Tuesday, July 31, 2018

Sold! 51 Units in Gresham, Oregon

Gresham Park (1991) was a value-add opportunity. Some exterior work had been completed, but the units were original and would benefit from updating.  The seller was in the middle of a 1031 exchange and needed the certainty of a closing timeframe. HFO utilized existing relationships in the market to quickly identify a pre-qualified investor in a 1031 exchange and to structure a deal that worked for the seller. Call an HFO broker at (503) 241-5541 for more details on this transaction.

Thursday, July 26, 2018

Sold! 10 Units in Beaverton, Oregon

Allen Terrace (1973) was an off-market opportunity that HFO sourced, negotiated and closed with a client who was in a 1031 exchange. Both Buyer and Seller benefited from a quick transaction that was successfully navigated by HFO.

For additional information about the sale of this property, please contact an HFO broker at (503) 241-5541.

U.S. Census: Year-Over-Year Portland and Seattle Vacancies Fall

The U.S. Census Bureau reported today that second quarter 2018 rental vacancy rate for the Portland/Vancouver/Hillsboro metro area was 4.8%, a 1.2% increase from the first quarter but a decrease of 1.9% from a year earlier.

Seattle/Tacoma/Belevue's metro area vacancy rate was listed at 4.1%, down from 4.7% a year earlier.

Average National Rental Vacancy Rate
The average national rental vacancy rate for Q2 2018 was 6.8 percent for multifamily dwellings of five or more units -- 0.5% lower than one year earlier, despite ongoing delivery of multifamily units throughout the national market.

Year-over-year vacancy rates in the Western U.S. decreased, from 6.0.7% to 5.1%.

Click to Enlarge
U.S. Homeownership Rate Increases
After falling to a 26-year low in 2016, homeownership rates nationally have begun to increase. The current homeownership rate in the West were flat at 59.7%.

Click to Enlarge

Portland City Council Voted to Create Inventory of Rental Housing

The Portland City Council voted Wednesday to create an inventory of rental housing in the city, which will require all landlords (including those who only rent a single unit) to register their rental property with the city in April 2019 tax filings. The city estimates that the registry will cost $648,000 in the first year, and Mayor Wheeler hopes that the system will provide a "single source of reliable quality data." Read more.

Wednesday, July 25, 2018

Portland City Council Voting Today on Residential Rental Registration Program

The Portland City Council is holding a vote today on a policy to create a so-called Residential Registration Program. The program would require all landlords to register property with the city, and be subject to routine inspections. If the vote passes, landlords would be expected to register by April 15, 2019. Read more.

West Hills Residents Say the City of Portland Is Making Them Pay to Fix City Streets

The Willamette Week reports that residents of the West Hills, where landslides during recent winters have caused road closures, are being told by the Bureau of Development Services and Portland Bureau of Transportation that they are responsible not only for cleaning up after landslides, but also for mitigating future damage. Dave Pollock, a retiree who previously taught at Centennial High School, says he has been fined a total of $6,000 for not repairing landslide damage in February 2017. According to Pollock, the city is also requiring him to pay $400,000 for a new retaining wall along SW Skyline Boulevard.The Bureau of Development Services is allowed by city code to require homeowners to pay to repair conditions on their property that may affect public roads, and has issued notices to 42 homeowners after the winter of 2016-17. Read more.

Tuesday, July 24, 2018

Sold! 14 Units in HIllsboro, Oregon

The buyers of the Talisman Apartments (1973) approached HFO in the late stages of a pending 1031 Exchange, seeking help to identify an up-leg. Through its network of relationships, HFO was able to locate the opportunity to acquire the Talisman. The buyers intend to make strategic improvements to increase the property’s value. For additional information about this sale, contact an HFO broker at (503) 241-5541.

Monday, July 23, 2018

City Observatory: Nattering Nabobs of NIMBYism at the New York Times

Tim Egan at the New York Times complained recently about the "unholy alliance" of developers and socialists who were going to ruin Seattle by planning for greater density.

Ethan Seltzer, Emeritus Professor of the Toulan School of Urban Studies and Planning at Portland State University responded with an opinion piece. Seltzer previously served as President of the City of Portland Planning Commission and the Land Use Supervisor for Metro, the regional government.

Read the story.

Friday, July 20, 2018

HUD Report Cites Land Use Regulations, Permitting Processes, and NIMBYism as Barriers to Producing Affordable Housing

A report from the Spring 2018 issue of Evidence Matters, a journal published by the Office of Policy Development and Research at the US Department of Housing and Urban Development, highlights the impact regulatory burdens and NIMBYism have on housing production. The report discusses conclusions from a number of different housing studies, including a study by the National Association of Home Builders that found that nearly a quarter of the price of a new home can be attributed to the cost of government regulations. Read more.

Thursday, July 19, 2018

Sold! 33 Units in Beaverton, Oregon

A buyer in an exchange approached HFO to find a property in Beaverton to purchase. HFO levered its existing market knowledge and relationships to find a property that fit the buyer’s 1031 criteria. We were able to bring both parties together to successfully achieve their goals in an exchange involving 33-unit Tyee Apartments (1967). For additional information about this sale, call an HFO broker today at (503) 241-5541.

Wednesday, July 18, 2018

Plans Scrapped for Unique 12-Story Wood Tower in Portland

Plans for a one-of-a-kind 12-story building called Framework have been scrapped. The planned developed included 60 affordable housing units. A recent failure in the manufacturing process had been identified after a cross-laminated building at OSU had construction halted in March. Willamette Week reported that the project had a funding gap of around $2 million since last year. Per square foot costs of building the project had soared to $651.43 or $567,389 for each 660 square foot 2-bedroom apartment. Read more.

Spokane Mayoral Candidate Argues for Denser Development, Elimination of Parking Minimums

Spokane City Council member Ben Stuckart is running for Mayor, and has built his platform on the need for denser development in the city. According to the Pacific Northwest Inlander, Stuckart has spoken out against NIMBY-ism and has tried to eliminate parking minimums in the city. He has also met with developers in an effort to have an "open mind about how to solve a problem." Despite push-back from neighborhood groups and his fellow city council members, Stuckart is optimistic that a denser Spokane would attract major companies, grow city revenues, and bring people together. Read more.

Tuesday, July 17, 2018

Sold! 40 Units in Hillsboro, Oregon

West Main at the Park (1994) was successfully marketed and positioned by HFO, garnering multiple offers. Because of the high activity level generated by this listing, the sellers were able to close the sale above the initial list price with an all-cash offer. For more information about this sale, contact an HFO broker at (503) 241-5541.

Monday, July 16, 2018

Today's Luxury Housing Will Be Tomorrow's Workforce Housing

Joe Cortright wrote in his City Observatory blog last week about "filtering" in the Portland metro area. Throughout the city's current building boom, residents have pointed out that new construction has been concentrated at the high end of the market. According to Cortright, this is not unusual. In fact, many buildings that is currently mid-market housing was built as luxury housing 50 or 100 years ago. While filtering is not a short-term solution to high housing costs in Portland, Cortright points out that the biggest impediment to maintaining a supply of naturally occurring affordable units in the long term are periods where housing does not get built. Read more.

Thursday, July 12, 2018

Sold! 41 Units in Beaverton, Oregon

Menlo Square was owned by a long term investor and sold with a sister property—Center Square—that shared management. The asset featured large townhomes with air conditioning and vaulted ceilings, an unusual floor plan in the area.

The property was managed for occupancy rather than cash flow, and rents trailed the market. HFO Investment Real Estate positioned the property as a value-add opportunity and worked with a number of interested parties selected due to their value-add experience. For additional information about this recent sale call an HFO broker at (503) 241-5541.

Wednesday, July 11, 2018

Yardi Matrix: Portland Rents in June up 2.2% Year-Over-Year

RentCafe reports national rents show an average year-over-year increase in June of 2.9%. Portland's increase was 2.2%. Read more.

UW Study: Washington State Apartment Vacancies Tumble

The University of Washington Department of Real Estate reports that Washington's statewide Apartment vacancy rate fell from 3.7% to 2.7% this spring.

County vacancy rates for the following counties were reported as follows:

Benton/Franklin - 1.1%
Chelan/Douglas - 1.1%
Clark - 2.1%
Cowlitz - 1.2%
King -3.8%
Kitsap - 3.6%
Kittitas - 0.7%
Pierce 3.6%
Skagit - 0.9%
Snohomish - 4.0%
Spokane - 1.3%
Thurston - 3.7%
Walla Walla - 1.7%
Whatcom - 1.3%
Whitman - 2.4%
Yakima - 0.8%

Read more

Tuesday, July 10, 2018

Sold! 62 Units in Beaverton, Oregon

Center Square Apartments (1972) was owned by a long term investor and sold with Menlo Square—a sister property that shared management. The asset enjoys a strong location a short distance from the Cedar Hills Town center in Beaverton, walking distance to the MAX light rail.

Center Square was managed for occupancy rather than cash flow, and rents trailed the market. HFO Investment Real Estate positioned the property as a value-add opportunity and worked with a number of interested parties targeted because of their value-add experience. For more details on this sale contact an HFO broker at (503) 241-5541.

Friday, July 6, 2018

Sold! 15 Units in Close-In SE Portland, Oregon

Ridgewood Apartments (1972) had a long-term owner, high amounts of deferred maintenance, and low rents. The seller was in the middle of a 1031 exchange and had already identified their exchange property.

HFO successfully met the challenge of locating a buyer who could meet the seller’s closing expectations and specific closing deadline. HFO also helped the buyer source additional funds, so the original timeline was maintained. For additional information on this sale contact any HFO broker at 503-241-5541.

Tuesday, July 3, 2018

Sold! 12 Units in Close-in NE Portland, Oregon

Located in an up-and-coming area of Northeast Portland, the Killingsworth Apartments (2017) feature a new mix of high-end townhome and traditional apartment flats. HFO secured an active out-of-state buyer looking for low maintenance, newer construction.

The buyer went non-refundable with earnest money early in the lease-up process—successfully closing as soon as the property reached lender-required occupancy levels. For more details on this recent sale contact a broker in our office at (503) 241-5541.

Seattle Area Apartment Vacancies Jump to 7.5% - Concessions Rise

The Seattle Times reports on a significant uptick in concessions for new apartment units in the downtown core as hundreds of newly completed units sit empty. Read more. 

Monday, July 2, 2018

NIMBY-ism Causes More Traffic, Not Less

A new study reported in the San Jose Mercury News indicates that stopping the construction of housing in the middle of an economically vibrant area adds more--not less--local traffic. Read more.