Governor Hotel, Princeton Building Trading Hands

PORTLAND-Townhouse developer Marty Kehoe confirmed Tuesday that he is in escrow to acquire the Governor Hotel and the connected Princeton Building from Governor Hotel Associates LLC and mortgage holder Goldman Sachs for approximately $15 million.

The landmark 100-room hotel in Downtown Portland and the connected 54,000-sf office building are located on 10th and 11th Avenues at Alder Street, respectively. Kehoe tells GlobeSt.com he has not decided whether he will take on investment partners and also hasn’t decided whether or not he will break up the two properties and re-trade one of them. Neither of the buildings has any significant seismic or structural issues.

Kehoe says the hotel has solid occupancy and rates and has the most extensive meeting room facilities of any hotel in the city and one of the best restaurants in Jake’s Grill, which is owned by McCormick and Schmick’s Seafood Restaurants. “When you’ve got Bill McCormick and Doug Schmick on the ground floor of your property, you’ve got a solid winner,” says Kehoe.