2701 NW Highway 101
Lincoln City, OR 97367
The Dorchester House · Multifamily Property For Sale · 69 Units

Designed to be reminiscent of an English-style country inn, the Dorchester originally opened in 1935 as a hotel and was a popular destination for many years. Listed on the National Register of Historic Places, the property features a full commercial kitchen and abundant common area amenities, such as a library, dining room, patios, and private garden. Today, the Dorchester House is operated as an age-restricted apartment living facility serving seniors 58 years of age and older. The property consistently runs at full occupancy and demand is expected to increase. From 2010 to 2017, Oregon’s population of seniors aged 65 and older grew by more than 8 percent. As baby boomers come to need and want senior housing, apartments like the Dorchester House will become increasingly sought after. A regulatory agreement with the State of Oregon reserves 20 percent of the units for individuals whose income is 80 percent or less of the area’s median family gross income. The regulatory agreement expires in November 2024. HFO Investment Real Estate is offering the Dorchester House at $4,650,000 ($67,391/unit), which provides a capitalization rate of 6.07 percent on 12-month trailing operations. Recent state-approved rent increases are already well underway however, and investors stand to gain from a projected capitalization rate of 6.62 percent.