Kehoe's Condo Conversion Catching On

PORTLAND-Marty Kehoe’s investment in the Uptown Heights apartment development here appears to be paying off. One month after paying a record $141,666 per unit for the 108-unit, 16-building property the local developer has reservations for 75 of the three-level one- and two-bedroom view homes at prices ranging from mid-$170,000′s to more than $300,000.The down payments associated with the reservations do not become non-refundable until the middle of July, which means many could still back out of the deal without consequence. However, Kehoe tells GlobeSt.com his brokers are expecting that between 75% and 80% of the reservations will go hard, which is well above the industry average of 50%. “Our original proforma planned for us to be out in 36 months; it’s now looking like closer to 12 months,” says Kehoe, who has Brian Pienovi and Becky Jackson of Realty Trust Group marketing the properties. “It has far exceeded all of our expectations.”The attraction of the units include the expansive views they have to the north and west, their proximity to the Northwest Portland shopping district and the asking price of $275 per sf, which is as much as $100 per sf cheaper than the plethora of new units rising in the burgeoning Pearl District. Beyond the equity required for the purchase, Kehoe says he will spend another $3 million before all is said and done on everything from remodeling the units to sales commissions. In order to maintain as much income as possible from the units during their conversion, Kehoe is selling off the units in three equal phases. The close-out for the first phase is scheduled for October, with the second phase closing out three months after that and the final phase three months after that.