Liz Abauf of Prosper Portland discusses recent developments with the Broadway Corridor, Lents, and Alberta area projects. Prosper Portland was previously known as the Portland Development Commission. Prosper Portland serves as the redevelopment and economic development agency for the City of Portland.
Monday, December 31, 2018
Wednesday, December 19, 2018
- Vacancy and rent concession rates were above the 7 year average in 2016 and 2017
- The median home price rose 58% between 2011 and 2017
- Racial diversity in the city is increasing in almost every neighborhood except MLK-Alberta, the Interstate Corridor, and St. Johns
- Central City, MLK-Alberta, and Lents-Foster were the fastest growing neighborhoods between 2011 and 2016
- Northwest, the Central City, and South Portland-Marquam Hill saw the highest level of household growth
- Portland added 7,300 new housing units in 2017 - 91% were in multifamily buildings
Monday, December 17, 2018
This week: TriMet may spend twice as much on free park-and-ride lots than affordable housing along a planned MAX line; a study by Zillow indicates that in cities with residents spending more than one-third of income on housing, homelessness increases; and local Portland governments are working on an agreement to use lodging and tourism tases for homeless services.
Saturday, December 15, 2018
County assessors have been directed by the Oregon Department of Revenue to value newly completed income properties, including multifamily, at stabilized occupancy regardless of where the property is in lease-up.
Assessors are starting the income approach assuming 95% occupancy.
Assessors are assuming that concessions are temporary, and in many cases are using rents from the property’s website displaying asking rents -- not effective rents. Assessors are using low expense ratios—failing to recognize that over typical investment period expenses will increase as properties mature. For newly completed properties these are aggressively low in our opinion.
For 2018 and 2019 it will be critical to monitor assessors’ valuations as the multifamily investment market has changed from the last valuation cycle for newly completed properties with a 1-1-17 valuation date.
For 2018 assessments being mailed in November, the appeal deadline will be December 31, 2018.
New Construction Exemption Requirements
The Oregon Legislature passed legislation providing an exemption of newly constructed improvements for up to two years. The requirements are as follows:
1. The property is income-producing;
2. The property is under construction as of January 1 for the year in which the exemption is sought;
3. There has been no occupancy or income prior to that date; and
4. Construction is expected to take more than one year from commencement.
Commencement of construction is normally interpreted to be the pouring of foundation for the vertical building. Demolition and land preparation do not qualify as the commencement of construction.
The application deadline is April 1 for the tax year in which the exemption is sought. Timing is important to maximize the benefit of the exemption. Development should commence early in the calendar year. If you commence construction late in the calendar year you are not taking full advantage of the exemption. Please remember that this exemption applies to all types of income producing properties.
Christopher K. Robinson is an attorney specializing in property tax issues. He can be reached by phone at (503) 635-9330 or by e-mail at email@example.com.
Friday, December 14, 2018
Thursday, December 13, 2018
Wednesday, December 12, 2018
The unique conversion and newer construction - which included abated property taxes for 8 years - made Campus Lofts an attractive investment opportunity. The lease of the property and unstabilized operations—as well as the unknown market conditions in Olympia—was challenging to investors unfamiliar with the area. HFO positioned Campus Lofts as an opportunity to get in on the ground floor of multifamily housing in the state capitol’s emerging urban core.
Tuesday, December 11, 2018
Mr. Robinson also discusses inclusionary zoning. His prediction: the city realizes it has not worked and will be making changes.
Finally, Mr. Robinson discusses federal opportunity zones and the attempt to encourage new development in underdeveloped areas.
Monday, December 10, 2018
This week: The Seattle Planning Commission has found that restrictive single family zoning is contributing to segregation and income inequality; the Portland Housing Bureau is re-evaluating spending of the 2016 affordable housing bond with the recent passage of a recent change in state law, and a new study finds that low-income residents living in states with expanded Medicaid are less likely to miss rent and mortgage payments.
Friday, December 7, 2018
Susan Marie was owned by the same owner/manager Susan Marie for more than 10 years. Although well maintained, the asset was purchased for its value-add opportunity. A portion of the units had been updated with washer/dryers. The new owner plans to upgrade unit interiors to market standards.
Wednesday, December 5, 2018
Read the Institute for Justice news release on the lawsuit here
Read Seattle's Rental Registration and Inspection Code here
Read the King County Superior Court Complaint filed against the City of Seattle
The property offers direct access to Portland’s downtown and eastside neighborhoods. Approximately 80% of the Binford Garden Townhomes are two-story townhomes averaging 1,057 sq. ft.
The property had been owner-managed for occupancy for more than 35 years. This long-term, owner management required strategic positioning for sale. Binford Gardens had to be marketed using projected operations because costs not associated with the property appeared in historical operations.
The HFO team also helped property owners overcome additional challenges that included its vintage. Unlike most assets of similar age, Binford Garden’s mechanical systems—including heat and electrical systems—were all original. HFO effectively demonstrated the opportunity in rent upside available to a new owner through market-rate management and value-add mechanical updates.
Tuesday, December 4, 2018
There are a number of issues the city will be lobbying for at the state level relating to housing. They include:
- Establishment of a "just-cause eviction standard"
- Advocacy of rent control
- Funding tax exemption for developers who include affordable units in their projects
- Funding for social services for newly housed people
A final version of the agenda is due to be adopted on December 19th.
Monday, December 3, 2018
Oregon's governor released her proposed $23.6 billion budget which includes $406 million for new affordable housing units, construction financing, and programs to help the homeless; Portland State University's population research Center says Oregon grew by more than 50,000 residents in the past year, and the federal reserve signals it may less aggressive in raising interest rates over the next few years.