Portland Multifamily Market Picks Up Steam
In 2010, less than 800 building permits were issued to apartment developers in Portland. The past year was the slowest for multifamily construction in the Portland area since the 1970s. That’s good news if you are thinking about investing in apartment property in Portland. As a result of the construction dearth, Portland now has the nation’s second lowest multifamily vacancy rate among major metropolitan areas, according to the most recent Housing Vacancies and Homeownership Study conducted by the U. S. Census Bureau. Here are the top 5 Metropolitan Statistical Areas with the lowest rental vacancy rates:
- Nashville-Davidson-Murfreesboro, TN: 3.6%
- Portland-Vancouver-Beaverton, OR/WA: 4.8%
- Alburquerque, NM: 5.4%
- Oxnard-Thousand Oaks-Ventura, CA: 5.4%
- Bridgeport-Stamford-Norwalk, CT: 5.7%
As apartment inventory is becoming increasingly tighter, more developers are stepping up to the plate. Mark Barry, one of Portland’s leading multifamily appraisers believes twice as many building permits will be drawn in 2011 compared to 2010. Already a number prominent developments are on track to commence later this year, echoing the industry consensus that “Concessions have gone away almost entirely and we are starting to see a demand for new product.”
Here’s what’s in the pipeline:
The Ramona
Located in Portland’s Pearl District, this 138-unit affordable housing project is pretty close to completion and tours will be offered soon. Three-bedroom apartments are expected to rent between $960 and $995 a month. Only qualifying tenants (at or below 60 percent of the median income) are eligible to apply for a unit.
South Waterfront’s Block 49 (pictured above)
Just a month ago a nonprofit affordable housing agency announced that the company intends to break ground in Portland’s South Waterfront District on a 209-unit affordable housing project in spring 2011.
The agency expects the cost of construction to be around $50 million for this six-story building. Already $30 million in support has been secured from the city. The project will include 17,000 square feet of retail space and offer housing for people who earn $25,000 or less, with 42 units reserved for people who earn $15,000 or less.
Savier Flats
Mill Creek Residential Trust is hoping to break ground in October 2011 on a 179-unit market-rate apartment complex near NW Savier and NW 23rd. The complex will consist of two four-story buildings with 6,000 square feet of retail space and 130 underground parking spaces.
North Williams Avenue mixed-use project
A 72-unit workforce housing project is scheduled to break ground on North Williams Ave sometime in spring. Ruben J. Menashe Inc is the developer. Some units will be reserved low-income residents.
Southeast Harold Street and 92nd Ave
A mixed-use project at the corner of Southeast Harold Street and 92nd Avenue is in the works, courtesy of Ed McNamara, owner of Turtle Island Development. The 3.5-acre site is owned by Portland Development Commission and will include transit-oriented affordable housing and ground-floor commercial space.
Increasingly data seems to confirm that demand apartments is picking up. Today, the Wall Street Journal reports that “the average national rent is up for the fourth quarter in a row, a departure from the freebies and discounts landlords were using to find and keep tenants during the downturn.”
Stay tuned for Deals and Opportunities as Portland’s multifamily market continues to recover!
Image courtesy of Ankrom Moisan Architects
