Investor competition increases in Bend’s multifamily market
Compass Commercial Real Estate Services announced Ron Ross, CCIM and Terry O’Neil,CCIM represented Arthur P. Willett & Pineridge Apartments, LLC in the sale of Sun Garden Apartments, an 11-Unit multifamily building located at 1334 NE Purcell Boulevard in Bend for $1,160,000. The buyers, Michael R. McComb and Katie M. Fuller purchased the 10,407 square foot complex as part of a 1031 Exchange.
“Multifamily is definitely one of the most desirable investment type classes these days,” said O’Neil. “Bend’s almost negligible vacancy rate and rising rents are creating greater competition among investors for purchase opportunities.”
Owners are also taking advantage of Bend’s tight rental market to maximize the return on their multifamily investments. “We’re working with sellers in a broad range of property sizes from duplexes to large scale complexes, but the overriding theme is the same — it is a great time for owners of this product type to capitalize on the current demand,” said O’Neil.
In 2014, McComb and his family moved to Bend from Seattle. As an investor in multifamily in Seattle, he noted the short supply of affordable apartments in his new city. This influenced his decision to sell one of his two fourplexes in Seattle to complete an exchange for a replacement property closer to home.
Chris Sulak of Cascade Sotheby’s and Alex Robertson of John L. Scott presented McComb with Compass Commercial’s marketing package for Sun Garden Apartments which revealed the investment’s income, expenses and cash flow. The property’s upside in rent potential and convenient location near St. Charles Medical Center made it even more attractive to McComb.
“Bend is clearly in need of more affordable housing and I was pleased to see the rents for Sun Garden were lower than current rents for comparable properties,” said McComb.
McComb is planning numerous upgrades to Sun Garden Apartments to enhance the appearance and functionality of the property and provide a good value for tenants while earning a reasonable return on his investment.
As a landlord, McComb says he has maintained a tenant focused philosophy in managing properties and he plans to apply this same approach to his Bend investment. “I was a renter for many years and I try to keep the perspective of my tenants who I consider as my clients,” he says. “That means treating them with respect, fairness and dignity, and remembering that my investment is also their home.”
“My approach has always been to try and stay 10% to 15% below market on rents to provide a good value for my tenants while maintaining a fair income for myself,” said McComb. “I try to be reasonable with rent increases for existing tenants and focus on obtaining larger increases upon turnover of units.”
Ross and O’Neil provide advisory services to clients looking to evaluate multifamily investment opportunities while helping owners make informed decisions regarding the sale of their investment. For more information on multifamily property investments or to obtain an opinion of the value of a multifamily property, contact Ron Ross, CCIM or Terry O’Neil, Broker at 541-383-2444.