Gerding Edlen Closes on Construction Loan for Brewery Block #3

PORTLAND-Gerding Edlen Development has closed on a $35.7-million construction loan for Block #3 of its five-block redevelopment of the former Blitz Weinhard Brewery on the northwest edge of Downtown Portland.

The short-term loan from the Union Labor Life Insurance Co. will be used to develop The Henry, a 15 story, 123-unit condominium tower with about 14,000 sf of ground floor retail. The site is a former parking lot adjacent the armory building, which occupies half of Block #3. Howard S. Wright is the contractor. GBD Architects is the project designer. Completion is scheduled for March 2004.

John Petersen of LJ Melody sourced the loan for Gerding Edlen. The term and rate of the loan is being kept confidential, but the term for such a loan would be between 2.5 years and 3.5 years, allowing time for construction and sales, while current interest rates for such a deal would be between 200 and 300 basis points over LIBOR. Union Labor Life Insurance’s “J for Jobs” separate account is providing the funding on behalf of Pearl Gateway Condominiums LLC.