Tuesday, June 25, 2019

Multifamily Marketwatch - June 25, 2019

This week: the Portland City Council approved Commissioner Eudaly's tenant screening and security deposit ordinances with a 3-1 vote; proposed changes to the US census could result in an undercount of over 4 million residents nationwide, including over 75,000 people in Washington and over 35,000 people in Oregon; Democrats vying for the 2020 Presidential nomination are facing pressure from voters to address housing affordability.

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Sold! 36 Units in Beaverton, Oregon

HFO is pleased to announce the sale of this 36 unit property in Beaverton. The asset is walking distance to the WES commuter rail and Washington Square, Oregon's largest regional shopping mall. The property was well-maintained with newer windows and roofs, but the interiors had limited updates.

In the summer of 2018, a large portion of the siding was replaced and repainted, delaying full marketing of the property. The property was managed for occupancy and rents trailed the market. HFO was key in positioning the property against its historical operations with low rents and high expenses for a successful sale.

Thursday, June 20, 2019

City of Portland Announces Traveling Helpdesk for Landlords and Tenants

The Portland Housing Bureau Rental Services Office announced today it will begin a traveling helpdesk service on Saturdays throughout the summer. The plain is aimed at helping renters and landlords navigate the complex web of recently enacted rental housing regulations. Landlords and tenants can have their questions answered by the experts visiting a neighborhood library on select dates. Click here for the traveling helpdesk schedule.

Portland, Ore. Council Approves Sweeping Tenant Screening Ordinance

As reported in The Oregonian, Portland's city council approved significant restrictions on landlords' ability to screen tenants. Official rules will be drafted by the Portland Housing Bureau in the coming months and will take effect next March.  Read more.

Sold! 89 Units in Aloha, Oregon

HFO is pleased to announce the sale of this 89 unit building in Aloha, Oregon. This property was owned by the same owner/manager 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, June 19, 2019

Tuesday, June 18, 2019

Portland City Council Likely to Adopt Screening & Security Deposit Ordinances Weds. June 19

Following a final reading at 4:15 pm Wednesday, 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 the 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.

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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.

Monday, June 10, 2019

National Multifamily Housing Council Unveils Housing Affordability Toolkit

Washington, D.C. - The National Multifamily Housing Council (NMHC) announced the release of an all-new Housing Affordability Toolkit, which is intended to help guide discussions regarding specific housing affordability policies, tools, and incentives.

A growing number of families – at all income levels – are working to find housing they can afford. As such, communities across the U.S. are seeking solutions to solve our nation’s housing crisis. To help meet this demand, federal, state and local governments must come together to reduce barriers to developing more rental housing.

"There isn’t a universal solution to solving the affordability problem," said Doug Bibby, NMHC President. "It requires a multi-faceted approach and I’m thrilled our Housing Affordability Toolkit will help communities, lawmakers and industry stakeholders nationwide explore various approaches."

Developed in partnership with HR&A Advisors, the Housing Affordability Toolkit is divided into six sections and each section delves into a specific component of addressing the affordability challenge. The Toolkit also includes case studies of eight different markets around the country to paint a diverse geographic and economic picture of how affordability challenges can differ from jurisdiction to jurisdiction. Each part can stand alone or be combined with others to bolster the recommendations within the Housing Affordability Toolkit to guide housing affordability discussions.

To download the Toolkit, visit housingtoolkit.nmhc.org.

Final Vote Expected Wednesday at 10:30 am on Portland's Proposed Tenant Screening, Security Deposit Ordinances

No public testimony will be taken on the draft ordinances at this reading, but a vote may be taken. You can read the proposed tenant screening ordinance amendments along with the ordinance itself by clicking here.  

Meanwhile, Willamette Week obtained a copy of the City Attorney's analysis of the ordinance, which determined that the possibility of the ordinance being invalidated in court as "low to moderate." Read that story.

Multifamily Marketwatch Podcast - June 10, 2019

This week: Portland’s tenant screening ordinance moves forward to a possible vote by city council this Wednesday at 10:30 am at City Hall; Portland-area developers are bypass the City’s inclusionary housing requirements by constructing assets with fewer than 20 units, and a study finds that the migration of younger people into cities is more than a passing trend.

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Portland City Council Will Vote on Tenant Screening Ordinances This Wednesday

The Portland City Council plans to hold a vote on proposed tenant screening and security deposit reform ordinances Wednesday, June 12th at 10:35 AM. A public hearing on the newly revised ordinances was held at the end of May. While the revisions were intended to address concerns raised by the City Attorney's office, few substantial changes were made. Rent-to-income ratios would be capped at 2.5 times rent for units affordable to residents making 80% of AMI or less, while more expensive units would have a cap of 2 times rent. Read more.

Thursday, June 6, 2019

Sold! 24 Units in SW Portland, Oregon

This 24-unit property is located in the Goose Hollow neighborhood of downtown Portland. The asset's 24 two-bedroom townhomes average 967 square feet. The unique garden-court townhomes with off-street secured parking make it an attractive investment.

Units include a full-sized washer/dryer set, vaulted ceilings plus decks in select units. The property is within walking distance of Portland State University and the city's financial and cultural districts.

HFO was able to demonstrate management upside and long-term demand for this rare townhome product. The asset was purchased by an exchange buyer from California actively seeking to build a portfolio of properties throughout metro Portland.

Tuesday, June 4, 2019

Bill Prohibiting Landlords from Considering Past Marijuana Convictions Heads to Gov. Brown's Desk

Senate Bill 970 passed the Oregon House last week, and will now go to Governor Brown's desk for a signature. The bill prohibits landlords from considering past convictions for the use or possession of marijuana when screening prospective tenants. A second bill, Senate Bill 420, would enable Oregon residents to set aside past convictions for marijuana-related offenses that are no longer illegal. Read more.

07/25/2019 - Update: Gov. Brown signed the bill into law on June 6th and it will take effect on January 1, 2020. 

Sold! 12 Units in SE Portland

Ash Street Apartments
The seller of this property wanted to move the equity out of Portland and enlisted HFO to help achieve the sale. We brought an offer to the table that was accepted and the transaction went smoothly and closed quickly with a buyer in a 1031 exchange.

Monday, June 3, 2019

OPB Report: Portland Wants to Reduce Income-to-Rent Ratios - Landlords Push Back

At a public hearing last week, landlords pushed back against the City of Portland's proposed mandate that landlords accept renters as qualified if they show 2.5x rent as monthly income. The proposed reduction from the generally accepted income standard of 3x rent was not well received by many housing providers who are concerned the change will lead to more evictions. An eviction record could make it difficult for a tenant to rent in Portland for up to three years. Read more. 

Multifamily Marketwatch Podcast - June 3, 2019

This week: The City of Portland renter and tenant security deposit ordinances progress to a second reading on June 12th; Seattle rent rates are back on the rise, and the City of Tacoma is in the news as the nation’s hottest housing market.

Listen to our latest podcast.