Continental Apartments was a 22-unit apartment house located in Portland’s Hazelwood neighborhood which includes most of the Gateway Urban Renewal Area, Gateway Transit Center, Mall 205 Shopping Center and Adventist Medical Center, but where livable, affordable housing was in short supply.
The property had been cited for 170 building code violations by the City of Portland, and several apartments needed a total renovation. The property’s appeal suffered in many ways providing an interesting opportunity for a buyer willing to make the investment needed to upgrade it to a profitable business.
Westland’s investor group made renovations costing well over $15,000 per unit. All the previous violations were corrected satisfactorily, including roofing, rotten wood, windows and trim. Interiors were painted, floors and counter-tops replaced, grounds were landscaped. Besides ongoing maintenance, the entire exterior was painted.
After only 2.5 years, Continental was re-financed to give owners $401K. Tenancy stabilized at over 90% occupancy and Net Operating Income increased, providing $360K to owners over the course of ownership. And 4 years later, net proceeds from the sale were $1.5M.