Opportunity
Solution
MSN Real Estate (MSN), an Oregon-based realty company, will provide benchmarked rental units in Eugene, Oregon. MSN’s units are designed to provide tenants with safety, modern features, and a positive experience.
Market
MSN will target 3 distinct customer segments. They will serve the largest segment, University of Oregon students. This segment is growing at 7% a year with 18,000 prospective customers. This segment is especially attractive, as many local rental properties are not in good condition and are targeted at students. Local professionals are the second segment, with 12,000 potential members and growing at 4%. Faculty and staff at the University is the last segment. This segment has a 5% rate of growth and potential customers of 6,000.
Competiton
The market for high quality, reasonably priced apartment units has been growing at a rate of 6.7%. Oregon’s fourth quarter rental rates remained steady at $697 per square foot (or $.79/square foot). Although the Oregon market is seeing rapid employment growth, there is not much new housing. Not only is MSN pioneering this particular niche of affordable quality living, but it is capitalizing on the strength of the current economic growth in Oregon
Why Us?
MSN Real Estate offers high-quality and comfortable rental units in Eugene, Oregon. MSN’s apartment units reflect the rapid advances in technology and growing demand for quality housing. Our company offers a hassle-free environment where our tenants can enjoy all the benefits of attractive, safe and welcoming units. MSN’s primary goal is to provide the best customer service possible, unlike many realty companies which are only concerned with making profits. Our top priorities are tenant safety, happiness, as well as comfort. MSN maintains competitive market prices, while working toward expanding the number of units owned, and increasing total profits earned. As a company, we will strive for a harmonious and cohesive unit that is committed to achieving our mission. MSN’’s success is largely dependent on customer satisfaction. Equally important is employee satisfaction. MSN Real Estate founders are convinced that employee satisfaction will make the company succeed and be the key to their long-term success.
Expectations
Forecast
The company will be able to buy its second facility by year 2. It is currently in discussions with the owners of a 20-unit apartment building in downtown Portland, OR. It is difficult to predict changes in the building values over the long term, but it is estimated that we will be able to purchase this building for $570,000.
Financial Highlights by Year
Financing Needed
We will start with $1,250,000 of funding from diverse sources. We will have a $1,000,000.00 angel investment firm. A loan of $200,000. Lastly we will get $50,000 from the two owners