UD+P News: August 2020

RESIDENTIAL COLLECTIONS aND LEASING UPDATE

RENT COLLECTIONS UPDATE
Nearly six months into the COVID-19 pandemic, we continue to experience a relatively small decrease in residential rent collections as compared to the months prior to the pandemic. As of August 25, an estimated 2.5% of residents across our portfolio have not paid July rent—down from 2.7% in mid-July. Collections for June rent are down to 2.16% compared to 3.2% a month ago. The end of the Federal Pandemic Unemployment Compensation program in July and the loss of $600 in weekly supplemental unemployment benefits does not appear to have impacted August rent collections—an estimated 2.5% of residents have not paid August rent. As in prior months, collections continue to be attributed to seven resident households who have deferred rent for multiple consecutive months. Our property management team will continue to work closely with residents who fall behind on their rent to establish payment plans. While Oregon’s Statewide COVID-19 eviction moratorium is set to expire at the end of September, it is anticipated that Oregon’s Governor, Kate Brown, will extend the residential moratorium.

LEASING UPDATE
During the month of August, leasing activity has been robust and steady. An estimated 92% of units across our residential portfolio are leased. Many of our competitors, including new projects in lease-up in Northwest Portland’s Slabtown neighborhood, are offering generous concessions (e.g., up to 2 months free rent + free parking). We are currently offering one month of free rent for all new studio apartment leases at Fairmount with a term of 1-year or longer. Fairmount’s studio apartments are competing with larger one-bedroom units in new projects offering concessions and lowering rents to attract new residents. Our application to lease conversion rate remains high and our team continues to use digital and virtual tools to conduct tours, process applications and communicate with prospective residents.

We are pleased to announced that the City awarded Lyra its temporary certificate of occupancy last week. We have leased two units at Lyra and have applications for two additional units pending. With Lyra’s final certificate of occupancy anticipated in September, we are expecting the pace of leasing to pick up in the coming month.

UD+P ANNUAL MEeting

Urban Development + Partners 2020 Annual Member Meeting is scheduled for Wednesday, October 7, 2020, from 3 to 5 p.m. Members of the UD+P team will provide a “year in review” presentation focused on fund performance and project highlights during the past year, as well as development, operations and property management updates. Investors will have the opportunity to ask team members questions during a Q & A session following the presentation.

This year’s Annual Meeting will be a virtual event hosted on the Zoom meeting platform. If you have not yet registered and would like to attend, please RSVP to Tina McNerthney at tina@udplp.com on or before October 5, 2020.

SNOW PEAK OPENS at The George

On Friday, August 14, Snow Peak opened its new 14,000 square foot USA headquarters and flagship store at The George (Flanders), our mixed residential and retail property located on NW 23rd Avenue, one of Portland’s destination shopping districts. Since 1958, Snow Peak has manufactured Japanese-designed, lifetime-guaranteed outdoor gear and lifestyle products. Designed by one of Portland’s premiere architecture firms, Skylab Architecture, Snow Peak’s new space will serve as a multi-function venue and was crafted around the invitation, “Let’s dwell outdoors, together.” In addition to serving retail and office functions, the space will incorporate a restaurant (projected opening in 2021).

Snow Peak’s spacious interior offers ample space for customers to experience and enjoy products in new ways. The mezzanine level features an area for tent and tarp demonstrations and set-up. The ground floor features a dedicated space to experiment with different configurations of the Iron Grill Table, Snow Peak’s iconic modular outdoor kitchen. 

We are excited to welcome Snow Peak to its new location and gorgeously appointed space at The George, images of which are provided below.