Address

45 Weybosset Street, Providence RI 02903

Link
LoopNet

1942 NW Pettygrove, Portland, OR 97209

LoopNet

Description
Fantastic opportunity to own in prime downtown location! Timeless building offering 5 office and 2 ret
spaces. Spacious units with long term tenants in place! Great long term investment or office location!
Prime downtown location convenient to all major highways. 13,166 sqft, 5 story office building

Built in 1912, this vintage NW Pettygrove, 13 unit complex is a classic among the housing choices in N
Portland. The property is comprised of 13 studio apartments providing an average of 343 square feet
living space. Many units feature hardwood floors, exposed brick walls and other vintage finishes.
Approximately 40% (5 units) of the units have undergone significant upgrades in the past year.
Upgraded units feature stainless steel appliances, new countertops with glass tile backsplash, tiled
showers, and gorgeous modern accents. Common Areas include a beautifully updated and landscaped
back yard area and onsite laundry. This building is brick construction with flat roof & vinyl windows. Th
property is located on a bus line and near MAX light rail. This location provides quick and easy access
schools, parks, shopping, and entertainment. This NW Pettygrove address is located on the west side
the city just minutes from downtown Portland and steps from the trendy NW 23rd neighborhood. The
property is located on multiple bus lines as well as the nationally recognized light rail system (MAX)
providing an easy and quick commute to downtown Portland as well as the rest of the city. This
convenient location provides access to all that downtown Portland has to offer right at your fingertips!
average of 343 sq/ft of living space each.

4,464 sqft

Price
$

Occupancy Net Operating Income

Property Type
1,700,000
80% $
100,162 Office

2,095,000 13 Units

145,393 Multifamily

Property Sub Type

Office Building

Mid/High-Rise

Assumptions
Home Value
Actual Paid
Rent Increase
All Cash Discount
Tax Rate

$
$

Appreciation Since 1990

Appreciation Last 10 Years
Appreciation Last 5 Years
Appreciation Last 12 Months
NOI
NOI Increase
Depreciation
Acquisitions Fee
Finders Fee
Discount Rate
Legal
Broker

1,700,000
1,572,500
5%
7.5%
30%

97.18% Avg. Annual Rate

$
$
$
$
$

-8.62% Avg. Annual Rate

0.0469 Avg. Annual Rate
4.74% Avg. Annual Rate
100,162
5%
50,737
10,000
15,725
8%
10,000.00
5%

Cashflows
Buy/Sell
Acquisition Fees
Finders Fee
Legal
Broker
NOI
Depreciation
EBIT
Taxes (30%)
Net Income

$
$
$

Cashflow
Discounted Cashflow

0
(1,572,500)
(10,000)
(15,725.00)

$
$
$
$
$

100,162.00
50,737.30
49,424.70
14,827.41
34,597.29

$
$

(1,572,500) $
(1,572,500) $

85,334.59
79,013.51

$
$

(1,572,500) $
(1,572,500) $

Tools
Payback
Discounted Payback
Payback Period
Discounted Payback Period
NPV

10.26 years
10.999 years
584.16

(1,487,165.41)
(1,493,486.49)

Assumptions
Home Value
Actual Paid
Rent Increase
All Cash Discount
Tax Rate
Appreciation Since 1990
Appreciation Last 10 Years

$
$

Appreciation Last 5 Years

Appreciation Last 12 Months
NOI
NOI Increase
Depreciation
Acquisitions Fee
Finders Fee
Discount Rate
Legal
Broker

2,095,000
1,937,875
5%
7.5%
30%
284.15% Avg. Annual Rate
43.59% Avg. Annual Rate

43.53% Avg. Annual Rate

$
$
$
$
$

14.94% Avg. Annual Rate

145,393
5%
71,537
10,000
19,379
8%
10,000.00
5%

Cashflows
Buy/Sell
Acquisition Fees
Finders Fee
Legal
Broker
NOI
Depreciation
EBIT
Taxes (30%)
Net Income

$
$
$

Cashflow
Discounted Cashflow

0
(1,937,875)
(10,000)
(19,378.75)

$
$
$
$
$

145,393.00
71,536.50
73,856.50
22,156.95
51,699.55

$
$

(1,937,875) $
(1,937,875) $

123,236.05
114,107.45

$
$

(1,937,875) $
(1,937,875) $

10.11 years
10.55 years
792,350.86

Tools
Payback
Discounted Payback
Payback Period
Discounted Payback Period
NPV

(1,814,638.95)
(1,823,767.55)

2.67%
-0.90%
0.92%
4.74%

We picked appreciation sinde 1990 because we think it mos

and shows the long term growth of the area. The annual rat
rumors of large companies shifting towards Providence. The
graduate base for new hires.

$
$
$
$
$

105,170.10
50,737.30
54,432.80
16,329.84
38,102.96

$
$
$
$
$

110,428.61
50,737.30
59,691.30
17,907.39
41,783.91

$
$
$
$
$

115,950.04
50,737.30
65,212.73
19,563.82
45,648.91

$
$
$
$
$

121,747.54
50,737.30
71,010.24
21,303.07
49,707.16

$
$

88,840.26
76,166.20

$
$

92,521.21
73,446.32

$
$

96,386.22
70,846.75

$
$

100,444.47
68,360.82

$
$

(1,398,325.15) $
(1,417,320.29) $

(1,305,803.94) $
(1,343,873.96) $

(1,209,417.72) $
(1,273,027.22) $

(1,108,973.25)
(1,204,666.40)

5.37%
3.68%

7.49%

We chose the appreciation over 5 years because with the st

companies and recent college graduates presents a great o
close to transportation and desireable locations such as sho
work experience which largely reflects the cities demograph

14.94%

$
$
$
$
$

152,662.65
71,536.50
81,126.15
24,337.85
56,788.31

$
$
$
$
$

160,295.78
71,536.50
88,759.28
26,627.78
62,131.50

$
$
$
$
$

168,310.57
71,536.50
96,774.07
29,032.22
67,741.85

$
$
$
$
$

176,726.10
71,536.50
105,189.60
31,556.88
73,632.72

$
$

128,324.81
110,017.84

$
$

133,668.00
106,109.97

$
$

139,278.35
102,373.75

$
$

145,169.22
98,799.73

$
$

(1,686,314.15) $
(1,713,749.71) $

(1,552,646.15) $
(1,607,639.74) $

(1,413,367.80) $
(1,505,266.00) $

(1,268,198.58)
(1,406,466.27)

90 because we think it most accurately reflects the local market. This is the average through the financial crisis
of the area. The annual rate is high enough to prove growth but could be considered a low estimate based on
ng towards Providence. The area is due for growth especially with existing firms nearby and a large college

$
$
$
$
$

127,834.91
50,737.30
77,097.61
23,129.28
53,968.33

$
$
$
$
$

134,226.66
50,737.30
83,489.36
25,046.81
58,442.55

$
$
$
$
$

140,937.99
50,737.30
90,200.69
27,060.21
63,140.48

$
$
$
$
$

147,984.89
50,737.30
97,247.59
29,174.28
68,073.31

$
$

104,705.63
65,982.31

$
$

109,179.85
63,705.40

$
$

113,877.79
61,524.62

$
$

118,810.61
59,434.89

$
$

(1,004,267.62) $
(1,138,684.09) $

(895,087.77) $
(1,074,978.70) $

(781,209.99) $
(1,013,454.07) $

(662,399.37)
(954,019.19)

5 years because with the state of the city, we believe it to be most accurate. The influx of start-up, large
aduates presents a great opportunity to buy low, sell high. In addition to the demographics, the property is also
eable locations such as shopping, bars and restaurants. Rent is suitable to working profesionals roughly 5-10 ye
eflects the cities demographic as well.

$
$
$
$
$

185,562.41
71,536.50
114,025.91
34,207.77
79,818.13

$
$
$
$
$

194,840.53
71,536.50
123,304.03
36,991.21
86,312.82

$
$
$
$
$

204,582.55
71,536.50
133,046.05
39,913.82
93,132.24

$
$
$
$
$

214,811.68
71,536.50
143,275.18
42,982.55
100,292.63

$
$

151,354.63
95,379.09

$
$

157,849.32
92,103.56

$
$

164,668.74
88,965.39

$
$

171,829.13
85,957.34

$
$

(1,116,843.94) $
(1,311,087.17) $

(958,994.63) $
(1,218,983.61) $

(794,325.89) $
(1,130,018.22) $

(622,496.76)
(1,044,060.88)

through the financial crisis

a low estimate based on
by and a large college

10

$
$
$
$
$

155,384.14
50,737.30
104,646.84
31,394.05
73,252.78

$
$

123,990.09
57,431.40

$
$

11
2,212,506.43

$
$

(10,000.00)
(110,625.32)

$
$

2,091,881.11
897,171.95

(538,409.28) $
(896,587.79) $

1,553,471.82
584.16

ux of start-up, large
aphics, the property is also
rofesionals roughly 5-10 years

10

$
$
$
$
$

225,552.26
71,536.50
154,015.76
46,204.73
107,811.03

$
$

179,347.53
83,072.61

$
$

11
4,313,846.19

$
$

(10,000.00)
(215,692.31)

$
$

4,088,153.88
1,753,339.13

(443,149.23) $
(960,988.27) $

3,645,004.65
792,350.86

45 Weybosset Street, Providence, R

13,166sq/ft Office For Sale

$1,700,000 or 7.5% Cash Discount

A downtown Providence location with 5 offic

spaces. Longterm tenants in place. This prop
excellent long term investment or a chance
company downtown.

This 5 story building boasts 13,166 square f

acres in the heart of providence. As a class
is perfect for both middle income companies
popular with the growing college population

NPV
Payback
Discounted Payback

Providence appreciation rates are above average compared to the rest of the United
boasting:
97.18% Since 1990
4.69% In The Last 5 Years
9.88% In The Last 2 Years
4.74% In The Last 12 Months
Providence is a riacially diverse city bringing the need for jobs and companies from
cultures.
The historic city, while on the ocean, brings many tourists.
Providence has many college students, where many stay after graduation looking fo
opportunities. 16.89% of the cities residents are ages 25-34.
Relatively low home prices city wide

Our Thoughts...
Accounting for appreciation, in 10 years we forecast this property selling for $2,212
a 40.70% return on the sale alone!
Income included, the Payback on this project is 10.26 years with Discounted Paybac
years.
The appreciation on the property is also a plus as well, it is somewhat higher than th
the United States, and the city shows evidence of new and existing companies trans
locations.
While not as profitable as the other property, this investment is still a surefire way t
generate returns.
Web sources:
http://www.loopnet.com/Listing/19780533/45-Weybosset-Street-Providence-RI/
https://www.neighborhoodscout.com/ri/providence/

Web sources:
http://www.loopnet.com/Listing/19780533/45-Weybosset-Street-Providence-RI/
https://www.neighborhoodscout.com/ri/providence/

t Street, Providence, RI, 02903

,166sq/ft Office For Sale

,000 or 7.5% Cash Discount!

dence location with 5 office and 2 retail

tenants in place. This property is an
m investment or a chance to bring your
wn.

ng boasts 13,166 square feet on 0.07

of providence. As a class B building, it
middle income companies or startups,
rowing college population.

$
$
$

104,052.43
1,553,471.82 10.26 yrs
584.16 10.99 yrs

ed to the rest of the United States,

jobs and companies from different

after graduation looking for

34.

roperty selling for $2,212,506.43,

s with Discounted Payback 10.99

s somewhat higher than the rest of

d existing companies transitioning

ent is still a surefire way to

ovidence-RI/

ovidence-RI/

1942 N

4,464 Squ
$

This Portland
apartments,
the units hav
Stainless ste
them a mode

At an averag
right outside
current and
both young p
looking for a

Portland's appreciation rates are far above a

States, boasting:
284.15% Since 1990
43.59% In The Last 10 Years
43.53% In The Last 5 Years
14.94% In The Last 12 Months
With 85.06% of Portland's residents are emp
rental price to a very high $1,820/month
Renting is also very popular with 48.64% of r
Portland has been a popular location for you
a large of the population (19.50% of the pop

Our Thoughts...
Accounting for appreciation and with realistic fo
$4,313,846.19, a 122.61% gain!
With NOI and costs included, we forecast the pa
payback at 10.55 years.
With the statistics to back the appreciation, we
property.
This is the better of the two properties, not buy

Web sources:
http://www.loopnet.com/Listing/19862557/1942-NW
https://www.neighborhoodscout.com/or/portland/

Web sources:
http://www.loopnet.com/Listing/19862557/1942-NW
https://www.neighborhoodscout.com/or/portland/

1942 NW Pettygrove, Portland, OR 97209

4,464 Square Foot, 13 Unit, Multifamily, Mid/High Rise

$2,095,000 or 7.5% Cash Discount!

This Portland, Oregon location contains 13 studio

apartments, exposed brick and hardwood floors. 40% of
the units have been significantly upgraded to include:
Stainless steel appliances, new countertops and gives
them a modern feel.
At an average of 343 sq/ft of living space, these units are
right outside downtown Portland and has easy access to
current and proposed public transportation. Perfect for
both young professional tenants as well as the investor
looking for a high demand location

NPV

Payback

3,645,004.65 10.11 yrs

Discounted Payback

792,350.86 10.55 yrs

792,350.86

ciation rates are far above average compared to the rest of the United
:
ince 1990
The Last 10 Years
The Last 5 Years
The Last 12 Months
Portland's residents are employed in white collar jobs, bringing the median
very high $1,820/month
ery popular with 48.64% of residences inhabited by renters
en a popular location for young singles looking to start a career, making up
pulation (19.50% of the population is 25-34)

reciation and with realistic forecasting, we see this home selling for
22.61% gain!
included, we forecast the payback at 10.11 years, with the discounted
ears.
o back the appreciation, we see this as a highly profitable and desirable
the two properties, not buying this now would be an investment mistake

om/Listing/19862557/1942-NW-Pettygrove-Portland-OR/
rhoodscout.com/or/portland/

om/Listing/19862557/1942-NW-Pettygrove-Portland-OR/
rhoodscout.com/or/portland/

1942 NW Pettygrove
Total Square Footage
Actual Renovated Area

4464 sq/ft
2744 sq/ft

Assumptions For Full Renovations

We believe renovating the remaining 8 units would be a sound investment for both increasing future v
major remodel costs from $35 to $50 sq/ft. We are choosing an estimate of $47 sq/ft because it would
while also creating upper end apartments in the area. This would leave desireable exposed brick and
amenities as the other units. It would also replace the flooring in the current unchanged units.
Cost per Sq/Ft
Cost to Purchase
Depreciation
Salvage Value
Price Source
Taxes
Required Return

$
$
$

47.00
128,968.00
2,579.36
0
Renovation
30%
8%

Incremental Changes to NOI

Incremental Changes to Revenue
Incremental Changes to Expenses
Return on Investment (ROI)
Changes to Property Value
Incremental Changes to Property Value

50 Years

$
$

20.00%
20.00% Rent Increase
0%
71% ROI
91,567.28
9,156.73

Assumptions For Kitchen Renovations

We believe a kitchen renovation to each of the 8 unchanged units will create great resale value, as we
shows kitchen renovations usually cost $12,000 to $30,000, and new appliances are desireable. This i
apartment while also giving it a greater rental value. We see $13,000 as being an Ideal price to pay, a
feel, while not creating too large of a capital investment and dramatically changing rent prices.
Cost per apartment
Cost to Purchase
Depreciation
Salvage Value
Price Source
Taxes
Required Return

$
$
$

13,000.00
104,000.00
5,200.00

20 Years

Kitchen Cost

Incremental Changes to NOI

Incremental Changes to Revenue
Incremental Changes to Expenses
Return on Investment (ROI)

30%
8%
17.00%
17.00% Rent Increase
0%
67% ROI

Changes to Property Value

Incremental Changes to Property Value

$
$

69,680.00
6,968.00

both increasing future value and rent. We found that a

7 sq/ft because it would increase value dramatically,
able exposed brick and include the same stainless steel
nchanged units.

Useful Life

Result of revenue changes and expense changes

Landlords expect a 10-30% increase in rent.
No additional costs would be incurred
Total ROI on renovation, using base kitchen with flooring ROI
Annualized ROI on renovation of remaining 8 apartments

reat resale value, as well as increase rent. Research

es are desireable. This increases the look of the
an Ideal price to pay, as it give the kitchen a modern
nging rent prices.

Useful Life

Result of revenue changes and expense changes

Landlords expect a 10-30% increase in rent.
No additional costs would be incurred
Total ROI on kitchen renovations

Annualized ROI on renovation of remaining 8 apartments

Remaining Apartment Full Renovation

Cost
ROI for Sale
NOI
Depreciation
EBIT
Taxes
Net Income

Cash Flows
Discounted Cash Flows

$
$

Tools
Payback
Discounted Payback

$
$

Payback Period
Discounted Payback Period
NPV
IRR

0
(128,968.00)

$
$
$
$
$

29,078.60
2,579.36
26,499.24
7,949.77
18,549.47

$
$
$
$
$

30,532.53
2,579.36
27,953.17
8,385.95
19,567.22

(128,968.00) $
(128,968.00) $

21,128.83 $
19,563.73 $

22,146.58
18,987.12

(128,968.00) $
(128,968.00) $

(107,839.17) $
(109,404.27) $

5.47 Years
7.21 Years
82,072.35 $
17.51%

(85,692.59)
(90,417.15)

82,072.35 Two different formulas, one is

Remaining Apartment Kitchen Renovation

Cost
ROI for Sale
NOI
Depreciation
EBIT
Taxes
Net Income

Cash Flows
Discounted Cash Flows

$
$

Tools
Payback
Discounted Payback

$
$

Payback Period
Discounted Payback Period
NPV
IRR

0
(104,000.00)

$
$
$
$
$

$
$
$
$
$

25,952.65
5,200.00
20,752.65
6,225.80
14,526.86

(104,000.00) $
(104,000.00) $

18,861.77 $
17,464.60 $

19,726.86
16,912.60

(104,000.00) $
(104,000.00) $

(85,138.23) $
(86,535.40) $

5.03 Years
6.49 Years
77,942.23 $
19.29%

24,716.81
5,200.00
19,516.81
5,855.04
13,661.77

(65,411.38)
(69,622.80)

77,942.23 Two different formulas, one is

$
$
$
$
$

32,059.16
2,579.36
29,479.80
8,843.94
20,635.86

$
$
$
$
$

$
$

23,215.22 $
18,428.99 $

$
$

(62,477.38) $
(71,988.16) $

33,662.11
2,579.36
31,082.75
9,324.83
21,757.93

$
$
$
$
$

35,345.22
2,579.36
32,765.86
9,829.76
22,936.10

$
$
$
$
$

37,112.48
2,579.36
34,533.12
10,359.94
24,173.18

24,337.29 $
17,888.63 $

25,515.46 $
17,365.39 $

26,752.54
16,858.64

(38,140.09) $
(54,099.53) $

(12,624.63) $
(36,734.13) $

14,127.92
(19,875.49)

ent formulas, one is yr 11 discounted payback, other is excel NPV formula

$
$
$
$
$

27,250.28
5,200.00
22,050.28
6,615.08
15,435.20

$
$
$
$
$

$
$

20,635.20 $
16,380.89 $

$
$

(44,776.18) $
(53,241.92) $

28,612.80
5,200.00
23,412.80
7,023.84
16,388.96

$
$
$
$
$

30,043.44
5,200.00
24,843.44
7,453.03
17,390.41

$
$
$
$
$

31,545.61
5,200.00
26,345.61
7,903.68
18,441.93

21,588.96 $
15,868.53 $

22,590.41 $
15,374.65 $

23,641.93
14,898.42

(23,187.22) $
(37,373.39) $

(596.82) $
(21,998.74) $

23,045.11
(7,100.31)

ent formulas, one is yr 11 discounted payback, other is excel NPV formula

$
$
$
$
$

38,968.11
2,579.36
36,388.75
10,916.62
25,472.12

$
$
$
$
$

$
$

28,051.48 $
16,367.77 $

$
$

42,179.40 $
(3,507.72) $

40,916.51
2,579.36
38,337.15
11,501.15
26,836.01

$
$
$
$
$

$
$
$
$
$

45,110.45
2,579.36
42,531.09
12,759.33
29,771.76

29,415.37 $
15,892.21 $

30,847.44 $
15,431.40 $

32,351.12
14,984.83

71,594.77 $
12,384.49 $

102,442.21 $
27,815.89 $

134,793.33
42,800.72

$
$
$
$
$

33,122.89
5,200.00
27,922.89
8,376.87
19,546.02

$
$
$
$
$

$
$

24,746.02 $
14,439.07 $

$
$

47,791.13 $
7,338.75 $

34,779.03
5,200.00
29,579.03
8,873.71
20,705.32

42,962.34
2,579.36
40,382.98
12,114.89
28,268.08

10

$
$
$
$
$

36,517.99
5,200.00
31,317.99
9,395.40
21,922.59

10

$
$
$
$
$

38,343.88
5,200.00
33,143.88
9,943.17
23,200.72

25,905.32 $
13,995.84 $

27,122.59 $
13,568.05 $

28,400.72
13,155.03

73,696.46 $
21,334.59 $

100,819.05 $
34,902.64 $

129,219.77
48,057.67

11
$

91,567.28

91,567.28

$
$

91,567.28
39,271.64

$
$

226,360.61
82,072.35

11
$

69,680.00

69,680.00

$
$

69,680.00
29,884.56

$
$

198,899.77
77,942.23

Remaining Apartments Renovation

NPV
$82,072.35
Payback Period
5.47 years
Discounted Payback Period
7.21 years

A Renovation of the remaining 8 apartments would include a few

major changes. The kitchens would be the largest upgrade with
new stainless steel appliances, new counters and cabinets. The
flooring would be changed to wood and the walls would expose as
much brick as possible. We see exposed brick as very valuable to a
renter, and especially in a building as old as this. This increases
both rent and resale value as has been proven with the previous
renovations. All for a cost of $128,968.

o Portland is a young, wealthy city, people are looking for nice places to stay and renovating
gives them the opportunity to live here
o This property boasts a higher NPV than renovating just the kitchen. It also pays off to have the
next owner buy an already renovated property
o Renovating gives the best of both worlds, the exposed brick of a 100 year old building plus the
modern feel of new floors and a shiny kitchen.
o This is no doubt the better investment for just slightly more capital.

vation

ould include a few

est upgrade with
nd cabinets. The
lls would expose as
as very valuable to a
s. This increases
with the previous

y and renovating

pays off to have the

old building plus the

Remaining Apartments Kitchen Re

NPV
$77,942.23
Payback Period
5.03 years
Discounted Payback Period
6.49 years

The 8 apartments that have yet to be renovate

upgraded kitchen. The before and after above
exactly what we mean. This renovation would
appliances and counters. Even the cabinets wo
The total cost of this project is estimated at $1
an apartment if taken one by one. It adds both
value, but not the level of a full renovation.

o Although this renovation pays back quicker than a full restoration, the ben
renovated building keeps this NPV at less than our other option.
o You should not overlook this option though, if less capital is desirable, then
renovation offers increased rent and resale value and roughly $25,000 les
renovation.
o Kitchens are where people spend a majority of their time at home. Cookin
neat space, so if you decide a full renovation is too expensive, the kitchen
to meet your needs

artments Kitchen Renovation

he 8 apartments that have yet to be renovated need at least an

pgraded kitchen. The before and after above should show you
xactly what we mean. This renovation would include all new
ppliances and counters. Even the cabinets would get an upgrade.
he total cost of this project is estimated at $104,000 or $13,000
n apartment if taken one by one. It adds both rental and resale
alue, but not the level of a full renovation.

back quicker than a full restoration, the benefit of having a fully

NPV at less than our other option.
ption though, if less capital is desirable, then a kitchen
nt and resale value and roughly $25,000 less than a full

end a majority of their time at home. Cooking should be done in a

full renovation is too expensive, the kitchen is more than enough