2010 Fall Apartment Report
Transcription
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 cu the uired If : ER NG DA n you may be req to-value ratio, the loan the e uc red the allowed loanto t principal paymen m su p can t lum en a tm ke to ma ging the inves level. Over-levera to the acceptable ession. force a sale in a rec 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