Additional Projected IRR
The PDX Millennial Problem
A majority of Millennial professionals in Portland seek rental housing that reflects their lifestyle, is modern and amenity rich while offering a high-level of embedded service. It’s no secret that Portland continues its ascent into the top tier of tech cities but with that come some growing pains. Bloomberg News reports Millennials flocking to the Pacific Northwest for “high-paying jobs, vibrant outdoor lifestyle and more reasonable cost of living” as compared to the nearest tech neighbor, Seattle. Although tech-employed Millennials often enjoy a six-figure paycheck, they are in no rush to purchase a home. The majority of these PDX professionals choose to rent and “try out” a particular neighborhood or consider their local employment as a tactical, transient stop on their career ladder.
Our investment focus serves a Millennial-specific desire for modern housing by offering rental opportunities within newly built or remodeled houses. These houses are located within cycling or transit-friendly locations (a unique value associated with Portland Millennials specifically). These homes are completely furnished in the common areas with optional bedroom furniture included representing an additional revenue stream. The monthly rental price is all inclusive; in addition to utilities, tenants enjoy routine cleaning service, a home gym plus all household paper products and soaps are supplied. Of note, these are “smart homes” with wired technologies and security, robust internet service and all the popular entertainment subscriptions. Our rental model remains quite popular in numerous other tech-centric cities such as Seattle, San Francisco and the Silicon Valley. For affluent, discerning tech professionals this living arrangement is an attractive and affordable alternative to solo, small-box, apartment living.