Tuesday, June 18, 2019

Portland City Council Likely to Adopt Screening & Security Deposit Ordinances Tomorrow, June 19

Following a final reading tomorrow at 4:15 pm, the Portland City Council is expected to pass Commissioner Eudaly's proposed screening and security deposit ordinances. Last week, the council passed nine of 10 proposed amendments.

A final adopted version will be available relatively soon after tomorrow's meeting.

Sold! 40 Units in NW Portland, Oregon

This 2018-property features a diverse mix of units including some studios -- a rarity for suburban apartments. All flats include a private deck and an in-unit washer/dryer. The site has ample off-street parking. This highly desirable Washington County location is one mile north of Tanasbourne Town Center and adjacent to Portland Community College's Rock Creek Campus.

The asset was taken to market after completion and management companies were switched during lease-up, which resulted in limited historical operations and a longer timeline to full occupancy.

HFO successfully found a buyer seeking new product that was able to offset the impact of the property's limited financials.

Monday, June 17, 2019

Multifamily Marketwatch Podcast - June 17, 2019

This week: The Portland City Council appears poised to adopt a proposed renter screening ordinance that some argue will only serve to increase homelessness; Oregon House Bill 2001 moved forward in the state legislature, the bill would legalize duplexes, triplexes, and fourplexes in single-family neighborhoods in all cities with more than 25,000 residents; and a new report finds that tech workers from some of the most expensive cities on the West Coast are viewing Portland as a more affordable alternative.

Listen to our latest podcast.

Multifamily NW: Portland's New Tenant Screening Will Likely Lead to Increased Homelessness

In an op-ed, Multifamily NW stated that Portland will likely see homelessness rates increase as a result of additional evictions caused by the reduction in rent-to-income ratios.

For decades, many landlords and banks have held firm to the standard that a person should not rent a unit or buy a home that is more than 30% of gross income. The new standard set by Portland would be 50% of gross income. For people living paycheck to paycheck, any bump in the road in terms of a medical emergency, job loss or other emergency situation could lead to there not being enough savings to avoid eviction. Evictions follow a renter around for three years, which will make re-renting even more difficult for someone in that situation.

Read the op-ed piece here. 

Thursday, June 13, 2019

Sold! 197 Units in Portland's Bethany Area

This 2002 asset was originally built as condos with oversized two-and three-bedroom floor plans. Amenities include private decks, a full-sized washer/dryer, gas fireplace, HVAC, and master bedrooms with vaulted ceilings. A road improvement project impeded rental income for over a year. HFO worked with potential buyers to highlight the assets' typical stabilized operations along with a long-term exit strategy.

Wednesday, June 12, 2019

Report: U.S. Tech Workers Migrating to Portland as "Affordable Alternative"

The online data service Apartment List reports that Portland is seen as an affordable alternative to San Francisco and Seattle. The company compiles data on user searches to determine where people are looking to make their next home. Read more in Rental Housing Journal online.  

Report: Portland Rent Growth Cools to 1.9% in 2019

The software and data firm Yardi Matrix reports that rent growth for the Portland multifamily market will cool to an estimated 1.9% in 2019. The company says rents are remaining flat due to the delivery of more than 5,000 units in 2018.

“The metro added 27,500 positions in 2018, a 2.4% year-over-year employment growth rate. The construction boom taking place in the metro is supported by the office sector, which has more than 2.4 million square feet of space under construction,” the Yardi Matrix report says.

“With more than 9,320 units underway and some 6,900 units expected to be delivered this year, there are major concerns about oversupply, but a strong occupancy rate is indicating that there is a rapid absorption of new deliveries and demand for housing outpaces supply. The high occupancy rate and steady rent growth are drawing investors to the metro.

“With demand high, we expect rents to rise 1.9% in 2019,” the report says.

Read more.

Tuesday, June 11, 2019

Sold! 9 Units in SW Portland

Built in 1902, this asset consists of spacious one-, two-, and three-bedroom units. The remarkable archecture was designed by A.E. Doyle, known for his work on the Multnomah County Central Library and the Benson Hotel in downtown Portland.

This apartment building was owner-managed and rents were significantly below market. Utilizing our extensive network of investor relationships, HFO secured a buyer with the wherewithal to close on this unique property.