The Portland Development Commission, the city's urban renewal agency, recently put out a Request for Proposals for redevelopment of the property, which is currently occupied by three single-family homes, one duplex, a former filling station and an undeveloped lot. The PDC is looking for proposals that would turn the property into a mixed-use residential-over-retail development. Preliminary drawings show a four-story structure with roughly 75 apartment units.
"Economic market analysis has given strong indication that there is capacity for more retail in the area," PDC Development Manager John Southgate tells GlobeSt.com. "Tri-Met counted 100 retail businesses along Interstate when they started the light rail project and since that time 20 new businesses have located there." Southgate says it has been mostly coffee shops "and that sort of thing" that are popping up, largely in response to adidas' new headquarters and the expansion of Portland Community College's campus, which also has helped push up the value of single family homes in the area.
According to the RFP, the PDC's intent is to see the property redeveloped as soon as is feasible, preferably with construction underway by the time the new light rail line opens in the fall of 2004. The PDC says it expects a single development proposal, which may include several building components, and will not consider development proposals which only utilize a portion of the property. The deadline for submittals is June 20.
The property comprises six of seven parcels of an entire city block and is the only property the PDC owns in the Interstate Corridor Urban Renewal Area, which was created in August 2000. The eighth parcel, 4,000 sf located on the northwest corner of the block, is owned by Tri-Met and is home to a small electrical substation for the light rail line. Tri-Met has indicated its willingness to negotiate air rights for development above the substation, and the PDC has said it will assist in these negotiations.
Adding to the viability of the project, the PDC says the Advantage Northwest Credit Union, which currently owns and occupies space immediately south of the property across Killingsworth Street, has expressed interest in occupying a portion of the ground floor space in any new development on the property, most likely through a condominium arrangement in which the Credit Union owns its space, with rights to a certain number of parking spaces. "While proposers are encouraged to consider the Credit Union as part of the development, they are not required to incorporate the Credit Union," according to the RFP, "and those proposals including alternative uses will be given equal consideration."
The PDC says it expects to convey fee simple interest in the property but will also consider a long term ground lease in lieu of sale of the property. Depending on the proposal, the PDC says it may be able to assist with predevelopment analyses and may also be able to provide access to a variety of financial tools including cash loans, tax abatements, and assistance in applying for Low Income Housing Tax Credit financing and other programs.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
