Tag Archives: Portland Business Journal

Lovejoy Bakers almost ready for its South Waterfront debut

A popular Pearl District bakery is expanding to the South Waterfront location with the opening of a new location May 12 at The Emery.

Lovejoy Bakers is one of several food-related businesses opening in the apartment building, which opened over the winter at 3135 S.W. Moody Ave.

ZRZ, the real estate arm of Zidell Marine, partnered with Project^ to develop the 112-unit apartment building as a forerunner for development of the barge-building company’s 33-plus acre site below the Ross Island Bridge.

Cha Cha Cha Mexican Restaurant and Green Leaf Juicing will open later.

Lovejoy Bakers, a Pearl District icon, operated by Tracy and Mark Frankel, became the first business to lease at The Emery when they signed a deal for a 1,495-square-foot space overlooking the project’s patio-like sidewalk last summer.Debbie Thomas Real Estate brokered the deal.

Article written by Wendy Culverwell, Staff Reporter with the Portland Business Journal.

To view the original article: Click Here 

 

Joseph Bernard LLC – 45th Fastest Growing Private Company in Oregon

Fastest Growing Private CompanyWe are pleased to announce that Joseph Bernard Investment Real Estate was named the 45th Fastest Growing Private Company in Oregon.

Every year since 1996 the Portland Business Journal recognizes Oregon’s top 100 fastest-growing private companies. This honor is given to those companies in Oregon that had the largest percentage of growth over a three-year period, and is one of their most popular and competitive awards.

In addition to a record number of submissions from companies looking to make this year’s fastest-growing list, the minimum growth requirement to make the list jumped dramatically as well.

Joseph Bernard, LLC was ranked #45 out of the top 100 Fastest Growing Private Companies by the Portland Business Journal in 2013, and #56 in 2012.

“It is an extraordinarily difficult accomplishment in the best circumstances, much less in the economic meltdown of the past several years”, says Craig Wessel, publisher of the Portland Business Journal.

Intel Expansion A Catalyst For Development

IntelNews Wednesday that Intel Corp. is planning an additional expansion at its Ronler Acres campus in Hillsboro has developers, construction workers and commercial real estate folks cheering.

The chip maker’s (NASDAQ: INTC) plan includes nearly 3.6 million square feet of new construction across four structures, building on the multi-billion dollar investment Intel first announced in October 2010.

“I think this may be the largest single construction project in company history,” said Colin Cooper, the assistant planning director for the city of Hillsboro.

The boost for the construction trades is obvious. The expansion will extend work already underway for at least another two years. And while Intel hasn’t disclosed the amount to be invested, it’s estimated to be about $3 billion. Based on a calculator used by the trade group Associated General Contractors, that could translate into more than 60,000 direct and indirect jobs.

The expansion will also increase demand for nearby housing for construction workers and permanent employees, putting pressure on an already tight market. While Intel didn’t discuss potential employment figures, Cooper estimates the new Intel buildings will ultimately be home to around 3,800 full-time employees.

The apartment vacancy rate in Hillsboro is about 5 percent, according to Joseph Bernard Investment Real Estate.

“From a momentum standpoint, Hillsboro has been a hub for development. There’s been a lot of activity at Orenco Station and elsewhere,” said Phil Barry, a senior real estate agent at Joseph Bernard. For developers and investors, “there’s been a shortage of sellers of desirable locations and a flurry of buyers,” which could encourage new multifamily developments.

The suburban westside markets, including Hillsboro, are already the region’s hottest for new apartment construction with projects underway by Holland Partners and Arbor Custom Homes, which through its West Hills Development unit has acquired five acres from the city of Hillsboro on which it plans to build at least 200 apartments.

Hillsboro’s industrial market, meanwhile, has already received a boost from the existing work underway at Ronler Acres. According to brokerage Kidder Mathews, the Hillsboro market is commanding the highest rents, in part, because of contractors seeking warehouse space near Ronler Acres.

While the mood is bright among those set to benefit from Intel’s expansion, a note of caution is warranted. For now, Intel’s fortunes are closely tied to the PC market, which is reeling as consumers shift to mobile devices. Intel did top Wall Street expectations in its latest earnings report, but that was only after the company lowered its outlook in September.

Click here to view the original article written by Suzanne Stevens, Web Editor for the Portland Business Journal.

Fastest Growing Private 100 Companies

Fastest Growing Private 100We are pleased to announce that Joseph Bernard, LLC was ranked #56 out of the top 100 Fastest Growing Private Companies by the Portland Business Journal.

Every year since 1996 the Portland Business Journal recognizes Oregon’s top 100 fastest-growing private companies. This honor is given to those companies in Oregon that had the largest percentage of growth over a three-year period (2009 to 2011) and is one of their most popular and competitive awards.

In addition to a record number of submissions from companies looking to make this year’s fastest-growing private companies list, the minimum growth requirement to make the list jumped dramatically.

“It is an extraordinarily difficult accomplishment in the best of circumstances, much less in the economic meltdown of the past several years”, says Craig Wessel, publisher of the Portland Business Journal.

Winning companies were honored on June 21, 2012 at the Hilton Hotel.

100 Fastest Growing Private Companies

Fastest Growing Private 100We are pleased to announce that Joseph Bernard, LLC has been named one of the top 100 Fastest Growing Private Companies by the Portland Business Journal.

Every year since 1996 the Portland Business Journal recognizes Oregon’s top 100 fastest-growing private companies. This honor is given to those companies in Oregon that had the largest percentage of growth over a three-year period (2009 to 2011) and is one of their most popular and competitive awards.

Winning companies will be honored at an awards celebration on June 21, 2012 at the Hilton Hotel. Contact the Portland Business Journal for more information.

Portland Apartment Vacancy Rate Second-Lowest in Nation

PortlandThe apartment market will continue to lead the commercial sector in 2012 and Portland is one of the cities leading the nation’s hottest real estate property.

Portland is tied with Minneapolis for the nation’s second lowest vacancy rates at 2.5 percent. New York City ranks first at 1.8 percent, according to a commercial forecast released Friday by the National Association of Realtors    .

The Realtor group said the multifamily market will continue to tighten nationally, dropping 0.2 points to 4.7 percent by the first quarter of 2013. Apartment rents will increase an average of 3.8 percent in 2012 after climbing an average of 2.2 percent in 2011. Rising demand will result in absorption of 209,900 units this year and another 223,600 in 2013.

Excerpt from the article written by Wendy Culverwell for the Portland Business Journal. Click here to view the original article in its entirety.

Bernard Gehret: Executive Profile for the Portland Business Journal

Bernard GehretThe Portland Business Journal’s Executive Profile for the November 18, 2011 edition features Bernard Gehret, Co-founder of Joseph Bernard, LLC.

The profile interviews Mr. Gehret on topics such as his business philosophy, judgement calls, true confessions, and predilections.

To read the Portland Business Journal’s Executive Profile, click here.

Buyers Chase Apartments as Construction Dwindles

Joseph ChaplikQ: How as the multifamily market played out this year? 

A: The 2011 year-to-date data shows 71 apartment transactions involving  complexes of five to 50 units, four transactions of 51-100 units, and nine transactions with buildings containing more than 100 units.

This is up from last year, and I predict we will have approximately a 25 percent increase in transactions this year from 2010 with a strong fourth quarter. Portland has been a top apartment market in the nation with low vacancy rates averaging 3.34 percent and annual rental increases averaging 9.5 percent. With new construction of apartment units down about 90 percent from past averages, the demand is strong and will be for years.

 Q: What pricing does the Portland area command now and how will prices change in 2012? 

A: The 2011 data shows an average sales price per unit of $71,650, up from $69,065 in 2010.

I believe the market will continue to see a slight increase with price per unit and price per square foot for 2012. Investors’ returns based on current rents, also known as capitalization rates, remain low but increased to an average of 7.17 percent currently.

This should remain relatively low but increase 200-400 basis points. However, the rising rents and back revenue from water utility bills will keep the net operating income increasing into 2012.

There will be more new construction of class A units, which will have a premium price if sold. The close-in city core properties will always hold their value for well-managed buildings with good tenants. Even with a rise in the cap rate, these properties should remain high in terms of price per unit pricing.

 Q: How will the apartment market unfold in 2012? 

A: There should definitely be an increase in number of transactions. However, the bulk of these transactions are buildings of five to 85 units. This will continue to lead the volume as more single investors and owners are transitioning into more buildings or moving their equity through an exchange sale into a larger building.

With the interest rates remaining low, savvy apartment owners are deciding to sell and exchange as opposed to refinancing. The most notable trend will be a shrinking gap between “ask” and “bid” prices. Currently, for 2011, it is a 6.15 percent difference. For the transactions we handled in the third quarter this ask/bid gap was about 2 percent.

 Q: Are certain parts of the Portland area in higher demand than others? 

A: The core of downtown and close-in surroundings are always in demand for the investor looking for better neighborhoods. These buildings usually reflect pride of ownership and remain well priced. The tenant mix is strong with limited turnover and higher rents. Apartment investors and owners of these buildings usually have higher equity in these properties or own them debt free.

However, there is quite a bit of volume in the outer city limits due to the lower price per unit and higher cap rates. These investors are looking for more opportunity to obtain higher returns by improving the property. Most investors are looking for a cap rate above 7 percent. The seasoned investor with the ability to rehabilitate buildings by improving their condition and management will continue to search for distressed properties with higher cap rates.

 Q: What types of buyers will step up to the plate in 2012, and why? 

A: Most of the market is local single owners and I believe they will reposition their portfolio with selling and exchanging into larger or better located buildings to take advantage of the low interest rate market.

So far in 2011, there have only been six out-of-state first-time buyers in Oregon. That means that more than 95 percent of the transactions were made by local investors. With 13 percent of the transactions in 2011 being cash purchases, I believe we will see a slight rise in these cash buyers if more properties are showing more deferred maintenance and are owner managed.

 Q: Are landlords investing less in renovations since the recession started? 

A: I don’t believe so, as you will always have the owners that choose to spend less and owners that understand the valuation to the buildings with keeping quality higher. You will see more sales in 2012 by owners that have more deferred maintenance. These buildings typically sell for less not only due to the condition but because there is a lack of record keeping with the income and expenses. When properties in a neighborhood are getting nicer, it puts pressure on apartment owners who were reluctant to improve their buildings.

Article written by Joseph Chaplik for the Portland Business Journal’s 2011 Commercial Real Estate Services Guide. Joseph Chaplik is the President & Principal Broker for Joseph Bernard Investment Real Estate.