Known as Block #5, the final piece of the puzzle will be a $60-million apartment project that is scheduled to get underway in the next several weeks. The building will have 245 units on 15 floors and just less than 28,000 sf of ground floor retail space. The project designer is GBD Architects.
According to Gerding/Edlen, the project's internal rate of return with the 10-year property tax abatement is 8.99% during the abatement. Without the abatement, Gerding/Edlen figures the IRR at 5.43%. "The project is not feasible without the abatement," states PDC Executive Director Don Mazziotti in recommending the commission approve the abatement.
The Portland Development Commission, which is slated to vote on the abatement this week, estimates the 10-year value of Gerdeing/Edlen's would-be exempted tax revenue at $4.23 million. During the abatement, Gerding/Edlen would continue to be liable for property taxes on the value of the land, just not the improvements.
Block #3, the next to last piece to be developed, is under construction adjacent the armory building and scheduled for completion in March 2004. The Henry will be a 15 story, 123-unit condominium tower with about 14,000 sf of ground floor retail. Gerding/Edlen closed on a $35.7-million construction loan for the project in November. The lender is Union Labor Life Insurance Co.
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