FOUR SEASONS TOWNHOMES WESTFAIR APARTMENTS
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OFFERING MEMORANDUM
A T E
U PD
E E D
N
FOUR SEASONS TOWNHOMES WESTFAIR APARTMENTS
71 UNITS • EUGENE, OR 80 UNITS • EUGENE, OR
www.hfore.com • (503) 241.5541
Ave
t h
15
Polk
S t
OFFERING MEMORANDUM
FOUR SEASONS TOWNHOMES
AND WESTFAIR APARTMENTS
Eugene, Oregon
TABLE OF CONTENTS
I. Executive Summary 5
II. Asset Overview 9
III. Location 27
IV. Comparables 35
V. Operations Analysis 41
VI. Offer Terms 51
HFO INVESTMENT REAL ESTATE
Greg Frick Rob Marton Adam Smith
greg@hfore.com rob@hfore.com adam@hfore.com
(971) 717.6332 (971) 717.6335 (971) 717.6345
www.hfore.com • 503.241.5541
Licensed in the States of Oregon and Washington
t h Ave
15
Polk
S t
4 HFO INVESTMENT REAL ESTATE
EXECUTIVE SUMMARY
FOUR SEASONS TOWNHOMES AND WESTFAIR APARTMENTS
151 Units • Eugene, Oregon
EXECUTIVE SUMMARY
TOTAL UNITS YEAR BUILT YEAR BUILT LOCATION
151 1962 1976 EUGENE, OR
Four Seasons Townhomes Westfair Apartments
PRICED CAP RATE # OF PROPERTIES
$16,500,000 5.78% TWO PROPERTIES
Upward trending rents. A critical mass of units near major employers and services.
Four Seasons Townhomes and Westfair Apartments’ rents have Four Seasons Townhomes and Westfair Apartments offer a critical
demonstrated significant increases. Currently scheduled rents— averaging mass of well-maintained workforce housing in the Eugene/Springfield
$934 per unit, or $1.31 per sq ft—are 4.6% higher than March 2020 TTM market. The asset is less than 2 miles from the University of Oregon, one
rents, an increase of $43 per unit. Renewals for the previous 6-months are of Eugene’s most well-known employers. Four Seasons Townhomes and
realizing rent increases averaging of 6.6% over current leases. New lease Westfair Apartments is a ½ mile walk to Albertsons and a few blocks
rates achieved by the Four Seasons and Westfair average $1,021 per unit, from 63-acre Westmorland City Park.
or $1.43 per sq ft.
Attractive unit mix, including townhomes. Long Term Ownership.
Four Seasons Townhomes and Westfair Apartments offer a unique unit Four Seasons Townhomes and Westfair Apartments were owner-
mix. The Four Seasons has 48 townhomes and 23 one-bed flats while managed for more than ten years. The property switched to independent,
Westfair Apartments has 48 one-bed and 32 two-bed apartments. The third-party management in 2018. At that time, the new managers
combined community includes ample off-street parking, storage, and implemented utility charges and administrative charges.
convenient on-site laundry centers. Specific amenities include enclosed
private patios at the forty-eight townhomes, and an elevator serves the
flats at Westfair. Landscaped grounds surround both communities.
6 HFO INVESTMENT REAL ESTATE
EXECUTIVE SUMMARY
ASSET SUMMARY PRICING
Property Four Seasons Townhomes Westfair Apartments Combined Asset Price $16,500,000
Location 1515 Polk Street 1515 Tyler Street 1280 W 15th Avenue Price per Unit $109,272
City, State Eugene OR 97402 Eugene OR 97402 Eugene OR 97402 Price per Sq Ft $153
County Lane Lane Lane Cap Rate 5.78%
Year Built 1962 1976
Total Units 71 80 151 Tours and Inquiries:
Approx. NRSF 59,191 sq ft 48,400 sq ft 107,591 sq ft All tours and inquiries regarding the
Four Seasons Townhomes and Westfair
Average Unit Size 834 sq ft 605 sq ft 713 Apartments are to be directed to HFO
Total Acres 2.56 acres 1.60 acres 4.67 acres Investment Real Estate at (503) 241.5541.
Density 32.33 units per acre Greg Frick • greg@hfore.com
Rob Marton • rob@hfore.com
UNIT MIX Tyler Johnson • tyler@hfore.com
Unit Type Unit Count Avg Sq Ft Total Sq Ft % of Total Units Adam Smith • adam@hfore.com
1 Bedrooms 71 569 40,375 47.0% Licensed in the states of Oregon and Washington.
2 Bedrooms 80 840 67,216 53.0%
Total / Averages 151 713 107,591 100.0%
47.0% 53.0%
1 Bedrooms 2 Bedrooms
FOUR SEASONS TOWNHOMES AND WESTFAIR APARTMENTS • EUGENE, OR 7
EUGENE, OREGON
Downtown Eugene’s convergence Eugene and Springfield were incorporated during the second half of the 19th century, and
the cities’ proximity to the coast, as well as the Cascade Mountains, continues to attract
of restaurants, bars and new residents. The two cities are located along the Interstate 5 highway, connecting the
region to Oregon’s other large metro areas. Combined, the Eugene-Springfield MSA is the
entertainment venues make third- largest metro area in the state.
life in city lively. More than 20
Eugene—pop. 171,245, and Springfield—pop. 62,979, pride themselves in being among
new businesses have opened in the nation’s most livable cities. Eugene’s population grew by 9.5% between 2010 and
2018, and the median income was $47,489 in 2017. More than half of Eugene’s housing
downtown Eugene since 2012 as units, are owner-occupied.
developers have invested over
The area’s mix of more stable, traditional university, federal, and state jobs, combined with
$395 million in construction a growing tech industry and a high number of small-to-medium employers, is appealing
to those seeking to relocate to Oregon. The area attracts a highly-skilled workforce. More
projects. Major projects at the than forty percent of Eugene residents have a bachelor’s degree, with seventeen percent
University of Oregon include the possessing graduate or professional degrees—higher than the US average.
12,000-seat arena on Franklin Apartment occupancy in the area extremely strong according to MultifamilyNW, which
Boulevard completed in 2011, reported vacancy at 4% in its Fall 2019 Apartment Report.
dubbed the Knight Arena after
Nike founder and major UO donor
RIVERBEND MEDICAL CENTER
Phil Knight. Knight is also the
major donor for reconstruction
of, Hawyard Field. Hayward field
is scheduled to host the World
Championships in 2021. Its $195
million reconstruction is slated to
be complete in May, 2020.
8 HFO INVESTMENT REAL ESTATE
ASSET OVERVIEW
FOUR SEASONS TOWNHOMES AND WESTFAIR APARTMENTS
151 Units • Eugene, Oregon
FOUR SEASONS TOWNHOMES AND WESTFAIR APARTMENTS • EUGENE, OR 9
ASSET OVERVIEW
Four Seasons Townhomes and
Westfair Apartments are two
adjacent properties totaling 151
units. The assets operate jointly
with a unit mix of one- and two-
bedroom flats and two-bedroom
townhomes. The apartments are
in the West Eugene neighborhood
adjacent to Amazon Creek—a 7.3-
mile urban walking pathway near
the University of Oregon campus.
Westfair Apartments
Tyler St
e
Av
th
15
Four Seasons Townhomes
10 HFO INVESTMENT REAL ESTATE Polk StWestfair Apartments was built
in 1976 and totals 80 units
between two buildings. The
buildings are elevator-served
with common area laundry
and additional storage on each
floor. The Westfair property is
all apartment flats and features
one- and two-bedroom floor
plans. The average unit size of
Westfair Apartments’ units is
605 sq ft.
Four Seasons Townhomes was built in
1962 and totals 71 units between 12
buildings. This portion of the property
offers a combination of one-bedroom
flats and two-bedroom townhomes.
A total of 48 units at Four Seasons
Townhomes, or approximately 68%
of the units, are two-bedroom, one
and one-half bathrooms townhomes.
The units at Four Seasons Townhomes
average 834 sq ft. The townhomes
have enclosed backyard patios.
Common area laundry services are
found in each building.
FOUR SEASONS TOWNHOMES AND WESTFAIR APARTMENTS • EUGENE, OR 1115
th
St
Av
lk
e
Po
Four Seasons Townhomes and Westfair Apartments are located less than 2 miles from downtown Eugene and the University of Oregon campus.
An Albertsons shopping center, Westmoreland City Park, and Jefferson City Park are walking distance from Four Seasons Townhomes and Westfair
Apartments. A Fred Meyer grocer, Lowes Home Improvement, Home Depot and other retailers are less than 2 miles to the northeast along West 11th
Avenue.
Four Seasons Townhomes and Westfair Apartments’ offer a critical mass of units, attractive unit mix, and increasing rents.
12 HFO INVESTMENT REAL ESTATEFour Seasons Townhomes
Westfair Apartments
FOUR SEASONS TOWNHOMES AND WESTFAIR APARTMENTS • EUGENE, OR 13Four Seasons Townhomes 14 HFO INVESTMENT REAL ESTATE
FOUR SEASONS TOWNHOMES AND WESTFAIR APARTMENTS • EUGENE, OR 15
Four Seasons Townhomes 16 HFO INVESTMENT REAL ESTATE
FOUR SEASONS TOWNHOMES AND WESTFAIR APARTMENTS • EUGENE, OR 17
Westfair Apartments 18 HFO INVESTMENT REAL ESTATE
FOUR SEASONS TOWNHOMES AND WESTFAIR APARTMENTS • EUGENE, OR 19
Westfair Apartments 20 HFO INVESTMENT REAL ESTATE
Downtown Eugene FOUR SEASONS TOWNHOMES AND WESTFAIR APARTMENTS • EUGENE, OR 21
ASSET OVERVIEW
Four Seasons Townhomes Westfair Apartments
CONSTRUCTION Year Built 1962 1976
Total Units 71 80
SUMMARY Approximate NR Sq Ft 59,191 sq ft 48,400 sq ft
Average Unit Size 834 sq ft 605 sq ft
Acreage 2.56 acres 1.60 acres
Number of Buildings 12 2
Stories (Apartment Buildings) 2 3
Exterior Walls Stucco Stucco
Roofing Membrane Single piece membrane
Plumbing Combination of galvanized and copper Combination of galvanized and copper
Windows Triple-pane vinyl Single-pane aluminum
Laundry Service 12 common area laundry rooms 8 common area laundry rooms
Heating Baseboard heating Combination of baseboard heating and
PTAC units
PARKING AND Open Surface Stalls 112 spaces 74 spaces
Parking Ratio 1.5 space per unit 0.93 spaces per unit
STORAGE SUMMARY Storage 72 units 80 units
SITE SUMMARY City Eugene
County Lane
Tax Lot Number(s) 0488344
0488393
1464807
Zoning M - Medium Density Residential
22 HFO INVESTMENT REAL ESTATEUNIT MATRIX
UNIT MIX AND PHASE CONSTRUCTION SUMMARY
Floor plan Property Aggregate
Four Seasons Westfair Total Units Average Sq Ft Total Sq Ft
Townhomes Apartments
1 Bedroom / 1 Bathroom 23 48 71 569 40,375
2 Bedroom / 1 Bathroom 32 32 725 23,200
2 Bedroom / 1.5 Bathroom Townhome 48 48 917 44,016
Total / Average 71 80 151 713 107,591
UNIT SUMMARY
Bedrooms 1 Bedroom 2 Bedroom 2 Bedroom Total / Average
Bathrooms 1 1 1.5
Floor plan Flat Flat Townhome
Total Units 71 32 48 151
% of Total 47.0% 21.2% 31.8% 100.0%
Total Sq Ft 40,375 23,200 44,016 107,591
Average Sq Ft 569 725 917 713
Average Current Rent $823 $939 $1,095 $934
Average Current Rent Per Sq Ft $1.45 $1.30 $1.19 $1.31
FOUR SEASONS TOWNHOMES AND WESTFAIR APARTMENTS • EUGENE, OR 23FLOOR PLANS
Four Seasons Townhomes
1 Bedroom • 1 Bathroom
Upstairs Flat
Four Seasons Townhomes
2 Bedroom • 1 Bathroom
Townhome
Renderings are intended only as a general reference.
Features, materials, finishes and layout of subject unit
may be different than shown.
Four Seasons Townhomes
1 Bedroom • 1 Bathroom
Downstairs Flat
24 HFO INVESTMENT REAL ESTATEFLOOR PLANS
Westfair Apartments
1 Bedroom • 1 Bathroom
Flat
Renderings are intended only as a general reference.
Features, materials, finishes and layout of subject unit
may be different than shown.
Westfair Apartments
2 Bedroom • 1 Bathroom
Flat
FOUR SEASONS TOWNHOMES AND WESTFAIR APARTMENTS • EUGENE, OR 25SITE PLAN N
1150
Westfair Apartments 1160
Four Seasons Townhomes
1580
Tyler St
1520
1570
1240
1245
1249
ve
hA
15t
1260
1280
1545
1585
1515 1565
Polk St
26LOCATION
FOUR SEASONS TOWNHOMES AND WESTFAIR APARTMENTS
151 Units • Eugene, OregonLOCATION
Four Seasons Townhomes and Westfair Apartments are in a convenient area.
Some daily errands in this location require a car and most major services are
within 2.5 miles.
Four Seasons Townhomes
and Westfair Apartments
1280 W 15th Avenue GROCERIES BANK FITNESS COFFEE
Eugene, Oregon 97402
0.9 mile 1.1 mile 1.2 mile 0.9 mile
DINING PARK SHOPPING MEDICAL
0.9 mile 0.2 miles 1.0 mile 2.2 miles
Lifestyle conveniences near by:
28 HFO INVESTMENT REAL ESTATELOCATION
North
west
Irving Rd RiverRidge Golf
d
Ex
& Event Center
R
urg
py.
Cob
5
Crescent Ave
Maxell Rd North Eugene Randy P
age Belt
High School line
Hwy
Barger Rd
River R
Delta
Be
the
99
d
lR
d Cal Young Rd
Valley River Center
569
Royal Ave
Valley River Center
Roosevelt Blvd Eugene Country Club
Bertelsen Rd
Autzen Stadium Centennial
Elementary School
126 DOWNTOWN EUGENE
South Eugene
High School
Four Seasons Townhomes Westfair Apartments
FOUR SEASONS TOWNHOMES AND WESTFAIR APARTMENTS • EUGENE, OR 29EUGENE/SPRINGFIELD
The Eugene/Springfield economy is MAJOR EMPLOYERS
supported by many industries and Major employers in the Eugene/Springfield — and their approximate number of
businesses of all sizes. At the heart employees — include:
of Eugene’s revenue is its legion of Employer Sector Number of Employees
home-grown small and medium- PeaceHealth Medical Group Healthcare 5,855
University of Oregon Education 5,573
sized enterprises.
Eugene 4J School District Education 2,283
Most Eugene companies employ fewer than US Government Public 1,747
20 workers. Including sole proprietorship firms State of Oregon Public 1,715
and limited partnerships, more than 10,000 Lane County Public 1,678
businesses currently operate in and around Springfield School District Education 1,670
Eugene/Springfield. Lane Community College Education 1,500
City of Eugene Public 1,531
The government, education, healthcare, State of Oregon Public 1,715
professional services, and leisure and McKenzie Willamette Medical Center Healthcare 1,066
hospitality sectors make up more than 50% Source: City of Eugene FY 2019 Comprehensive Annual Financial Report
of the MSA’s total employment. The area’s
Additional employers include Walmart, Weyerhauser, Rosboro Lumber Company, the Harry
growing “Silicon Shire,” a network that and David call center, Franz Bakery, and the Pentagon Federal Credit Union call center.
connects more than 175 tech businesses, also
provides many jobs. The Oregon Department of Economic Analysis predicts that by 2027, health care and social
assistance jobs in Lane County will increase by 18%, while construction jobs will increase by
Home to the University of Oregon and a 25%. Professional and business services, as well as leisure, hospitality, and manufacturing
are expected to experience strong growth over the next several years.
federal courthouse, Eugene’s government
employment adds stability to the area’s
economy.
30 HFO INVESTMENT REAL ESTATEEUGENE/SPRINGFIELD
TECHNOLOGY
The Eugene/Springfield area plays host to a growing number of tech companies. The Eugene/Springfield area has come to be known as the Silicon
Shire. A networking group by that name currently has more than 178 members and includes numerous firms with over 100 employees including,
Alacrity Services, Datalogic ADC, FCR, Inseego, Life Technologies, Symantec, and Presidio. All of these firms are actively hiring. There are more
than 400 tech companies in the region employing more than 4,570 people.
Like the Silicon Forest located in Beaverton and Hillsboro, the Silicon Shire is another major conglomeration of tech businesses — from small start-
ups to major corporations — that are bringing jobs and growth to their area, and make Eugene and Springfield increasingly attractive destinations
for Oregon residents.
SILICON SHIRE EMPLOYERS
Tech Companies with More than 100 Employees in the Eugene- Tech Companies with 51-100 Employees in the Eugene-Springfield Area
Springfield Area include: include:
Employer Sector Employer Sector
3C Interactive Digital marketing software developer 4Medica Inc. Developer of cloud-based clinical data software
Alacrity Services Subsidiary of Lowes, software to CBT Nuggets Developer of online IT training videos for
connect contractors to clients system administrators
City of Eugene Information Computer network management and Concentric Sky Product design and R&D
Services Division operations IDX LLC Developer of real estate data software
Datalogic Hardware developer of bar code Information Services, U of O IT Services
readers, data collection tools, sensors,
Lane Community College IT Services
and vision systems
Computer IT
Inseego Internet of things (IoT) integration &
services Ninkasi Brewing Craft brewery
Life Technologies Biotech arm of ThermoFisher Scientific Palo Alto Software Developer of business planning software
Presidio Tech services Pipeworks Game developer
The Register Guard Digital media, news, and advertising Quorum Data backup device manufacturer
company, news app developer Rosen Aviation In-flight entertainment products
Symantec Cyber security software developer Zynga Online game developer
FOUR SEASONS TOWNHOMES AND WESTFAIR APARTMENTS • EUGENE, OR 31UNIVERSITY OF OREGON — EUGENE
With its nationally high-profile sports teams, and
a prime location near the Oregon Coast and the
Cascade Range, the University of Oregon is a major
draw to students in Oregon and around the country,
and it one of the state’s big three universities.
Founded in 1876, The U of O is among 36 public
universities in the Association of American
Universities—an organization of schools with a
shared goal of scientific exploration and courses
of study that cross over into different disciplines.
Students at the University of Oregon can choose
The OREGON DUCKS
from over 325 degree and certificate programs, The Oregon Ducks University of Oregon Facts:
spread across departments and programs in It’s impossible to write about the University • Students that University-owned housing
of Oregon without mentioning its football can accommodate: 17.5%* (Axiometrics)
the school’s College of Arts and Sciences, six team, the Oregon Ducks. Famous for their
professional schools and colleges, and its Robert longstanding rivalry with the Oregon State • Admissions 2018-2019: 8.5% increase
Donald Clark Honors College. Beavers, the Ducks benefit from a partnership • 2019 Freshman enrollment: 4,558
with Nike and private financial support from • Undergraduate median age: 21
Students and Faculty Phil Knight, and have consistently been in
According to information published by U.S. the national spotlight for college sports. The • Oregon residents: 52%
News and World Report, the U of O has nearly Ducks have proven a significant driver in
23,000 students and 2,111 faculty members out-of-state recruitment.
on its 295-acre campus. The U of O campus is
also an arboretum of more than 4,000 trees,
consisting of approximately 500 species. and neuroscience. U of O is home to over 30 student resource center, athletic facilities, and
research centers and institutes—from the numerous academic facilities. In October, 2014,
Programs Center for the Study of Women in Society to the school announced a $2 billion fundraising
The university’s science departments, which the Northwest Indian Language Institute. campaign, designed to help the school’s
include anthropology, biology, physics, academic programs. By January 2019, donors
mathematics, psychology, computer and Expansion, Renovations and Fundraising had given $2.03 billion. Among those donations
information science, and geological sciences, The U of O Campus has recently had $92 million was a $50 million endowment from Microsoft’s
receive national attention for their work in in expansions and renovations including Steve and Connie Ballmer. As of 2019, U of O
various branches, including genetics, optics, upgrades to the library, recreation center, has a $900 million endowment.
32 HFO INVESTMENT REAL ESTATEMEDICAL
PeaceHealth, a medical services company headquartered in
Vancouver, Washington, operates 10 hospitals in three states, including
two hospitals in the Eugene area. One is located in Eugene’s University
district; the other is in Springfield. The Sacred Heart Medical Center in
Eugene’s University District was established in 1924 and experienced six
expansions between 1941 and 1982. Since 2008, it has operated 104 beds.
Sacred Heart is known for its emergency service and its senior-based
features such as its Acute Care for Elders program and its Gerontology
Unit. The hospital also offers telemedicine services, outpatient therapy,
and an 18-bed rehabilitation center. According to U.S. News and World
Report’s most recent data, Sacred Heart had 25,593 patient visits to
its hospital’s emergency room and a total of 2,606 admissions. The
hospital provides work for more than 900 employees and a large group
of volunteers.
In the early 2000s, the campus needed additional expansion but
had no available room at its current location. This led to the 2006
construction of the Peace Health at RiverBend campus in Springfield,
PEACEHEALTH SOUTHWEST MEDICAL CENTER
at an approximate cost of $567 million. This imposing structure is visible
from great distances and features 338 licensed beds, 386 private patient
rooms, 28 operating rooms, and 16 labor and delivery suites.
A competing hospital, Springfield’s McKenzie-Willamette Medical Center has 113 licensed beds and more than 225 active physicians. Its large list
of departments and specialties ranges from allergy and immunology to vascular surgery. In 2019 McKenzie-Willamette Medical Center held a ribbon
cutting ceremony for the expansion of its emergency room, marking the end of a three-year, $115 million hospital renovation and expansion. The ER
renovation included an expansion of 10,000 square feet and an increase in the number of exam rooms from 17 to 38. Included in these new exam
rooms are three trauma rooms as well as a “Fast Track” area to the Level III trauma center. In 2018, more than 48,000 patients were served by McKenzie-
Willamette’s ER. Since 2015, the hospital added 153,000 square feet of space and renovated an additional 56,000 square feet.
FOUR SEASONS TOWNHOMES AND WESTFAIR APARTMENTS • EUGENE, OR 3334 HFO INVESTMENT REAL ESTATE
COMPARABLES
FOUR SEASONS TOWNHOMES AND WESTFAIR APARTMENTS
151 Units • Eugene, OregonRENT COMPARABLES
FOUR SEASONS TOWNHOMES AND WESTFAIR APARTMENTS • EUGENE, OR
Randy P
age Belt
line
Hwy
Barger Rd
River R
Delta
Be
the
99
d
lR
d Cal Young Rd
569 5
Royal Ave
Valley River Center
Roosevelt Blvd Eugene Country Club
Bertelsen Rd
Autzen Stadium Centennial
Elementary School
Broadway Center
126 DOWNTOWN EUGENE
Woodland Creek
Devonshire Hills
South Eugene
High School
Prospect Park Apartments
Four Seasons Townhomes Westfair Apartments
36 HFO INVESTMENT REAL ESTATERENT COMPARABLES
FOUR SEASONS TOWNHOMES AND WESTFAIR APARTMENTS • EUGENE, OR
Unit Type Four Seasons Townhomes Broadway Center Woodland Creek Devonshire Hills Prospect Park Comparable
and Westfair Apartments Apartments Averages
Address 451 West Broadway 1455 Bailey Hill Road 3088 West 15th Avenue 1710 Northview Boulevard
Total Units 151 107 211 166 131 156
Year Built 1962 1979 1978 1973 1988 1975
Average Rent
Studios $1,035 $1,035
1 Bedroom $832 $957 $900 $810 $890
2 Bedroom $1,033 $1,200 $1,066 $945 $915 $1,057
3 Bedroom $1,195 $1,060 $1,128
Average Rent per Sq Ft
Studios $2.25 $2.25
1 Bedroom $1.45 $1.77 $1.65 $1.08 $1.48
2 Bedroom $1.23 $1.56 $1.30 $1.12 $1.12 $1.30
3 Bedroom $0.95 $1.12 $1.03
Average Rent $934 $1,064 $1,024 $1,070 $928 $1,005
Average Rent
$1.31 $1.86 $1.39 $1.03 $1.10 $1.39
Per Sq Ft
FOUR SEASONS TOWNHOMES AND WESTFAIR APARTMENTS • EUGENE, OR 37RENT COMPARABLES
COMPARABLE ONE-BEDROOM FLOOR PLANS
$1,200
$996
$1,000
$875 $900 $900
$810
Average Rent – Average Sq Ft
$800
$600
$400
$200
$0
Prospect Park Westfair Woodland Creek Four Seasons Broadway Center
Apartments Apartments Townhomes
Average Rent Average Unit Size (Sq Ft)
38 HFO INVESTMENT REAL ESTATERENT COMPARABLES
COMPARABLE TWO-BEDROOM FLOOR PLANS
$1,400
$1,178 $1,200
$1,200
$1,066
$1,019
$1,000 $945
$915
Average Rent – Average Sq Ft
$800
$600
$400
$200
$0
Prospect Park Devonshire Hills Westfair Woodland Four Seasons Broadway
Apartments Apartments Creek Townhomes Center
Average Rent Average Unit Size (Sq Ft)
FOUR SEASONS TOWNHOMES AND WESTFAIR APARTMENTS • EUGENE, OR 3940 HFO INVESTMENT REAL ESTATE
OPERATIONS ANALYSIS
FOUR SEASONS TOWNHOMES AND WESTFAIR APARTMENTS
151 Units • Eugene, OregonHISTORICAL OPERATIONS
Income March 2020 TTM March 2020 T3-months Annualized
Potential Gross Market Rent $1,713,240 $11,346 $1,778,220 $11,776
Less: Loss to Lease -$98,203 -$650 -5.7% -$112,157 -$743 -6.3%
Scheduled Gross Rent $1,615,037 $10,696 $1,666,063 $11,034
Less: Vacancy/Credit Loss -$36,158 -$239 -2.2% -$42,336 -$280 -2.5%
Net Rental Income $1,578,879 $10,456 $1,623,726 $10,753
Other Income $125,037 $828 $128,728 $853
Includes: Laundry $9,025 $60 $10,551 $70
Includes: Utility Billing (RUBs) $63,531 $421 72.1% $58,881 $390 66.8%
Includes: Miscellaneous $52,481 $348 $59,295 $393
Gross Operating Income $1,703,916 $11,284 $1,752,454 $11,606
Expenses March 2020 TTM Per Unit % GOI March 2020 TTM Per Unit % GOI
Real Estate Taxes $129,904 $860 7.6% $129,904 $860 7.4%
Insurance $69,007 $457 4.0% $69,007 $457 3.9%
Total Utilities $108,404 $718 6.4% $108,404 $718 6.2%
Administrative $61,734 $409 3.6% $61,734 $409 3.5%
Advertising $3,561 $24 0.2% $3,561 $24 0.2%
Fee Management $55,371 $367 3.2% $55,371 $367 3.2%
Asset Management $29,819 $197 1.7% $29,819 $197 1.7%
On-site Payroll $284,952 $1,887 16.7% $284,952 $1,887 16.3%
Contracted Services: Elevator $7,855 $52 0.5% $7,855 $52 0.4%
Contracted Services: Landscaping $28,723 $190 1.7% $28,723 $190 1.6%
Maintenance/Repairs $61,441 $407 3.6% $61,441 $407 3.5%
Turnover $21,686 $144 1.3% $21,686 $144 1.2%
Total Expenses -$862,456 -$862,456
Expenses per Unit -$5,712 -$5,712
% of Gross Operating Income 50.6% 49.2%
Net Operating Income (NOI) $841,460 $889,998
Capital Reserves -$37,750 -$37,750
Adjusted NOI $803,710 $852,248
42 HFO INVESTMENT REAL ESTATEPROJECTED OPERATIONS
Income Current Scheduled Rents Projected Operations Note
Potential Gross Market Rent $1,778,220 $11,776 $1,872,060 $12,398 1
Less: Loss to Lease -$86,040 -$570 -4.8% -$21,672 -$144 -1.2%
Scheduled Gross Rent $1,692,180 $11,206 $1,850,636 $12,256 1
Less: Vacancy/Credit Loss -$84,609 -$560 -5.0% -$92,532 -$613 -5.0% 2
Net Rental Income $1,607,571 $10,646 $1,758,104 $11,643
Other Income $125,037 $828 $125,037 $828 3
Includes: Laundry $9,025 $60 $9,025 $60
Includes: Utility Billing (RUBs) $63,531 $421 72.1% $63,531 $421 72.1%
Includes: Miscellaneous $52,481 $348 $52,481 $348
Gross Operating Income $1,732,608 $11,474 $1,883,141 $12,471
Expenses Adjusted Operations Per Unit % GOI Projected Operations Per Unit % GOI
Real Estate Taxes $129,239 $856 7.5% $129,239 $856 6.9% 4
Insurance $69,007 $457 4.0% $69,007 $457 3.7% 5
Total Utilities $108,404 $718 6.3% $108,404 $718 5.8%
Administrative $49,494 $328 2.9% $49,494 $328 2.6% 6
Advertising $3,561 $24 0.2% $3,561 $24 0.2%
Fee Management $60,641 $402 3.5% $65,910 $436 3.5% 7
Asset Management $0 $0 0.0% $0 $0 0.0% 7
On-site Payroll $200,000 $1,325 11.5% $200,000 $1,325 10.6% 8
Contracted Services: Elevator $7,855 $52 0.5% $7,855 $52 0.4% 9
Contracted Services: Landscaping $29,940 $198 1.7% $29,940 $198 1.6% 9
Maintenance/Repairs $61,441 $407 3.5% $61,441 $407 3.3%
Turnover $21,686 $144 1.3% $21,686 $144 1.2%
Total Expenses -$741,269 -$746,537
Expenses per Unit -$4,909 -$4,944
% of Gross Operating Income 42.8% 39.6%
Net Operating Income (NOI) $991,339 $1,136,604
Capital Reserves -$37,750 -$250 -$37,750 -$250 10
Adjusted NOI $953,589 $1,098,854
FOUR SEASONS TOWNHOMES AND WESTFAIR APARTMENTS • EUGENE, OR 43OPERATIONS ANALYSIS
RENT ROLL ANALYSIS: SCHEDULED RENTS
Average
Unit Square Lowest Achieved Highest Achieved Average
Unit Type % Diff Scheduled Rent
Count Feet Rent Rent Scheduled Rent per Sq Ft
1 Bedroom / 1 Bathroom – Westfair 48 525 $669 $910 36.0% $814 $1.55
1 Bedroom / 1 Bathroom – Four Seasons 12 600 $709 $883 24.5% $795 $1.33
1 Bedroom / 1 Bathroom – Four Seasons 11 725 $756 $935 23.7% $889 $1.23
2 Bedroom / 1 Bathroom – Westfair 32 725 $749 $1,055 40.9% $939 $1.30
2 Bedroom / 1.5 Bathroom Townhome – Four Seasons 48 917 $926 $1,250 35.0% $1,095 $1.19
Totals / Averages 151 713 $777 $1,048 32.0% $934 $1.31
RENT ROLL ANALYSIS: MARKET RENTS
Square Average
Unit Average Market Rent per
Unit Type Count Scheduled Rent Market Rent Sq Ft % Change
Feet Scheduled Rent per Sq Ft
1 Bedroom / 1 Bathroom – Westfair 48 525 $814 $1.55 $910 $1.73 10.5%
1 Bedroom / 1 Bathroom – Four Seasons 12 600 $795 $1.33 $910 $1.52 12.6%
1 Bedroom / 1 Bathroom – Four Seasons 11 725 $889 $1.23 $935 $1.29 4.9%
2 Bedroom / 1 Bathroom – Westfair 32 725 $939 $1.30 $1,055 $1.46 11.0%
2 Bedroom / 1.5 Bathroom Townhome – Four Seasons 48 917 $1,095 $1.19 $1,195 $1.30 8.4%
Totals / Averages 151 713 $934 $1.31 $1,033 $1.45 9.6%
44 HFO INVESTMENT REAL ESTATEOPERATIONS ANALYSIS
1. INCOME (LTL AND CURRENT Rents at Four Seasons Townhomes and Westfair Apartments have grown significantly over the last two years.
Average rents increased nearly $50 per unit between 2017 and 2018, and 2019 demonstrated a similar positive
SCHEDULED RENTS)
trend. Currently scheduled rents average $934 per unit, or $1.31 per sq ft; an increase of 4.6% over March 2020
TTM average rents. Leases signed over the last 6 months (November 2019 – April 2020) and pending renewals
demonstrated a rent increase of 8.6% to an average of $1,021 per unit, or $1.43 per sq ft—an increase of $87 per
unit over current average rents.
Four Seasons Townhomes and Westfair Apartment’s current market rents produce an 5.1% loss-to-lease. The
projected operations based on market rents averaging $1,033 per unit, or $1.45 per square foot. The market rents
and rents achieved in the T6 leases result in a reduction of 3.9% in the loss-to-lease to 1.2%.
2. VACANCY/CREDIT LOSS, Four Seasons Townhomes’ and Westfair Apartments’ vacancy averaged 2.2% for March 2020 TTM operations. Lenders
consider the long-term nature of a property and its market location. Lenders typically underwrite to a 5.0% vacancy
CONCESSIONS, AND BAD
in the state of Oregon. A market vacancy rate of 5.0% has been applied to the currently scheduled rents.
DEBT
3. OTHER INCOME Four Seasons Townhomes’ and Westfair Apartments’ other income is based on March 2020 TTM collections. The
collections include income from administrative fees, utility charges (RUBs), and laundry. Fully stabilized RUBs
account for more than 50% of the other income. March 2020 TTM other income totaled $125,037 and the income is
carried forward in future operations.
Utility Summary Vendor Four Seasons Townhomes WestFair Apartments
Electrical EWEB Flat Rate charge covers WSG: Flat Rate charge covers WSG:
Water/Sewer EWEB • 1 Bedroom: $35/Month • 1 Bedroom: $30/Month
• 2 Bedroom: $45/Month • 2 Bedroom: $35/Month
Garbage Sanipac
FOUR SEASONS TOWNHOMES AND WESTFAIR APARTMENTS • EUGENE, OR 45OPERATIONS ANALYSIS
HISTORICAL INCOME TRENDS
$142,000 100.0%
$140,000
99.0%
$138,000
$136,000 98.0%
Scheduled Rent
$134,000
Occupancy
97.0%
$132,000
96.0%
$130,000
$128,000 95.0%
$126,000
94.0%
$124,000
$122,000 93.0%
Apr 2019 May 2019 Jun 2019 Jul 2019 Aug 2019 Sep 2019 Oct 2019 Nov 2019 Dec 2019 Jan 2020 Feb 2020 Mar 2020
Scheduled Rent Occupancy
46 HFO INVESTMENT REAL ESTATEOPERATIONS ANALYSIS
RENT TRENDS
$940 -2.70%
$930 $934 -2.60%
$920 -2.50%
Average Lease Rent
$919
$910 -2.40%
Vacancy
$910
$900 -2.30%
$890 -2.20%
$891
$880 -2.10%
$870 -2.00%
March 2020 TTM March 2020 March 2020 Scheduled Rents
T6-Month Annualized T3-Month Annualized
Scheduled Rent Vacancy
FOUR SEASONS TOWNHOMES AND WESTFAIR APARTMENTS • EUGENE, OR 47OPERATIONS ANALYSIS
RENT VARIATION BY UNIT TYPE
$1,300
$1,200
$1,100
$1,000
Scheduled Rent
$900
$800
$700
$600
525 Sq Ft 600 Sq Ft 725 Sq Ft 725 Sq Ft 917 Sq Ft
1 Bed 2 Bed
Minimum Rent Average Rent Maximum Rent
48 HFO INVESTMENT REAL ESTATEOPERATIONS ANALYSIS
EXPENSES
Four Seasons Townhomes’ and Westfair Apartments’ expenses averaged $5,712 per unit, or 51% of GOI for March 2020 TTM operations. The projected
operations are adjusted for market-rate operations.
4. PROPERTY TAXES Oregon’s property taxes are evaluated on a fiscal TAX HISTORY
year starting July 1. In Oregon, property taxes are not Tax Year
reassessed on sale and are limited to a 3.0% annual 2018/2019 2019/2020
increase at the state level. Property taxes paid prior Account #
to November 1 each year receive a 3.0% discount. 0488344 $59,324 $63,024
The combined gross property taxes for Four Seasons 0488393 64,219 67,531
Townhomes and Westfair Apartments for the 2019-
2020 tax year totaled $133,236. After deducting the 1464807 2,449 2,682
3.0% discount, net property taxes totaled $129,239. This Total $125,992 $133,236
amount is reflected in adjusted operations. % Change 6.77% 5.44%
The adjacent table summarizes Four Seasons
Townhomes’ and Westfair Apartments’ tax history. Any
annual increase in taxes above 3.0% is due to additional
local or regional bond indebtedness that is not restricted
by the state measure.
5. INSURANCE Per the Lane County Floodplain/Wetlands reference map, a portion of the Four Seasons Townhomes and Westfair
Apartments is located in AO and X floodplains. These floodplain designations require additional floodplain coverage,
which is reflected in the annual insurance premium.
6. ADMINISTRATION Four Seasons Townhomes’ and Westfair Apartments’ administrative costs include more than $13,000 annually
for CPA expense. The CPA expense may be specific to the current owner, and the administrative costs have been
adjusted accordingly.
7. MANAGEMENT & ASSET The adjusted operations exclude an asset management fee that applies to the current ownership. Management
averaged 3.2% of GOI for March 2020 TTM operation’s which is market rate for properties similar to the Four Seasons
MANAGEMENT
Townhomes and Westfair Apartments in the Willamette Valley. The management has been projected at 3.5% of GOI.
FOUR SEASONS TOWNHOMES AND WESTFAIR APARTMENTS • EUGENE, OR 49OPERATIONS ANALYSIS
8. PAYROLL Payroll has been adjusted for contract work and bonuses. Many management companies are contracting out
expenses such as unit turns and more intensive common area projects, which could reduce expenses at the Four
Seasons Townhomes and Westfair Apartments.
Payroll Expense Calculations Estimate Hourly Rate Estimated Annual Salary
Administrative Manager $38.46 $80,000
Administrative Assistant Manager (1/2 Time) $19.23 $20,000
Maintenance Manager $38.46 $80,000
Maintenance Technician/Porter (1/2 Time) $19.23 $20,000
Total $200,000
9. CONTRACTED SERVICES Contracted services, including landscaping and elevator service.
• Elevator. One of the buildings at Westfair has an elevator.
• Landscaping. The current landscape contract is approximately $2,424 monthly, and the projected operations
have been adjusted to reflect the current rate.
10. RESERVES Lenders require reserves to be set aside to address future capital costs associated with any property as it ages. The
projected operations include reserves of $250 per unit.
50 HFO INVESTMENT REAL ESTATEOFFER TERMS
FOUR SEASONS TOWNHOMES AND WESTFAIR APARTMENTS
151 Units • Eugene, OregonOFFER TERMS
QUESTIONS & TOUR REQUESTS:
In addition to pricing and terms, Letters
All inquiries, questions, or tour requests are to PRICING of Intent (LOIs) are to include:
be directed to HFO Investment Real Estate at Price $16,500,000
(503) 241.5541. 1. Investor experience and history
Price per Unit $109,272 2. Funding source
Please do not disturb the residents. Price per Sq Ft $153 3. Decision making process
Rob Marton • rob@hfore.com Cap Rate 5.78% 4. Intended financing or debt structure
Greg Frick • greg@hfore.com
Adam Smith • adam@hfore.com
Tyler Johnson • tyler@hfore.com ASSET SUMMARY
Jack Stephens • jack@hfore.com Property Four Seasons Townhomes Westfair Apartments Combined Asset
Lee Fehrenbacher • lee@hfore.com Location 1515 Polk Street 1515 Tyler Street 1280 W 15th Avenue
Todd Tully • todd@hfore.com City, State Eugene OR 97402 Eugene OR 97402 Eugene OR 97402
Rand Hoffman • rand@hfore.com County Lane Lane Lane
Year Built 1962 1976
HFO Investment Real Estate Total Units 71 80 151
2424 SE 11th Avenue Approx. NRSF 59,191 sq ft 48,400 sq ft 107,591 sq ft
Portland, Oregon 97214
Average Unit Size 834 sq ft 605 sq ft 713
www.hfore.com
(503) 241.5541 Total Acres 2.56 acres 1.60 acres 4.67 acres
Fax: (503) 241.5548 Density 32.33 units per acre
Brokers licensed in the States of Oregon and Washington.
52 HFO INVESTMENT REAL ESTATECONFIDENTIAL AND DISCLAIMER
Seller and Agent make no representations or warranties as to the accuracy of the information contained in this Offering Memorandum. The
enclosed materials include highly confidential information and are being furnished solely for the purpose of review by prospective purchasers of
the interest described herein. Neither the enclosed materials, nor any information contained herein, is to be used for any other purpose or made
available to any other person without the express written consent of Seller.
The enclosed materials are being provided solely to facilitate the Prospective Purchaser‘s own due diligence, for which it shall be fully and solely
responsible. The material contained herein is based on information and sources deemed to be reliable, but no representation or warranty, express
or implied, is being made by Agent or Seller or any of their respective representatives, affiliates, officers, employees, shareholders, partners and
directors, as to the accuracy or completeness of the information contained herein. Summaries contained herein of any legal, or other, documents
are not intended to be comprehensive statements of the terms of such documents, but rather only outlines of some of the principal provisions
contained therein. Neither Agent nor Seller shall have any liability whatsoever for the accuracy or completeness of the information contained
herein, or any other written or oral communication or information transmitted, or made available, or any action taken or decision made by the
recipient with respect to the Property. Interested parties are to make their own investigations, projections, and conclusions without reliance upon
the material contained herein.
Seller reserves the right, at its sole and absolute discretion, to withdraw the Property from being marketed for sale at any time and for any reason.
Seller and Agent each expressly reserves the right, at its sole and absolute discretion, to reject any and all expressions of interest or offers regarding
the Property, and/or to terminate discussions with any entity at any time, with or without notice. This Offering Memorandum is made subject to
omissions, correction of errors, change of price or other terms, prior to sale or withdrawal from the market without notice. Agent is not authorized
to make any representations or agreements on behalf of Seller.
Seller shall have no legal commitment or obligation to any interested party reviewing the enclosed materials, performing additional investigation
and/or making an offer to purchase the Property unless and until a binding written agreement for the purchase of the Property has been fully
executed, delivered and approved by Seller, and any conditions to Seller‘s obligations thereunder have been satisfied or waived.
By taking possession of, and reviewing, the information contained herein, the recipient agrees that (a) the enclosed materials and their contents
are of a highly confidential nature and will be held and treated in the strictest confidence, and shall be returned to Agent or Seller promptly
upon request; (b) the recipient shall not contact employees or tenants of the Property directly or indirectly regarding any aspect of the enclosed
materials or the Property without the prior written approval of Seller or Agent and (c) no portion of the enclosed materials may be copied or
otherwise reproduced without the prior written authorization of Seller or Agent.
If you have no interest in the Property at this time, please destroy or return this Offering Memorandum immediately to:
HFO Investment Real Estate
2424 SE 11th Ave, Portland, OR 97214
503.241.5541
Build your legacy is a service mark of HFO Investment Real Estate.
FOUR SEASONS TOWNHOMES AND WESTFAIR APARTMENTS • EUGENE, OR 53HFO Investment Real Estate
Passion • Collaboration • Specialization
2424 SE 11th Avenue • Portland, OR 97214
www.hfore.com • 503.241.5541You can also read
