Detailed valuation, condition, and market positioning for each asset
The CIDA building review reveals material deferred maintenance and code deficiencies that the BOV valuation does not account for. Budget $750K–$1.2M for renovation beyond acquisition cost.
No fire sprinkler system. Any renovation >50% of floor area triggers mandatory installation. Fire-rated doors have labels painted over.
Exposed conduit wiring, extension cords running throughout. Original electrical system likely inadequate for current or expanded use.
Fixtures labeled out of order, active water leaks, stained ceiling tiles from past leaks, damaged HVAC ducting. Full MEP evaluation needed.
Single ramp access point, no elevator, upper floors inaccessible. 25% of renovation costs must go to accessibility under ORS 447.241.
1966 construction likely contains lead paint and asbestos in ceiling tiles, flooring, and finishes. Full hazmat survey required before work begins.
Multiple areas below 84" code minimum (as low as 72.5" at stair landings). New R-2 construction requires 7' minimum finished ceiling.
Marion County 1–2 Star industrial vacancy is just 3.7%. Limited new supply and steady distribution demand support both user value and lease-up potential at $8–10/SF NNN.
Aggregate valuation, income potential, and investment returns
| Asset | Est. Annual Revenue | Lease Type | Market Rate |
|---|---|---|---|
| Admin Office (3,039 SF) | $42,500 – $54,700 | Modified Gross | $14–18/SF |
| Warehouse (7,370 SF) | $51,600 – $73,700 | NNN | $7–10/SF |
| Multifamily (14 units) | $117,600 – $156,800 | Residential | $750–1,000/unit/mo |
| Stabilized Portfolio Total | $211,700 – $285,200 | Est. NOI: $150K – $210K (after OpEx & vacancy) | |
Anchor near Q1 aggregate ($2.88M). The CIDA findings on the multifamily building justify a material discount from Colliers' median values. Use deferred maintenance as leverage.
Fire sprinklers ($15–20/SF), hazmat abatement, ADA compliance, mechanical/electrical overhaul, and interior reconfiguration. Get hard bids during due diligence, not after closing.
Deploy capital gains from other Clutch portfolio transactions. The tax deferral and potential exclusion on appreciation can meaningfully improve after-tax returns on the renovation spend.
Clarify Willamette Greenway compatibility review requirements and conditional use permit path for shelter/transitional housing. Determine which alteration level your renovation scope triggers.
The 6,098 SF strip between the warehouse and multifamily is excluded from the BOVs but is critical for campus circulation, additional parking, or future accessory structures.
Discount from median justified by CIDA findings and deferred maintenance burden
Including $750K–$1.2M multifamily renovation and minor CapEx on other buildings
4.3%–6.0% cap rate at mid-market value; improves at recommended acquisition price
Mission-driven operator with construction capability, property management infrastructure, and a long-term hold strategy. This is a 3–5 year repositioning — not a flip, not passive. The campus layout (admin + housing + warehouse) maps directly to a veteran services hub. That profile matches Clutch Industries precisely.