Price Reduced to $525,000 on 7-Plex in NE Portland #pdx #realestate #investment

Price has just been reduced on this 1975 7-plex in NE Portland. The building has five 2-bedroom 1-bath units of approximately 800 square feet and two 3-bedroom 2-bath units of approximately 950 square feet. The Metro Multifamily Housing Association's most recent survey indicated NE Portland had the third highest rent per square foot in the Portland metro area, with an average vacancy rate.

Please Do Not Disturb Tenants or On-Site Manager. For additional information about this property click here.

Metro Looking for Comments on New Urban Growth Map

The Metro Regional Government is looking for public comment on it's new map for urban and rural reserves.  This past week Metro staff uploaded this new map for public comment. Explanatory information about the map can be found at this section of the Metro website where you can sign up to get involved and read about public comment participation. In early 2010, you will have an opportunity to attend public open houses to view maps, learn about the rationale behind the boundary lines and read the intergovernmental agreements that will formally establish the reserves system.

Final maps and inter-governmental agreements are expected to be approved in February, 2010.

Apartment Security Amenities and Portland's New Crime Alert E-Mail System

According to an ongoing Apartments.com survey, 96 percent of respondents to a national survey said neighborhood crime rates influence where they choose to live. Not surprisingly, most renter survey respondents stated violent crimes including assault, battery, theft, and burglary concern them most. To protect themselves, renters are acting responsibly including keeping strangers out of the apartment community and are even willing to pay more in rent to live where they feel secure.

This year's survey revealed that renters are not feeling as safe as they have in previous years. There was a 12% drop in the number of renters who say they feel extremely to moderately safe living in their current neighborhood, to 66% from 78% in 2006. 

The city of Portland has recently unveiled its CrimeMapper2 notification system. This system allows users to obtain a monthly e-mail with a summary of crimes reported around a specific address or location within the City of Portland. CrimeMapper2 e-mail notifications is an easy and convenient way to track crimes that have occurred around a home or business. Notifications are sent monthly, soon after the CrimeMapper database has been updated. Subscribers can update their e-mail address, choose a different location, select different crimes, or stop receiving notifications at any time.

In addition to increasingly taking safety matters into their own hands, renters are looking for and willing to pay more rent for specific safety features. The top five safety features renters said they would pay more to have, when asked to choose all that apply, are:

• In-unit security alarm system: 49%
• 24/7 building security patrol guards and a doorman: 45%
• Security cameras on the apartment community property: 42%
• Mandatory background screening for all residents: 30%
• Cylinder deadbolt locks on windows and doors: 29%

Many professionally managed apartment communities and private landlords are doing their part to keep renters’ minds at easy by providing peepholes on apartment doors, securing windows and doors with locks and running background checks on potential residents.

Wishing you and your renters a safe and happy holiday season.

M&T Bank Joins HFO as Third Event Sponsor and Content Provider For 2010

HFO is pleased to announce that M&T Bank has joined as a sponsor for HFO's Investor Roundtables and as a content provider for our newsletter and blog updates. Watch this space for financial updates of interest to apartment investors.

Key contacts at M&T Bank are Tom Wiley with M&T Real Estate Trust (503.603.2116) and Joe DeCarlo, (503.603.2115) with M & T Realty Capital Corp. Learn more at http://www.mtb.com/.

Wells Fargo Economics Group: "Leading Indicators Show Recovery Underway"

In its report out today, Wells Fargo said that while there hasn't been much job growth in the recovery so far, this eighth consecutive monthly gain in the Leading Index was driven by signs of improvement in the job market, and indications that employers will gradually start hiring by Q2 2010.

Meanwhile, the Coincident Index*, which has been roughly flat since summer, increased 0.2 percent this month and has moved back into positive territory for the first time since the outset of the recession.

(*Coincident indicators are those which change at approximately the same time as the whole economy, providing information about the current state of the economy. Personal income, GDP, industrial production and retail sales are coincident indicators.)

USI Northwest Insurance Joins HFO as 2010 Event and Content Partner

HFO is pleased to announce that USI Northwest Insurance has joined as a sponsor for HFO's Investor Roundtables and as a content provider for newsletters and blog updates. Watch this space for insurance updates of interest to apartment investors.

Feel free to contact USI Vice Presidents Matt Hennessey (503.417.9474) or Ted Stark (503.224.8390) with your insurance-related questions.  More information at http://www.usi.biz/.

Portland Ranked in Top Three - Greatest Improvement in Effective Rent Q3 2009

The real estate research firm REIS reported that the national vacancy rate reached 7.8% in the 3rd quarter 2009.  We noted earlier that the Portland metro vacancy rate of 5.1% is the third lowest in the nation.

REIS reports that vacancy rates decreased in 26 of the top 79 markets that it tracks and increased in 42 markets.  Nationally, effective rents fell 0.3 from Q2 to Q3 but Portland tied for #3 with Atlanta, Georgia for improvements in effective rent.

Greatest Improvement in Effective Rent

1. Long Island, NY & Colorado Springs, CO (tie) +1.6%
2. Pittsburgh, PA - +1.4%
3. Atlanta, GA & Portland, Ore (tie) +0.9%

Greatest Declines in Effective Rent Q3

1. Tacoma, WA - down 1.9%
2. San Jose, CA - down 1.6%
3. Orange County, CA - down 1.4%
4. Richmond, VA - down 1.3%
5. Ventura County - down 1.2%

Despite increased job losses, the University of Oregon Index of Economic Indicators shows Oregon's recession is over

The Portland Business Journal reports today that the recent behavior of the UO Index remains consistent with the end of the recession in Oregon, said Tim Duy, director of the Oregon Economic Forum and a UO adjunct assistant professor.

Read more > > >

Barclays: Wealthy Investors Call Market Bottom, Show Faith In Real Estate

In its latest "Wealth Insight Report" released this week, Barclays declared that global investors remain loyal to property as an asset class.

Barclays Wealth, the leading global wealth manager published this new global report which - for the first time since the start of the recession - reveals wealthy investors' attitudes towards residential and commercial property investment.

The report reveals renewed confidence in residential and commercial property:

• Twice as many investors (35%) set to increase property allocation than decrease (17%) over next two years
• Investor perception of property as an undervalued asset class and belief in better returns than other asset classes
• Significant difference between property investment approach taken by men and women

Read more > > >

Multifamily Brightest Commercial Real Estate Investment for 2010, Report Says

The nonprofit Urban Land Institute and PricewaterhouseCoopers LLP have released the report "Emerging Trends in Real Estate 2010." This 76 page report on commercial real estate includes these highlights:

• Multifamily "is the only place with a hint of hope, because of demographic demand. Scarce construction sets the stage for a strong rebound in any economic turnaround. There could be a shortage of apartments by 2012.(p. 12)
• Portland ranks among the top US markets to watch for multifamily investment.(p. 28)
• Multifamily ranks as the top prospect for real estate investment in 2010 (p. 41)
• Pent up demand grows for apartments. Twenty-somethings who moved back in out of necessity want out of parents homes as soon as employment prospects improve. This huge generation Y cohort of young adults should be avid renters as they delay marriage and kids to build careers. (p. 43)
• On the supply side, the apartment development pipeline will run dry. (p.43)
• Multifamily investments historically provide the best risk-adjusted returns among property types - and current market experience reinforces investor views of the sector's relative resiliency.  (p. 45)

Download the full report free.

U.S. Census Bureau Ranks Portland / Vancouver / Beaverton Market 3rd Lowest in Rental Vacancy Rates

The U.S. Census Bureau has reported 3rd quarter vacancy rate estimates for the top 75 U.S. Metropolitan Statistical Areas (MSAs). The Portland/ Vancouver/ Beaverton area ranked as having the nation's third lowest vacancy rate. 

Lowest vacancy rates were reported as follows:

• Springfield, MA 1.8%
• Grand Rapids-Wyoming, MI 4.5%
• Portland-Vancouver-Beaverton, OR-WA 5.1%
• Nashville-Davidson-Murfreesboro, TN 5.7%
• New York-Northern New Jersey-Long Island, NY 6.1%
• Oxnard-Thousand Oaks-Ventura, CA 6.1%
• Providence-New Bedford-Fall River RI-MA 6.4%
• Boston-Cambridge-Quincy, MA-NH 6.7%
• New Haven-Milford, CT 7.1%
• Virginia Beach-Norfolk-Newport News, VA 7.1%
• Los Angeles-Long Beach-Santa Ana, CA 7.2%

 The MSA's with the five highest vacancy rates were as follows:

• Orlando, FL 28.1%
• Memphis, TN-AR-MS 26.0%
• New Orleans-Metairie-Kenner, LA 21.3%
• Greensboro-High Point, NC 19.9%
• Richmond, VA 19.7%

Read the full report online.