2010 Fall Apartment Report

Promoting Quality Rental Housing
the
1
2
SURVEYED AREAS
3
OREGON
A PA R T M E N T R E P O R T
STRONG DEMAND EMERGING
The multifamily market is continuing
its’ strong recovery pace, with Portland
Metro vacancy rates dropping from 5.1%
to 4% in just six months. Revenues are up,
due to a reduction in the amount of
concessions being offered and units renting
faster, however average overall rent rates
in the Metro area are unchanged. The
apartment sector is emerging from the
recession as a favorite among the asset
classes, capitalization rates are declining,
and brokerage activity is starting to pick up.
The lack of new apartment construction,
combined with the unwillingness, or
inability of buyers to purchase single
family homes, has caused rental demand
to swell, despite the poor employment
outlook.
Portland/Vancouver
Total average rent rates are stagnant, and
remained at $.90 per sq. ft. Since our first
survey in the fall of 2004, overall average
rent rates have only increased 15%, or less
than 2.5% per year. This slow pace,
combined with concessions and increased
expenses (particularly utilities), has had a
decidedly negative impact on net operating
income. With a predicted shortfall of
apartment supply coming over the next
two years, landlords are hoping to regain
some lost ground and are cautiously
optimistic about raising rents in the coming
months. The average number of days that
units stay vacant has shown a significant
improvement, from 30 down to 19 days.
Three bedroom, one bath units have the
lowest vacancy factor (2.8%), reflecting
our weak economy and illustrating the
need for residents to rent the most amount
of space for the least amount of money.
East Vancouver, Wilsonville/Canby and
Troutdale/Fairview are showing some
market softness, while Clackamas and
Lake Oswego/West Linn are experiencing
vacancy factors under 2.5%. Downtown
rents increased over 9%, faster than all
other areas. High-end, condo/apartment
projects are experiencing good absorption
and average downtown rent rates are
pushing $1.40 per square foot.
Other Areas
The Bend/Redmond market has regressed,
with vacancy increasing from 7.3% to
8.2% and rents dropping from $.72 to
$.67. Average rents in Bend are the lowest
of all our surveyed areas and the area
leads the survey in the number of projects
offering concessions. Eugene/Springfield
and the Salem areas are both enjoying
vacancy rates below 4%, and rent rates
are up an average of 5%.
Our Contributors
Bob Nelson with Pacwest Real Estate
Investments, shares his views on the
trends impacting the Southern Willamette
Valley. He is predicting an apartment
shortage by mid-2011 and advises
investors to stay close to the I-5 corridor
and avoid the small communities that may
experience stagnant markets. Apartment
projects that are selling in the Portland
market have two things in common,
according to an article submitted by
Robert Black from NAI Norris, Beggs &
Simpson, they are “high quality and well
located…Though the multifamily investment
market isn’t out of the woods yet, some
positive indicators are present.” Mark and
Phillip Barry have teamed up to write a
comprehensives article that summarizes
the current Portland Metro market and
presents a forecast for the balance of 2010
and 2011. They’re predicting that “The next
two years will be a far better environment
for apartment sales…Looking beyond mid
2011, apartment income should rebound
quickly once the economy turns around.
There will be a shortage of apartments by
2012.” Amy Vandervliet from the Oregon
Employment Department notes in her
article that “The recession is over, but it
1
4
1. Portland & Vancouver
2. Salem & Vicinity
3. Eugene & Springfield
4. Bend & Redmond
FALL 2010
VOL 13
mmha
NON-MEMBER ANNUAL SUBSCRIPTION $99
Craig McConachie, C&R Real Estate
Services, Co., Apartment Report Committee
sure doesn’t feel like it. We’re in a holding
pattern, as both consumers and businesses
remain skittish, hesitant to spend.”
This survey represents 42,419 units from
738 properties. All of the articles have
been reprinted without editing the content,
in order to present unbiased opinions.
We’d like to thank all of the management
companies and property owners who have
submitted information. Their participation
is critical in insuring the accuracy of our data
and the continued success of this report.
SURVEY SAYS!
Vacancy going down
Average Metro rent
unchanged
Concessions subsiding
Downtown rents escalating
Bend/Redmond slipping
“I believe it will only get
better because our market
is already seeing evidence
of positive change.”
TA B L E O F C O N T E N T S
PORTLAND METRO MAP..............................................2
TENANT PAID UTILITIES, SEC 8 VOUCHERS,
OFFERING INCENTIVES ................................................2
AVERAGE RENT PER SQUARE FOOT
AVERAGE MARKET VACANCY RATE ..........................3
SURVEY RESULTS ................................................4
&5
PORTLAND MARKET TRENDS ....................................6
FORECAST FOR BALANCE OF 2010 & 2011 ............7
TREND REPORT ..............................................................8
MULTIFAMILY INVESTMENT MARKET ......................9
EMPLOYMENT: SPUTTERING ..................................10
AVERAGE NUMBER OF DAYS VACANT ................10
THE WILLAMETTE VALLEY ........................................11
PORTLAND METRO AREA
WASHINGTON COUNTY
MULTNOMAH COUNTY
5
DOWNTOWN PORTLAND
3
ALOHA
1
NW PORTLAND
4
BEAVERTON
13
INNER & CENTRAL SE (PORTLAND)
2
HILLSBORO
17
INNER & CENTRAL NE (PORTLAND)
7
TIGARD
18
NORTH PORTLAND
|
ST. JOHNS
6
SW PORTLAND
14
OUTER SE (PORTLAND)
16
OUTER NE (PORTLAND)
15
TROUTDALE | FAIRVIEW
WOOD VILLAGE | GRESHAM
|
|
NORTH OF HWY 26
TUALATIN
|
SHERWOOD
CLARK COUNTY
19
WEST VANCOUVER
20
EAST VANCOUVER
C LA C KA MA S C OUNTY
12
CLACKAMAS
8
LAKE OSWEGO
11
MILWAUKIE
|
WEST LINN
| GLADSTONE
| CANBY
10
OREGON CITY
9
WILSONVILLE
“Prospects are looking for apartments that include water and garbage as well as washers and dryers.”
TENANT PAID UTILITIES
MAP AREA
WATER
48.6%
NW PORTLAND
42.9%
28.6%
32.7%
40.2%
28.9%
80.4%
97.1%
TIGARD | TUALATIN | SHERWOOD
46.9%
100%
56%
100%
45.2%
100%
26.1%
100%
50.8%
MILWAUKIE
65.4%
CLACKAMAS
INNER & CENTRAL SE PTLD
20.4%
TROUTDALE|FAIRVIEW
WOOD VILLAGE|GRESHAM
OUTER NE PORTLAND
INNER & CENTRAL NE PTLD
50.6%
38.2%
56.8%
65.7%
EAST VANCOUVER
SALEM | VICINITY
EUGENE | SPRINGFIELD
BEND | REDMOND
8.6%
19.5%
14.3%
37.7%
9.9%
19.3%
91.2%
19%
100%
84.5%
95.3%
100%
22.6%
36.4%
11.5%
5.2%
19%
13.1%
16%
15.4%
1.4%
16.4%
67.6%
52.3%
53.3%
81%
2
1.1%
8.2%
14.5%
8.6%
3.3%
0%
0%
27.9%
15.9%
20.6%
20%
18.4%
55.6%
9.5%
9.1%
10%
6%
41.5%
0%
6.5%
0%
48.3%
64.7%
48.6%
32%
48%
43.9%
36.4%
100%
24%
42.1%
53.4%
0%
24.5%
20.3%
27.6%
26.1%
34.5%
12.1%
30.4%
24.9%
25%
24.8%
14.8%
22%
15.4%
50%
15.4%
97.6%
23.8%
WEST VANCOUVER
32.3%
0%
100%
100%
32.8%
NORTH PTLD | ST. JOHNS
100%
15.1%
30.2%
36%
100%
45.2%
10.3%
26%
100%
88.8%
63.9%
OUTER SE PORTLAND
61.2%
11.8%
40.4%
12.2%
30.4%
58.8%
WILSONVILLE | CANBY
10.8%
96.6%
52.9%
68%
44.4%
OFFERS INCENTIVES
54.3%
LAKE OSWEGO | WEST LINN
OREGON CITY | GLADSTONE
38.9%
OFFERS INCENTIVES
100%
DOWNTOWN PORTLAND
SW PORTLAND
76.4%
FALL 2010
92%
49.3%
BEAVERTON
GARBAGE
SPRING 2010
56%
HILLSBORO | N OF HWY 26
ALOHA
HEAT
ACCEPTS SEC 8
VOUCHERS
12.3%
20%
23.3%
0%
47.6%
6.0%
5.0%
4.0%
8.0%
3.9
3.0%
1
2
3
3.8
3.7
4
5
10.0%
4.9
4.8
6
4.1
2.3
7
8
6.4
9
4.5
10
3.4
2.0%
2.2
1.0%
11
12
3
2.5
13
14
5.0
15
16
17
4.6
4.5
17
18
18
19
19
Lake Oswego | West Linn
Tigard | Tualatin | Sherwood
SW Portland
Inner & Central SE (Ptld)
Outer NE (Ptld)
Salem
.78
20
4.5
3.5
0.0%
20
8.5
3.5
3.6
Bend | Redmond
Eugene | Springfield
East Vancouver
West Vancouver
North Portland | St. Johns
Inner & Central NE (Ptld)
Troutdale | Fairview
Wood Village | Gresham
Outer SE (Ptld)
Clackamas
Milwaukie
Oregon City | Gladstone
.77
.87
Bend | Redmond
16
Eugene | Springfield
15
.80
Salem
14
.82
East Vancouver
.79
OUTLYING AREAS
}
“For beautiful buildings,
close to city center, there
will always be a good
rental market, especially
when utilities are
partially paid.”
13
.90
West Vancouver
12
1.01
N Portland | St. Johns
11
Inner & Central NE (Ptld)
.82
Outer NE (Ptld)
.82
.83
Troutdale | Fairview
Wood Village | Gresham
10
.97
Outer SE (Ptld)
9
.84
Inner & Central SE (Portland)
8
Milwaukie
7
Oregon City | Gladstone
6
Wilsonville | Canby
.83
.88
Clackamas
9.0%
5
.98
Wilsonville | Canby
.82
Lake Oswego | West Linn
4
.93
Tigard | Tualatin | Sherwood
3
SW Portland
Downtown Portland
Aloha
.87
Beaverton
Hillsboro | N of Hwy 26
Northwest Portland
.88
Downtown Portland
Beaverton
2
Aloha
1
Hillsboro | N of Hwy 26
NW Portland
7.0%
1.14
OUTLYING AREAS
}
$1.40
$1.35
$1.30
$1.25
$1.20
$1.15
$1.10
$1.05
$1.00
$0.95
$0.90
$0.85
$0.80
$0.75
$0.70
AVERAGE RENT PER SQUARE FOOT $
1.39
.67
11.0%
AVERAGE MARKET VACANCY RATE %
8.2
2.8
1.0
“Though rents throughout
Portland may be flattening,
our property remains on
the low end which is
making it fairly
marketable.”
SURVEY RESULTS—FALL 2010
PORTLAND / VANCOUVER METRO AREA
AREA NAME
# OF
DATA
ALL
PROP
SPR 10
STUDIO
REPORT CHANGE
DOWNTOWN PORTLAND
(5)
18
AVG MARKET VACANCY RATE %
AVG RENT PER SQ FOOT $
AVG RENT PER UNIT TYPE $
SUM OF UNITS SURVEYED
4.9
1.39
3.8
1.27
902
1481
NORTHWEST PORTLAND
(1)
26
AVG MARKET VACANCY RATE %
AVG RENT PER SQ FOOT $
AVG RENT PER UNIT TYPE $
SUM OF UNITS SURVEYED
3.9
1.14
6.2
1.20
1448
1262
INNER & CENTRAL SE
(PORTLAND)
(13)
94
AVG MARKET VACANCY RATE %
AVG RENT PER SQ FOOT $
AVG RENT PER UNIT TYPE $
SUM OF UNITS SURVEYED
2.5
.97
4.2
1.01
1444
1298
INNER & CENTRAL NE
42
AVG MARKET VACANCY RATE %
4.5
6.1
1.01
1.10
(PORTLAND)
AVG RENT PER SQ FOOT $
(17)
AVG RENT PER UNIT TYPE $
SUM OF UNITS SURVEYED
N PORTLAND | ST JOHNS
(18)
SOUTHWEST PORTLAND
(6)
OUTER SE (PORTLAND)
(14)
OUTER NE (PORTLAND)
(16)
13
31
27
23
AVG MARKET VACANCY RATE %
AVG RENT PER SQ FOOT $
AVG RENT PER UNIT TYPE $
SUM OF UNITS SURVEYED
AVG MARKET VACANCY RATE %
AVG RENT PER SQ FOOT $
AVG RENT PER UNIT TYPE $
SUM OF UNITS SURVEYED
1374
1296
3.5
.90
1.9
.99
1045
371
4.8
.93
6.4
.94
977
1383
AVG MARKET VACANCY RATE %
AVG RENT PER SQ FOOT $
AVG RENT PER UNIT TYPE $
SUM OF UNITS SURVEYED
2.8
.83
5.2
.83
1483
1778
AVG MARKET VACANCY RATE %
AVG RENT PER SQ FOOT $
4.6
.82
3.7
.81
1035
762
TROUTDALE | FAIRVIEW
WOOD VILLAGE | GRESHAM
(15)
34
5.0
.79
4.9
.79
2618
2473
1.0
.82
3.1
.84
2472
1199
2.2
.98
1.2
.96
540
251
3.4
.84
4.1
.82
1868
1824
4.5
.88
7.3
.83
704
1037
6.4
.82
3.7
.83
1211
1065
3.8
.87
8.5
.81
1305
1319
AVG MARKET VACANCY RATE %
AVG RENT PER SQ FOOT $
AVG RENT PER UNIT TYPE $
SUM OF UNITS SURVEYED
CLACKAMAS
(12)
9
AVG MARKET VACANCY RATE %
AVG RENT PER SQ FOOT $
AVG RENT PER UNIT TYPE $
SUM OF UNITS SURVEYED
LAKE OSWEGO | WEST LINN
(8)
9
AVG MARKET VACANCY RATE %
AVG RENT PER SQ FOOT $
AVG RENT PER UNIT TYPE $
SUM OF UNITS SURVEYED
MILWAUKIE
(11)
OREGON CITY | GLADSTONE
(10)
WILSONVILLE | CANBY
(9)
ALOHA
(3)
26
AVG MARKET VACANCY RATE %
AVG RENT PER SQ FOOT $
AVG RENT PER UNIT TYPE $
SUM OF UNITS SURVEYED
9
AVG MARKET VACANCY RATE %
AVG RENT PER SQ FOOT $
AVG RENT PER UNIT TYPE $
SUM OF UNITS SURVEYED
14
18
AVG MARKET VACANCY RATE %
AVG RENT PER SQ FOOT $
AVG RENT PER UNIT TYPE $
SUM OF UNITS SURVEYED
AVG MARKET VACANCY RATE %
AVG RENT PER SQ FOOT $
AVG RENT PER UNIT TYPE $
SUM OF UNITS SURVEYED
4
2 BED
1 BATH
2 BED
2 BATH
2 BED
TWNHS
3 BED
1 BATH
3 BED
2 BATH
+28.95%
+.12
5.7
1.54
708
264
4.2
1.32
829
406
5.1
1.33
1081
138
5.5
1.35
1372
73
10.0
1.68
2100
10
.0
1.37
1788
2
.0
1.68
2100
9
-37.10%
-.06
6.6
1.58
697
166
3.1
1.24
819
574
5.4
1.10
915
223
2.4
.85
853
338
5.0
.81
685
60
5.3
.82
795
38
4.1
.83
1010
49
+40.48%
-.13
3.4
1.29
618
147
2.1
1.05
686
623
2.2
.92
798
458
4.3
.83
822
94
3.0
.90
822
67
5.3
.84
905
38
.0
.83
980
17
2.7
-26.23%
5.2
5.2
4.2
1.9
.0
2.8
1.34
1.06
.98
.74
1.02
.95
.80
641
670
791
705
834
961
943
115
615
495
53
23
36
37
+84.21%
-.09
.0
1.23
516
6
2.9
1.01
626
348
4.5
.86
704
332
—
—
—
—
1.7
.79
773
60
4.3
.81
870
163
2.9
.78
950
136
-25.00%
-.01
8.8
1.28
588
57
5.3
1.04
651
416
3.8
.80
679
316
2.4
.97
912
82
5.5
.84
775
73
.0
.82
999
13
10.0
.74
967
20
-46.15%
.00
6.0
1.10
511
67
1.3
.96
616
477
4.2
.83
681
285
3.3
.79
771
450
1.7
.76
695
120
12.5
.78
798
24
.0
.76
948
60
+24.32%
+.01
.0
1.49
4.7
.92
1.8
.82
3.0
.74
29.0
.76
7.4
.82
3.8
.73
522
602
708
720
731
853
851
9
295
454
135
62
27
53
+2.04%
.00
11.1
1.05
430
18
4.8
.90
634
378
4.4
.79
697
928
5.3
.75
729
909
4.6
.77
782
151
6.0
.71
818
67
6.0
.74
880
167
-67.74%
-.02
.0
1.27
579
18
4.5
.94
632
177
.8
.82
697
1133
.5
.80
811
1065
—
—
—
—
.0
.75
825
6
4.1
.76
902
73
+83.33%
+.02
6.3
1.7
510
16
2.5
1.12
734
121
1.1
.90
748
90
1.6
.97
1079
252
.0
.78
981
9
—
—
—
—
5.8
.95
1365
52
-17.07%
+.02
.0
1.29
505
35
3.2
.96
605
591
3.9
.83
701
792
1.6
.86
820
193
4.4
.73
893
158
.0
.70
795
10
3.4
.78
941
89
-38.36%
+.05
—
—
—
—
5.2
1.01
645
153
2.7
.80
707
225
6.0
.80
773
201
8.5
.83
701
59
.0
.93
880
18
2.1
.79
985
48
+72.97%
-.01
7.7
1.11
540
13
9.3
.92
682
237
3.8
.77
678
655
15.1
.82
780
159
7.7
.86
894
26
.0
.94
850
2
3.4
.79
943
119
-55.29%
+.06
.0
1.20
480
2
5.0
.95
621
318
.7
.92
732
307
3.3
.77
761
451
14.6
.78
650
48
.0
.93
893
35
6.9
.75
862
144
-.09
AVG RENT PER UNIT TYPE $
SUM OF UNITS SURVEYED
1 BED
1 BATH
“It is so hard to raise rents when so many of our tenants are struggling.”
PORTLAND / VANCOUVER METRO AREA
# OF
AREA NAME
ALL
DATA
PROP
BEAVERTON
(4)
68
HILLSBORO | N OF HWY 26
18
(2)
SPR 10
CHANGE STUDIO
REPORT
-31.48%
-.02
2 BED
2 BATH
2 BED
TWNHS
1.6
1.15
569
61
3.6
.91
626
1998
3.1
.79
707
1909
4.9
.82
802
1291
6.4
.78
816
219
3.7
.82
5.4
.84
6196
7152
AVG MARKET VACANCY RATE %
2.3
8.2
-71.95%
11.1
3.9
1.9
4.0
AVG RENT PER SQ FOOT $
.88
.86
+.02
1.08
.93
.86
.87
570
628
679
898
SUM OF UNITS SURVEYED
2560
928
4.1
.83
5.8
.82
2947
2788
4.5
.80
4.3
.76
1543
1465
8.5
.77
7.9
.77
1419
1070
TOTAL AVG MARKET VACANCY RATE %
4.0
TOTAL AVG RENT PER SQ FOOT $
.90
39
2 BED
1 BATH
AVG MARKET VACANCY RATE %
AVG RENT PER SQ FOOT $
AVG RENT PER UNIT TYPE $
SUM OF UNITS SURVEYED
AVG RENT PER UNIT TYPE $
TIGARD | TUALATIN
SHERWOOD
(7)
1 BED
1 BATH
AVG MARKET VACANCY RATE %
AVG RENT PER SQ FOOT $
AVG RENT PER UNIT TYPE $
SUM OF UNITS SURVEYED
WEST VANCOUVER
(19)
16
AVG MARKET VACANCY RATE %
AVG RENT PER SQ FOOT $
AVG RENT PER UNIT TYPE $
SUM OF UNITS SURVEYED
EAST VANCOUVER
(20)
12
AVG MARKET VACANCY RATE %
AVG RENT PER SQ FOOT $
AVG RENT PER UNIT TYPE $
SUM OF UNITS SURVEYED
TOTAL SUM OF UNITS SURVEYED
3 BED
2 BATH
2.8
.75
823
108
3.3
.76
925
610
—
.1
3.7
—
.76
.88
—
840
1138
54
644
265
453
—
1009
135
-29.31%
+.01
6.9
1.04
528
29
2.3
.93
619
747
4.4
.80
685
987
4.4
.80
771
847
6.5
.81
790
108
4.0
.78
792
50
6.7
.80
895
179
+4.65%
+.04
.0
1.23
625
30
6.8
.94
636
365
8.9
.80
709
281
2.0
.81
858
459
2.7
.64
676
186
1.3
.74
745
78
3.5
.76
949
144
+7.59%
.00
12.5
1.23
485
32
6.7
.84
605
342
7.0
.74
660
417
11.3
.71
677
142
10.0
.73
843
360
1.4
.70
972
70
19.6
.79
882
56
5.1
-20.69%
4.9
4.3
3.7
4.4
6.7
2.8
4.6
.90
.00
1.27
1.00
.87
.84
.85
.84
.84
559
658
738
837
858
905
1021
TOTAL AVG RENT PER UNIT TYPE $
TOTAL SUM OF PROPERTIES SURVEYED
3 BED
1 BATH
546
528
100
422
380
163
78
73
133
35091
32202
1139
9825
10690
7647
1799
1794
2197
VACANCY RATE SINCE 2006—PORTLAND/VANCOUVER METRO AREA
14
STUDIO
12
1 BED/1 BATH
10
2 BED/1 BATH
8
2 BED/2 BATH
6
2 BED TH
4
3 BED/1 BATH
2
3 BED/2 BATH
0
SPR 06
FALL 06
SPR 07
FALL 07
SPR 08
SPR 09
FALL 08
FALL 09
SPR 10
FALL 10
OTHER AREAS
SALEM & VICINITY
EUGENE | SPRINGFIELD
BEND |REDMOND
31
17
12
AVG MARKET VACANCY RATE %
AVG RENT PER SQ FOOT $
AVG RENT PER UNIT TYPE $
SUM OF UNITS SURVEYED
AVG MARKET VACANCY RATE %
AVG RENT PER SQ FOOT $
AVG RENT PER UNIT TYPE $
SUM OF UNITS SURVEYED
AVG MARKET VACANCY RATE %
AVG RENT PER SQ FOOT $
AVG RENT PER UNIT TYPE $
SUM OF UNITS SURVEYED
3.5
.78
5.3
.73
1664
2051
3.6
.87
3.4
.89
1403
1688
8.2
.67
7.3
.72
534
246
-33.96%
+.05
3.5
1.18
516
86
3.4
.84
542
296
3.6
.75
617
885
3.7
.79
702
299
.0
.68
636
43
—
—
—
—
3.6
.64
710
55
+5.88%
-.02
4.8
1.31
475
124
1.6
.95
572
613
4.0
.87
698
328
5.1
.79
809
176
3.2
.65
650
63
.0
.73
710
2
10.3
.85
1023
97
+12.33%
-.05
.0
.68
340
1
6.8
.71
526
88
10.4
.66
572
222
8.0
.68
698
138
.0
.62
593
24
—
—
—
—
6.6
.65
700
61
TOTAL AVG MARKET VACANCY RATE %
5.1
5.3
-3.77%
TOTAL AVG RENT PER SQ FOOT $
.77
.78
-.01
60
71
3601
3985
TOTAL AVG RENT PER UNIT TYPE $
TOTAL SUM OF PROPERTIES SURVEYED
TOTAL SUM OF UNITS SURVEYED
2.8
3.9
6.0
5.6
1.1
.0
6.8
1.06
.83
.76
.75
.65
.73
.71
444
547
629
736
626
710
811
11
31
40
22
8
2
10
211
997
1435
613
130
2
213
*Surveys received from Sec 42, Sec 8 and other subsidized affordable housing programs are not included in the current survey data.
5
APAR T ME N T VA CA NC IE S , R EN TAL RAT E S, A ND INC OM E:
PORTLAND METRO APARTMENT
MARKET: A SUMMARY OF YTD 2010
AND THOUGHTS FOR 2011
Apartment vacancies are reported at 4.0% in the fall 2010
MMHA Apartment Report. The average rent per Sq. Ft. of $0.91
is exactly where it was a year ago in the fall 2009 survey.
Apartment vacancies are low to normal in most areas, with only
Wilsonville and E. Vancouver showing apartment vacancies over
6.0%. However, our analysis of YTD 2010 operating statements
shows that the income at most apartments is basically flat, with
slightly more properties showing a decline in income than an
increase. The biggest problem impacting landlords is tenants
who have lost their jobs and who are forced to move.
Mark D. Barry, MAI and Phillip E. Barry, Real Estate Broker
In late 2009, there were high hopes that our economy had hit
bottom, and would be well on the road to recovery by this time.
However, the recovery has slowed down in both the US and
Portland, and is losing steam. Issues impacting the Portland
economy are high unemployment, lackluster private sector
hiring, the 9% across the board proposed state budget cuts, slow
single-family sales, and Oregon now having the third highest rate
of foreclosures in the country. So just what is happening here
with the apartment market as of October 2010?
PO R TL A N D E C ON O M Y: Good news of late includes IBM
announcing that they will add 600 jobs in Beaverton, Daimler
announcing they will continue manufacturing trucks at their
Swan Island plant, Greenbrier adding 260 jobs, and Vestas
deciding to move forward with a $66 million headquarters
project in the Pearl. However, we have actually lost 7,500 wage
and salary jobs since January 2010, and our unemployment
rate is 10.2%.
OREGON MONTHLY JOB GROWTH/DECLINE (SEASONALLY ADJUSTED)
APAR T ME N T EX P EN S E S:
We are amazed at the rapid acceleration of expenses in recent
years. Property taxes in Portland are up around 4.5% percent per
year over the last four years, while utility cost increases have
gone up around 10% per year. In addition, our area had a huge
construction boom from 1965 to 1980, and we are amazed at
how high the overall repair and maintenance costs have gotten
for these properties. With a flat income, expenses up around 10%
in two years, net income is down by 5% to 8%.
APAR T ME N T VA L UE S :
A flat income, some increases in expenses, and higher cap rates
have impacted apartment values in recent years. Cap rates
showed a noticeable increase in the second half of 2009 in
comparison with the first half. Co Star figures show a 7.38%
median cap rate for the second half of 2009, and a 7.01%
median cap rate for the YTD 2010. Our analysis shows a decline
in value of 10% to 20% from the peak in late 2007 and early
2008. However, apartment values have firmed up and been
stable over the last year. The median price per Sq. Ft. for YTD
2010 is virtually identical with the second half of 2009.
APAR T ME N T CON ST R UC TION :
2010 will go down as the slowest year for apartment construction
since the early 1960’s. Permits have been issued for just 460
apartment units in the four county metro area for 2010 through
July vs. an average of around 4,000 units per year for the
previous ten years. Apartment construction is dead!
APARTMENT PERMITS BY # OF UNITS: METRO AREA 1975–2009
APAR T ME N T SA L ES V OL UM E :
YTD 2010 has continued to be a challenge for apartment
brokers, though there was a noticeable improvement in the
second and third quarter. There have been 61 apartment sales
for $215.1 million in the first eight months of 2010 vs. 81 sales
for $281.8 million in 2009. Apartment sales volume averaged
$800 million per year from 2003 to 2008, and thus the 2010
sales volume is off by around 60%. However, 2010 will be a
better year for apartment brokers than 2009, with sales volume
and the number of transactions up by around 15%.
continued on page 7
6
cap rates of 6.50% to 7.75% for B and C suburban apartments, and
5.75% to 7.25% for more urban properties in 2011. Don’t expect
any property tax relief in the 2010-2011 tax year despite a decline
in values, and expect to see continued increases in utility costs.
(continued from page 6)
FORECAST FOR BALANCE OF 2010 AND 2011
So where is our apartment market going in the balance of
2010 and 2011? Our thoughts are as follows:
POR T LA ND EC ON OMY:
The recovery is limping along as we enter the fourth quarter of
the year, and is coming at a time when many of the benefits of
the government stimulus spending are wearing off. The US economy
needs 200,000 jobs per month to bring the unemployment rate
down. No one expects that to happen in the near future. In
addition, low interest rates, which can encourage borrowing to
spur economic growth, are already at near zero. The Oregon
Office of Economic Analysis expects that there will be job losses
in 2010, and that employment will not reach pre-recession levels
until mid 2014.
APA R TM EN T CON S TR U CTI ON:
One thing you won’t have to worry about in the balance of 2010
and into 2011 will be apartment construction. 2010 will be the
slowest year for apartment construction in our adult lifetime.
There will be some government sponsored urban projects, but
that’s about it. I expect we will see permits for 600 to 1,000 new
units in 2011.
APA RT ME N T SA L E S V OL UM E :
In 2009 and YTD 2010, we have seen the lowest level of
apartment sales activity over the last decade. We have nowhere
to go but up. The next two years will be a far better environment
for apartment sales. This will be due to owners getting better
educated on values, some capitulation on the part of sellers,
motivated sellers who need the funds, sellers motivated by
possible increases in capital gains, and buyers who sense that
we are close to a bottom. We are seeing a two-tiered market.
There is good investor demand and often multiple offers for well
performing, well kept apartments in stable locations, and
institutional apartments. However, there have been more
workout and foreclosure appraisals over the last nine months
than any time since the early to mid 1980’s.
APA R TM EN T VAC AN CIE S , R E NTA L R ATE S , AN D IN COM E :
The balance of 2010 and first part of 2011 will be a time to concentrate on keeping your tenants happy, and holding on to what
you have. Apartment vacancies should remain in the range of
3.5% to 4.5%. But income will remain flat in the first half of
2011. Looking beyond mid 2011, apartment income should
rebound quickly once the economy turns around. There will be
a shortage of apartments by 2012.
APA R TM EN T VAL U ES :
Apartment values have stabilized in YTD 2010. We expect that
apartment values will remain stable in the balance 2010 and into
2011 due to low interest rates, low vacancies, and fairly stable
apartment income despite some increasing expenses. When the
economy improves, everyone expects apartment income to
increase. The real concern is that interest rates will also increase,
with a corresponding increase in cap rates. Expect to see typical
CONCLUSION
The recent job figures show that we are not yet there on any
positive employment news. We expect the balance of 2010 to
be lackluster, with some limited signs of recovery in the first half
of 2011, but no real recovery until mid 2011 and 2012.
Apartment construction will be at record lows, which will help
in maintaining low apartment vacancies. We expect apartment
income to remain flat for the rest of the year, with modest
increases beginning in mid 2011. There will continue to be a
two-tiered market, with good demand for performing well-kept
and well-located assets, but some overhang of poorly performing
assets in marginal locations, with most of these being owner
managed. We all like to think that the economy has hit bottom.
However, the most recent data seems to point to an anemic
recovery at best in the balance of 2010 and into 2011. It is likely that
we will have to wait until mid 2011 and 2012 for any significant
recovery.
Mark D. Barry, MAI, is a real estate appraiser specializing in apartment appraisals
in the Portland area. He has completed over 5,000 apartment appraisals since
starting as a fee appraiser in 1983. He has a BA from the University of California
at Berkeley, and an MBA in Real Estate from American University in Washington, D.C.
Phillip E. Barry is a real estate broker with Joseph Bernard Investment Real Estate,
and specializes in apartment sales in the Portland metropolitan area. He is a
graduate of Oregon State University.
7
TREND REPORT : PORTLAND METRO AREA
CoStar: Search criteria—Research Status: Published; Market: Portland; PropType: Multi Family; Sale Date: 1/1/2007—06/20/2010; unit: 5 units and greater.
CAP RATE
MEDIAN PRICE PER SQUARE FOOT
AVERAGE PRICE PER UNIT
$95
$120
$90
$110
2Q
10
1Q
10
4Q
09
3Q
09
2Q
09
1Q
09
4Q
08
3Q
08
1Q
08
2Q
08
4Q
07
3Q
07
2Q
10
3Q
08
1Q
07
$70
1Q
10
$80
4.5%
4Q
09
5.0%
3Q
09
$90
2Q
09
5.5%
1Q
09
$100
4Q
08
6.0%
1Q
08
$110
2Q
08
$120
6.5%
4Q
07
$130
7.0%
3Q
07
7.5%
2Q
07
$140
1Q
07
8.0%
2Q
07
AVERAGE PRICE PER SQUARE FOOT
(IN THOUSANDS)
$100
$85
$90
$80
$80
$75
2Q
10
1Q
10
4Q
09
3Q
09
2Q
09
1Q
09
4Q
08
3Q
08
1Q
08
2Q
08
4Q
07
3Q
07
1Q
07
2Q
10
1Q
10
4Q
09
3Q
09
2Q
09
1Q
09
4Q
08
3Q
08
1Q
08
2Q
08
4Q
07
3Q
07
$50
2Q
07
$65
1Q
07
$60
2Q
07
$70
$70
“More apartments available due to slow sales of condos which are now being
rented instead—rents likely to remain the same instead of increasing.”
YEAR
# OF TRANS
1Q07
2Q07
66
73
3Q07
41
4Q07
69
1Q08
51
2Q08
3Q08
33
58
4Q08
1Q09
2Q09
41
35
24
TTL $ VOLUME $178,378,212 $173,801,658 $186,828,261 $495,743,534 $301,193,477 $105,559,248 $361,334,200 $110,039,150
$72,136,000
$34,679,511
3Q09
4Q09
33
37
$83,871,476 $125,912,301
1Q10
2Q10
30
35
$39,507,098 $164,313,750
TTL BLDG SF
2,533,650
1,851,156
1,766,357
4,652,874
3,662,211
1,249,003
2,768,002
1,407,856
950,819
398,195
1,754,862
2,148,932
575,882
TTL LAND IN ACRS
155.08
94.78
338.73
264.89
210.35
89.47
127.51
98.93
44.00
34.80
128.43
84.76
49.67
65.01
TTL LAND IN SF
6,755,285
4,128,617
14,755,079
11,538,608
9,162,846
3,897,313
5,554,336
4,309,391
1,916,640
1,515,888
5,594,411
3,692,146
2,163,625
2,831,836
1,528,954
TTL UNITS
2,844
2,145
2,416
5,217
4,017
1,417
3,235
1,613
1,042
603
1,871
2,178
781
1,775
AVG PRICE
$2,877,068
$2,380,845
$4,556,787
$7,184,689
$5,905,754
$3,518,642
$6,691,374
$2,895,767
$2,254,250
$1,651,405
$2,995,410
$4,496,868
$1,519,504
$5,134,805
AVG # OF SF
38,979
25,358
44,159
67,433
71,808
37,849
47,724
34,338
27,166
16,591
53,178
58,079
19,196
43,684
AVG PRICE BLDG SF
$74.82
$95.75
$105.95
$108.15
$115.11
$95.47
$138.39
$90.94
$81.74
$91.59
$74.24
$89.43
$70.70
$109.24
MED PRICE P/SF
$71.16
$84.69
$77.82
$82.27
$94.10
$85.69
$87.01
$85.78
$92.80
$88.50
$68.54
$80.95
$72.76
$75.70
AVG # OF ACRS
2.39
1.33
8.26
3.84
4.21
2.71
2.28
2.41
1.26
1.45
4.01
2.29
1.66
1.86
AVG # OF SF(LAND)
103,927
58,150
359,880
167,226
183,257
118,100
99,185
105,107
54,761
63,162
174,825
99,788
72,121
80,910
AVG PRICE P/UNIT
$66,764
$81,026
$77,330
$95,025
$74,980
$82,597
$119,252
$70,628
$74,444
$60,207
$72,932
$85,888
$51,983
$93,894
MED PRICE P/UNIT
$61,111
$71,429
$69,444
$75,000
$71,429
$79,744
$70,411
$68,785
$74,893
$55,406
$55,792
$58,401
$58,456
$60,729
AVG # OF UNITS
44
29
59
76
79
43
56
39
30
25
57
59
26
51
ACTUAL CAP RATE
6.34%
6.15%
5.46%
6.02%
5.57%
4.80%
6.08%
6.49%
5.87%
6.24%
7.34%
7.67%
7.38%
5.90%
AVG GRM
9.36
9.26
8.16
10.77
9.34
8.67
9.73
8.47
9.07
10.09
7.75
7.39
7.63
9.64
AVG GIM
-
10.33
9.05
11.25
9.16
8.00
9.33
8.02
8.76
12.81
7.66
7.21
6.59
-
“Oregon needs job growth to improve the outlook for the apartment market.”
8
PORTLAND AREA’S MULTIFAMILY
INVESTMENT MARKET LOOKING UP
Robert Black, Associate Vice President, NAI Norris, Beggs & Simpson
Summer brought some positive economic news for Portland,
from Vestas’ decision to make a historic building in Northwest
its U.S. headquarters, to securing financing and breaking ground
on the long-awaited Progress Ridge retail development. Though
the multifamily investment market isn’t out of the woods yet,
some positive indicators are present.
The recession officially began in December 2007, and sales of
apartment buildings dramatically decreased in 2008, particularly
after Lehman Brothers filed for bankruptcy in September of 2008,
which essentially paralyzed the financial system. Though the
recession officially ended in June of 2009, according to the
National Bureau of Economic Research, 2009 and the first two
quarters of 2010 were very slow.
In the past few months, however, brokers have seen an
increase in activity, buoyed by the renewed health of the rental
market. Apartment vacancy is now 4.4%, with concessions going
away and rents rising throughout the market. Portland’s rental
market should continue to strengthen as more people are
committed to being renters in the future.
The strongest signs of the recovery are some larger recent
institutional sales. These include Behringer Harvard’s $38.8
million acquisition of Tupelo Alley on N. Mississippi Ave., and
the $17 million sale of Twin Creeks Apartment complex on
Sunnyside Road in Clackamas to a San Francisco real estate
investment firm. There has also reportedly been healthy interest
and offers on Opus Northwest’s 322-unit Ladd Tower, which is
up for sale. A few additional institutional-grade properties in the
market are generating strong interest and multiple offers.
Though gaining financing, especially from banks, remains a
challenge, multifamily has fared better than other commercial
property types because attractive financing is available through
Fannie Mae and Freddie Mac. Capital is in play in the Portland
multifamily market, and quality properties are trading hands at
low cap rates. Financing for smaller-sized properties below
$2 million in loan amount is still a challenge. With very few
lenders active, rate and leverage is still not at the level of Fannie
and Freddie programs. And with the much higher scrutiny of the
financials of the property and the borrower, many buyers who
were once very active are unable to get financed, reducing the
buying activity on this segment of the investment market.
Those projects that are selling have two things in common: they
are high-quality and well-located. These two factors are key to
buyers, and if a project is Class B or C or is not well-located,
investor interest decreases significantly.
The depth and number of buyers is still nowhere near pre-recession
levels, and the multifamily recovery will take time, but with the
health of the rental market and good availability of capital, it is
the one segment of the investment market to pull us out of the
recession.
Robert Black is an Associate Vice President specializing in multifamily investment
sales at NAI Norris, Beggs & Simpson, a real estate brokerage and asset/property
management company. Contact him at 503-223-7181 or [email protected].
9
The battered construction industry appears to have hit bottom
after three years of blood-letting that reduced employment nearly
by half. This past summer was the best, in terms of job growth,
since 2007. Leisure and hospitality also dipped a toe into the
water, tentatively adding jobs starting last spring. Professional and
business services, which includes engineering, legal, and
accounting firms, has also shown signs of life, most notably in
the bellwether temp help component. Manufacturing and trade
remain on the sidelines. Financial activities hasn’t found its
bottom yet, as it continues to be pulled down by weakness in
real estate, and by the fact that many institutions are still holding
potentially problematic assets. Education and health services,
growing throughout the recession, finally succumbed and started
shedding jobs in the spring.
EMPLOYMENT: SPUTTERING...
Amy Vander Vliet, Oregon Employment Department
The Great Recession is over according to the National Bureau of
Economic Research, the widely regarded arbiter of business
cycles. The economy hit bottom in June 2009 after 18 months of
contraction, making it the longest recession since World War II.
However, just because the economy is no longer in decline
doesn’t mean things are back to normal and firing on all
cylinders. Economic activity is typically sluggish in the early
stages of a recovery, often remaining so well into the expansion.
This recovery is certainly no exception. The recession is over, but
it sure doesn’t feel like it.
Just as with the US economy, Oregon and the Portland metro area
saw improvement last winter and spring that was followed by a
pause mid-way through the year. Two early drivers of economic
activity – stimulus spending and inventory replenishment – have
nearly run their courses with no clear or sustained source of
growth replacing them. We’re in a holding pattern, as both
consumers and businesses remain skittish, hesitant to spend.
Despite recent weakness, the chance of a double-dip recession,
while greater than just a few months ago, remains low. Instead,
the state economist and others predict we’ll suffer through slight
jobs losses in the third quarter followed by growth –albeit it lackluster– in the fourth. The books on 2010 will close showing an
overall loss over 2009, a year during which the Oregon economy
slashed more than 100,000 jobs. The expansion will pick up
steam in 2011 and into 2012, but it may be as late as 2014 until
we return to pre-recession employment levels.
The metro area’s unemployment rate remains above 10 percent,
double the rate going into the recession but below the peak of
11 percent set last year. Meanwhile, a few sectors of the economy
are slowly adding jobs, but not quite enough to offset those that
are still contracting.
Amy Vander Vliet is an Economist for the Oregon Employment Department,
covering the Portland metropolitan area. She produces and analyzes employment
trends, including the unemployment rate and monthly job growth in the
region’s major industries.
“We, in the apartment industry, are lucky enough to have a job providing
a necessity that people simply cannot live without.”
AVERAGE NUMBER OF DAYS VACANT — PORTLAND / VANCOUVER AREA
60
1
2
3
4
5
6
7
8
9
10
20.1
18.1
17.9
25.1
19.0
16.6
11
12
Outer SE (Ptld)
13
14
15
16
17
25.3
26.0
25.0
25.5
22.9
18
19.8
14.6
19
20
13.3
17.0
12.6
Bend | Redmond
21.4
27.7 27.1
25.4
Eugene | Springfield
22.4
28.5
}
0
18.8
Oregon City | Gladstone
21.2
Wilsonville | Canby
5
21.2
Lake Oswego | West Linn
10
Beaverton
Hillsboro | N of Hwy 26
NW Portland
15
19.2
Tigard | Tualatin | Sherwood
20.4 20.7
19.1
20
SW Portland
24.9
25.0
Salem
25.6
25.1
Milwaukie
27.2
Aloha
25
29.8
28.6
Downtown Portland
30
30.9
Clackamas
31.4
East Vancouver
32.6
32.5
West Vancouver
34.6
35
42.0
37.6
N Portland | St. Johns
36.6
FALL 10
43.7
Inner & Central NE (Portland)
42.9
40
SPRING 10
Outer NE (Ptld)
45
Inner & Central SE (Portland)
50
Troutdale | Fairview | Wood Village | Gresham
55
OUTLYING AREAS
“...many tenants are "doubling up" and sharing rental costs.”
10
properties in disrepair or which are generating inadequate debt
service coverage. It is possible to be declared in default, even if
your payments are current.
APARTMENT TRENDS:
THE WILLAMETTE VALLEY
Bob Nelson, CCIM MBA, Pacwest Real Estate Investments, LLC
This recession has lasted long enough to clearly identify several
real estate investor oriented trends for apartments in the
Willamette Valley.
4 Lender Reappraisals. Bank auditors may require the lender to
obtain periodic reappraisals of your properties. This is particularly
true at time of rate adjustment.
has dropped below
rrent property value
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:
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POS IT IVE TR E ND S :
1 Higher Occupancy. Apartment vacancy rates have decreased
and will continue to decrease. This will most likely lead to an
apartment housing shortage by mid 2011.
2 Lower Interest Rates. New long term mortgage rates have
decreased. This is an unusual recession. The last “Big Recession”
(1983) offered mortgage rates at 21.5%. Currently rates are below 5%.
By definition, a recession can be identified by the unavailability
of mortgage funds at low rates. Prior recessions were accompanied
by high inflation.
N EG ATIV E TR E N DS :
1 Watch Community Stability. It is best to stay close to the I-5
Corridor. Smaller rental markets can fluctuate with seemingly
small employment changes. I have observed several communities
in stagnant markets. There are apartments offered for sale, but
they aren’t selling. If an apartment remains on the open market
longer than four months, the price is too high. Offer an attractive
cap rate or be prepared to sit on your property until it becomes
so shop worn it is ignored by qualified investors.
Weak Tenant Stability. While there may be an increasing
tenant base, there is the pending danger of an erosion of
economic capacity. Be wary when screening new applicants. If
they do not meet your employment and income standard, then
wait for more qualified ones.
OV ER A L L APA R TM EN T MA R K E T C ON DIT ION:
Investors on the Sidelines. There are huge amounts of potential
investment capital sitting in savings accounts earning virtually no
interest. Some investors are beginning to feel that the bottom of
the market may be near. Even if it isn’t “near”, apartment prices
and mortgage rates are low enough to stimulate re-entry into the
apartment market. More than half of my larger apartment
transactions have been all cash at closing. The returns are strong,
and they can afford to weather further economic erosion, should
that occur.
Investor Demand for Apartments. From what I have observed,
investors will re-enter the apartments market if the cap rate
is high enough to create about a 2% to 2.5% spread over the
mortgage interest rate, which is the situation today.
2
Weak Management becomes more costly. The mortgage loan
document allows the lender to demand year-end operating
statements. Frequent visits from banking regulators are requiring
lenders to crack the whip on existing borrowers who own
3
Understand Exchanging. If the Bush Tax Cuts are allowed to
expire, then be ready to exchange your real estate equities to
better your financial position with those who did not do so.
About Bob Nelson, CCIM MBA: Bob is a real estate investment broker with 42
years of expertise in the brokerage and tax deferred exchange of income properties
in Oregon, Washington and Idaho. He specializes in the brokerage of apartment
complexes. He owns Pacwest Real Estate Investments, LLC of Eugene, Oregon and
is a former President of the Oregon CCIM Chapter. He can be reached at
[email protected] and www.1031guru.com.
“The Redmond area is expected to decline further.”
“Most move-outs are due to job losses or other financial issues.”
“Salem Market continues to be soft.”
11
the
2010 MMHA
A PA R T M E N T R E P O R T
Promoting Quality Rental Housing
Thank you to all who contributed to the making of this report.
board of directors
Gary Fisher
Background Investigations
A Square, LLC
A&G Rental Management, LLC
Action Management Inc.
Affinity Property Management
Affinity Realty
Alan Marie Properties, LLC
Alco Properties
Allen Crossing Apartments
Allied Group, Inc.
Alpine Property Management &
Maintenance
Altamont Summit Apartments
Amazon Properties, Inc.
American Condominium Homes
American Property Management
Andrews Management, LTD.
Ankeny Court
Annand Properties
Arcadia Management
Ashton Property Management
Aspen Square Management
Asset Management, LLC
Aumsville Mini Storage
Aurora Tech/APW Rentals
Autumn Park Apartments
Avila Inspection Group, LLC
B & B Investments
Barclay Square Apartments
Barrington Square
BB Management Group, LLC
Beaumont Properties
Bender Properties
Bill Lamb, Inc.
Black Irish Investments
Bluebird I, LLC
BMS Properties Inc.
BNS, LLC
Borgensgard LP
Boulders On The River Inc
Bowen Property Management Co.
Braun Pathways, LLC
Brice Properties
Brickey Properties, LLC
Bridgetown Properties
Bristol Equities, Inc.
Bunting Management Group
C&R Real Estate Services
C.R. Padot Investments
Calhoun, LLC
Cambridge Real Estate Services
Canby Court Apartments, LLC
Canyon Property Management, LLC
Capital Property Management
Service, Inc.
Capitola Commons
CareFree Property Management, Inc.
Carla Properties
Cascade Crest
Cascadian Village Apartments
CastleCrest Development, LLC
Central Bethany Development
Central Improvement Enterprises
Charholm Property Management
Chestnut Place Apartments
Chinook Way Apartments
Circum Pacific Properties
CK Property Management
Cmcyo Holdings,LLC
Coast Real Estate Services
Colonial East Apartments
Columbia Equities
Commerce Investment Inc
Commonwealth Real Estate Services
Conifer Group
Courtyard Properties
Crown Plaza Apartments
Crown Point, LLC
Crown Property Management
CSM Corporation
CTL Management, Inc.
Cypress Management, LLC
D & T Properties
D&D Development
Dalton Management, Inc.
DEBLAZE Enterprises
Deems, Inc.
Dieringers Properties, Inc.
Division Sunset Apartments
DJ Investment Holdings
Doris & Co.
DS & G Properties, LLC
Eberle-Sunset, LLC
Elkhorn Property Management, LLC
Elliott Associates, Inc.
Emmert Development Company
EP Property Management
Group, LLC
Equity Residential
Erickson Properties/Pacifica
Properties, LLC
Exit Realty, Your Next Move /
McFeters Real Estate
Exum Group, LLC
Faden & Christopher
Fanno Creek Village
FatBack Properties, LLC
Finama Manor, LLC
Fir Cones Limited
First Class Property Management
Fishback Engineering, LLC
Forest Hills Apartments
Forest View Apartments
Forsythe Development, LLC
Fort Vancouver Terrace Apartments
Foudy Properties, LLC
FRJ Development, LLC
G&P Nelson Capital
Management, LLC
G&S Estates, LLC
Galewood Commons
Gardenview Estates
Gateway Village Apartments
GCS
George & Alana’s Property
Management
Glacier Management
GLI Properties, Inc.
GMC Properties Corporation
Golden Star Invest, Inc.
Golfside Apartments
Grand Peaks Property
Management, Inc.
GSL Properties, Inc.
Guardian Management, LLC
Guild Apartments
GVE Apartments, LLC
Hall Equities Group
Hallinan Property Management
Hanks Property
Harprop, Inc.
Harr Properties
Harrington Homes
Harsch Investment Properties
Hayden Group, LLC
Hazelton Las Brias, LLC
HDT Properties
Hendricks & Partners
High Lakes Apartments
Highland Park
Hilltop Investment Co., LLC
HNR Real Estate
Hogan Woods Apartments
Homai Financial Group
Home Again Property Management
& Rentals, LLC
Hometown Property Management
House of Usher
Housing Authority of
Clackamas County
Housing Authority of Portland
Housing Authority of
Washington County
HSC Real Estate, Inc.
Hughes Prop Ltd Partnership
ICM Resources
II by IV Urban Development
ILP Corporation
Images Properties
Income Property Management
Interwest Properties, Inc.
Intution Real Estate Group, Inc.
Isacson Properties
Jake Associates, LLC
Jeffrey A. Polk Properties
Jennings & Co.
JK Management Co., Inc.
JLW Property Management
John Randolph Properties
Johnson Heights Condos
Joki Properties
JPM Real Estate Services
Judy DeLuca Enterprise
Junco Co.
JWP Properties, LLC
KBC Management
Kelsall Properties, LLC
Kenneth Alan Apartments
Kenton Hotel, LLC
Metro Multifamily Housing Association®
Keppel & Winquist, LLC
Kingswood Investment Co.
Kippie Investments, LLC
Knoll West Properties, LLC
K-Star
KW Multi-Family
Management Group, Ltd.
L&M Rentals
L&R Properties and Investments
L.J. Properties
Lafayette Properties, LLC
Lake Crest Limited Partner
Lamplighter Apartments
Landmark Apartments, LLC
Larry Grant Investment
Lawrence Investments Co., Inc.
Ledart Properties
Liberty Management Group
Lloyd Place Apartments
Lorig Management Services, LLC
LRG Enterprises
Macole, LLC
Madison Park Apartments
Magdefrau Properties, LLC
Mainlander Property
Management, CRMC
Marilynn Adams Property
Management
Mark Lee Construction
Markram Properties
Marsh Rental Properties, LLC
Matrix Holdings
Matson Properties, LLC
MB Rentals, LLC
McCann Properties, LLC
McKee Enterprises
McKenzie Court
McMonies, LLC
McWilliams Real Estate Services
Metro-Solid Waste & Recycling
Mid-Valley Property Management
Mike & Larry Kay, LLC
Miller Properties
Milligan Apartments NE, LLC
MJP Management
Monarch Apartments
Muddy Creek Properties, LLC
Mudrick Family Limited Partner
Munoz Sanchez Properties, LLC
Myers Property Management Inc.
National Apartment Association
New Haven Apartments, LLC
Nguyen Asset Mangement, Inc.
Northshore
Northwest Communities, LLC
Northwest Group Investments, LLC
Northwest Housing Alternatives
Northwest Plex Group
Oak View Terrace
Oleson View Apartments
Oregon Housing &
Community Services
Oswald Properties, LLC
Oswego Gardens Apartments, LLC
Pacific Northwest Property
Services, LLC
Palermo Properties
Paramount Apartments, LLC
Pardue Management
Park Hollywood Apartments
Parker Properties
Parkrose Properties
Parkrose Terrace
Patterson Properties
PEC Properties, LLC
Peters & Co. Real Estate Management
Peters EnPointe Properties
Pikes NW, Inc.
Pilcher Properties, LLC
Pineview Properties Inc
Pinewood Apartments
Pinnacle, an AMS
NW Company
Portland Community
Reinvestment Initiative
Portland Impact
Portland Towers Apartments, LLC
Powell Court Apartments
Premium Rental Properties, LLC
Prime Group
Princeton Property Management
Professional Property Management
Prometheus Real Estate Group, Inc.
Quail Ridge Apartments
921 SW Washington, Suite 772
Quantum Residential
R. Lawrence Properties, LLC
Raab Family LLC
Railton Properties
Raleigh Scholls Apartments Inc
Rappold Property Management, LLC
Reach Community Development Inc
Real Estate Solutions
Realty Management Advisors
Realvest Asset Management
Regency Management, Inc.
Regional Water Providers
Consortium
Residential Property
Management, Inc.
Resources NW, Inc.
Riel & Pillers
Right-Of-Way Associates, Inc.
Riva Properties, LLC
Riverstone Residential Group
RKB Properties
Rock Realty Group
Rockwood Holdings, LLC
Rogovoy Properties, LLC
Romero & Sons Property
Management, LLC
Rose Place Apartments, LLC
S.L.S. Properties, Inc.
Sabin Community Development Corp
Sandycrest Partners, LLC
Satellite Properties, LLC
Schaeffer & Associates, LLC
Schoen House Apartments
SCR Management LLC
Seamast Vista LLC
Semler Building, LLC
Sequoia Apartments
Shangri-La Corporation
Shara Alexander, LLC
Sheldon Development
Shelter Management, Inc.
Silverado Group, LLC
Simpson Property Group
SKL Properties, LLC
SkyNat Limited Partnership
Solares Homes
South Park at Bethany
Southpark Square Apartments
Sterling Management Group, Inc.
Studehouse, LLC
Subtext Media
Susbauer Properties, LLC
Tandem Property Management, Inc.
Taylene Court, LLC
Tellco Property Management
Terjeson Investments
The Lodges at Lake Salish, LLC
The Management Group
The Park at Fox Pointe, LLC
The Perotti Group
The Pines
The RW Fullerton Company
Theresa Terrace Apartments
Tokola Properties
Tree Crest Apartments
Trevor Anthony Apartments
Trinity Property Consultants
Tucci Investments
UDR
Urban La Residence
V.I.P. Property Management, Inc.
Valentino Bonser Properties, LLC
Valley View Estates
Village at Sunrise
Vista Highlands
Walchae & Associates
Walker Investment /
Hammond Residential
Warner Pacific College
Wells Rentals
PRES IDE NT
Chris Hermanski
Mainlander Property Management
V IC E PRE SIDENT
Eve Henderson
C&R Real Estate Services
S E CRE TARY
Liz Zuanich
Princeton Property Management
TREA SURE R
Greg Knakal
Princeton Property Management
IMM E DIATE PAS T PRES IDE NT
Barb Casey
Kennedy Restoration
DIRE C TOR
Mary Daggett
Income Property Management
DIRE C TOR
Jeff Denson
Dalton Management, Inc.
DIRE C TOR
Andy Hahs
Bittner & Hahs
DIRE C TOR
David Halseth
Background Investigations
DIRE C TOR
Paul Hoevet
HD Supplies Facilities Maintenance
DIRE C TOR
Pam McKenna
Guardian Management LLC
DIRE C TOR
Rick Martinson
Carla Properties
DIRE C TOR
Jamie Sterling-Counard
Sterling Management Group, Inc.
DIRE C TOR
Western States Development
Westridge Properties, LLC
Whispering Pines Apartments
Wigrich Farms, Inc.
Wildwood, Inc.
Wilfert Investments
Wilkinson, LLC
William Chan Property Management
Williams Downing, LLC
Wilsonville Summit
Windsor Properties
Woodland Park Estates
WPL Associates
WWL Corporation
Portland, OR 97205
503 226 4533
Kris Tanaka
The Oregonian
DIRE C TOR
Jim Wiard
Guardian Management LLC
DIRE C TOR
Korah Young
C&R Real Estate Services
DIRE C TOR
This report would not be possible without the dedication and
commitment of the MMHA staff and the Apartment Report Committee.
Thank you to the many contributors, writers and consultants who have
generously taken the time to provide this information.
For more information on MMHA or to comment on this report, please
visit us on the web at www.metromultifamily.com. The opinions
contained in this report are those of the authors and do not necessarily
represent the opinions or positions of MMHA.
12