Since the passing of SB 608 [February 28, 2019], the following additional Clark County assets have sold: Property Birchwood Lane Edward's Duplexes Herby The Lavonne 1000 W 23rd T Street Apartments Sam's Good RV Park Somerset Terrace Green Leaf Uptown Creekside Village Green Leaf River Pointe Woodland Mobile Home and RV Park Meadow Wood Apartments
Units 36 12 18 75 5 204 66 95 167 132 387 75 334
Sale Price $3,700,000 $3,425,000 $3,700,000 $17,250,000 $800,000 $4,910,000 $2,000,000 $16,200,000 $57,750,000 $29,000,000 $68,800,000 $2,976,200 $54,750,000
Portland sales are flat
So far, 2019 sales in the rest of the Portland metro area, excluding Clark County, are on track to match 2018 sales. There have been $1.3 billion in sales through September of 2019, compared to $1.9 billion for all of 2018. There has, however, been a noticeable drop in the number of private client transactions under $10 million, according to CoStar and HFO research. In 2018, there were 112 private client transactions in the Oregon counties within the Portland metro area, which totaled approximately $414 million. Through September 2019, there were just 70 apartment sales, totaling roughly $282.8 million.
Other culprits
Despite the increase in regulations, the flattening of sales activity in Portland is likely less due to rent control than the changing fundamentals of a market in its tenth year of growth, including slowing rents and a lack of valueadd product. While the 7% plus CPI rent increase allowed by SB 608 pales in comparison to the double-digit hikes owners experienced in the wake of the recession, few owners in Oregon can argue they are achieving 9.9% increases on market rents today. That is due in large part to the delivery of thousands of new apartments in Portland’s core, which has led to the re-emergence of leasing concessions throughout the Portland market.
Sale Date 7/10/2019 7/1/2019 7/25/2019 8/22/2019 9/18/2019 9/23/2019 9/30/2019 4/26/2019 5/23/2019 5/24/2019 6/19/2019 5/2/2019 8/22/2019
HFO Sale: Meadow Wood Apartments
334 Units • Vancouver, WA • $54.75 million
you’re used to owning in California, Oregon’s regulations don’t look all that bad.” Recently, California and New York increased regulations on landlords and made it significantly harder to raise rents. Meanwhile, cities like Boston are considering re-legalizing rent control. As more cities and states follow suit, investors may view Oregon’s regulatory environment more favorably.
HFO Current Listing: Palladian Apartments
20 Units in Portland, OR $2.7 million (new price!)
And even with all the red tape, there is still investor demand for Portland assets that are priced accordingly. As one of our clients from California said recently, “when The Northwest Apartment Investor
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