Forest Terrace Apartment
For Sale
$1,900,000
1508 21st Pl, Forest Grove, OR 97116
Updated multifamily community with one- and two-bedroom homes, on-site laundry, parking, and storage.
Property Size7,100 SF
Days on Market59
Property Features for 1508 21st Pl
General Information
Standard status
Active
Size
7,100 SF
Property subtype
Multifamily
Occupancy
95%
Additional Details
Cap Rate
6.34%
Public Transit
Yes
Amenities
landscaped grounds
on-site laundry facilities
parking
additional storage options
Single-story community offering quiet, convenient living
Prime location just minutes from Pacific University, providing a strong and consistent tenant demand driver
Strong in-place rental income with proven occupancy appeal
Building Details
Building Size
7,100 SF
Units
10
Listing Agency:
Portland Office
(503) 200-2058
Listed By:
Georgie Christensen-Riley · License #License(s): OR: 201209670
(503) 200-2058
Source:
Marcusmillichap
Added: Jul 3
Changed: Aug 29
Last Checked: Aug 29 at 4:30PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Portland Office
Investment Insights
Based on property information with market context.
Forest Terrace Apartments is a multifamily property at 1508 21st Pl in Forest Grove, Oregon, offering one- and two-bedroom apartment homes ranging from approximately 600 to 800 square feet. The community has recently received updates and improvements, with landscaped grounds, on-site laundry facilities, parking, and additional storage options. The property is professionally managed and fully occupied.
The residential setting provides access to Pacific University, downtown Forest Grove, major employers, retail amenities, public transportation, shopping, dining, and commuter routes. Unit layouts are suited to a range of resident profiles, including students, professionals, and long-term local residents. The property is identified with a 6.34% cap rate.
The residential setting provides access to Pacific University, downtown Forest Grove, major employers, retail amenities, public transportation, shopping, dining, and commuter routes. Unit layouts are suited to a range of resident profiles, including students, professionals, and long-term local residents. The property is identified with a 6.34% cap rate.
Key Highlights
- One- and two‑bedroom apartment homes ranging from approximately 600 to 800 square feet
- Fully occupied multifamily property with professional management
- Recently updated with improvements to the property
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$91,164
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
4.80%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,823,280
$1.8M
Cap Rate 7%
$1,302,343
$1.3M
Cap Rate 9%
$1,012,933
$1.0M
Market Conditions
NOI Build-Up for 7,100 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$174.7K $24.60/SF
− Vacancy
−$8.9K −$1.25/SF
EGI
$165.8K $23.35/SF
− OpEx
−$74.6K −$10.51/SF
NOI
$91.2K $12.84/SF
Area
Washington County, OR
Vacancy
5.10%
Lease Rate
$24.60 /SF/Yr
Expense Ratio
45.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,823,280
Cap Rate 7%
$1,302,343
Cap Rate 9%
$1,012,933
Alternative Uses
Best Use
Apartment 5plus
$1.30M
$1.14M – $1.52M
NOI $91,164 @ 7.0% cap · market cap 4.80%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.92M
$1.68M – $2.24M
NOI $134,153 @ 7.0% cap · market cap 7.06%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
524
Businesses Nearby
Explore this area
Business Placement
Demographics for 97116, OR
29,351
Population
10,229
Households
2.9
Avg Household Size
36
Median Age
33%
College-Educated
90%
High-School Grad
82.1 sq mi
ZIP Area
358
Density / Sq Mi
$87,308
Median Household Income
$42,330
Median Earnings
$1,397
Median Rent
$479,800
Median Home Value
Market
Vacancy Rate% for Multifamily in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Apartment building - Updated multifamily community with one- and two-bedroom homes, on-site laundry, parking, and storage.
Where is this apartment building located?
The property is located at 1508 21st Pl Forest Grove, OR.
What is the asking price?
The asking price for this property is $1,900,000.
What are key features of this property?
This property features: One- and two‑bedroom apartment homes ranging from approximately 600 to 800 square feet; Fully occupied multifamily property with professional management; Recently updated with improvements to the property
