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 firstname.lastname@example.org.
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.
Friday, November 30, 2018
Stark Street Station’s operations required adjustment for costs associated with capital improvements and owner-management. HFO Investment Real Estate worked with investors familiar with outer eastside neighborhoods of Portland and Gresham to complete a successful sale of the asset.
Wednesday, November 28, 2018
The ordinance requires:
- 20-day notice to vacate and relocation assistance for low-income tenants authorized by RCW 59.18.440, when a landlord intends to change the use, substantially rehabilitate, or demolish a dwelling unit.
- 60-day notice to vacate for no-cause eviction
- 60-day notice requirement for rent increase
- Distribute certain information
- Prohibits retaliation
- Allows installment payments for various deposits and fees
- Provides authority to enforce violations, as well as codification of relocation assistance when the City declares a building uninhabitable.
The code passed unanimously on November 20th and replaces the city's temporary protections that sunset on January 31, 2019.
Tuesday, November 27, 2018
Monday, November 26, 2018
Portland Tribune: Lawsuit Threatened Against City of Portland Over Unreinforced Masonry Warning Signs
Angie Even of Save Portland Buildings offers a recap and update on the status of the City of Portland's regulations on unreinforced masonry buildings inside the city limits of Portland.
Wednesday, November 21, 2018
The Blake was placed under contract off-market and was an exchange for the buyer. The newest phase of the property was under lease-up during escrow and operations were not fully stabilized as a result. These unstabilized operations challenged the property’s ability to place new debt. HFO worked with the management company and seller to help the lender achieve maximum value.
Monday, November 19, 2018
This week: Oregon economists are predicting that the state's economic growth will start to slow over the next two years, but do not anticipate a recession; local transportation advocacy groups are supportive of Portland's Central City in Motion plan, but have expressed concerns over a recently released parking loss mitigation strategy; and a new report in the Journal of Planning Education and Research finds that Millennial first-time home buyers are more likely to purchase homes near city centers than their Gen-X peers.
Thursday, November 15, 2018
Previously listed unsuccessfully by a national firm, HFO used its extensive market knowledge to communicate the special nuances of the opportunity and identified an experienced out-of-state private equity buyer.
Tribune Podcast: 147-Unit Broadstone Reveal Apartments in the Pearl Get Their Close-Up in Preparation for Opening
Monday, November 12, 2018
This week: historic midterm elections bring Democratic supermajorities to both chambers of the Oregon legislature and deepen the urban-rural divide in Washington; Portland, Tualatin, and Tigard are working on a plan to upzone land near the proposed Southwest Corridor MAX line; and the LA Times reports on the growing income inequality between landlords and renters.
Thursday, November 8, 2018
Update on the City of Portland's Unreinforced Masonry Placard Requirements & Status of Seismic Upgrades
Wednesday, November 7, 2018
While ballot measure 104, which would have required a 3/5 vote in each chamber in order to enact new tax increases, got only 33% of the vote, the new Democratic supermajorities in the house and senate will facilitate the passage of more progressive legislation at the state level, including revenue raising actions.
School bond measures were passed in Oregon City, North Clackamas, and Tigard-Tualatin. Metro-area voters also passed the $653 million affordable housing bond by a wide margin, with statewide voters enabling the bond to provide up to 3,900 homes through the passage of Measure 102.
Read the full results from the Oregonian here.
Monday, November 5, 2018
U.S. Census: Year-Over-Year Rental Vacancy Rates in Greater Portland Fall as Seattle Metro Vacancies Increase
Seattle/Tacoma/Bellevue's metro area vacancy rate was listed at 5.5%, up from 3.6% a year earlier.
Average National Rental Vacancy Rate
The average national rental vacancy rate for Q3 2018 was 7.1 percent for multifamily dwellings of five or more units -- 0.4% lower than one year earlier, despite ongoing delivery of multifamily units throughout the national market.
|Click to Enlarge|
U.S. Homeownership Rate Increases
After falling to a 26-year low in 2016, homeownership rate remained flat from the prior quarter. The current homeownership rate in the West increased from 59.7% to 60.2%.
|Click to Enlarge|
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Friday, November 2, 2018
Tuesday, October 30, 2018
Monday, October 29, 2018
This week: The US Treasury released new guidance for Opportunity Zone investments, which could be good news for developers; two new ECONorthwest reports find that a statewide housing shortage is contributing to regional unaffordability and homelessness; and a new survey from California reveals that voters there don't necessarily see eye to eye with academics and politicians when it comes to housing issues.
Wednesday, October 24, 2018
General Election Information
Video Voters' Guide
State Elections Website
FAQ about Elections in Washington State MyVote
Seattle Times - Election 2018: What You Need to Know
The Stranger's Endorsements for the November 6, 2018 General Election
Seattle Times Editorial Board Endorsements
Spokesman Review - Editorial Endorsements
The News Tribune Endorsements
Ballot Measures - Washington
NBC - What Is Initiative 1631?
Spokesman-Review - Big Money Pours into Fight over Washington's Carbon Fee
News Tribune - Here's What Yes and No Votes Mean for the "Grocery Tax," Washington Initiative 1634
Spokesman-Review - Lopsided I-1634 Campaign, with Millions from Soda Industry, Blankets Airwaves
Spokesman-Review - Advisory Vote 19 Involves a Tax on Crude Oil
King5 - What Is Washington I-1639 on Gun Safety?
Olympian - I-1639: a Big Nudge to Safety for Gun Culture
King5 - What Is Washington I-940 on Police Use of Deadly Force?
KOMO News - Both Sides of I-940 Agree "Use of Deadly Force" Measure May Just Be First Step
KREM2 - Rep. Cathy McMorris Rodgers and Lisa Brown to go Head-to-Head in Nov. Election
Columbian - McMorris Rodgers, Brown Spar on Taxes, Economy, and Health Care in Second Congressional Debate
Spokesman-Review - Where 5th District Candidates Stand on the Issues
Columbian OPB - Poll Shows Herrera Beutler and Long in Virtual Tie in Race for Congress
Spokesman-Review - Cantwell, Hutchison Get Down to Details at Spokane Community College Debate
Spokesman-Review - US Senate Candidates Debate Taxes, Guns, Civility
The Olympian - A Midterm "Kavanaugh Bump?" Why All Sides Are Watching this Washington District
King5 - Washington State Legislature Races to Watch This Election
OPB - Legislative Landscape to be Decided by Washington Voters
Seattle Times - Washington's Legislature: Democrats Could Pick Up 4 GOP Seats in Senate
Seattle Times - Beyond Seattle, Legislative Candidates Try to Woo Voters with Plans to East Housing Costs
Local Races - Clark County
Columbian - Clark County Hopefuls Clash on Issues
Columbian - Sequel of Sorts for Lebowsky, Fox in Unusual Race
Columbian - Stewart, Lentz Give Voters Clear Contrast
Columbian - Vancouver City Council Hopefuls Discuss Housing
Local Races - Spokane
Spokesman-Review - Spokane County Commissioner Candidates Debate Housing, Public Safety, Economy
Spokesman-Review - Jeff Holy, Jessa Lewis Vying for Washington's 6th District Senate Seat
Spokesman-Review - Spokane County Treasurer Candidates Square off over Office's Role in Policymaking, Proper Investments
Tuesday, October 23, 2018
Monday, October 22, 2018
Meanwhile, could Portland's increasing rental regulations be contributing to the selloff in area homes? Read: "Homes For Sale Stack Up Across Portland Metro." [Note: prices are still increasing despite the additional homes being marketed.]
This week: Will Oregon's record low unemployment rate and increased hiring plans by employers put upward pressure on wages? The Portland metro area apartment vacancy rate remains relatively flat from a year ago according to a new report, and in Washington State, the legislature appears up for grabs in the midterm election which may result in rent control being taken up once again in the coming year.
Thursday, October 18, 2018
|(L-R) Aaron Kirk Douglas, Craig Wessel|
In a recently published article for the Sightline Institute Author Michael Anderson argues: "Portland should legalize apartment buildings near its future rail stations, then find offsets that ensure a meaningful number of those new homes are affordable to people who truly need to ride the train."
Wednesday, October 17, 2018
The metro-area rental vacancy rate has decreased slightly over the past six months, but the current 4.4 vacancy rate was basically unchanged from 4.37 percent one year ago.
Submarket vacancies were reported as follows:
Click here to view and download the full report.
Monday, October 15, 2018
Thursday, October 11, 2018
City of Portland: URM Signage Required on Private Buildings by March 1, 2019 | Commission Takes Up Renter Screening Proposal Tuesday 10/16/18
The signs are required to be durable 8”x10” placards with 50-point bold font lettering that are posted in a conspicuous location on the exterior at the main entrance stating:
This Building is an Unreinforced Masonry Building. Unreinforced Masonry Buildings may be unsafe in an event of a Major Earthquake.Timeline:
January 1, 2019 - publicly-owned buildings
March 1, 2019 – privately owned buildings
November 1, 2020 - non-profit buildings
Tenant Notification and Lease Notices
- Building owners must notify existing tenants that the building is an unreinforced masonry building, and that unreinforced masonry buildings may be unsafe in the event of a major earthquake.
- Every lease or rental agreement entered into or renewed after the timeline for placarding noted above, must contain the above statement.
- Building owners must record an agreement not to remove the placard and acknowledgment of compliance with tenant notification requirements.
Read more in The Mercury
REVISED RENTER SCREENING PROPOSALMeanwhile, the City of Portland Rental Services Commission will take up the issue of the Renter Screening Proposal once again on Tuesday, October 16, 2018, from 2:30-5 pm. Public testimony will be taken from 3:10 to 3:40 pm. The meeting will be held at the Portland Housing Bureau, 421 SW 6th Avenue, Suite 500, Portland, OR 97204. Read the fully revised September 27, 2018 draft.
Monday, October 8, 2018
This week: An 18-month review of the City of Portland inclusionary Housing Program leads the Housing Bureau to plan refinements to the program. The Portland City Council will vote Wednesday morning on an ordinance requiring owners of unreinforced masonry buildings to post signs stating the builds are unsafe. And the New York Times reports a national cool-down in the housing market as prices outpace wage growth.
The Portland City Council did not vote on October 3rd on the placard/notice issue. They are taking a vote on Wednesday, October 10th at 9:45 am at City Hall. Read the final draft here.
The Rental Services Commission (RSC) serves as the primary public forum for discussion of rental housing law and regulation, and renter-owner programs and services in the City of Portland. The group recently paused (for now) its plans to set up regulations on tenant screening and security deposits. However, this plan is expected to be discussed at a meeting rescheduled to Tuesday, October 16th - time TBA.
RSC meetings are open to the public and public testimony is invited. Agendas and meeting materials will be posted online here. For more information, visit www.portlandoregon.gov/phb/RSC. Click here to sign up for the Rental Services Commission email list to receive meeting notices and related updates.
Next meeting: Tuesday, October 16, 2018 [rescheduled from Weds. Oct. 10th]
Place: Portland Housing Bureau, 421 SW 6th Avenue, Suite 500, Portland 97204
This post updated September 25, 2018 with additional information.
This post updated again October 8th with the cancelation of its 10/10 meeting which was rescheduled to 10/16.
Friday, October 5, 2018
Thursday, October 4, 2018
- Annual rent increases are below 2%
- Concessions have increased by 2-3%
- Occupancy at delivery rates have fallen to 30%
Wednesday, October 3, 2018
Tuesday, October 2, 2018
Monday, October 1, 2018
This week: Metro Council is working now on plans to quickly allocate monies to build or preserve up to 3,900 units of affordable housing if a $516 million bond levy is supported by voters in next month's midterms; US Senator Elizabeth Warren proposes a federal bill that would raise estate taxes to bankroll a $500 billion fund for affordable housing.