René Nelson, CCIM CRE, Pacwest Commercial Real Estate, discusses how Oregon's rental control Senate Bill 608 affects your multi-family property and how to thrive in a changing market. Why now might be the time to consider a move into commercial real estate. Disclaimer: This presentation is meant to answer general, broad questions about the changes to Oregon Rent Control Senate Bill 608 (“SB 608”). Landlords should consult with an attorney before taking any action as it relates to End of Tenancy/Non-Renewal Notices and/or increasing rent. All opinions are my own. These statements are not meant to be taken as investment advice.

1. Zoe R. York, MAI
260 West 12th Avenue, Eugene, OR 97401
(541) 687-1938 / (541) 683-0932
zoe@duncanbrown.com
www.duncanbrown.com
Rene’ Nelson, CCIM, CRE
895 Country Club Rd, Eugene, OR 97401
(541) 912-6583
rene@1031guru.com
www.eugene-commercial.com
Rachel McLaughlin
Exchange Facilitator
Cascade Title Company
800 Willamette Street, Eugene, OR 97401
(541) 687-2233
rmclaughlin@cascadetitle.com
www.cascadetitle.com
Brian Cox
Real Estate & Property Mgmt Attorney
Brian Cox Law Offices
142 W 8th Avenue, Eugene, OR 97401
(541) 683-7151
bcox@coxassociates.info
www.briancoxeugeneattorney.com

2. Rene’ Nelson, CCIM
Commercial Real Estate Broker
Pacwest Commercial Real Estate

3. How Does Recent Legislation
Affect Your MF Property?
 Puts Landlords in a Difficult
and Misrepresented Position
 Uses Political Response to an
Economic Problem
 Out of State Investors Will Shy
Away From Oregon
 Fewer Investors Buying =
Could Soften Prices

4. Why Would You Consider Selling?
1. Some Want Out of Government
Control
2. Some Are Worried About Being
Targets for Tenants
3. Some Want Out Before Local
Municipalities Get Involved With
Rent Caps
4. Some Want Out While Prices Are
Still High

5. Market Stats: Eugene 2-4 Units
Last 12 Months of Sales Activity:
66 Duplexes Sold
$315,625 Median Sales Price
99.01% Sales Price/List Price
9 Day On the Market
7 Triplex/Fourplexes Sold
$427,500 Median Sales Price
100.23% Sales Price/List Price
9 Day On the Market
Duplexes 3-4 Units

6. Market Stats: Springfield 2-4 Units
Last 12 Months of Sales Activity:
35 Duplexes Sold
$259,000 Median Sales Price
100.6% Sales Price/List Price
6 Day On the Market
4 Triplex/Fourplexes Sold
$416,000 Median Sales Price
101.49% Sales Price/List Price
5 Day On the Market
Duplexes 3-4 Units

7. Why Sell Your Multifamily and
Move into Commercial Real Estate?
1. No Rent Control
2. Tenants stay longer with commercial leases
3. Tenants are usually responsible for
maintenance of the property
4. NN or NNN tenants often have corporately
guaranteed leases by nationally traded
companies
Examples:
Dollar General Stores
O’Reilly or Advance Auto Parts
AT&T or Verizon Stores
DaVita or Fresenius Dialysis

8. How To 1031 Out of Multifamily
and Into Commercial Property:
SINGLE FAMILY REAL MARKET VALUE PRICE RENT #1 RENT #2 GRM GIM
Azalea Drive $254,000 $300,500 $850 $850 177 14.73
Fox Hollow Rd $230,700 $244,600 $950 $1,000 125 10.45
Barger Drive $207,500 $228,300 $625 $650 179 14.92
Fuller Avenue $226,800 $249,900 $650 $695 186 15.48
Clairmont Drive $295,000 $304,500 $800 $825 187 15.62
Totals: $1,214,000 $1,327,800 $3,875 $4,020
Annual Gross Rents $94,750
Less Operating Exp. $36,000 38%
Net Income $58,750
Value of Portfolio $1,327,800
Less Selling Costs -$106,225
Net Profit to Invest $1,221,575

9. Commercial Properties For Sale:
5892 Main St
$1,400,000 Price
$114,500 NOI - 7.5% Cap
14th & Oak Street
$1,165,000 Price
$70,000 NOI - 6.08% Cap
1225 Lawrence Street
$1,100,000 Price
$60,000 NOI - 5.00% Cap

10. Example of NNN Opportunities:
Dollar General – Georgia
$398,500 – Low Price Point
$33,875 Rents - 8.5% Cap
O’Reilly Auto Parts – Oklahoma
$600,000 – Corp. Guaranteed Lease
New 10 Year Lease
National Tenant - 6.17% Cap Rate
Family Dollar – Mississippi
$696,000 – Corp. Guaranteed Lease
National Tenant – 8.75% Cap Rate

11. Get Ahead of Property Issues:
Get Proactive Before Listing For Sale
1. Tour All Units Prior to Listing w/Broker
Old adage . . . “you get what you
inspect, not what you expect”
2. Have trusted contractor go through
units including attic and crawlspace
Surprises Kill Deals!

12. Cure Issues On Your Timeline
And Your Budget!!
Cure Property Issues Now, Save $$
Work On Your Timelines not
Buyer Transaction Deal Deadlines
Termite & Dry Rot Inspection:
Duplex $ 195.00
Triplex $ 250.00
Fourplex $ 250.00
Commercial $300

13. The Process of How To Do It:
1. Walk Through Properties With Broker
2. Schedule Meeting to Determine Listing Prices
3. Talk to Your CPA – Tax Consequence?
4. Identify Target of New Property For Exchange
5. Broker Calls Listing Broker To Gauge Activity
6. Cure Any Property Issues, Then List For Sale
7. Talk to Cascade Exchange Services
8. Talk to Your Insurance Broker
Be Accessible To Close Your Deals -
Plan Vacations / Travel Accordingly!!

14. Want Your Real Estate Portfolio To
Thrive Through Market Changes?
Too Many Options – Not Enough Time Tonight….
1. Schedule an Initial 15 Minute
Phone Appointment (Free)
2. Enjoy a Listening Session
3. Execute A Custom Strategy

15. My Thoughts About Rent Control?
You Should Decide How Things Happen….
No Investor Should Have
to Roll the Dice on
Their Financial Freedom!

16. Where Do I Go Now?
Visit Rene’s Website For Latest Information…
Oregon Rent Control Center
www.eugenecommercial.com

17. For further information:
Zoe York – zoe@duncanbrown.com
(541) 687-1938
Rene’ Nelson – rene@1031guru.com
(541) 912-6583
Rachel McLaughlin –
rmclaughlin@cascadetitle.com
(541) 687-2233
Brian Cox – bcox@coxassociates.info
(541) 683-7151