The 56-unit Cedar Lane Apartments on East 33rd Street in Vancouver sold for $2,200,000. The sales price represents $39,285/unit and $49.55 per square foot. HFO represented the seller NEI Investors LLC. The buyer was Cedar Lane Associates LLC.
Constructed in 1972 at 3201 E 33rd St., the apartment complex contains mostly (38) two-bedroom, one-bath units totaling approximately 800 square feet and covers 10.54 acres. Amenities include a heated, solar-powered outdoor pool and a clubhouse. The capitalization rate was 9.55%, assuming 5% vacancy and expenses totaling 43.8% of the scheduled gross annual income.
“The property is good performer and sold at an attractive price because there was substantial deferred maintenance,” HFO Partner Cody Hagerman said. “The buyer is well versed in property management and will be making the necessary improvements that should allow him to raise rents and increase value.”
Forest Canyon Village, a 16-unit property 102000 block of Northeast 13th Avenue, sold for $990,000, which represents $61,875 per unit and $61.88 per square foot. The buyer was John Layerzaph of Bend and the seller was Stan Roman of California. HFO represented the seller.
Constructed in 1983 Forest Canyon Village consists of four four-unit buildings spread over 2.13 acres. All units have two bedrooms and two bathrooms. Amenities include garages and wood-burning fireplaces. The cap rate was 7.39%, assuming 5% vacancy and expenses totaling 46.8% of scheduled gross annual income.
“With each building sitting on its own tax lot and having fewer than five units the buyer was able to finance the acquisition with four separate residential loans instead of one large commercial loan,” Hagerman said. “As a result, he was able to obtain 70% financing in an otherwise tough lending environment.”