All Forum Posts by: Brian Claar

@James Dickens We have a property manager handling the property. This is currently the only property we have in the area, but we are looking for more.

Investment Info:

Large multi-family (5+ units) commercial investment investment in Beaverton.

Purchase price: $2,065,000
Cash invested: $500,000

INVESTMENT HIGHLIGHTS
Fifteen Spacious Two-Bedroom Units
High-Demand Beaverton Submarket –Suburb to Portland, OR
Select Units with Washer/Dryer Hookups, Garages
Heavy Lifting Complete –Upside Through Cosmetic Interior Upgrades
Diverse Employment Drivers Include Intel, Nike, Tektronix, Columbia Sportswear

Built in 1980, the Oak Villa Apartments is an apartment community located in Beaverton, OR. This 15-unit complex is situated on a single parcel totaling 0.42 acres and features all two-bedroom units averaging approximately 775 square feet. The property offers tenants either washer/dryer hookups or onsite laundry facilities, private balcony or patio space, and garage/storage space. Each unit is separately metered for electricity, and there is currently a reimbursement system, or RUBs, in place for additional utilities.

Oak Villa Apartments represented an excellent value-add opportunity and benefited from continued interior upgrades that were completed after purchasing. After surveying the competitive set as well as recent demand at the subject property, the post-renovation rents for units at Oak Villa Apartments yielded monthly premiums between $100 -$240 above current average rents. Furthermore, amplifying the value-add program and bringing the interior finishes to a higher standard resulted in an additional premium above the current renovated market rate.

Investment Info:

Large multi-family (5+ units) commercial investment investment.

Purchase price: $2,065,000
Cash invested: $500,000

INVESTMENT HIGHLIGHTS
Fifteen Spacious Two-Bedroom Units
High-Demand Beaverton Submarket –Suburb to Portland, OR
Select Units with Washer/Dryer Hookups, Garages
Heavy Lifting Complete –Upside Through Cosmetic Interior Upgrades
Diverse Employment Drivers Include Intel, Nike, Tektronix, Columbia Sportswear

Built in 1980, the Oak Villa Apartments is an apartment community located in Beaverton, OR. This 15-unit complex is situated on a single parcel totaling 0.42 acres and features all two-bedroom units averaging approximately 775 square feet. The property offers tenants either washer/dryer hookups or onsite laundry facilities, private balcony or patio space, and garage/storage space. Each unit is separately metered for electricity, and there is currently a reimbursement system, or RUBs, in place for additional utilities.

Oak Villa Apartments represented an excellent value-add opportunity and benefited from continued interior upgrades that were completed after purchasing. After surveying the competitive set as well as recent demand at the subject property, the post-renovation rents for units at Oak Villa Apartments yielded monthly premiums between $100 -$240 above current average rents. Furthermore, amplifying the value-add program and bringing the interior finishes to a higher standard resulted in an additional premium above the current renovated market rate.

What made you interested in investing in this type of deal?

Value Add capabilities. Our investment strategy is to purchase under-performing assets in up and coming locations and complete market acceptable upgrades and improvements. This investment fit all these parameters.

How did you add value to the deal?

Renovating interiors including new cabinets, flooring, fixtures, painting, and appliances. Resurfacing the parking lot and adding paid storage. Servicing tenants maintenance requests quickly and efficiently.

What was the outcome?

Recent appraisal indicated an increased value of $400,000 based on our improvements.

@Genna Golden The contractors I used have experience in both apartments and single family renovations. I liked this property because it was townhouse style, but still only one tax lot so it essentially functioned like an apartment complex.

@Jeff S. Thank You! Rents pre-renovation averaged around $900/mo. Post renovation were around $1450/mo + RUBS. From what I know the buyer did use financing.

@Joe Bourguignon Thank you!

@James Ayers It was not fully occupied. One of the units was vacant, however all of the units did need updating. For the interior, the average per unit reno cost was around $30k. The property did not cash flow during renovation as it was fully vacant. I made loan payments via the construction loan.

I'm up for grabbing lunch sometime to discuss the project in further detail and what future projects might look like. 

@Dan Z. Thank you.

@Alex Bekeza PTB offers a hybrid that equates to 80% purchase and 85% Loan to cost. Rates are a little bit higher - in the 6% range, but they are great with construction financing. Let me know if you would like an introduction to my lender. They are limited to lending in the Willamette Valley however.

Investment Info:

Large multi-family (5+ units) fix & flip investment.

Purchase price: $750,000
Cash invested: $400,000
Sale price: $1,705,000

The Bellevue Townhomes features eight fully renovated units in the heart of Gladstone, Oregon. The property offers two and three-bedroom floor plans between 900-1,000 square feet. Each unit has a full bathroom upstairs and a guest bathroom on the first floor.
Completely renovated in 2018, these modern units feature beautiful luxury vinyl plank flooring, all new interior doors and fixtures, new cabinets.

What made you interested in investing in this type of deal?

The ability to get an offmarket, underperforming asset so we could fix and force appreciation through higher rents.

How did you find this deal and how did you negotiate it?

Off market with a local apartment broker.

How did you finance this deal?

Local community bank

How did you add value to the deal?

Total renovation including new roofs, siding, and plumbing. Completely gutted and remodeled all interiors to high end flooring, cabinets, and countertops.

What was the outcome?

Sold property for $1,705,000.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes, I would highly recommend Pioneer Trust Bank based out of Salem, OR. They provided purchase and construction financing at a good LTV.