"Luxury" home sale trend not evident in Bend area

            Central Oregon appears to be lagging any trend of mega-priced home sales as reported in recent weeks in such areas as New York, Miami and California.

            The theory in analyzing the home buying appetites of the market’s “one percenters” is that money is moving from the sidelines with a slowly improving economy. Low interest rates are less a factor among this group for which a loan is less important than the opportunity to acquire a trophy property.

            And the buoyant stock market of the past few years has also created gains that can be deployed into other asset classes such as real estate.

            But a look at the greater Bend-Central Oregon market indicates a mostly lackluster performance in sales of homes at more than $1 million. (which in New York might be just enough for a small apartment on the upper East Side).

            For the 16-month period from January 1, 2012 through April 30, 2013 there were 30 single family homes sold for more than $1 million according to the Multiple Listing Service of Central Oregon’s database. The top price was for a 5,114 square foot home built in 2008  on 1.2 acres in Black Butte Ranch west of Sisters. The median price in the $1 millon plus category was $1,325,000 and the size 4,750 square feet with 4 bedrooms and 4.5 baths.

            By comparison, 28 homes sold for more than $1 million in the comparable 16-month period from January 2011 through April 2012 at a median price of $1.2 million for 4,782 square feet, 4 bedrooms and 4 baths. The maximum sale price for the earlier period was $2.35 million for a 6,500 square foot home with 3 bedrooms and 4 baths in Broken Top built in 2002.

            In mid-May there were 107  active listings above $1 million, the top priced home at $5.5 million with 4 bedrooms and 5.5 baths, more than 10,000 square feet on more than an acre in North Rim of Awbrey Butte. The median of the active listings was $1.45 million for 4 bedrooms and 4 baths and 4,683 square feet.

            The active listings exclude a 7,500 acre ranch with a small home in Powell Butte east of Bend.

$1 Million plus sales Jan, 1 2012 through April 30, 2013
Date sold	Price sold	Area	Bdrm	Bath	Lot size	Home sf
2/20/2013	1,000,000	Bend	5	4	1.35	4306
3/26/2013	1,000,000	Bend	3	3.5	0.43	3057
8/3/2012	1,050,000	Bend	4	5.5	0.47	5509
7/20/2012	1,050,000	Terrebonne	3	4	76.56	4876
4/30/2013	1,080,000	Bend	4	4.5	0.412	4363
10/31/2012	1,100,000	Bend	3	2.5	0.52	3410
10/16/2012	1,100,000	Sunriver	3	7	39204	6987
9/20/2012	1,195,000	Bend	4	3.5	1.6	4600
4/20/2012	1,200,000	Bend	3	3.5	1.01	3227
2/11/2013	1,260,000	Bend	3	3.5	0.24	3280
12/4/2012	1,275,000	Bend	4	3.5	2.17	5680
10/18/2012	1,300,000	Bend	3	2.5	10	4639
2/29/2012	1,300,000	Redmond	4	4.5	124.7	4096
5/7/2012	1,300,000	Black Butte Ranch	4	4	0.42	3835
10/16/2012	1,300,000	Black Butte Ranch	3	3.5	1.56	3340
1/31/2012	1,350,000	Bend	5	4	2.08	4675
7/24/2012	1,350,000	Bend	4	5	1.16	6674
12/21/2012	1,350,000	Bend	4	4.5	1.09	5507
2/3/2012	1,350,000	Bend	3	3.5	2.42	4724
4/16/2013	1,375,000	Bend	4	5.5	27.55	4129
9/12/2012	1,390,000	Bend	4	4.5	1.92	5499
4/22/2013	1,399,000	Bend	7	8	0.32	5317
11/8/2012	1,500,000	Bend	5	6	0.87	6118
4/24/2013	1,502,874	Bend	5	6.5	0.58	6020
7/9/2012	1,625,000	Bend	4	5	5.83	6869
9/13/2012	1,750,000	Sisters	4	5.5	80	7189
7/11/2012	1,850,000	Sisters	3	3.5	38.57	4215
5/10/2013	2,000,000	Bend	5	5.5	0.85	6865
9/6/2012	2,195,000	Bend	4	5	43.28	4777
4/16/2012	2,200,000	Black Butte Ranch	4	5.5	1.25	5114

             

             

4-Year OSU Cascades campus moves into site location phase

            As the funding for a new four-year OSU-Cascades campus appears on track the location of an expanded campus moves up in the “to do” list.

            A Portland-based consultant on May 15 presented recommendations that a range of 41 to 65 acres would be needed to meet campus development requirements, depending on whether the emphasis would be on an “urban” or “suburban” oriented campus, respectively.

            An urban-oriented campus would be comprised of existing and newly built space within areas of current Bend retail and other development.  A suburban-style campus would be largely self-contained in a specific larger campus mostly built from the ground up.

            A representative of SRG Partnerships Inc., the Portland architectural consultant, estimated that in an early phase through 2015 the new campus would need approximately 200,000 square feet, including 22 classrooms. The current campus, which shares a site with Central Oregon Community College, currently has about 62,000 square feet.

            Build-out for 5,000 students has been estimated to occur in 2025 with nearly 80 classrooms.

            Compass Commercial of Bend is the real estate brokerage contracted to identify and negotiate for space to accommodate the expanded campus. 

For some years Bend officials have included a potential college campus in the master plan for the 1,500 acre Juniper Ridge project on the northeast edge of the city. However, most discussion of a location of the new four-year OSU-Cascades campus has focused on sites closer to the city core.

            The approximately $20 million in funding for the new campus is expected to include $16 million from the state legislature, $4 million in funds raised within the Bend-Central Oregon area and $4 million from the college budget.

Previous post:

Beaver nation to expand in Bend? 4-Year OSU campus effort gaining strength

Bend bags beer berg booyahs

            It’s been difficult for anyone not to be swept into the frothy (sudsy?) wave of hype swirling around Bend’s reputation as one of the country’s best beer bergs.

            Now that CNN has weighed in on the matter maybe it’s best to grab a local brew and enjoy the attention. Much like Seattle became the coffee capital of the country (world?) Bend is vying for a top place in the universe of barley, malt and hops.

            The latest accolades from CNN rank Bend among the “...top eight cities in America for beer explorers,” along with Portland, San Francisco, Boston, San Diego, Denver, Philadelphia and Asheville.

            “With one brewery for every 9,111 people, descriptors for Bend include “beervana” and “Beer City, USA,” CNN gushes.

            Deschutes Brewing appropriately gets a toast as the “godfather of local craft brewing...”  Also mentioned are relative newcomers Crux and Worthy Brewing Company and the Bend Ale Trail with nine participating breweries that offer to stamp your passport to win a prize.

            Among Bend milestones, CNN continues, is, “...the world’s first organic, non-alcoholic brew made for dogs, Dawg Grogg.”

            Another acknowledgement is Bend’s “Cycle Pub,” loved by tourists and some locals but less popular with many drivers as the people-powered vehicle plods it’s way on city streets with very merry passengers guided by a “designated pilot,” so to speak.

            Going beyond the cycle pub, there are other  possibilities  if you’d rather take more conventional transportation to punch the passport. Several local companies offer motorized alternatives, including the Bend Brew Bus, Cowboy Carriage Company,  GETTIT Shuttle and Bend Adventure Tours.

Map your own trek on the interactive Bend Ale Trail:

http://www.visitbend.com/Bend_Oregon_Map/Maps/Bend-Ale-Trail-Map/

http://www.visitbend.com/Bend_Oregon_Activities_Recreation/Bend-Ale-Trail/

McMenamins Old St. Francis School Pub

Phone: 541.382.5174

Address: 700 NW Bond St, Bend, OR 97701

http://www.mcmenamins.com/OldStFrancis

             

Deschutes Brewery

Phone: 541.382.9242

Address: 901 SW Simpson Ave, Bend, OR 97702

http://www.deschutesbrewery.com/splash/default.aspx

                   

Worthy Brewing

Address: 495 NE Bellevue Ave, Bend, OR 97701

http://www.worthybrewing.com/

Crux Fermentation Project

Phone: 541.385.3333

Address: 50 SW Division St, Bend, OR 97702

http://cruxfermentation.com/

Deschutes Brewery & Public House

Phone: 541.382.9242

Address: 1044 NW Bond St, Bend, OR 97701

http://www.deschutesbrewery.com/splash/default.aspx

                   

Silver Moon Brewing Co.

Phone: 541.388.8331

Address: 24 NW Greenwood Ave, Bend, OR 97701

http://www.silvermoonbrewing.com/index.html

                 

Broken Top Bottle Shop

Phone: 541.728.0703

Address: 1740 NW Pence Ln #1, Bend, OR 97701

http://www.btbsbend.com/

Cascade Lakes Brewing Co.

Phone: 541.388.4998

Address: 1441 SW Chandler Ave, Bend, OR 97702

http://www.cascadelakes.com/

Boneyard Beer

Phone: 541.322.2325

Address: 37 NW Lake Pl, Bend OR 97701

http://www.boneyardbeer.com/

                

Brew Werks Brewing

Phone: 541.633.7670

Address: 384 Upper Terrace, Bend OR 97702

http://brewwerksbrewing.com/

Bend Brewing Company

Phone: 541.383.1599

Address: 1019 NW Brooks St, Bend OR 97701

http://www.bendbrewingco.com/

Three Creeks Brewing Co.

Phone: 541.549.1963

Address: 721 Desperado Ct, Sisters, OR 97759

http://www.threecreeksbrewing.com/

                  

Blue Pine Kitchen & Bar

Phone: 541.389.2558

Address: 25 SW Century Dr Bend, OR 97702

https://www.facebook.com/BluePineKitchenandBar

                   

10 Barrel Brewing Co.

Phone: 541.678.5228

Address: 1135 NW Galveston, Bldg. A, Bend, OR 97701

http://www.10barrel.com/

Dogs allowed in outside dining area.                    

The Ale Apothecary

Phone: 541.408.1525

http://www.thealeapothecary.com/

                   

GoodLife Brewing

Phone: 541.728.0749

Address: 70 SW Century Drive 100-464, Bend, OR 97702

http://goodlifebrewing.com/

Crow’s Feet Commons

Phone: 541.728.0066

Address: 875 NW Brooks St, Bend, OR 97701

https://www.facebook.com/CrowsFeetCommons

Below Grade Brewing

available to taste at

Broken Top Bottle Shop

1740 NW Pence Lane, Suite 1

Bend, OR 97701

http://www.facebook.com/pages/Below-Grade-Brewing/102057836537111?sk=info

                  

Tetherow resort lodge construction underway. Lot sales pick up

            Portland developer Joe Weston and Netherlands-headquartered Velocity Capital BV have broken ground for a two-building, 41,000 square foot, 50 room lodging complex at the Tetherow golf resort and residential community on Bend’s southwest boundary.

Tetherow Lodges illustration



            The long-delayed lodge construction comes after Tetherow’s initial developers ran headlong into the real estate recession wall, triggering a number of loan defaults and ownership changes. Weston remained with the project and then teamed with Velocity.

            Located within Deschutes county adjacent to Bend, developers were able to complete a 18-hole links style golf course and clubhouse as lot sales sagged closing years of the past decade. 

            County officials agreed three times to extend deadlines for construction of overnight lodging and some infrastructure as required in the project’s original master plan. A new plan requires lodging to be completed by 2017.            

The great room of Tetherow clubhouse



In an April 11 announcement by the developers,  interim county planning director Nick Lelack said the county is, “pleased to see Tetherow begin construction of its first class overnight accommodations.....Tetherow Lodge will make a significant contribution to the success of this resort.”

84 lot sales-$775,000 high 2008 to $125,200 at bottom

            Statistics from the Multiple Listing Service of Central Oregon show there have been 84 total lot sales at Tetherow, out of approximately 370 lots in the 700-acre project master plan, with 49 sales in 2007 and 2008. The top priced sale in that period was a 0.610 acre lot at $775,000 in April of 2008. 

            There were only two sales in 2009, at $225,000 and $474,000, and none in 2010 during a period of shifting ownership. In 2011 there were seven sales in a range of $131,000 to $300,000. Since January of 2012 through mid April 2013 there have been 25 sales from $125,200 to $400,000.

            Altogether there have been 10 sales of custom homes and townhomes, the first in July of 2010 at  $845,000. The remaining nine were all in 2012, ranging from $565,000 to a high of $1,100,000 in October of 2012.

(An earlier post with a chart of resort land sales)

Resorts: Adjusting the "Vision" to meet Economic Reality

Free money in commercial lending? Haven't we been there before?

            At  first glance a recent report by CoStar Group raises the prospect that commercial lending is experiencing an unsettling “been there, done that” phase.

            CoStar reports that Bank of America and Morgan Stanley are launching a

a collaterized mortgage backed security (CMBS) that is reminiscent of the bubble days of 2007 in commercial real estate.

            CoStar says that the Kroll Bond Rating Agency estimates the banks’ MSBAM 2013-C9 offering will have a 98.8% loan to value ratio. In fact, the Kroll analysis says that nearly 43% (or 29) of the pooled loans in the portfolio have LTVs of more than 100%.

            Among other points in the CoStar report:

·        Commecial lending was up 40% in 2012 concurrent with relaxed underwriting standards.

·        The 2013 lending pace through Q1 is running ahead of the full first half of the previous year.

But CoStar notes that some industry professionals, while acknowledging that low interest rates make leverage attractive, also emphasize that cap rates have  remained high--thereby resulting in sustainable investments keyed more to income than betting on future appreciation.

CoStar quotes, Patrick Gates,  a principal of Cincinnati-based Matrix Holdings, who observes that, “The low cost of debt helps sweeten the deal, but the ‘story’ related to the asset is far more important. In regards to debt, if (or when) rates increase in the coming years, those increases will be integrated into the deal.”