Overview
Project Summary: Laurelhurst Condo Conversion
Project Overview:
The Laurelhurst Condo Conversion project is located at 804 SE Cesar E. Chavez Blvd. in SE Portland, OR. This project involves converting a 23-unit apartment building into condominiums, specifically serving first-time homeowners and individuals earning 80% of the Area Median Income (AMI). Each unit, with an average size of 481 internal square feet, will be outfitted with modern amenities to enhance livability and attract buyers within this income bracket.
Focus on Affordable Housing:
This project directly addresses the critical need for affordable homeownership opportunities in Portland. By serving individuals at 80% AMI, the Laurelhurst project ensures that lower-income residents can transition from renting to owning, a significant step in building long-term financial stability.
The project's collaboration with the seller, Reach CDC https://reachcdc.org/ , showcases our commitment to this goal and provides a foundation for success through their experience and community ties. Reach CDC, a local non-profit, is a respected Community Development Corporation and a local Nonprofit Housing provider with approximately 3,500 doors and $500,000,000 AUM,
The Condo.Fund collaboration with Reach CDC shows a mission adjacent alignment. We were chosen over 6 other bidders with a largely less competitive bid (approximately a 35% discount) which highlights the alignment of Reach CDC with our affordable housing mission and solution. We even help the buyers with their down payments!!!
Financial Structure:
The Laurelhurst property is being acquired at a purchase price of $1,500,000. This is significantly below market value and signifies a purchase Cap Rate of 13%.
$3,542,335 Current Market Value (stabilized and when operated as an apartment building)
The following calculation supports this valuation:
- Current rent per unit: $1,086
- Number of units: 23
- Annual rent: $1,086 x 23 units x 12 months = $299,736
- Inverse Expense Ratio: 65%
- Capitalization Rate (Cap Rate): 5.5%
A Pro-Forma supports a value of $4,403,454:
- Potential rent per unit: $1,350 (Average 1-br $1,520)
- Number of units: 23
- Annual rent: $1,350 x 23 units x 12 months = $372,600
- Inverse Expense Ratio: 65%
- Capitalization Rate (Cap Rate): 5.5%
This yields an estimated market value far exceeding the purchase price, demonstrating the property's strong investment potential.
Capital Expenditures (Cap-Ex):
The project includes a comprehensive Cap-Ex budget of $1,710,000, including:
- Implement a new seismic-stabilized roofing and parapet system.
- Complete renovation of bathrooms and kitchens.
- Install new appliances in each unit (Refrigerator, Washer, Dryer, Microwave, and Dishwasher).
- Landscaping, Retaining wall rebuild, Life & Safety Upgrades, Parking Lot recoating, & painting.
These upgrades enhance the property’s appeal to first-time buyers while ensuring long-term durability and reduced maintenance costs.
Project Timeline:
The Laurelhurst Condo Conversion project is planned to last 18 months, from Fall 2024 through Spring 2026. This timeline allows for the phased renovation and sale of units, providing a steady return on investment while adapting to market conditions.
Return on Capital:
The project's financial projections are robust. Based on an average sale price of $224,146 per unit, gross sale revenue is anticipated to be just under $5.4 million when including $140,000 in Deeded Parking and $104,908 in Rent Revenue.
After accounting for fees and expenses, net sale revenue is expected to exceed $5.1 million.
Given the below-market acquisition cost and strategic CapEx investments, the project is positioned to deliver strong returns to investors. (IRR Based on 24 months)
Conclusion:
The Laurelhurst Condo Conversion project is a well-structured, financially sound investment opportunity. It combines acquiring a below-market asset with targeted renovations and a clear focus on affordable homeownership. The partnership with Reach CDC further strengthens the project's viability and community impact. This project promises solid financial returns and contributes meaningfully to addressing the affordable housing crisis in Portland.
Please note ** The one pager is used for illustration purposes. Please see the actual deal underwriting for any current assumptions and estimations. ** All attempts for accuracy have been made in the best of faith and under persistent re-evaluation.
Image Gallery
Step 1: About Us
Condo Fund Pitch Deck
Step 2: Due Diligence Documents
Operating Agreement
CF Wiring Instructions
Step 3: Offering Documents
CF Laurelhurst Partners LLC Offering Subscription...
Step 4: Investment
Deal Closed
Team
Professional Services
Industry FinTech
Sandy Fliderman 9547906333 sandy@industryft.com https://industryft.com
FuseFi Transfer LLC
Joseph Latona 305 239 8960 ta@fusefi.com https://www.fusefitransfer.com/