LOCATION AND COMMERCIAL FEATURES
Plans to convert the property to a 27-unit apartment complex
Completed project valued at $4.4 million
Groundwork and feasibility are already done
Located in downtown Medford
1.8 miles from I-5 freeway
Walk Score of 89
Large o ce building layout
22 parking spots
Elevator and two stairwells
Landscaped with drip system
This downtown location is an ideal investment opportunity, with plans to convert it into a 27-unit apartment complex already underway. The current layout provides both large and small spaces, allowing for a diverse range of configurations. The favorable C-S/P zoning provides flexibility for future development.
One of the most significant advantages of this property is its versatility, as it can be easily divided into multiple commercial units, thanks to its multiple bathrooms, many exits, and elevator. Additionally, the property has a Walk Score of 89, making it an ideal location for businesses seeking high pedestrian tra c. Excellent access from the street and the alley with 22 parking spaces.
123 WEST 10TH STREET, MEDFORD, OREGON
Pro forma shows a completed project value of $4.4 million with current bid to complete conversion at $2.52 million. The groundwork and feasibility have already been done, making it an excellent opportunity for investors looking to acquire a property with minimal investment risk. Additionally, the property is located in a highly desirable area with strong growth potential.
Thanks to the seller's extensive research and planning, the proposed Oasis Apartment Complex is designed to maximize profits. With its prime location and solid investment potential, the property offers a turn-key investment that predicts significant returns in the form of longterm cash flow and appreciation.
BASED ON CURRENT LAYOUT AND CONDITION
Area of rentable space
Estimated rent
Estimated total rent
Projected annual gross income
Projected annual net profit
10,065 sq.ft.
$1/sq.ft./month
$10,065/month
$120,780
$78,507
$120,780 x 0.65 (estimated 35% operating expenses) = $78,507 annual net profit
CAP RATE CALCULATION
ESTIMATED NUMBERS BASED ON CURRENT LAYOUT AND CONDITION
Property value
Annual gross income
Operating expenses
Vacancy rate
Annual net income
Cap rate
$850,000 $120,780 35% 5% $74,581
8.774%
Purchase price Conversion
Total investment
Estimated CAP rate after completed project: 6.5%
Number of apartments to be built
Estimated rent per apartment
Estimated total rent
Projected annual gross income
Projected annual net profit
27
$1,100/month
$29,700/month $356,400
$231,660
$356,400 x 0.65 (estimated 35% operating expenses) = $231,660 annual net profit
ESTIMATED NUMBERS BASED ON A COMPLETED CONVERSION PROJECT CAP
Total cost
Annual gross income
Operating expenses
Vacancy rate
Annual net income
Cap rate
$3,370,000 $356,400 35% 5% $220,077 6.53%
FROM 2021 CENSUS DATA
MEDFORD HOUSEHOLDS AND FAMILIES
Source: US Census 2020 ACS 5-year survey (Table S1101)
With the region's growing real estate market, buying commercial property in Southern Oregon with the strategy of converting it into residential housing can be a great opportunity for those looking to invest in an industry with consistent year-over-year growth.
Southern Oregon has a shortage of affordable housing, and many commercial properties could be repurposed into multi-unit apartments. The largest city in the region, Medford, favors housing conversions in areas close to public transportation and city amenities.
