Summary

The Weidler 111 Apartments represents a rare opportunity to invest in a stabilized community with value-add upside in one of the strongest suburbs of the Portland market, the Gateway District. The community is well positioned nearby to many retail amenities and transit options. Located just 15 minutes from downtown Portland, tenants are provided with easy access into town, while reaping the benefits of a serene garden style community, with a unique low-density setting. The community is also nearby to the Portland International Airport, and just a 15-minute drive to the growing sub-market of Vancouver, Washington. With a rare unit mix of very large 2 and 3 bedroom units on-site (avg. unit size 900+ sq. ft.), the property meets the demand of today’s renters, and will continue to be a unique housing option in the market, given the limitations and financial challenges of developing larger units in today’s market. Excellent location, which will continue to serve as a hub to future amenities in the market.

The community has benefited from major interior and exterior improvements in recent years, along with hands on property management. Exterior renovations include new re-branding & signage, new paint, new outdoor BBQ/picnic area, new basketball court, renovated leasing office, new security system, new perimeter fencing, and upgraded landscape. The majority of the interiors (approximately 80%) have been extensively upgraded with flooring, paint, appliances, cabinets (new/refinished), resurfaced countertops (select units with quartz), fixtures, lighting, and ceiling fans – resulting in a proven model of success for an investor to finish the remaining units. Rent premiums have been achieved on select units with quartz countertops, providing an opportunity for a buyer to continue that successful model.

The property has experienced strong rent growth in 2021 and has benefited from the flight to the suburbs – with tenants seeking amenity rich communities and larger spaces. A future owner benefits from stepping into a turn-key asset, with the majority of the interior renovations completed - which will eliminate critical time for vacant units off the market and increase cash flow efficiency tremendously. The large unit sizes and upgrades, along with the amenities on-site - Plentiful parking, leasing office, storage, laundry facilities (3), outdoor heated pool, basketball court & BBQ/picnic area - are drivers for continued rent growth within this community, and have proven to meet the demand of renters in 2021.

Opportunity for an investor to step into a turn-key 5.34% cap rate day one, with the ability to achieve a 6.00%+ cap rate by simply achieving the 2021 lease up rates throughout the community. This conservative approach does not take into account the future rent growth, and projected increase in demand for larger unit sizes – due to the undersupply of new development of 2 and 3 bedroom units coming to the Portland market in the coming years. 6.00% cash on cash Day 1, with the ability to increase to approximately 10.00% by implementing a proven model in place.