(To read more on the multifamily market, click here.)
PORTLAND, OR-The developers of a 22-story office, residential and retail tower here secured $96.5 million in fixed-rate financing for the project this week. The combination construction-permanent loan from Pacific Life Insurance Co. was arranged by the Portland office of CBRE/Melody Capital Markets.
The half-block development site is located at SW 12th Avenue and Washington Street. The project team includes Gerding Edlen (developer); the Goodman family (landowner), Zimmer Gunsul Frasca (architect; investor; anchor tenant); and Hoffman Construction Co. (general contractor).
The project is being partially financed with a $29-million New Market Tax Credits allocation from the Portland New Markets Fund I LLC, which is managed by Portland Family of Funds and controlled by the Portland Development Commission. The sale of the tax credits was expected to result in about $5 million in funds for the project.
The 540,000-sf tower will include 316 stalls of underground parking, 9,727 sf of retail space, 83,497 sf of office space on four floors and 274 for-rent apartments on 17 floors. The project team's goal is to achieve a LEED gold certification. Upon completion, ZGF will move its headquarters into the office space.
When announced in February 2006, the project was to be a $181-million, 31-story tower with a hotel component. The apartments were added and the design was shrunk by nine floors after the would-have-been hotel partner backed out.
The estimated cost of the revised design is approximately $130 million, approximately 25% more than the loan amount. CBRE Capital Market's local executive John Petersen tells GlobeSt.com that a ground breaking is expected this month or next.
The development site is in large part currently a parking lot that fronts Washington Street between 12th and 13th avenues. The tentative completion date is May 2009.
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