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The Dorchester House

The Dorchester House

https://www.josephbernard.net/the-dorchester-house
Address:
2701 NW Hwy 101, Lincoln City, Oregon 97367
Price:
$4,250,000
Units:
69
Price per unit:
$61,594
Cap Rate:
7.18%
Year Built:
1929/1984

Highlights

  • Potential to add a 70th unit
  • Turnkey condition with strong, in place management team
  • Off-street parking with two lots
  • On-site laundry rooms
  • Walking distance to the beach
  • Large common areas including private courtyard garden, patios, living rooms and dining areas
  • Elevator for resident and staff use
  • National Register of Historic Places Site
  • Potential to add value by streamlining management costs
  • Easy resident access and use of adjacent tennis courts and public park
  • Low turnover costs per unit
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The Dorchester House

Summary

The Dorchester House Apartments is a one of a kind investment opportunity, a turnkey apartment building perfectly located in the heart of Lincoln City, just blocks from North Beach and the Pacific Ocean. The property consists of 69 residential apartment units, plus a large office which potentially could be modified to create an additional unit, while maintaining the small office.

 

Listed on the National Register of Historic Places, the property was originally completed and opened for business in 1935, with a major addition in 1984. The Dorchester House features large common areas, including a library, commercial kitchen and private courtyard on a 44,716 square foot lot.

 

The Dorchester House is a 58 years of age and older community, and is not an assisted living facility. This listing is a market deal with two rental restrictions: tenants must be 58 years of age or older, and 20% (14) of the units must be rented to tenants that make 50% or below the median income. Currently, the property is being operated as a 58 year old plus community, and attracts and retains senior Oregon residents interested in independent coastal living.

 

The Dorchester has a regulaory agreement with Oregon Housing and Community Services mandating 20% of the units (14) to be rented to tenants below 80% of the median household income for the area (as provided annually by the state). The agreement is currently set to expire in November 2029. Due to the majority of current tenants being retired, the majority are already below this income threshold, and the restriction has not hampered leasing the property at market rates.

 

The investment opportunity is currently available for sale by Joseph Bernard Investment Real Estate at $4,400,000, at a cap rate of 6.93% based on actual rents and the trailing twelve month expenses. A buyer may obtain new financing on the property, there is no requirement for a loan assumption.

 

In addition, there is potential to create a 70th unit, as the current office is plumbed and could be modified to maintain the leasing office while creating the 70th rental unit, buyer to verify all due diligence.

 

The units feature 21 studios, 46 one bedrooms, and two, two bedroom units. Each unit has one bathroom and a kitchenette. Rents include free laundry and all utilities, plus cable TV.

 

The quality operations team consists of a full-time Executive Director, a full-time Assistant Administrator, a full-time Maintenance Director, and a part-time Housekeeper (seller provides housekeeping services for additional fees, see pro forma for details). The staff has indicated there is potential to continue to work for the new buyers, which makes this an amazing opportunity for an owner/operator to maximize off-site management costs.

Highlights

  • Potential to add a 70th unit
  • Turnkey condition with strong, in place management team
  • Off-street parking with two lots
  • On-site laundry rooms
  • Walking distance to the beach
  • Large common areas including private courtyard garden, patios, living rooms and dining areas
  • Elevator for resident and staff use
  • National Register of Historic Places Site
  • Potential to add value by streamlining management costs
  • Easy resident access and use of adjacent tennis courts and public park
  • Low turnover costs per unit

The Dorchester House

NW Hwy 101/NW 28th St

The Dorchester House

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The Dorchester House

Document Title Document Type
Property Flyer Adobe PDF

The Dorchester House

Bernard Gehret
bgehret@josephbernard.net
Hunter Brookshier
HBrookshier@josephbernard.net
Joseph Bernard, LLC
5200 SW Macadam Avenue
Suite 300
Portland, Oregon 97239
503.546.9390 Main
866.546.9390 Toll Free
503.546.9395 Fax