job market and high quality of life continues to attract new residents; approximately 65 people move here per day. New apartment construction has not caught up to the housing demand created by in-migration.

PORTLAND MARKET SNAPSHOT

4.42% Metro-area vacancy*

#2 for Oregon in Migration

in US*

7.4% Year-over-year rent growth*

$68,125 Median household

income

3.8% Unemployment rate

(June 2019)

48.2% Portland residents age 25+ years (with a bachelor’s degree or higher)

21,345 New Portland residents

(2016-2018)

38.3% Metro area renter-

occupied housing rate

4,474 Portland residents

per square mile

*Multifamily NW Apartment Report (Oct. 2018-2019) **United Van Lines


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.


OPERATIONS ANALYSISLE MAISON DE JARDIN • 12 UNITS • PORTLAND, OR

Income Current Scheduled Rents Projected Operations Note

Scheduled Gross Rent $160,440 $13,370 $168,462 $14,039 1Less: Vacancy/Credit Loss -$8,022 -$669 -5.0% -$8,423 -$702 -5.0% 2

Net Rental Income $152,418 $12,702 $160,039 $13,337 Other Income $13,416 $1,118 $13,416 $1,118 3

Includes: Laundry $1,307 $109 $1,307 $109 Includes: Parking $1,800 $150 $1,800 $150 Includes: Utility Billing (RUBs) $8,809 $734 $8,809 $734 Includes: Miscellaneous $1,500 $125 $1,500 $125

Gross Operating Income $165,834 $13,820 $173,455 $14,455

Expenses Projected Operations

Per Unit % GOI Projected Operations

Per Unit % GOI

Real Estate Taxes $14,811 $1,234 8.9% $14,811 $1,234 8.5% 4Insurance $4,717 $393 2.8% $4,717 $393 2.7%Total Utilities $11,319 $943 6.8% $11,319 $943 6.5% Fee Management $13,267 $1,106 8.0% $13,876 $1,156 8.0% 5Landscaping $1,200 $100 0.7% $1,200 $100 0.7%Maintenance/Repairs $9,600 $800 5.8% $9,600 $800 5.5%Turnover $4,800 $400 2.9% $4,800 $400 2.8%Reserves $3,000 $250 1.8% $3,000 $250 1.7% 6

Total Expenses -$62,713 -$5,226 -37.8% -$63,323 -$5,277 -37% Net Operating Income (NOI) $103,121 $8,593 $110,132 $9,178


OPERATIONS ANALYSISLE MAISON DE JARDIN • 12 UNITS • PORTLAND, OR

1. RENTS Rents are based on a September 2019 rent roll and average $1,114 per unit or $2.66 per sq ft. Projected rents are based on a 5% market-rate increase.

2. VACANCY The projected operations include a market-rate vacancy of 5.0%.

3. OTHER INCOME Other Income includes laundry, parking, and miscellaneous charges. The property also has a fully implemented utility billback program, capturing nearly 78% of the property’s utility expenses.

Type Units Count Avg Sq FtAverage Scheduled

RentsScheduled Rents

per Sqft Projected Rents Projected Rents per Sq Ft

0 Bedroom / 1 Bathroom 1 380 $1,105 $2.91 $1,160 $3.05







Total / Average 12 419 $1,114 $2.66 $1,170 $2.79


OPERATIONS ANALYSISLE MAISON DE JARDIN • 12 UNITS • PORTLAND, OREXPENSESLe Maison de Jardin’s professional management reflects market-rate operations with minimally adjusted expenses. The following expenses impact overall operations.

4. PROPERTY TAXES Oregon’s property taxes are evaluated on a fiscal year starting July 1. 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 prior to November 15 each year receive a 3.0% discount. Le Maison de Jardin’s gross taxes for the apartments and adjacent lot total $15,269. For underwriting purposes, projected operations include the property taxes for the 2019-2020 tax year with the 3.0% discount totaling $14,811.

5. MANAGEMENT FEE The management fee has been projected at 8.0% of GOI, which represents standard independent, third-party management costs for properties in the metro area similar to Le Maison de Jardin.

6. RESERVES Lenders require reserves be set aside to address future capital costs associated with any property as it ages. The projected operations include reserves of $250 per unit or $3,000 annually.

TAX HISTORY

Tax Year2018/2019 2019/2020

Account #

2 Tax Lots $14,820 $15,269

Total $14,820 $15,269

% Change 2.94%


2424 SE 11th Avenue • Portland, OR 97214www.hfore.com • Phone: (503) 241.5541

QUESTIONS & TOUR REQUESTS:

All inquiries, questions, or tour requests are to be directed to HFO Investment Real Estate at (503) 241.5541.

Please do not disturb the residents.

Greg Frick • [email protected] Jack Stephens • [email protected] Lee Fehrenbacher • [email protected] Smith • [email protected] Tully • [email protected] Gates • [email protected] Rand Hoffman • [email protected]

HFO Investment Real Estate 2424 SE 11th AvenuePortland, Oregon 97214

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

Brokers licensed in the States of Oregon and Washington.

OFFER TERMS

PRICING

ASSET SUMMARYProperty Le Maison de Jardin

Location 2238 SE Madison Street

City, State Portland, Oregon 97214

County Multnomah

Year Built 1923

Total Units 12

Approximate Sq Ft 5,025

Average Unit Sq Ft 419

Total Price $2,350,000

Building Price $2,100,000

Land Price $250,000

Per Unit $175,000

Per Sq Ft (Building) $417


HFO Investment Real Estate

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

Passion • Collaboration • Specialization

le maison de jardin · and zoned r2.5. le maison de jardin is a stable, highly desirable apartment...

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