Theresa Terrace Apartments 4633 SW Huber St 12 Unit Apartment Building $2,300,000 ($191,667/Unit) 5.54% Cap Rate Portland, OR 97219

The Rhoades Group of Marcus & Millichap is pleased to exclusively represent the sale of Theresa Terrace, a well-maintained asset in the desirable West Portland Park neighborhood located midway between Downtown Portland, Oregon to the north and the suburbs of Tigard and Lake Oswego to the south. The property was constructed in 1969, and is comprised of 12 units, including eight two-bedrooms, three one-bedrooms and a single studio. Common amenities include a shared back courtyard, off street parking, and a common laundry room as both a tenant amenity and additional income stream.
The West Portland Park neighborhood offers residents a diverse and welcoming community, with proximity to nature and green spaces, as well as convenience to major retail and job centers. The family-friendly neighborhood is in a strong school district, and with a median home price of $692k (Redfin.com) combined with limited new supply in the submarket, the demand for quality rental housing is further strengthened. The property is ideally positioned to access public transportation via Barbur Transit Center, as well as the West Portland Town Center Plan, promoting growth and development, pedestrian friendly streets and access.
While the majority of the units at Theresa Terrace have been either lightly or fully renovated, upside can be achieved via several avenues. Rents are approximately 9% below market as indicated by competing properties, allowing for solid but achievable rent growth. The four lightly-renovated units could be further modernized, while the single classic unit offers an opportunity to fully update and capture potential $200 monthly rent premium. Curb appeal improvements could allow a savvy investor to attract and retain discerning long-term tenants, and could be accomplished via a refreshed exterior and property fencing to create further separation from the road while promoting an exclusive feel in keeping with the West Portland Park address.