Overview

Description

The Evergreen Gardens Apartments may be purchased with or separate from the Eastwood Estates Apartments one lot away.
The Evergreen Gardens Apartments is a 28 unit complex consisting of twenty 1 bedroom, 1 bathroom, and eight 2 bedroom 1 bathroom units. The complex has been successfully owned and managed by the seller since 2014. The majority of the complex is comprised of single story units, each with a back yard and patio area. The private configuration along with attractive well maintained units makes for an excellent living experience for residents. The property is girt with wood cladding, upgraded with vinyl windows and sliders, newer roofs, new asphalt with plenty of off street parking and usable open space, along with significant mature landscaping on site. There is additional yard space at the rear of the lot which could be developed for additional buildings, either units or additional storage and amenities. These features make for easy and cost effective maintenance for ownership with future upside. There are seven buildings with six of them being one story. All units are garden style walkups with the two story building being in the rear of the property, thus maximizing tenant privacy and building efficiency.

The opportunity for a new buyer stems from the fact that the property has been operated for stability by current ownership and has an average vacancy of 3% over the previous five years. They made long term investments that are essential but do not increase cash flow in new roofs, paint, and parking lot. The improved lifespan of the improvements will significantly benefit a new owner with fewer capital expenditures over the life of the investment. The current tenant base is strong with good collections and rents that are under market at an average of $953. Evergreen Gardens has little deferred maintenance, but room to invest in upgrades to receive a significant return on investment. The interior unit configurations are attractive with an open layout that feels larger than their square footage. This is a major selling point for tenants on top of the building orientations in the complex that provide privacy, security, and a secluded feel.
There is a phenomenal opportunity for an investor to operate the property with its current strong cash flows. A higher return can be accomplished by tightening landscaping and the curb appeal of the property, and by upgrading the interiors of the units. Unit interior upgrades opportunities consist of fixtures, floor coverings, paint, and bathroom mirrors. The market rents for properties nearby are between $995 to $1095 per one bedroom and approximately $1,195 per 2 bedroom which warrant the cost of upgrades.


The property is situated in a quiet section of Rockwood. Neighboring properties consist of condos, single family homes, and other well-kept apartment complexes. Over the last two years, the neighborhood within half mile has seen significant growth thanks to an influx of capital into upgrading retail, office, and multifamily assets. Several new properties have been placed into service and have leased up very well showing strong demand in the area for all levels of finish quality. The submarket and specifically Yamhill street is still affordable yet trending in an upward direction. The area around the property boasts several public spaces including Yamhill Neighborhood Park and Vance Park and major employers such as Kaiser Permanente, Multnomah County and Microchip Technology Inc. The property is also served by easy access to Dutch Bros Coffee, Albertsons, Natural Grocers, Fred Meyers, and major retail centers such as Gresham Station and Rockwood Plaza.

Rockwood originally held a Ten Mile Inn that was a standard stage coach stop. In the 1980's it was annexed into the city of Gresham. The property is located near the Rockwood Kaiser Permanente campus, Gresham High School, and the Gresham Station Retail Center.

Highlights

• Bread and Butter Units
• Room to push rents with a modest upgrade
• Newer building systems
• Minimal capex in the foreseeable future

Documents

---