The Newbury

Co-Invest with one of Portland’s premier development firms

Minimum Investment: $250,000

Preferred Return: 6%

Target IRR: 21.5%

Target EM: 2.04xx

Investment Period: 60 Months

Introduction to The Newbury

The Newbury, a 5-story, 68-unit ground-up multifamily development, occupies a prime position in Portland's vibrant Humboldt neighborhood. Boasting a WalkScore of 91 and a BikeScore of 100, The Newbury offers unparalleled convenience, with upscale amenities, renowned colleges, and a vibrant culinary and entertainment scene all within easy reach. This enviable location makes The Newbury an ideal choice for young professionals and discerning residents seeking a luxurious and connected lifestyle.

  • 5422 N Mississippi Ave

    Portland, Oregon 97217

  • Type IA/VA

    Podium Deck 4 over 1

  • 68 Residential Units

    • (28) Studios

    • (32) One Bedrooms

    • (8) Two Bedrooms

    • Quartz Countertops

    • Stainless Steel Appliances

    • In-Unit Washer/Dryer

    • Air Conditioning

    • Hardwood Floors

    • Tile Bathroom Floors (select units)

    • Private Balconies

    • Lounge / Work Space

    • Secured On-Site Parking

    • Package Service

    • Controlled Access

    • Property Manager on Site

    • Elevator

    • Bicycle Storage

    • Storage Lockers

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Location

Humboldt is a vibrant and dynamic neighborhood, cherished for its eclectic mix of culture, history, and modernity. This sought-after area is known for its diverse communities, bustling streets, and an array of local attractions that draw residents and visitors alike.

The Newbury’s strategic location provides easy access to major employment hubs, including Adidas North America, Kaiser Permanente Center for Health Research, and Legacy Emanuel Medical Center.

Additionally, The Newbury’s proximity to Portland Community College, the University of Portland, and Portland State University creates a steady demand for student housing and related services. The neighborhood's diverse economy, encompassing healthcare, technology, and education, ensures a stable and resilient market.

Walk Score

91

Bike Score

100

Income

86k

 

Investment Details

Seneca’s primary objectives are to (1) develop the Property to create a rentable asset, (2) manage and operate the Property efficiently, (3) enhance available cash flow (after expenses and reserves) to investors, (4) sell the Properties in 3-5 years opportunistically when favorable conditions dictate.

  • $250,000

  • Preferred Return Distributions: Investors will receive a preferred return of 6% per annum, paid quarterly.

    Profit Share Distributions: Upon stabilization of the asset (20-24 months), investors will receive a pro-rata profit share, in addition to their preferred return.

  • Construction: 16 Months

    Lease-Up: 4-6 Months

  • By investing 45% equity in the project, Seneca aligns its interests with those of its investors, fostering a commitment to driving optimal performance.

Hypothetical Investment

Timeline

Portland’s Multifamily Market Opportunity

Portland is currently the 26th largest city in the US, just a few spots behind Seattle, the largest city in the Northwest. There are about 4,375 Portlanders per square mile and Portland was the 15th fastest-growing city in the nation for Q1 of 2024 according to Moody’s. Despite ranking within the top 15 for population growth among major metropolitan areas, Portland's housing development activity currently falls outside the top 30. 

According to data analyzed by ECONorthwest, the city is on track to approve permits for a mere 500 multifamily units in 2024, a stark contrast to the 1,995 units approved in 2023, 4,112 in 2022, and 3,767 in 2021. This sharp decline, which aligns with statewide trends, exacerbates the state's existing 140,000-unit housing shortage, foreshadowing a deepening crisis in the years to come. To put things into perspective from 2020-2024, Austin, TX had built 122,685 apartment units with an MSA of 2.4 million residents. During that same time, Portland built 10,374 apartment units with an MSA of 2.5 million residents.

Trending Rent Growth

Over the trailing three-month period, advertised asking rents in Portland rose 0.4% to $1,775, exceeding the national average by 30 basis points. As of June, the average occupancy rate for stabilized properties in the metro area was 95%, reflecting a 20-basis-point year-over-year increase.

Moody's CRE Forecast projects that effective rents in Portland will grow at a rate of 3.3% year-over-year for the next five years. This growth rate is notably higher than the projected nationwide average of 2.9%.

Seneca Development Company


Seneca Development Company is a Portland based development firm that leverages a vertically integrated investment approach, fostering seamless collaboration between its investment, design, and operations teams. This integration enables efficient design, construction, and capital structuring for each asset, delivering attractive returns to investors while addressing the growing demand for high-quality multifamily properties.

Seneca's co-founders have 70+ years of experience developing and overseeing the construction of over $1.5B in commercial assets.

Meet the Partners

  • Michael Hamilton

    President

  • Joel Johnson

    Chief Finance Officer

  • Bryant Jaksic

    Chief Investment Officer

  • Andy Schreck

    Director of Development

Investment Outlook

The real estate market is inherently cyclical, mirroring broader economic trends. Periods of economic expansion, often fueled by low-interest rate environments, incentivize increased investment in real estate sector, leading to heightened development activity and increased asset values. As supply outpaces demand, or interest rates rise, a correction phase ensues, characterized by price adjustments and reduced market activity. Eventually, renewed economic growth, often accompanied by accommodative monetary policy, rekindles demand, propelling the market into a new expansionary phase.

Acquire

When equity markets decline, it can signal a broader economic slowdown. This period typically presents unique opportunities for acquiring properties at discounted prices, particularly if the underlying fundamentals of the real estate market remain strong.

Develop

As economic recovery begins to gain momentum, it presents a strategic opportunity to anticipate future growth and initiate development projects. By carefully timing the commencement of development, investors can capitalize on increasing demand and rising property values.

Exit

Asset allocation requires a careful balance between risk mitigation and return maximization. In periods of economic exuberance, equities are susceptible to overvaluation, increasing the potential for overpaying for assets reaches its peak.

FAQ’s

  • Even with meticulous planning, some changes are almost inevitable during construction due to various circumstances. SDC’s project budget holds a construction contingency of $450,000.

  • During the subscription process you will execute the following documents.

    • Accredited Investor Questionnaire

    • Subscription Agreement

      • A Subscription Agreement is a legal contract between an investor and the Company. It outlines the terms of the investment, including the amount to be invested, the interest in the investor share class, and any specific conditions or warranties.

    • Joinder Agreement

      • The new member, by signing the Joinder Agreement, agrees to be bound by the terms of the Operating Agreement. The Operating Agreement is an Exhibit of the Subscription Agreement. The Operating Agreement outlines the rules and regulations governing the LLC's operations, including ownership percentages, profit and loss sharing, decision-making processes, and other key terms.

  • The project is funded with a combination of sponsor equity, investor equity and bank financing.

    Seneca Development has invested $2m to date and has secured a term sheet financing $13.5M, the lender is a captive fund and not dependent on external capital sources or credit lines.

  • Yes, to participate in a 506(c) offering, you must be an accredited investor.  

    This is a regulatory requirement designed to protect investors who may not understand the risks involved in private investments.

DISCLAIMER

 INFORMATIONAL ONLY. The material in this presentation has been prepared by Seneca Development Co (“Seneca”) and is intended for informational purposes only. The information set forth in this presentation is confidential. Receipt and acceptance of this presentation shall constitute an agreement by the recipient that this presentation will not be reproduced, forwarded or used for any purpose, other than in connection with the recipient’s evaluation of possible interest in the investment.

The information contained herein has been prepared to assist prospective investors to evaluate a possible investment in Seneca and does not purport to be complete or to contain all of the information a prospective investor may desire. No representation or warranty, expressed or implied, is being made as to the accuracy or completeness of the information contained in this presentation, and nothing in this presentation is or shall be relied upon as a promise or representation or warranty whether as to the past or future results. This presentation contains preliminary information only that is believed to be valid as of the date of this presentation, is subject to change, and may be superseded in whole or in part, at a later date. Seneca undertakes no responsibility or obligation to update the information contained herein.  

FINANCIAL ESTIMATES AND PROJECTIONS. This presentation includes certain statements and estimates provided by Seneca. Such statements, estimates and projections reflect various assumptions by management concerning possible anticipated results, which assumptions may or may not be correct. The statements, estimates and projections contained in this presentation are made as of the date hereof and have not been independently verified. No representation is made as to the accuracy of such statements, estimates or projections.

FORWARD-LOOKING STATEMENTS. The presentation may contain forward-looking statements, including statements regarding our intent, belief or current expectations with regard to the investment. Prospective investors are cautioned not to rely on any forward-looking statement. Prospective investors are also cautioned that past results are not necessarily indicative of future or potential results. Interested persons should ask for all additional information regarding the investment opportunity as such person deems appropriate before making any investment. Interested persons should conduct their own investigation and analysis of the matters described in this presentation and discuss any possible investment with their financial, tax, accounting and legal advisors. Neither the Securities and Exchange Commission nor any state commission has approved or disapproved of the investment or determined that this presentation is lawful or complete; any representation to the contrary is unlawful.

THE INFORMATION CONTAINED HEREIN IS PROPRIETARY AND CONFIDENTIAL, AND MAY NOT BE DISTRIBUTED, REPRODUCED OR FORWARDED WITHOUT OUR PRIOR WRITTEN CONSENT. THIS PRESENTATION IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY A SECURITY, WHICH WILL BE MADE BY A PRIVATE PLACEMENT MEMORANDUM. THE OFFERING REFERENCED HEREIN IS ONLY AVAILABLE TO ACCREDITED INVESTORS AS DEFINED IN RULE 501(a) OF REGULATION D UNDER THE SECURITIES ACT OF 1933.