However, the 40-year-old towers will indeed need significant upgrades. In addition to common area and in-unit renovations, the towers will need new windows and plumbing improvements, local industry sources tell GlobeSt.com. As a result, the unit sale prices may have to average between $350 and $400 per sf to cover the additional costs, they say.

Given that, local industry experts are split on whether this is a smart conversion or not. One local apartment broker described it as a "logical conversion" while one local condo developer said it's going to cause the new owners "a lot of brain damage."

"It's not a conversion deal; it's got too many moving parts, but it would have made a good 10-year hold as apartments," says one local developer who took a look at the deal. "You've got to change out all the windows, which are single pane, and sleeve all the plumbing, which is 42-year-old galvanized steel. And they're buying on pro forma, which appears to include about $1 million of phantom income. This deal has a lot of brain damage in it; converters could get slaughtered."

The multifamily broker tells GlobeSt.com that while the capital budget for the project is a concern, it's still potentially a good play. "It's well located and there's a new streetcar that runs in front of it, tying it into the waterfront and the Pearl District," says the broker. "It's certainly a logical conversion."

Bean, of course, agrees with the latter opinion."We've completed more conversions than anyone in Oregon; we know how to do it profitably," he tells GlobeSt.com. "We are real excited about it."

The towers will be upgraded and sold off in phases in order to maintain as much cash flow as possible for as long as possible, says Bean, who sees the units being completely sold off in 36 months or less. The units will be upgraded with, among other things, granite countertops and stainless steel appliances. "It will have higher-end finishes," he says.

Bean wouldn't say whether the windows will be switched out and the plumbing sleeved, but did say he has engineers looking into various issues. Bean also declined comment on whether he and the rest of the ownership group plan to scrape the commercial pad and put up a fourth tower. As for the townhouse units, he says they will be renovated and sold off as live-work units.

While the $350 per sf may be high when compared to sales at other Downtown condominium towers in town, such as Portland Plaza, Bean says the smaller average size of the units in his towers means the asking price for most of the units will be at or below $300,000, which he says is "a price point not typically found in the Downtown market." Moreover, he says each of the units has a balcony with room for a table and chairs and a barbeque, and the penthouse units have two or three balconies. "The decks are almost more valuable than the interior sf," he says.

For the conversion, the Portland Center Apartments is being renamed "Harrison." The first phase conversion will begin with the top half of the west tower. The first units will become available for purchase in Spring 2006, with move-ins scheduled for Summer 2006. Units in the first phase are expected to range in price from $185,000 to $800,000. The majority of units are expected to sell in the $185,000 to $350,000 range.

Despite the acquisition price being more than local industry experts had expected, Bean's bid reportedly was not the highest offer. Bean declined to say whether that was the case, but did say "we get opportunities that others don't get because we have a reputation for closing on time" and "our past good relationship with Equity gave us a real leg up to be able to purchase this."