Winter 2018 Bridging Central Eastside News Covering Important Issues, Trends, and Developments in the Close-in eastside Commercial Areas

About this Newsletter and Me… Enhanced Services District

Greetings and thank you for taking the time (ESD) to read, peruse, skim, study, scan or even just glance at this mostly well researched and ener- for the Central Eastside? getically written newsletter about all that is go- ing on in the close in eastside. I have been put- To many, it is a golden time in the further exacerbated by the Central ting this together every year for 6 years as a way to dive a bit deeper into issues, developments, Central Eastside, with over 2000 Eastside being the popular kid in projects, topics and also challenges in one of the new apartments either completed, the class. But for residents, busi- most dynamic and rapidly shifting commercial under construction or planned; nesses and property owners and neighborhoods on the West Coast: The Central Eastside. Sandwiched between the river and 500,000 sf of offices being built or people who work and care about some of the most classic and picturesque resi- coming; Multiple new and exciting the Central Eastside, the question dential neighborhoods to the east, this area has businesses have or will be locat- is “How do we best work together been a eclectic and dynamic business and em- ployment engine for the city of Portland for over ing in the district with two large to try to shape and address these 150 years. It is a neighborhood that has such technology companies in Simple challenges and problems to main- a compelling collage of businesses, buildings, and Autodesk leasing big chunks tain and improve livability, safety people, uses and potential that is undergoing amazing growth and expansion at a swift pace. of space and bringing hundreds and economic prosperity in the This newsletter is a way to promulgate, inform of new workers; property values Central Eastside?” A follow up and educate those who work, live and own busi- steadily rising and three large query to that is, “Do we continue nesses and properties in the district about all this is going on as well as to show those looking multi-parcel development sites at to be passive and reactive to the in from the outside what a unique and exciting OMSI, the ODOT Blocks and the issues and depend on city resourc- area this is. Clinton Triangle coming to market es that are constantly stretched

I welcome your questions, input, corrections, in the next year, or so. Others think thin and leaders that don’t always criticisms and if appropriate..accolades regard- however, that there is some “fools understand the unique needs ing all that is in here. And I apologize as to its gold” in much of this increased de- and challenges of each individual length and size as I have been trying for a couple velopment and growth as conges- neighborhood?” These questions years to pare this down but have not been all that successful (much to my designer/printers tion is steadily increasing: parking have been at the forefront of many chagrin) but there is so much happening it has is becoming scare and problem- of us in the district who want the been hard to leave anything out. Having success- atic; rents and property pricing is Central Eastside to be the best it fully represented a variety of property owners, businesses, organizations, tenants, developers, becoming unaffordble and chronic can be. There is a potential proven the city and more with their space, facility and problems like homelessness, crime, tool (I will not say solution yet) property requirements for over 25 years in the trash and graffiti are increasing. that is moving forward to allow Central Eastside, I also welcome your questions or need for assistance as it relates to: property These opposing views are not new our district to bring more control valuations; development ideas, opportunities and are being played out in other and resources to equitably and and trends; selling/buying properties; finding parts of Portland and in cities thoughtfully address our issues. It space; leasing; redevelopment; financing; con- struction; land use and more. I may not be an throughout the United States that is often referred to as a Business expert in all of these topics but I have the con- are experiencing similar “growing Improvement District (BID) in other nections and resources to usually get your ques- pains” But what is true and inevi- cities and in Portland it is called an tions answered and your needs addressed if I am not the best match for the assignment. table is that growth, investment Enhanced Services District (ESD). and development are here and These type of organizations have will continue and though many been around for decades and if positives are the result, there are you Google the term you will find some challenges and issues that various forms of these community are new, most have been with us and neighborhood based organiza- for decades, but now have become tions in cities Todd DeNeffe 503-705-6380 (continued on page 2) [email protected] across the US but also all over the City Concern is also a big partner world in the last 50 years. I will which we know has helped us out use a brief description from one in the Central Eastside where they of my favorite sources of research employ formerly homeless people Wikipedia: “A business improve- who work to keep the central city ment district (BID) is a defined clean by removing tons of garbage area within which businesses are (and yes many needles) every required to pay an additional fee The program now known as Clean year and help remove and prevent or levy in order to fund projects and Safe has been in operation graffiti. Downtown because of its within the district’s boundar- under the auspices of the Portland heavy preponderance of retail ies. These districts typically fund Business Alliance and it has be- and tourist oriented businesses, services which are perceived by come a very effective and targeted also uses a good chunk of their many in the district as being in- organization and has completely funds to help market downtown adequately performed by govern- reversed the degradation and and its businesses to shoppers ment with its existing tax revenues blight that was occurring and has and diners such as funding certain and resources, such as cleaning generally made downtown Port- pop-up shops and food options to streets, providing security, making land much more livable, vibrant, showcase local makers and food capital improvements, construc- safe and clean. Is it perfect? No. purveyors as well as to create art tion of pedestrian and streetscape But many point to what could have installations and other creative improvements, or marketing the been a very different downtown events that attract thousands of area.” The first BID was in Toronto without these resources and this Portlanders and out of towners Canada in 1970 with the first one effort. I talked with Lynnae Berg to spend time and money in the in the US in New Orleans in 1974 who heads up the downtown Clean area. Berg even mention that their and there are now 1200 across the and Safe program and she was board elected to give a handsome country and with similar organiza- quite proud and effusive about the amount of money to Janus youth tions in over 30 more countries. responsiveness, positive feedback programs which does outreach to We have two very successful ex- and impact they have made to homeless youth which is a big issue amples here in Portland that have keep Downtown Portland a better downtown when they recently lost been in place for over 20 years place “We really have built a great their funding. As you can see each with one downtown (known more organization with many partners to BID or Enhanced Services District as Clean and Safe) and one in the really be focused on the issues that (ESD) can with an engaged board Lloyd District (Go Lloyd). Clean and matter to keep downtown Portland and stakeholder input be very flex- Safe is the best known model and vibrant, accessible, safe and pro- ible and creative in how best was started by various property ductive.” She says. Because of the to invest in finding the most owners and city leaders downtown nature of downtown, much of their economical and impactful solutions when they saw that the city really budget goes to security where they to each neighborhood’s problems. could not address or keep up with contract with over a dozen private The Central Eastside through the addressing various problems in the security officers with a private Central Eastside Industrial Council downtown area that was affecting firm, Portland Patrol, along with (CEIC) is in the middle stages of businesses and property owners paying the salaries of four Portland analyzing and developing a ESD for such as safety, cleanliness, vagran- Police officers. “We really have de- the district by using the experienc- cy, panhandling, graffiti, and more. veloped some great partnerships es of both downtown and also the They rallied business and property with Portland Police and a private Lloyd District to craft an effective owners in 213 downtown blocks to firm where we can be very respon- organization and response to our assess a fee on themselves to pool sive to any safety or security issues own individual problems. funds to supplement and enhance downtown. We get almost immedi- city services and more importantly ate response to any safety con- Juliana Lukasik the Interim Execu- give stakeholders direct input and cerns because of our resources and tive Director of the CEIC along with control over resources to address organization” Berg adds. Central other board members are taking the issues most important to them. PAGE 2 the lead in this important effort the Willamette River: North, Inter- should be spending priorities. much of which is talking to some state 84; South, SE Powell (includes What input does the city have on of the larger property owners and Clinton Triangle) and East, SE 12th. how dollars are spent? The city business in the district to under- does not have any input on the stand the most equitable and How will the fee or levy be as- ESD funds. That is up to the Board. effective structure for the Central sessed? Should be based on the The Portland Department of Trans- Eastside. I know many of you will square footage size of both the portation will have input over any think “Great, another tax or fee building and land of the property transportation part of the budget, on top of some already expensive and its assessed value. There will but it will be spent in the required costs in doing business in the city be a detailed package and formula to be spent in the district. for services the city should be do- on how the assessment is calcu- ing already”. Well the old system lated by early 2018. If you own If this moves forward what is the as we all well know has not been property in the district you will be timetable for the ESD to become working all that well so do we con- able to request a quote on what operational? z There has been- tinue to limp along and put band- your yearly assessment will be. The targeted and on-going out-reach aids over reoccurring wounds? Plus city also contributes significant dol- to property and business own- when you pay property taxes or lars to the ESD. ers, neighborhood associations, your business license fees it goes residents and solicitation of input into one big pot and we are at the How does the ESD get enacted? this past fall. The CEIC quarterly mercy of our elected officials to The goal is to gather the support of meeting in the fall gave further spend it how they see fit or would 67% of the total assessed property specifics for input and discussion. you rather pay slightly more to value of the district which will as- There will be also some fundrais- have resources we can control and sure support from the City Council ing opportunities to continue and direct to those problems that are who must vote on establishing the expand initiatives already in place most important to us that will in Program. There will distinct by- with Central City Concern and their the long run solve and address is- laws and guidelines for the ESD to Clean Start program addressing sues that will make our properties, insure transparency and fairness to clean up and graffiti in the district. tenants, businesses and streets/ its operations and procedures us- There will then be a collection of sidewalks safer, cleaner and more ing best practices from existing ESD “Letters of Support” to get to that vibrant and livable (and more valu- Districts in Lloyd and Downtown as crucial 67% support later in the able?) models as starting points. fall with the potential submittal to the City Council early in 2018. If By the time you read this there will How long is the ESD in effect? all goes according to plan the ESD be more details and specifics out Can it be renewed? The standard could be up and running in late there about the ESD but everyone term is five years with the abil- spring 2018. involved is stressing that they will ity to renew. Both Lloyd District be working very hard to be very and downtown have renewed its There will be multiple opportuni- inclusive, transparent and open to mission multiple times due to the ties to have all voices heard so that any and all input from stakehold- ESD’s success. the final structure and process ers in the Central Eastside before related to our Enhanced Services going forward. Here are some How will the funds collected and District program is effective, fair basics with help from Juliana and be spent and who decides? The and successful. Stay tuned as Kate Merrill, the CEIC’s Community city of Portland bills and collects more details to follow and in the Engagement Director: the fees. There will be a board of meantime you want to weigh in directors made of a wide range of or have questions you can contact What would be the geographic stakeholders in the district. There Juliana Lukasik at [email protected] boundaries of the ESD? Basically will always be outreach to other or Kate Merrill at [email protected]. it will be the same as the Central property owners, residents and Eastside Industrial District: West, businesses in the district of what

PAGE 3 Interesting Projects; Deals; Press, Issues, Happenings; and More… Coava Expands in the District… up to 40 employees and will be hiring another 20 this illustrate the need for these facilities even if they are year. Raise a cup to these guys! short term. “These temporary shelters are life changing “I got my employees together and we talked about and life saving and it rescued me from the streets. If it was not for this option I would be sick somewhere on expanding somewhere more affordable like near the UDP and Beam Step Up to the street. You guys are giving me inspiration to start airport. All the faces dropped. Nobody wanted that Provide Temporary Homeless Shelter the ball rolling to get back on my feet” said one of the type of commute, to a lifeless industrial park. It will Again.. “guests” who found a place at this shelter. Another kill the culture.” Said Matt Higgins, coffee savant homeless man at the public opening of the Chamberlain and the big expresso at Portland Coffee fave Coava. No matter what your opinion is about Portland’s chronic summed it up. “These temporary shelters save lives, Stumptown was so 2008… Coava is now! When and seemingly everlasting homeless problem, and boy I know it may have saved mine this past winter”. The they opened 1300 SE Grand in 2010 it was an there are a lot of them, we need to understand that city wide now multi-year effort to find permanent and instant hit as they had a certain “pour” of how they doing nothing is not an option. The problem is complex, sustainable solutions to homelessness called a Home For made their coffee which came with a bit of mysticism nuanced and challenging and cannot be addressed Everyone is picking up speed with more resources being successfully by only public agencies. It has been proven employed and a larger inventory of beds being brought in its Spartan and tasteful industrial room shared into the system but the process is agonizingly slow. with a Bamboo furniture shop. The word spread and over and over that without housing, homelessness in any city cannot be mitigated and adequately addressed in Therefore these interim solutions are crucial and will not long after bus loads of tourists (many Korean need to continue. BRAVO to Beam and UDP!!! and Japanese) had Coava on their Portland food and both the short and long term. Therefore it was heartening beverage itinerary. They have grown methodically to see for the third time, a business and property owner has stepped up to fill the temporary void to provide Sanderson Safety Supply Sold Business thereafter with their coffee hitting a sweet spot in a housing while the manpower and resources to address the and Building Now is Under Contract very crowded java room of Portland. The growth curb bigger problem grinds forward to find more permanent spiked upward recently with the opening of huge solutions. And it is right here in the Central Eastside. We are running out of good redevelopment opportunities th in the Central Eastside and when a large full block older roaster and tasting room on SE 10 and Main in a Urban Development Group and Beam Development who building hits the market, developers and investors start building they bought in 2016 for what now looks like have and continue to team up on multiple development rubbing their diabolical hands in anticipation. Sanderson a darn good price. “You will get a unique experience projects in the Central Eastside offered up the former you don’t get at other roasteries” Higgins says about Safety Supply which has had their headquarters and Schleifer Furniture Building on SE Stark and Grand as a store on SE 3rd since the 1970’s is one such property. So their new operation where people can watch the way temporary homeless shelter for over 100 men, women when the long time owners, the Spahr family sold to a coffee is roasted and prepared while tasting flights of and couples this past winter and spring. The 100 year old friendly competitor, Mallory Safety Supply over 2 years all sorts of coffees. The new digs at 10,000 sf has building is undergoing planning, design and permitting ago, it was just a matter of time before this property hit a cupping room, training room; tasting lab, a large for a cutting edge hotel concept (Chamberlain Hotel) the market to take advantage of some of the highest room for packaging, offices and their pride and joy: that will be augmented with a complimentary 12 story prices ever seen in the district. “Our intention initially a custom made hopper that holds 25,000 pounds tower on the adjacent lot that will expand the hotel was not to sell but to keep it and try and find a good of coffee. Coava (the name means “green coffee”) concept to over 100 rooms and will be topped by up long term tenant but the building really needs a lot of has organically formed a robust and complementary to 200 units of apartments. Since construction on this work and upgrades for almost any use so we came to coffee industry niche in the Central Eastside (much grandiose project will not take place until next year or understand the market for selling was opportune. Plus longer, UDP and Beam saw a real civic opportunity to we don’t really have the stomach to become develop- like with distilleries and breweries) all bursting with make use of the space as a shelter especially in light of ers or spend a ton of money on a building” said owner quality and innovation. Some of those names are: a similar temporary shelter closing in downtown this past Steve Spahr With 60,000 sf in two levels and another Water Avenue; Heart; Buckman Coffee Factory and spring. “Homelessness is a growing issue in our city and 20,000 sf in a full somewhat functional basement, of course Stumptown. Coava like many artisanal it’s important to remember that we all have a role to play these vintage older buildings with good bones; high food companies knew they had to try to stay and in helping our neighbors in need”, said Eric Cress of UDP. ceilings, neat older design touches have great potential expand where they started and stay close to all the This collaboration means the community can maintain and have been opportunities du jour for years now for other talented food companies; services; and fellow capacity in our shelter system and shows the continued major redevelopment into the over used but appropriate food and beverage entrepreneurs in the area not to power between public and private sectors when it comes creative office use. The building which was Safeway’s mention having proximity to most of their employees to addressing homelessness. Jonathan Malsin principal of regional headquarters for many years back in the 40’s Beam continues “Homelessness is a citywide challenge and 50’s before they moved out to a huge complex in living arrangements. Higgins is outspoken about Clackamas had a parade of potential buyers through the that requires citywide solutions. We are proud to be part coffee and business and is passionate about both building earlier last year and now are under contract with of the solution with a temporary shelter and services “I’ve got 20 odd thousand batches of coffee roasting a undetermined buyer for somewhere in the vicinity of under my belt and it is all about quality and being while we are completing the groundwork for the historic $8-$9 million (my opinion only) . When touring through better every day. I never came from money. The most Chamberlain hotel renovation” These shelters are stop gap the building it is like going back to a time machine to money I ever earned was $32,000 a year. Money measures and akin to addressing a chronic condition in the 60’s with old carpeting and tile; multiple funky small does not buy you happiness. Creating and executing an emergency room but at least it is better than ignoring offices and dated fixtures galore not to mention a musty it or condemning the situation which only exacerbates a plan and providing the best product on the planet but somehow comforting smell that reminded me of the problem with often more dire consequences which while working with wonderful people is much more my dilapidated Catholic grade school from years gone was confirmed by the 4 deaths on Portland’s streets in by. But there are some good pieces to play with as the important and if you do it right the money will come” this unusually harsh past winter. Some of the comments ceilings are expansive; there are great architecturally He sermonizes and have to say well said. Coava is from those who have and will be helped by these shelters significant huge PAGE 4 wooden beams along with wood floors that are all Lonnie is a wizard in building vintage hot rods, which talk and check each other’s cars out and what, in some timeless and sought after starting points for an artistic will be his post machine shop passion. A walk around cases, had some pretty cool custom work done to them. redo of the building. Also there are extensive window his shop, the smell of metal and the lubricants that The demographic was pretty young with a heavy tilt lines everywhere with actually some pretty cool views keep many of his decades old machines humming is towards young “Sparkys” with their girlfriends, with of downtown from the second story. The challenge here omni-present. It has a great feel and smell...That stuff is lots of tattoos, trucker hats tilted sideways and multiple and it is not a new one is that there is only about a being made! Gilbertson says some of his equipment and leather outfits and tank tops. There were not too many quarter block of parking (maybe 25 cars) as the base- machines, which were built as far back at the 40’s, still Rhodes Scholars but generally it seemed like a tame ment has far too many posts to be able to park below are efficient and precise but it is hard to find anyone who crowd which went a bit against the outlaw and gangy ground without significant rejiggering. That seems to not can or wants to learn the craft and operate these works type dudes a couple people had described. A couple of be too daunting as the Towne Storage Building which of art. With real estate values higher than they ever have food carts were there who obviously understood this has 100,000 sf has only around 50 spaces for cars and been and his building hitting the much desired size of regular get together as an opportunity. There were even that whole project recently was leased to Autodesk with 10,000 sf; being stoutly built with huge clear span mas- whole families with dogs and kids running around from what will be over 200 employees…bikes or mopeds sive wood beams; also having skylights, tons of power, block to block which worried me a bit as they zig-zagged anyone? some neat design features and being in the hottest between the parade of slow moving cars strutting their corridors of the Central Eastside (SE Morrison/Belmont). stuff in loops along SE 2nd. Latest reports however from Gilbertson Machine Building Sold The building at 731 SE Yamhill closed for a healthy price a couple of businesses nearby have related that this ad- of $2,375,000 in mid - November to owners of Luxury hoc car cruise-in may be getting a bit more problematic. Just like we lost many of our small to medium size Used Car Company. At this time they are looking to do Trash left over from the event has increased substantially printing companies over the last decade, the same can some cosmetic upgrades and lease it out, however they and there has been an uptick in the “ agressive - nature” be said by those firms that grinded, cut, formed and wont rule out taking it over themselves as a showroom of some of the patrons with drinking and partying shaped metal for a multitude of companies and uses for their own car operations at some point. taking a more central role. Additionally, when this car going back close to a hundred years “It was not too long parade breaks up later into the evening, many of the ago you had over a dozen firms in the Central Eastside Sunday Night Auto Rally Takes Over cars speed dangerously through-out the district. While that worked on all sorts of metal parts and components Southeast 2nd Avenue. Problems ensue. the participation subsides with the cooler rainier weather, for companies in Portland and in some cases all over this event is raising to a higher level of concern among the world. There was a lot of talent and capability that Being on the board of the Central Eastside Industrial many in the district with more pressing outreach to the given a need for a part or a tough job, someone in Council, I am often out just regularly talking to busi- police regarding monitoring the situation. Portland, and often in the Central Eastside, could come nesses and property owners in the district about what is up with great solution” says Lonnie Gilbertson long term going on, concerns, issues etc. So I get lots of interesting owner of Gilbertson Machine at SE 8th and Yamhill, tidbits of information about what is happening in parts that has been making all sort of metal parts for auto, of the district, but earlier this year one piece of info transportation and manufacturing uses. The building stuck with me to the point where I had to do some with some vintage industrial architectural accents, has detective work. Last spring a business owner along SE been pretty much a machine shop or metals production 2nd volunteered “Have you seen the huge auto rally that operation since the building was built in 1932. Portland takes over Southeast 2nd Avenue on Sunday evenings?” has a huge and storied history in the metals industry I kind of shrugged it off as maybe nothing or a random that started towards the turn of the century, much of it event, then Brigid, who owns the great and most unique as part of the huge lumber and sawmill industries and store in the Central Eastside, Cargo, mentioned again really picked up pace during WW II. Post war, the need this “takeover” of the street and painted a bit more of shifted as Portland became home to some rather large an ominous event of speeding cars and a bit more of a companies needing small creative machine, stamping rowdy crew. I had to go check it out so I cruised down and cutting shops to make parts really proliferated. to SE 2nd around 4 PM on a Sunday this past summer Oregon Steel (formerly Gilmore Steel) Freightliner; Esco; to see if anything was starting to happen and all looked Precision Castparts; Omark and all the timber companies pretty quiet but then came along a couple of older hot needed smaller and nimbler can-do metals shops to help rods parked diagonally with their hoods open and some craft parts solutions they were not set up to tackle and tattooed fellas with their girlfriends hanging out nearby. many came to be housed in the Central Eastside. As I did a bit of a loop around and came back and the two many of these companies have become more vertically cars had grown to five. I left to go do some errands and integrated, along with some being bought and moved came back about 2 hours later and WHAM the place out of town and then of course the competition coming was hopping like a scene out of American Graffiti! There from cheaper makers in Asia took its toll. But also a were easily 50 cars of all types, makes and conditions big part of these smaller machine shops falling away backed up to buildings on the both sides of SE 2nd from has been the lack of workers or more appropriately Yamhill all the way down to Stark leaving just a small craftspeople willing to take the time and effort to get one way travel lane where mostly guys in cars slowly their hands dirty and learn the skills has also been a cruised. There were brand new Mercedes; old jacked big part of the slow decline of these once prevalent up muscle cars; tricked out Pick Up trucks; low riders and important employers. “It’s a tough, but rewarding and even an old Corvette dressed up to look like the business to make stuff and figure out solutions in the bat mobile and much more. Many were cranking music metals business but everything has changed and it is from expensive music systems and some had big coolers just so difficult to compete and find the employees that rationing out mostly energy drinks, but there was a good really have the drive and work ethic to make a go of this mix of cans of fortified beers and generally the crowd business. It is time to hang it up for me” says Gilbertson. seem to be pretty mellow and just wanted to hang out, PAGE 5 tHE CORNER I am now 6 years in talking about apartments in the Central Eastside… Who would have thought? I remember talking back in 2011 with Brad Fowler who really was a pioneer in this wave of development when he started construc- APARTMENT tion on the Eastside Lofts on NE 6th and Couch. Having owned buildings in the district he saw first-hand the type of tenants, and their desires and habits which let him to believe how people wanted to live, work and socialize in close proximity, not to mention do much of it without a car. After his project was up and leasing, Brad was taken aback by both the types of tenants and what they valued. “We were seeing a fair amount of people moving into our project who actually commute to Washington County to places like Nike, but really love the industrial, urban core of the Central Eastside, plus there are lots of people without cars who work in the central city”. Those same motifs, proclivities and deep tenant pool has fostered a robust slew of new projects that have been completed in the last few years, as well as new projects under construction and a fat pipeline of proposed apartment/ mixed use developments. My count is that since 2012 there have been 1079 apartment units built in the Central Eastside; 625 units under construction and 1539 units proposed or in permitting. The permitting and proposed category can always move around somewhat as the market, economics, financing and more can smack some of these plans to become “on hold” or change their timing or unit make-up especially in light of the new Inclusionary Zoning (IZ) ordinance and more importantly if the market starts getting a bit more cloudy with vacancies creeping upward, financing becoming more expensive and construction costs escalating. You want a more detailed table and map of the apartment projects in the Central Eastside, email me at [email protected] and I can send it along.

Bridge Housing May Be Finally 300 units of housing. While Brad and Moving Ahead Company would not give up too many on Key MLK Site details on the latest rendition of their part of the interior starting to fail. project, there will most likely be close “We understand the old building has

to same amount of housing units, but been a challenge for the neighborhood Bridge Housing, a highly successful af- may be split into two different devel- and a bit of a liability, so we are going fordable housing non-profit out of San opments; one an affordable housing to move ahead soon and demolish Francisco, with a big footprint in Cali- component and another market rate the building far ahead of our plans to fornia that has been inching into the where they may team with another develop so as to remove an eyesore Northwest over the last 7-8 years, has developer. Bridge like many affordable and a magnet for problems in the area” been trying to jumpstart a large afford- housing developers and community says Wiblin. This will be a relief to able housing project on a key site in development entities look to the city surrounding business that have seen the Central Eastside since they bought for financial commitments to make the and experience the constant problems it in 2013. The site which housed part numbers work on such projects as af- and visual blight that old abandoned of the Salvation Army’s complex of fordable housing with all its construc- buildings like this often attract. This three buildings at SE MLK and Oak tion requirements and reduced rents has become more acute and noticeable Street and encompasses 30,000 sf lies needs a healthy public component to with the millions of new develop- two blocks from the now fully devel- bring these complicated projects to ment that is and has been occurring oped Burnside Bridgehead and across market. The city in a couple of funding nearby. Bridge should be rolling out the street from what will be Gerding rounds has declined to get involved more details of their specific develop- Edlen’s glitzy 17 story tower is in the with Bridge at this location not neces- ment plans in the coming months and middle of the fairway. “We under- sarily due to any sort of negative bent expect an eye-popping project and de- stand it is a wonderful site in an area towards the project, Bridge or the area sign that will continue to add to what that really has taken off with some but with such a huge overwhelming is the most active development area incredible and impressive develop- need for affordable housing, the Hous- in the Central Eastside along MLK ment so we want to make sure we add ing Bureau with limited resources has close to the Burnside Bridgehead that to the energy and thoughtful design to make some rather tough decisions has seen the huge Yard building; The and development nearby.” says VP at about project funding among multiple Slate; the wrapping paper covered Bridge Housing, Brad Wiblin. Bridge options throughout the city. The old Dumbbell; Aura Burnside and several has had a couple different design ideas deteriorating 1910 building has not building renovations…it is indeed floated over the last few years with one fared well over the last few years, turning out to be our “downtown” in reaching to 12 stories and having over attracting campers, graffiti along with the Central Eastside. PAGE 6 Less than Inspiring A Couple of Big in this case it was a huge blessing as Apartment Sales in the market just got better and better Linden Apartments the Central Eastside as time went on. Pickhardt admitted Sells to Denver Firm it took some convincing of investors There have been a couple of notable and banks to get on-board on such a If the Yard given its size, presence and large apartment sales in the Central bold project of such size in what many controversial design was spicy salsa Eastside in the last 12 months which people still considered the “seedy” in the apartment buffet, the Linden will attest to very profitable exit op- Central Eastside. But as the economy apartments sitting on the small hill at th tions for projects built and stabilized gained momentum and Portland and the junction of SE 12 /Burnside and or in one case a project that was not the Central Eastside became a much Sandy was the vanilla yogurt. Built even 50% leased. It is not a stretch more known entity and a safer bet, the by the Foursquare Church over four to say there is incredible amounts of project became bigger and bolder. As years ago, the 132 unit complex had money chasing multi-family project the project rose out of the ground and all the aesthetic appeal of a Calaroga investments in attractive markets topped out over a year ago, the initial Terrace senior living center (which it throughout the US and Portland is opinions of its look and style were first was proposed to be) and looks so on many big players lists because of more on the negative side with many generic that you can drive by it dozens its good economic fundamentals of lamenting the lack of windows and of times and not realize it is there. job creation and strong in migration its dark appearance. It was found out No matter, as its location is triple A, (especially of the coveted millennial later that the city missed a change in has tons of parking, and also has been demo). design on the project resulting in less consistently full and larger apartment windows. Oh well, all of the time it complexes in core urban areas are like Key Development and Partners Cash took and negative “buzz” paid off well red meat to a pack of wolves. Grand In…BIG TIME! Darth Vader’s Lair; as Pickhardt along with his investors Peaks, a larger apartment developer Hogwarts Castle; or a paragon of cut- (included local firms Guardian Real and management firm from Denver ting edge design? The 21 story Yard Estate and the contractor, Andersen picked up the deal early in 2017, a apartment project was a game changer Construction) giggled as they cashed $39 million deal which provided the for the close in eastside. Started almost in a huge sale that some appraisers church with a payday over $15 million. 5 years ago as we were wobbling out of related to me may have been at least There were over 15 offers but Grand the Great Recession and in a property $10-$15 million over market. But Peaks stretched and made the deal the PDC had acquired over a decade what is market anyway? The $126 as they see Portland as a long term earlier, the site had multiple false starts million sale for just over 200 units and market for them and their motivation in development (remember the huge 20,000 sf of retail which closed last was heightened by having to place a Home Depot that was proposed?) December had a bit of intrigue in that boat load of money they had from a The Yard, which hugs the north side the buyer was a huge home developer disposition of some older complexes of the Burnside Bridgehead was the ( Land and Houses ) from Thailand. they were taking profits on. “It was a brainchild of Jeff Pickhardt, who cut Though Pickhardt said the Yard was good acquisition for us. It was part of a his teeth on several successful projects a long term hold I think he saw that 1031 and we had bought the Cameron in Hood River. It was a bit of chal- leasing was going slow (50%) at time apartments in downtown so this adds lenging site with some slope and the of sale, the price was off the charts and to our growing portfolio in Portland” Burnside/Couch couplet squeezing he needed a couple of new surfboards said Northwest director of Grand the front of the site but the price was so why not exit stage left. “With the Peaks. Spencer Welton. Grand Peaks great and almost more importantly a Yard acquisition, Land and Houses is also developing over 200 units in the patient seller in the PDC that allowed is confident in a long term prospect long delayed but finally moving project Pickhart and his investors time to of the city of Portland and the strong at Clackamette Cove in Oregon City put together a project that changed economic fundamentals of the Pacific and looks to add to its portfolio in multiple times (mostly bigger) over Northwest driven by persistent growth Portland over the next few years. its design life. Hiring “think out of of its many industries” said the sterile the box” local savant architect Jeff press release of the sale. One aside Kovel of Skylab Design was a bit of a is that the Yard was in in the city’s gamble not to mention betting huge “Multiple-Unit Limited Tax exemp- on a 21 story edifice that would dwarf tion Program” which gives the whole everything nearby. Paying a paltry $1.5 project property tax forgiveness in million for the site which would now exchange for 20% of the units being fetch 5 times that amount, Pickhardt rented to people at the 60% median was blessed by having almost 3 years income threshold. In a tell-tale sign, for this complex deal to come together. there were over 350 applicants for While these bigger projects with long the 54 subsidized units available. time frames often kill a development, Ka-Ching !. PAGE 7 Morrison corridor. With the Green Dragon, Cascade Barrel Houser, Renters Central Bowl and its retail Moving tenants, this whole 8-10 into the block area I bet will be hopping at night! LOCA

When you read this, you will be see- ing lots of lights on at night at more than a several apartments at the game changing LOCA development on SE Belmont/10th/11th. With the high end Slimmed Down Market of Choice grocery store now Grand Belmont open, (Orchards Hardware has been Project Ready open more than 12 months now) the apartments are meeting a receptive to Dig in Ground market. “Initial leasing and interest is good and is just where we thought It has been a long road for Tim “point tower” on a half block and then it would be. We really are a different O’Brien and his partners on the a bit more scaled down version. The product by having a great grocery and proposed apartment project on the context for going higher was two-fold; multiple other eating and retail service half block where Dutch Brothers has the zoning consciously encouraged this operations as part of the apartment a drive through on SE Belmont and height and the tall Weatherly building development. Our tenants can really Grand Avenue. If this now almost provided a strong context and counter- walk out of their units have tons of three year process were a sport- point for higher development. Many options to eat, drink, shop, bank and ing event, I think it would be best of us thought higher the better as this more” says developer Killian Pacific’s described as a tie. “We felt the end is what was always envisioned to occur Adam Tyler. LOCA (many of us still product will fit well within the context on the bridgeheads where these type think of it as the Goat Blocks) is the of the corridor and the neighborhood of heights and floor area ratios are largest development by a long shot but still we are bit disappointed there allowed just like what is happening in the close in area with 247 apart- was so much resistance to a more on Burnside. But the deal here is that ments and 80,000 sf of retail which iconic and taller project which is what the site is within the Grand Avenue will include a new expanded location the city has always envisioned for the Historic District, which is a 20 block of Portland’s hot Russian restaurant bridgehead sites” says Tim. What he is area that has some rather nebulous but Katchka; Shilling Cider House out referring to is a bit of a pitched battle nonetheless poignant restrictions and of Seattle, Roseline Coffee, Columbia he fought with the design commis- reviews of new development in the Credit Union, work out spot, Burn sion but more importantly with the area that was contained in a 91 page Cycle and a couple of more cool Landmarks commission that really Concept Plan back in 1994. Tim along restaurants that are not quite public, came down hard on his initial plans with the Bollinger family that owns yet. Retail rents blew past $40 psf for a much taller project on the site. the land and is his partners fought the on almost all the smaller shop deals. O’Brien had a couple much dense good fight with the tower concept but Rents too for the apartments are also projects on the table, one of 23 stories decided to step it down to something on the top end (yes, there were some which would basically have been a more reasonable and less of a gamble slight downward rent adjustments), with a standard 5 wood frame but do not seem to be deterring seri- units over two ground floors ous interest in units and as initial leas- of concrete “pedestal” levels ing is on track in an apartment market with 121 units and 6000 sf of that is wobbling a bit especially on retail. A measly 14 parking the higher end. Little LOCA which spaces will be augmented by is a 100 plus unit project a block away some surface parking across also by Killian is now open too. When the street at one of Bollinger’s both of these projects get leased up the other properties. Hopefully we amount of energy, activity and bustle will see this project get under- by the presence of maybe 500 new way in 2018. residents will be a very welcome shot of adrenaline into the Belmont/ PAGE 8 Remmers Picks Up Former Bird’s Nest Property on and making their lenders nervous. Lots were Morrison... sold, retrenching took place and a more me- thodical approach had to be applied and Wally More Apartments! with go getter son Vic turned their attention to infill apartment and home building mostly un- I wrote about the remarkable life of der the Everett Custom Homes but also with Dick Martin, a self-described “suc- VWR (Vic-Wally Remmers Development). cessful rebel” in my last newsletter because I love characters like this that Vic has more than ruffled a few feathers with his defy odds and become successful all publicized tussles over cutting huge old trees in still while being fun and good hu- Eastmoreland; building huge apartments with little parking in cute Beaumont mans. I won’t go into his inspirational or just plain knocking down houses to wedge larger mcmansions into small lots. life story again but let’s see how I can They picked up this 20,000 sf key Morrison site at 9th Avenue for just under $4 describe Dick in a cliff notes version: million and have floated a plan for a 162 unit seven story plain-jane apartment Car Junkie from a teenager: had his project with the challenged 37 parking spaces but of course with the over- leg torn off when his car exploded in whelming 250 bike parking spaces. It has the common U shaped layout but kind an illegal drag race; successful entre- of strange the courtyard this design creates is faced inward towards the wall of preneur starting many successful auto the adjacent building and not out to the streetscape on Belmont or Alder. I wish related businesses, champion three they would do history a solid and name the development “Bird’s Nest Com- legged ski racer, devoted husband mons” or I would take ‘Dick’s Place” too. Nothing will happen here until next and father, doer, enthusiastic collector year and it looks like they got vested under the older non-inclusionary zoning and bigger than life character. When rules so no subsidized apartments here. This now means that there will be over Dick went to the big speedway in the 900 apartments in 6 projects in the Belmont Morrison Corridor when all is said sky, his Central Eastside properties in done. hit the market early last year with the bigger property being his old wood Former Classic Funeral Home Gone. warehouse building on SE Belmont which was a rabbit warren of weird Huge Alliance Realty Building 200 units... scary places with old car parts tucked Has parking! into every nook and cranny. The base- ment looked like the set of a horror Just up the street from the bland Lin- Alliance Realty Partners, the second film and when I was done checking den Apartments now sits a big crane. largest apartment builders in the U.S., it out, on a very rainy day, I thought The somewhat out of place huge Have been working on a development a river was running through parts of Georgian type edifice was pulverized for over a year with a plan for 208 the basement. This place was a testa- into rubble in April making way for a units and 128 parking spaces (Thank ment to Dick’s love of cars especially massive apartment project by one the You!). Phoenix based Alliance which largest such developers in the country. built over 7100 units last year has Thunderbirds which he loved, restored th and was the go to guy for vintage parts This full block at 20 NE 14 and its several large projects in Portland and for buyers around the globe hence the colonial architecture had been around operates out of their NW offices in name of the building the Bird’s Nest. since 1929 as a funeral home Seattle. Rumor has it they are picking It got tied up by a developer for an of- as Hennessey Goetsch and McGee up an adjacent parcel home of North- fice building that did not make the cut but passed into a local family’s west Fitness for Phase 2. and now recently sold late last year to mortuary stable as Caldwells the Remmers clan. Wally and his son funeral home in the 40’s Vic have a long illustrious history in and then was sold to large development mostly in suburban home national funeral home com- development for many years and by pany SCI in 2004. It closed being the largest home builder in the down a couple of years ago metro area under the Arbor Custom so not surprising that a huge Homes moniker which in its hey-day mixed use project is coming could spin out 500 plus homes a year. soon as appropriately zoned 2009-2010 bitch slapped many of the full blocks close in are big homebuilders who could not sell valuable commodity. their inventory and were sitting on huge piles of lots that were eating cash PAGE 9 stood anxiously outside the doors of units that are in the shortest supply Catholic Charities main offices on SE in the city. Trell Anderson Director of Powell. They were young, old, white, Community Housing and Develop- St. Francis Park African American, Hispanic, men/ ment at Catholic Charities had a big Apartments women most of which were home- sigh of relief and also a note of accom- Leans Over less or living in shelters. Many wear- plishment in saying “It is a wonder- ing clothes that lacked the necessary ful and much needed project. It has the Finish Line warmth for such a cold morning and been in the works for almost 4 years many were accompanied by family, which is at times was a bit frustrating Let’s shift directions a little to a great friends and even their dogs. They carry because during that time the need for project that has been completed last backpacks, manila envelopes thick these types of housing alternatives has spring with residents moving in this with paperwork and documentation just skyrocketed” The grand open- past summer. Located on what had all probably feeling a bit anxious and ing on May 17th was a celebration become a much maligned and trouble- hopeful. They were there for Catholic and a hopeful event with politicians, some overgrown park at SE 12th/11th/ Charities “Lease-Up” event for the city employees in the housing arena, Stark, the St. Francis Apartments was St Francis Park Apartments which case workers, homeless and afford- a real team effort bringing together offered 106 units for a population that able housing advocates along with a many well-meaning puzzle pieces to has little housing options. “I wanted smattering of neighborhood and com- address the housing needs of some of to be somewhere near the front of the munity members lauding and toast- the most vulnerable in our city. The St line so my chances were better to get ing what they all believe to be much Francis Park which got its birth out of an apartment” said an older woman needed project. But with these good a sort 60’s utopia vision of community with gray pulled back hair and pack- feelings there probably was also an air building. But over the ensuing years ing a large thermos of coffee. She had of melancholy in realizing the compli- the children stopped coming, the up- camped all night with her grown son cation, long time frames and precious keep suffered and the wooded area was and like many felt the first come first resources that were necessary that taken over by a homeless population serve stipulation a bit unfair and not went into providing what is one small who often was visiting the nearby soup well thought out “It was poor plan- drop in the homelessness and afford- kitchen at St Francis Assisi church ning” she added. This opinion was able housing bucket. It is great to have or many times worse with crime and repeated and voiced by many case this project done and full with people drugs taking center stage. The police workers and advocates for our vulner- trying to climb to the next higherstep over the last 10 years were frequent able citizens who have very deserving in life. visitors and it really became a liability people who don’t have the capabili- for the owners at the church and a ties, means or health to navigate such worrisome liability for the neighbor- a process. She had been living in a hood. In stepped Catholic Charities shelter since fall and said many of the along with Portland’s largest affordable women there were escaping domes- housing developer, Home Forward tic violence. This has led Catholic and partner Carnitas Housing to put Charities to reserve many of the units forth a housing project that addresses for women coming out of homeless- those at the lower rungs of the hous- ness and domestic violence and the ing ladder. So on a cold Tuesday this remainder serving those at 30-60% past spring at 6 AM, dozens of people of medium family incomes…types of

Todd DeNeffe 503-705-6380 [email protected]

PAGE 10 Micro Apartments monthly socials for its residents” Isn’t micro projects in Portland and they Coming! that cute? Koz tries to make it easy on have indeed met with strong demand residents with one rental number that but they are getting tons of push back You probably have heard of the latest includes everything including utilities from neighborhoods that are very rage in apartment development….. and internet and say they encourage parking constrained as in almost every micro apartments. I don’t quite get it residents that do not have cars which I case no parking is provided for these think would be a tough stipulation to projects. Koz closed on the land on but then again I am not 25 years old, th eating out for 3 meals a day plus I am enforce. But then again they would not June 15 and construction is slated a bit claustrophobic and if you have be betting millions of dollars on these for this spring on the 86 unit project. been in one of these units you will projects without understanding that Imago Dei has contracted with Koz think the idea might have come from a there is a real market driven need out to keep some parking for their church penal institution or a yearning for be- there. There have been a couple one-off operations but none for the residents. ing in the dorms at college once again. Micros which come in several flavors Mill Creek Keeps its Pipeline Full but are usually not more than 300 sf, (some are even smaller) are pretty Mill Creek is a probably the closest on the 26,000 sf site in 5 wood framed Spartan in their layout and amenities. we have to a production apartment floors over one concrete ground floor But usually it involves a small closet builder in the core areas of Portland has been increased up to six stories like bathroom; a sleeping area; a small as its appetite for sites and projects of wood now with new guidelines by “sitting” area and a kitchen that looks seems to prove insatiable over the last the International Building Council like it is out of the Ramada Inn. To half dozen years or longer. There are (which the city is allowing before they most of us this would be a tough living not too many prime sites (and some update their code next year). It will situation but if you are out and about that are not so prime) in Northwest be interesting to see how Mill Creek all day (and night) and basically need a Portland or lately in the Central East- reacts to the new Inclusionary Zoning place to crash this can make sense plus side that don’t have an offer from Mill regulations start being absorbed into the developers who are in this market Creek and its aggressive local partner, the market. They bought this piece of niche promote the fact that rents are Sam Rodriguez. Mill Creek seldom dirt which was home to a couple of cheaper. That is true but the price per loses a site if there is a willing seller auto uses from Pat Hanlin a call center square foot is definitely higher. Koz as they will throw out some numbers tycoon who formed one of Oregon’s Development is at the forefront of to buy that make other suitors scratch largest call center Companies Live- the micro housing development wave their head wondering how they can Bridge then sold it or over $40 mil- first in Seattle and has been migrat- pay that and make it work? When you lion to a Texas Company over a dozen ing down to Portland over the last are doing your own construction; have years ago. Pat is using his largesse to few years with one project coming quick access to cost competitive capital smartly pick up real estate with some to completion in Goose Hollow and and financing and then you look to sell in the Central Eastside. He bought the one downtown (155 SW Taylor) and the stabilized asset into an investment site for a less than $90 psf so it is hard another planned for NW Raleigh and market at some of the lower returns not to walk away from the large wallet one in the Hollywood District down ever, paying a bit more for a site in a of Mill Creek that is paying in the the road. They now have their first city that is land constrained is not a $260 psf range. project on the drawing boards in the big deal. More than once I have talked Construction is underway on this site. close in eastside with the purchase of with land owners in the Central East- almost a full block from the Imago th side contemplating Dei Church on SE 13 and Ankeny. a sale of their EX Koz has a longer history in Seattle zoned property to see but sees the same demographics and an offer from Mill market dynamics in Portland. Look- Creek sitting on the ing at the Koz website they really do corner of their desks. a nice “spin” on these glorified dorm Their march continues rooms with some catchy verbiage “Koz with the acquisition appreciates the simple lifestyle our of a site just on the residents desire” and more “Given the backside of Killian’s high technology low-touch environ- LOCA (goat blocks) ment encouraged, Koz has a commit- complex where they ment to establish a sense of family will build 189 units within each building. The building management and team will initiate PAGE 11 Inclusionary Zoning May Put Damper on Apartment Market

Inclusionary Zoning. This is a land use practice that requires • Designate affordable housing units of 25% in sending site affordable housing units to be built along with market rate at 60% MFI or 15% at 30 % MFI in an existing building housing, typically in new developments. Inclusionary zoning with again multiple stipulations and restrictions. has come into vogue and practice in every state of the Union (except Texas and most recently Oregon) to try and “tip the • Applicants may choose to pay a fee-in-lieu. There is a balance” that has occurred in both suburbs, but more recently, calculation of this fee based upon zoning and location in quickly gentrifying core areas of many cities where housing based on square footage of the project. An example would prices and rental rates have exploded, many times tripling in be 100,000 sf project which could be in the range of 120 the last decade. In many citizens and politicians view this had units could pay as high as fee of $2,800,000!!! led to further displacement of lower to middle income workers; minorities, those on disability, or fixed incomes and created less • Lastly, developments with affordable units will be diverse cultural neighborhoods geared toward higher earners. exempt from minimum parking requirements. There are many variations of inclusionary zoning programs There is all sorts of compliance and reporting rules which are a but generally they involve a certain percentage of affordable bit mind boggling and will require some rather extensive man units (10-30%) of a project be set aside for a pre-determined hours. Many developers knew Inclusionary Zoning was coming income bracket; usually between 50-80% of median family in some way, shape or form over a year ago so there has been a income (MFI) for the area/city. For this, developers can receive stampede to get projects “vested” under the old non-affordable certain incentives which usually take the form of reduced city housing rules before the deadline of last February. The city fees or property tax reductions. In addition many inclusionary of Portland Permit Center looked like rush hour in (without programs will give builders the option of building the required the face masks for air pollution) Shanghai in the weeks and affordable units “off site” within a specified amount of time or months preceding the date. Sam Rodriguez of prolific apart- pay a fee in lieu of building affordable units. ment developer Mill Creek voiced at the time “The reality is, we This has led to a stampede of projects rushing to the city to don’t know what the program is going to look like so everybody get officially “vested” by this past February deadline of its is trying to lock in the known conditions. It is just the natural implementation thus getting under the old rules by not hav- thing to do” He went on to predict “It will be difficult to ap- ing to have any affordable units. Lines at the city became long proach investors with projects in Portland if you cannot tell and employees looked a little sleep deprived as developers and them exactly how the program works and what the results will architects moved to get over 14,000 new units in under the be. They will tell us to come back when you have more facts”. It deadline. By getting vested there can be up to three years before basically came down to where developers believing that inclu- the developer needs to apply for a building permit but still not sionary zoning as it has been adopted will increase costs and have to build any affordable units. Given some increasing “soft- push returns for the much needed equity to build projects to a ness” occurring in especially the higher end apartment market, level that capital will go elsewhere and supply will wither over the chances of all these units being built in the next 1-2 years time as demand increases thus keeping rents high. While on the is slim in my estimation and already some of these owners of other side, the city and affordable housing advocates feel capital vested projects are looking at pulling the ripcord and selling to will continue to fund development under the new rules and can better financed and “hungrier” developers. Here are the basics absorb these extra costs especially in lieu of the fact that with of the “rules and options” for inclusionary zoning for apart- financing leverage that equity investors will still do quite well ments in the City of Portland. as they sell into an investment market for apartments that is as strong as it ever has been. • 20% of units affordable at 80% Medium Family Income (MFI) or 15% of units for applications filed through The effects of IZ have already been quickly felt as I look at many December 18th, 2018. Developer receives 10 property tax of the permit intakes into the city for new developments. Prior exemption on properties in the Central City Plan District. to Feb 1st, apartment projects of all sizes, types and locations Developer receives 10 year property tax abatement for only in the city dominated the project list but a review of these land those affordable units if the property is outside the Central use cases over the last 6 months shows a steep drop off. “The City. The 1% construction excise tax is waived pipeline is empty. We don’t have new apartment projects in our work load right now” says one architect. Fortunately office • 10% of units affordable at 60% of Medium Family Income and suburb projects are filling in the void but how long and (MFI) or 8% of units for applications filed through how deep that is and will be is hard to determine but many December 18th, 2018. The same type of property tax architecture firms are nervous as are others in the construction exemptions as above apply as well as waiver of the trades in the coming year or so as projects under construction construction excise tax along with SDC exemptions get completed with few projects on the horizon. The Central for affordable housing units Eastside has multiple “vested” projects with over 1000 units so for the next couple of years you will continue to see lots of • Applicants can build comparable percentage of affordable apartment construction going in our neighborhood. units off-site in a separate development with multiple stipulations and restriction (too numerous to name here). PAGE 12 recent deals representing new self-storage facilities, one that really STORAGE WARS has unnerved (pissed off?) some of us who value good real estate and active and creative uses that add to the neighborhood. Dallas Self Storage Development Going Crazy??? based Branoff holdings won a bidding war for a key site located at the great corner of SE 7th and Belmont. Believe it or not this block What is going on with all the new self storage facilities being built? is zoned industrial (many of us involved in the Southeast Quadrant Just like with all the new hotels reaching skyward (over 12 in the plan pleaded for over 8 blocks of land along Belmont and Haw- central city), I did not know we were so underserved in the self- thorne to get a more logical mixed use zoning to no avail) which storage area. I guess like most Americans we have a lots of stuff in the city code allows self-storage facilities outright. So when we need to hoard and put somewhere but unlike hotels that brings this half block hit the market early last summer as part of Dick people, activity, often restaurants and just a sense of liveliness to Martin’s family holdings in the Central Eastside, the Dallas based an area, self- storage facilities are a real dud and pretty much a development company won the high priced beauty contest paying dead zone for the area in which it resides and this gets compound- over $150 psf for the site! While the design of this five story cube ed when these facilities are placed in growing and vibrant urban isn’t terrible it doesn’t really have any windows and no ground core neighborhoods…a big blah! Here in the Central Eastside we floor retail in an area that is becoming a burgeoning 24-7 active already have over half a dozen self-storage facilities with a couple sub-district. With the one the best breweries around, Commons, occupying some of the coolest and best buildings in the district across the street and the full every night Japanese restaurant Afuri namely the 5 story Portland storage facility at 109 SE Alder at the next door and Grand Central Bowl a block away, this area is already railroad tracks and then the mother of all vintage buildings, the has lots of liveliness and energy which will only ratchet up with the 8 story 160,000 sf brick building at 215 SE Morrison. Both these completion and filling of the apartments at Mill Creek’s Belmont buildings would be great renovations to creative office as the Moderna and Killian’s game changing LOCA (goat blocks) project area has blossomed into a higher use core office and service area. nearby. Additionally, these things has close to zero employees The larger building could be our iconic Montgomery Park. I have where an industrial office project of several stories could have over pleasantly bugged for many years Kevin Howard a self-storage 100 people gainfully employed and adding vitality and character to tycoon who owns these buildings along with a portfolio of close the area. The only positive I can see is that it does not require any 100 facilities in 5 states about letting go of these great buildings parking but hardly a concession to half block ghost town this will for a big time renovation and signature project for the Central create. Eastside. Unfortunately self-storage uses can be a cash cow once up and rolling and occupied as it does not require an older building “Portland has all the fundamentals for increasing self-storage to be seismically upgraded and the huge facility can be run by a demand especially in the urban core where apartment construc- skeleton management crew…the checks just roll in. Plus he paid tion and demand is very strong” says Andy Hendricks at Branoff. so little for these buildings, huge taxes would result not to men- He then launched into some real good development-speak on why tion they are sequestered in a recent REIT he formed with several self-storage seems to be the flavor of the year. “Superior funda- other larger regional self-storage companies around the country. mentals in this space that are not found in any other property “I understand the potential of these structures but there would be type. Large investors and institutions who have identified the such huge barriers to selling these properties and the prices I need storage sector for its performance during the downturn have a would not justify an economical redevelopment’ he has told me high demand for in-fill properties, yet few qualify in-fill proper- over and over. So even with what many think there is a saturation ties are available for acquisition as the public REITs rarely sell any of self- storage square footage in the Central Eastside, but recent properties of quality. The result is a void of quality in-fill product deals proves otherwise as we have two more coming and rumor available for sale”. They have four other projects in the works in has it several others are in the works or going to be developed on the Portland area and admits there is some consistent resistance the fringes of the area. I turned to Kevin to give me some insight to these projects in many compact and gentrifying neighborhoods on what is going on to prompt this self- storage explosion. “There “The barriers to entry in these in-fill markets are high because is a ton of not so smart money being funneled into the self-storage of the competition for sites, often strict land use and design market in Portland and many other cities as well”, says Howard standards makes these projects often difficult. Many cities and who has been in the self- storage for over 30 years and is a savant neighborhoods aren’t happy with the idea of self-storage in their on the market. “There is not one reason but many that have com- area but they must understand the market forces create a real bined to attract mostly national players into the market. Portland need for these valuable projects”. I guess it is a free country but has received some compelling recommendations from some in hindsight maybe there should have been some sort of land use national studies and magazines regarding the potential of the restriction or design review to at least require a certain amount self-storage market. Also there tons of institutional money flowing of ground floor retail, glazing or more. Maybe it will happen down into the sector and some recent sales of facilities in Portland at the road but then the self-storage horse will be long out of the all-time high prices have given developers a enthusiasm for a very barn. profitable exit strategy once these facilities get stabilized but the weird thing is many are sold close to empty to buyers who then Another project under constrution on a large 50,000 sf site down have firms manage the lease-up. It is kind of crazy and there will on SE Division Place by Darigold which is not in the “fairway” of be a inevitable shake-out in a couple of years”. Howard predicts. I the district but still a valuable potential employment oriented big trolled the internet and found logically that self-storage develop- site which are becoming rare in the area. This project by Ban- ment and investment follows loosely millennial migration trends ner Storage Group out of Chicago could be a behemoth at over to cities especially core areas and also places where substantial 200,000 sf. “It may be a blood bath for the next few years on new apartment construction is occurring. Check and double check self-storage rates and the mom and pops will be the ones hurt that as it relates to Portland. As one contractor I talked with who is the most and most likely you will see some of these facilities in a building several facilities for clients said to me over beers recently, couple of years trade for prices below development costs as oc- “People need to store all their crap when they move into a 350 sf cupancy rates do not meet expectations” says Howard. Hopefully one bedroom apartment”. In the Central Eastside, we have two these are the only self-storage projects in the Central Eastside. PAGE 13 As Apartments Fade…Office picks up the Slack While the light for apartments is inclusionary zoning stipulations now tal Technologies leased 100,000) flashing bright yellow, the light for in force, office development is mov- and Killian’s 70,000 sf project on SE office space in the core is flash- ing to the head of the pack in the 3rd (Simple took the whole build- ing green, not quite bright green close in areas of the city. Walt Bow- ing) cemented the depth of the but maybe a lime green. This has en, the septuagenarian developer market. So currently there is over been something that has been came swooping in and rolled the 1,000,000 sf of office space under in the works for some time espe- dice a bit with the Pearl West proj- construction in the core area with cially since over 3 years ago some ect on NW 14th several years ago. the huge (300,000 sf) Fields office national publications and local Before the project was complete, on NW Front and Bowen’s 2.0 office brokerages’ research departments it was close to 80% lease with tech (and a hotel too) development on publicized the very low vacancy company WaCom, Regus, Howard Broadway (175,000 sf) as the more rate in core office space and the S Wright and Zoom the healthcare notable and visible testaments. lack of especially larger blocks of pioneers as anchors. Other proj- While we don’t quite have the big space. Don’t get me wrong. We ects that came in around this time boy projects as our west side cous- have enough apartments in the also were met with a ready tenant ins, the Central Eastside make up pipeline for the next two years, but audience as the old Oregonian for it with a bit more funkiness and with weakening rents and the city’s Building on SW Broadway (Elemen- creativity.

Towne Storage Lands Full Building a bit too seedy for some, but for we could preserve everything Tenant…Audodesk many it was just perfect for many cool and interesting about the of Portland’s small crafts and building and expand upon it to The six story historic brick structure trades people, mainly because bring great design and ameni- is probably the most iconic cur- it was close into the city, had ties to the project” says Westport rent development in the Central a great look after each other partner, Eric Clapp. Westport is Eastside (now that the Yard is an culture and more importantly finishing up a $20 million upgrade old story). It’s vintage 1920’s look, the rents were cheap. A friend of that must notably includes the but importantly, the location at mine who had two different busi- addition of a 8000 sf penthouse the bridgehead makes it a great nesses there over the years really office space coupled with a signature looking building that had a love for the place “It was huge outdoor rooftop event capsulizes the Central Eastside’s for many of us more than just a space that will have views to die past with its techy and energetic space for your business or pas- for. The only issue which is getting future. Owned for over 15 years sion, it was a community and a to be and old one is in the Cen- by local investors, it was man- place that felt like home. It really tral Eastside which is of course aged on a shoestring with close provided a space for anyone with PARKING. With only 40 spaces to 100 tenants made up of some a passion or crazy idea that they for close to 100,000 sf of space of the more interesting uses and were turning into a business or just which could mean upwards of businesses with a heavy bent wanted to pursue their muse. It 300 employees and you have toward artists, creative types, and was such a bummer when it was a bit of a challenge and many small makers. Cold in the winter sold and everyone had to leave”. asking “Where is everybody go- and warm in the summer (not to Yes. It was a bit controversial as ing to park”. That did not seem mention a urine smell on a cou- many press stories played upon to be a big deal as the whole ple of sides) it may have been the slow destruction of the funky building has been leased to Auto entrepreneurial and artist class Desk, the huge software firm out in which Portland hangs it hat of the Bay Area whose signature on and is known the world over. product, Autocad is the buddy Westport Capital a boutique of many architects, engineers private equity real estate firm and designers the world over saw an unpolished gem of a since the company was founded opportunity to take a wonder- in 1982. They long have had an fully architectural significant outpost in Portland, out in the building in a desirable and red sterile burbs of Lake Oswego, - hot real estate market and so this commitment that more bring it into the 21st century. than triples their space is a huge “You just cannot find buildings signal and commitment to Port- of this size and character in land, and more importantly to good core locations of a city the Central Eastside that it can with the character and poten- attract a company, especially a tial of Portland and we thought technology one of this size and reputation. PAGE 14 Gerding Edlen’s Fishel Block get this project approved but I at the Starting Blocks...Finally. think it is a better more responsive building and during that time we Commercial real estate devel- have just become bigger believ- opment is a patient game. And ers in the Central Eastside and because of the long time-frames how this building will take it to in our fair city that it takes to get the next level”. I really could not projects up and off the ground, wrap my brain around why it took it is also a big gamble. So when a year for this building to make it some think of those “fat cat” through the Design Commission developers, there has to be the as I loved the initial design, then understanding of all the hoops, seeing what is getting approved, governmental requirements, the changes don’t seem all eye. I love people who shake up financing, equity, neighborhood that great to warrant what was the status quo and kind of give issues to orchestrate all the while more than a 14 month process. tradition a bit of a creative shove having to watch the market po- That is why the city is looking at (or better stated, a kick in the ass) tentially change in way that can changing the subjective, slow and Kevin is good at that while make all this work and money and disjointed design review also providing legitimate and become a much riskier game. process in Portland. The design is functional spaces that really em- A large development can easily really bold, warm and energetic body our counter culture credo not hit the market for 3-4 years with what looks almost like two and vibe. If everyone is going from when the gears first started structures that blend into each left… Kevin goes right and has turning on a site. The proposed other. The first 4-5 floors is almost more fun doing it. The Dumbbell development at the Fishel Block all glass and light which will be is a 40,000 sf office building just by vaunted Portland forest green home to a healthy amount of completed on a small orphan site developer Gerding Edlen typifies retail, 15,000 sf which will blend that happened with the chicane this elongated process. Under smartly into 4 floors of office created by the couplet of NE contract on this key Burnside space. The 12 floors above have Couch coming around to meet Bridgehead 30,000 sf site over a more traditional high rise feel up with Burnside. Cavanaugh two years ago, G & E is just break- but still more glass and with a L under his aptly named company, ing ground on what will be a shape the angles that help in Guerilla Development has been 17 story striking project that will setting off the higher floors and working with the PDC on his proj- incorporate 220 apartment units uses from each other. I have to ect for a couple of years and he on the upper floors and 120,000 think at night, the retail and office is almost to the finish line. Project sf of offices on the lower floors floors will be all lit up it and will re- facts entail two connected build- which encompass a very innova- ally provide a very dynamic and ings (hence the name Dumbbell) tive outdoor terrace amenity that animated streetscape. With the totaling 56,000 sf with each “pod” cascades around and above the Yard; Beam’s Slate, Trinsic’s apart- connected on each of its 6 levels office space on the lower floors. ment project and Kevin Cavana- by sky bridges creating two 4000 This is restaurant quality develop- ugh’s Dumbbell all within a block sf floor plates on each level. Ca- ment. Kurtis Fusaro, point person or two, you have to think this will vanaugh does not like uniformity for Gerding-Edlen voices a mix be a very active and jumping or symmetry but seems to strive of frustration and optimism. “We area at the Burnside Bridgehead. for a bit of fun functional confu- got our final go ahead at the Most of us in the district, and even sion as the building has no two Design Commission this summer planners at the city, envisioned elevations that are the same and after 5 tries and this winter will be many years ago when mixed use windows have varying dimen- an exciting time as we get go- zoning with some very healthy sions. You would think that would ing on this project. We were a bit height limits were installed at the be enough quirkiness but no… surprised by the time it took to bridgeheads in the district, that the whole outside of the project this area could be very active has a hand painted mural that and dense sub-neighborhood smacks of the acid head concert living, working and playing. Looks poster designs of Peter Max in the like we were all correct! 60’s. It feels like if you stare at it long enough you may either get The Dumbbell…not so Dumb!! dizzy or some sort of divine rev- elations. But the way he got this While the Bridgehead has four dif- done from a financing standpoint ferent takes on development oc- I think should garner as much curring... It is Kevin Cavanaugh’s attention as the whimsical much heralded and talked about design and façade. development at the Bridgehead that is the one that catches my PAGE 15 Crowd Funding is Real….Estate will get paid first after the bank ing boards that will cater to the and in the final year will receive much smaller user who Cava- Cavanaugh says he did not their principal back. Cavanaugh naugh has the option of giving need the money and he could of in his pitch which is captured some equity to if the stars align. tapped more traditional equity in a cheeky and self-effacing sources but by getting hundreds 7 minute video on his website Beam Gets in on Office of people to ante up money to mixes both the financial secu- Splurge… Portland Music site get his project built was more of rity of investing in a “real asset” on MLK to be Office Building an egalitarian challenge and along with appealing to people’s maybe a bit of middle finger to desire to be part of the “greater Coming off what I call a success- banks that can be tough and good” by promoting artful, so- ful “micro” office development unrelenting partners that left cially conscience oriented, yet on SE Stark and Sandy of 24,000 many developers hanging out to functional and profitable com- sf, Beam is upping the game on dry in the recession 8 years ago. mercial real estate development a much larger bolder project “I remember what is was like in that provides sustainable and on the former Portland Music 2010 when the banks were not low impact work spaces for local site at 525 SE MLK. This 85’ high doing anything. I wanted to try to firms. It seems to be have worked. “glass box” is designed by Hacker put one of these type of deals in “We definitely are not in it for the Architects and will have 100,000 my back pocket before the next money. We wanted to make a sf of offices on 5 stories above downturn to show it can be done tiny mark and show that this kind the ground floor level which will and is a viable alternative to of project can be done” said one basically serve as a lobby; bike standard development projects”. investor who ponied up the mini- parking and up to 5 retail spaces Until 2013, investors wanting to mum investment of $3000. With along SE MLK. “We felt this would directly invest in real estate proj- the Dumbbell finished and close be a great compliment to the ects of this scale needed to meet to 70% leased it will be a play- Chamberlain hotel and apart- certain net worth requirements ful offset to the more traditional ment project across the street” and typically faced high mini- buildings around the Burnside says the godfather of the Central mum investments. But the Jump- Bridgehead. Eastside, Brad Malsin. I have cov- start, our Business Start-Ups Act of ered the Chamberlain hotel de- 2012 (also known as the Crowd velopment in another article but Fund Act), included changes basically that is the renovation to a regulation that now allows of the century old former Shleifer developers to raise up to $50 building on SE Grand and Stark million from an unlimited number into hotel which it was in its long of so-called accredited inves- ago past. It will be spectacularly tors for both new businesses and complemented by a new com- more importantly for commercial plementary four story modern real estate projects. Since the hotel on the block behind that SEC adopted these rules several will be connected with a plaza years ago, the pipeline was slow and not to be outdone, they but now dozens of projects have want to top this with 10 stories of successfully been funded. Cava- apartments! naugh used local Portland firm, CrowdStreet to handle back Cavanaugh and Guerilla look for Back to the office building. The end paperwork such as manag- a Dumbbell Encore with another building will employ the construc- ing distributions and tax docu- CE Office Project tion method “du jour” which is mentation. Only Investors in a the mass timber structural frame handful of states have regulatory Cavanaugh is not done has he where big glu-lam beams domi- approval to participate in the has another Central Eastside nate the feel inside, but Beam will Dumbbell. So the capital “stack” project on the drawing boards step a bit further into the another as developers love to call it looks on a small quarter block site hot construction material: The rd like this for the Dumbbell: $12.5 down off SE 3 Avenue just north vaunted and much publicized million conventional bank loan; of the Morrison Bridge adjacent cross laminated timber (CLT) for $1.5 million in Regulation A (Class to original hipster restaurant its floor decks. It will also have C Investors) and $2.5 million in hangout...Montage. On a large sliding glass panels and a Class B Investors and then $1.5 quarter block somewhat beloved mural on million Guerilla gets as “sweat to the south, the site of the adjacent building equity” for being “the Einstein” in he has another will be maintained by pulling the putting this whole Rubik’s Cube out of the box building away from the Mesher together. The investors coming 40,000 sf plus Supply building next. in initially should expect an 8% office building return per year for 3-5 years and on the draw- PAGE 16 Beam Continued The building got a lovey-dovey response from the Design commission in December but much needs to be done before we see hard hats on the site so a Q2 next year start date seems more realistic.

SolTerra Building is not Lime did not lack confidence but the with nature and building stron- Green but Deep Forest Green snail’s pace of construction on ger communities and making a their projects along with various positive impact on the Earth”. This SolTerra Development wanted changes in directions on the de- commercial real estate melodra- to hit Portland like a verdant sign on several of their planned ma kind of explained the baffling tidal wave of thoughtful and developments gave the picture progress of their office building extremely energy efficient devel- of some turmoil and retrenching on SE Division over the last year. opment. Coming off a couple of behind the scenes. Rumors over When I would drive by I would successful projects in Seattle and the last year swirled about an often see nothing going on some a business base in providing some organization moving too far, too days and then other days a skel- cutting edge energy and sus- fast, without a thoughtful and log- eton crew working on the project tainable building solutions such ical plan, most probably a cash and then another day, lots of ac- as green roofs, living walls and burn rate that gave “cold feet” to tivity. Recent observations shows super-efficient heating systems, the company’s backers. Some of increased action and checking Solterra, with what was rumored the comments coming from em- in with them finds a project pick- was some deep Asian based ployees on the job searching and ing up speed to get the building pockets, snapped up several employee evaluation website finished by early 2018. “We are mixed use sites in Portland mostly Glassdoor portended a company getting close to 80% pre-leased in southeast Portland and along struggling. “Great and commit- and feel real good about having the Williams/Vancouver corridor. ted people but management the whole building leased when With the moniker “Live Different” was chaotic and unorganized” we open for business in Janu- and led by Brian Heather which “A bunch of dreamers, but bit off ary” says the project manager, preached a uber-sustainable, yet more than they could chew” “I Danya Feltzin. With all the delays feasible way of commercial build- worked there a year and a lack and company “repositioning” this ing and development, SolTerra of planning and poor decisions building looks to be pretty cool was going to take green devel- was devastating for employees” with some green features that opment to the next level. Staffing were just some of the com- are often not found around town. grew quickly past 50 people and ments. So it was no surprise, this The hope is to send more elec- some rather stunning and beauti- past spring, that news came that tricity into the grid than it uses. ful designs on their close to half SolTerra was pulling back, laying The building is an insulated form dozen sites seem to languish with off many of its employees with concrete structure, and will have only a couple of smaller projects the company splitting into two. an amazing energy rating. It will actually being built, however Heather leading the company be LEED platinum and we will be those developments seem to more back towards its roots of on the path to a net zero energy move somewhat slowly. “We are providing innovative sustainable model. Our mission is not only to really pushing the envelope” said building products and services, create environmentally friendly, leader and visionary Brian Heath- and a long term partner taking quality and affordable spaces er as they embarked on building most of the land sites and main- a 35,000 sf cutting edge office taining more of a development building bent. The public relations tried to head- paint a positive “transition” with quarters Heather in a well-crafted state- in the ment saying that, “When you Central have a vision you have to have Eastside. everyone well aligned and that was too difficult when we had Heather too many companies” and “Brian and Heather has decided to continue SolTerra his mission to connect people PAGE 17 and buildings but to demonstrate two blocks at SE 10th and Madi- did they do? PARTS! Anything that renewable energy and son/Main. I caught myself and from high capacity tactical trailer sustainable construction can be sidestepped piles of dirt inside parts, for Portland based Silver both feasible and beneficial to the building and followed Brad Eagle Manufacturing, to roof the individuals and society alike. Carnese, the broker represent- tiles for Union Station. You have a We strive to make ecological ing the project. “These buildings need for a part they can figure dreams a reality by changing the are really set up for larger ten- out how to make it was basically world, one building at a time.” ants that want a larger flexible there credo, not unlike many Wow…Alleluia! These guys are floorplate where they can col- businesses in the Central East- on a mission and you can sense laborate” he explains as we look side that basically can tackle the passion! There is a wine bar at the larger of the buildings, and make things for a multitude and micro-brewery slated for the which could accommodate up of uses…mostly with metal. Big ground floor and like many new to 40,000 sf. Carnese thinks that punch presses the size of a VW buildings will have a roof top chances are much better in the Bug some dating back to the 40’s deck with something new... An marketplace for larger users to lined up along the factory floor outdoor kitchen. Other amenities come grab a whole city block waiting for the coiled bands of which are not new, but they hope building and I have to agree steel to be fed into their jaws to to expand on include lots of bike with him as with the Simple and make anything from brackets for facilities, like showers, repair and Autodesk deals that the size of irrigations systems to the whimsi- parking, an employee lounge some of the tech and creative cal bone shaped dog licenses. and multiple “gathering spots”. firms looking in the Central East- The green stuff includes: 25 roof- side is getting bigger. “I just think top solar panels; 4500 sf of veg- because it is difficult to find that etated roof that could accom- much space on one level in modate full size trees; 750 sf of a downtown or in the Pearl that the living wall; and overall they will Central Eastside will be a viable be capturing and treating over options for firms over 30,000 sf 50,000 gallons of rainwater each looking in this area” he predicts. year all resulting in this buildings Again, I have to nod my head. CAD stations were sprinkled using 70% less energy that a Custom Stamping’s demise is throughout and gave the place typical office building of similar less about being “squeezed out” a smack of technology. All to- size. They were hoping to get full of the district but more towards gether is was pretty old school, floor tenants for their five 7000 sf ownership desires and industry but also had a place in many lo- floors, but found the tenant’s a changes, even though the high cal firm’s supply chain. “We were bit smaller, so they have been price of real estate in the Cen- very versatile and given a need breaking up the floors into more tral Eastside more likely played a we most likely can figure out a 2000-3000 sf spaces to accom- good role in the business shutting way to make a part, or product, modate the size and type of ten- down and the buildings being for almost any use and the great ants that wanted into the project. sold. Overseen by Dave Stoudt, a thing almost every company we While there is no parking on site serious, taciturn guy with graying did work for was in the North- they have secured a long term hair and glasses, he inherited west” That versatility was also a lease at a lot a couple of blocks challenge in that jobs often were away where up to 40 cars can be smaller and not consistent so they parked. They think given the type were always trying to find that of tenants so far that this lot will next opportunity. It was time to not be totally utilized. I pressed on call it a day as the hands of time, rental rates, got a bit of a circular the changing neighborhood and answer and not much of a com- constant search for work to keep mitment, but we settled on rates his crew busy, took its toll. that will be “around $30 psf” with expenses at a healthy $7.00 psf. In comes Capstone Partners, Custom Stamping from his father which with partners Chris Nelson who worked at an adjacent and Jeff Sackett had been eye- Custom Stamping Going stamping facility, East Side Tool- ing the Central Eastside for years. Through Metamorphosis ing and Die Works since 1951. His “We have seen the changes and pop bought the business in the the growth in the Central Eastside I was gazing at the cool expan- 60’s and expanded to a build- and we have wanted a project sive wood bowstrung roof ceilings ing across the street which had a here for close to a decade. We and almost stepped into a 5 ft stamping business there since the made multiple offers on sites and deep utility trench inside what 30’s. Stoudt thinks the first time he buildings and when the Custom used to be the former Custom came in the building was when Stamping property was available, Stamping Buildings located in he was carried as an infant. What it was really a good fit for us and PAGE 18 our investors” says Nelson. Con- for a parking structure and while parking constrained area of the struction on the two buildings, you are developing a three story Central Eastside, but I would take which will have 72,000 sf of parking structure why not throw both projects at the same time space, is almost complete and a few stories of office space on too. If Harsch says “Let’s Go!” the all of the space will be geared top? Makes sense to me, and Stark project could break ground towards the now over used term Harsch as well. “With what is hap- by Q2 of 2018 but may be a “creative office”. With the vin- pening in the Central Eastside victim of the timing of the comp tage bow-strung roof construc- and the run-up in land values you plan finally being adopted. tion, these type of buildings are want to utilize development sites great candidates for upgrades to their utmost potential. Adding Tevis Still Loves Redoing and can really sparkle when the offices on a much needed park- Old Buildings But Also beautiful wood interior roofs get ing structure just makes a ton of Wants to Go NEW a nice sand blast. Not to mention economic sense” says Harsch VP, there are no posts, and extensive Steve Roselli. Right now it is not Mike Tevis came to Portland over window lines. A full seismic up- an either/or sort of proposition on a decade ago and bought the grade; not one but two roof top which project goes first, but build- old Ford Building on the south decks and of course (you know ing two might be too much of a end of the district along SE Divi- its coming) lots of bike park- bet on a market that is still finding sion. He set upon creating what ing and showers but with a half itself from an office standpoint he really did not know at the block of automobile parking, the though the 100,000 sf Autodesk time, but his own little neighbor- project will not be too parking lease down the street at Towne hood. “The big huge cool Ford constrained. Rates are quoted Storage surely lessens the con- Building is what really got me at $29.50 with a $40 TI allowance. cern about the market for a big here, but over time I have been The “Custom Blocks” as it is being chunk of office space. As Susan able to hopscotch around the marketed should be ready for oc- Orton, at Harsch sensibly offered, neighborhood to acquire and cupancy in the first part of 2018. renovate other adjacent build- ings. An effort to sew together a HARSCH Weighs Second Project community.” in the Central Eastside with tons he observes. Now with 4 buildings of…PARKING at this now key intersection he has over 60 tenants and about When Harsch Investment made every type of use and business their prescient purchase of the you can envision from software; Dealers Supply Blocks over 4 years artists; food; services; makers and ago they got a great combina- you have to mention the very tion of very usable buildings and long visible lines looking to get also some good development “The 129 Alder Building is not off the best hangover food in Port- parcels that now with the industri- the board but the 7 Southeast land at Pine State Biscuits. Tevis, a al overlay going district wide are Stark building is taking prec- big arts supporter also has a very becoming prime sites for a more edent” The parking office combo viable art gallery inside the Ford’s dense use. They completed two development would have a common spaces that really has great renovations of over 40,000 very robust and much needed been a great addition. Now he sf to; House Spirits Distillery and 265 parking spaces topped with wants to “go new” with a couple Steve Smith Tea Company. Lately 70,000 sf of offices. If you look at a big office buildings he is just start- they have turned their develop- standard parking ratio of 1 space ing to design and vet as to vi- ment guns on to two develop- per 1000 sf of offices that could ability. One is on half block across ment sites with the first being an leave close to 150 spaces for from the Ford Building where innovative 9 story office build- the neighborhood or other de- he has some short term tenants. ing on a quarter block at 129 velopments nearby. That squeal Initial drawings from LRS show a SE Alder that has gone through of happiness you hear is from a very compelling clean design a couple iterations with Works combination of employees in stretching up to 6 stories, plus Partnership architects leading the the area and customers of such Tevis is a big believer in provid- design charge. The issue with go- popular establishments as Way- ing parking so this complex has ing so high on such a small par- finder Brewing; Olympia Provi- substantial underground parking cel is that it becomes difficult to sions and Produce Row Café, of over 200 spaces. “I think park- obtain parking efficiently, even if who often spend 15 minutes or ing will be a huge differentiator you go down a level or two. With more on a parking scavenger going forward for office tenants that in mind, they have always hunt to patronize these places. and is something we really need eyed their larger (26,000 sf) devel- I am definitely rooting for the to provide in some of these more opment parcel two blocks over parking garage/office develop- dense developments and I think at the corner of SE Water and ment going first as a way to help it can pay for itself’ Tevis predicts. Stark (going by the name of 7 relieve what is probably the most The other site he is working on is Southeast Stark) as a prime place PAGE 19 commonly referred to the Trimet site which is a leftover from the Milwaukie Light Rail right Clinton Triangle Keeps Moving of way acquisition spree over 10 years ago. This almost 40,000 sf site nuzzles up just west of Right now there are some amazing larger site the light rail tracks on Division Place and just opportunities that will be coming to market that across the street from Darigold and another will impact the Central Eastside: OMSI’s campus Tevis project on SE 8th. While this area, which we often call the “Southern Triangle”, has larg- with multiple developable parcels many at the er blocks and more entrenched industrial de- foot of the Tilikum Bridge/Milwaukie Light Rail has velopment, it too is changing which can be incredible potential as part of nascent but grow- attributed to several factors: The Tillikum Cross- ing Innovation Quadrant associated with PSU and ing Bridge and light rail station nearby: OMSI’s OHSU across the river: The ODOT blocks with three grandiose plans to create an educational and technology hub (as part of the Innova- large developable parcels in the “middle of the tion Quadrant) of their multiple under-utilized fairway” on SE Water is after many years, finally sites and then of course the coming industrial picking up some momentum to go out to market, office overlay which is making almost every but my choice resides on the fringes of the district. industrial site in the district a candidate for some vertical higher end development. Tevis Given its size; location next to a light rail station has over 100,000 designed on this site with an and along two major arterials, is a place that can outdoor common grassy area. One challenge become an amazing and varied mixed use hub… to build throughout this lower area comes It is called the Clinton Triangle! This site has been from its long term former use as a lumber flying a bit under the radar in comparison to its and pulp mill. This means much of the land is un-engineered fill and with such sketchy soils, other potential development property cousins but pilings have to be employed down more than that may be changing as the wheels of progress 50’ into the bedrock for any new construction are staring to grind forward. “We have wrapped which of course jacks up pricing. Right now up the development plan and really have a good these two ideas are a bit more past just a understanding of the potential but more impor- dream but still has a ways to go before heavy equipment shows up on the sites. With close tantly the challenges to making this site accessible to 500,000 sf of office/creative space coming, and development ready” says Prosper Portland equity and financing for these developments project manager Amy Nagy who is heading up has become a steeper hill to climb. some of the pre-development planning. That first challenge under the term “accessible” is really the over-riding conundrum as this location has some real obstacles for getting in and out especially go- ing east on heavily travelled Powell. I will give you a brief synopsis on what is the Clinton Triangle. This swath of land totals just over 11 acres with the breakdown of 3.45 acres owned by the city (Fire Bureau); Light Rail Construction firm Stacy Witbeck owns 3.37 acres; Trimet lays claim to 3.24 acres and three other parties own smaller parcels.

Washington High School update Remember that option (or first right or refusal) the Park’s department had for many year to purchase the last remaining 1.3 acres of land on the corner of SE 14th and Morrison still owned by the Portland Public Schools? Well that expired here last in May and earlier in the year, Amanda Fritz commissioner that heads the Parks department sent a letter to adjoining neighborhood groups who had been putting a bit of pressure on them to continue with the option to buy the site saying that the city feels the 4.5 acre site they own is more than adequate for their plans and will not continue working with PPS on an option or purchase of the land. Part of this stance may have been the stiff price bandied about which was up in the $12 million range for this RH (high density residential) zone. I doubt that will hold with the new Inclusionary Zoning as that is over $220 psf. This set off alarm bells with the several neighborhood organizations that have been planning, advocating and fighting to keep as much of the former Washington High property in public hands to benefit an area that desperately needs open space/park and community center. This goes backs 30 or more years to when then PAGE 20 Developable land is probably just under 10 acres. consultants came up with projection of the size The property lies parallel to the Milwaukie light and type of uses that would be preferable from a rail line and is separated by a feeder street, SE city standpoint and also from a market demand Gideon and also has significant frontage along SE perspective. The exercise was done to provide 12th/Milwaukie and busy Powell Blvd. While the some “goal posts” on how much space and hous- Stacy Witbeck property is mostly empty or under- ing units could feasibly be built without stressing utilized the city property contains the Portland too much the transportation systems along with Fire and Rescue’s (PF& R) equipment storage providing adequate parking and being cost effec- warehouse and a training facility along with a tive but again this is really a crystal ball starting larger operating fire station. That in lies a bit of the point that could have multiple iterations before challenge and constraints on the property coming a shovel hits the ground. The sweet spot coming to market. The Fire & Rescue operation needs to from this process indicated approximately 250,000 find a replacement site for these operations and sf of office uses; 50-100 units of affordable hous- they are in the process of doing a needs analysis ing; 300-350 units of market rate housing and up which will determine size, location and whether to 50,000 sf of supporting retail. it can be one or multiple sites to best serve their needs. Pauline Goble a property specialist at the When you drive to the site and around the area, city says the Fire Bureau is already looking at a city you quickly realize that access into and out of owned site for a potential relocation which if this the site is one of the larger impediments. “We proves fruitful will move the needle on the time- are getting a much better understanding of the line. This could take 9-12 months (probably more) constraints of access into the area is a big factor before any real concrete planning can take place and this is dominated by the lack of good access for a relocation and if significant construction is from large traffic populations travelling east on SE needed you add another chunk of time. So best Powell. We know the intersection at SE Powell and case scenario is that nothing really can happen at Milwaukie will need considerable work along with the Clinton Triangle as far as redevelopment until trying to accommodate another easy way to get at least 2020 but the market is rally warm for these into the area are very important” says Nagy. large core sites. There are some interesting buildings on the site Much of the huge potential of the Clinton Triangle which under all of these planning exercises are owes to its designation to a mixed use zoning of assumed to become gravel but especially the EX in the current Central City Plans Process from older (looks post WW II) Fire Bureau warehouse its current industrial zoning (IG1). This zoning that fronts SE Milwaukie has some real cache. At (Central Employment) which should be in place by what I estimate to be 30,000 sf (15,000 sf on two mid-2018 really provides the flexibility and density levels) could really be dressed up to give the site here to create something really special. The year a bit more historical perspective and very usable old completed Clinton Triangle Redevelopment space. Also the 5 story training tower, though out Plan Process which was undertaken with multiple of place, I think could also be creatively used as a city bureaus and economic and development moniker, or signature marketing piece to the site.

commissioner Mike Lindberg wrote presciently in 1991 about “the shortage of community centers especially in the inner Southeast Area, where densities are highest”. That density has only heightened with a rapid addition of mostly apart- ments nearby (over 2000 units by 2018) In steps, Venerable Properties with monied partner PacTrust which had been renting the PPS site for parking for the last several years has to pick up the option for the land running to fall 2019. Tem- peratures are rising with the surrounding neighborhood groups concerning letting this potential key acquisition possibili- ty slip away especially in light of the millions of dollars that parks has obtained through the System Development charges (Park SDC’s were doubled last year) they have collected on all the new development that has occurred. Those fighting this say there is close to $50 million sitting in the Parks account. Add to this the pervasive feeling that all this occurred with a lack of process. Neighbors throughout the close in eastside who vehemently believe that this property should remain for the public good in one of the most parks and open space deficient areas of the city was absent... Another consideration is also if this property goes into private hands and is developed to its maximum potential and zoning which is high density residential there could easily be 200 plus units of housing which would only add to the chronic parking issues in the area. This could get ugly or it may silently fade away. PAGE 21 FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD• DRINKRestau FOOD DRINKrants FOOD DRINK • Restau FOOD DRINK FOODrants DRINK FOOD • Restau DRINK FOOD rDRINKants FOOD DRINK• FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK Man, it is hard to keep up! That is was June 16th. Not only do they have on that train with a few tasty selec- FOOD anDRINK adage FOOD for all of DRINK us getting FOOD a bit DRINKtons FOOD of cider DRINK selections FOOD but theyDRINK will FOODtions. DRINK Owners FOOD say the DRINK menu willFOOD im- DRINK FOOD olderDRINK but FOOD what I amDRINK referring FOOD to is DRINKthe be FOOD quite choosey DRINK as FOOD the following DRINK FOODprove DRINK and change FOOD with DRINK feedback FOOD and DRINK FOOD amountDRINK ofFOOD quality DRINK new and FOOD interest DRINK- boxes FOOD need DRINK to be checked FOOD toDRINK make FOODa few DRINK more tripsFOOD to BejingDRINK for FOOD “re- DRINK FOOD ingDRINK food FOODoptions DRINKin the Central FOOD East DRINK- the FOOD cut: they DRINK must beFOOD independently DRINK FOODsearch”. DRINK The FOODplace is DRINK very casual FOOD with DRINK FOOD side.DRINK I almost FOOD get DRINK in accidents FOOD driving DRINK owned; FOOD naturally DRINK gluten FOOD free; DRINK use no FOODordering DRINK at theFOOD bar then DRINK sitting FOOD down DRINK around as I will see a new food es- artificial colors, flavors or preserva- and the price is good with nothing FOOD tablishmentDRINK FOOD just openingDRINK onFOOD a given DRINK tives FOOD and makeDRINK ciders FOOD using DRINK 100% FOODover DRINK $12. A FOODgood complementary DRINK FOOD DRINK FOOD streetDRINK and FOOD be rubber DRINK necking FOOD thinking DRINK fresh FOOD pressed DRINK juice. FOODThey also DRINK will be FOOD idea DRINK for a dinner FOOD is after DRINK rubbing FOOD the DRINK FOOD “WhatDRINK is FOODthat place?” DRINK I have FOOD learned DRINK building FOOD an DRINK on-site cidery,FOOD andDRINK a full FOODramen DRINK off your FOOD chin, DRINKgo over FOODto the DRINK FOOD toDRINK pull over FOOD and beDRINK safe. The FOOD Central DRINK scale FOOD restaurant DRINK that FOOD will be DRINKheavy FOODCentral DRINK Eastside’s FOOD best DRINK dive bar, FOOD the DRINK FOOD EastsideDRINK andFOOD its eateries DRINK are FOOD often onDRINK in FOODthe gluten DRINK free category FOOD andDRINK FOODSlammer, DRINK for FOOD a Pabst DRINKBlue Ribbon FOOD for DRINK the top of many lists whether it be will include an expansive outside dessert! Also another good thing for FOOD ourDRINK heralded FOOD Russian DRINK restaurant FOOD baby, DRINK patio FOOD with DRINKfireplace. FOOD DRINK FOODpeople DRINK moving FOOD around DRINK a lot likeFOOD me DRINK FOOD KachkaDRINK (2014 FOOD restaurant DRINK of FOOD the year) DRINK FOOD DRINK FOOD DRINK FOODis that DRINK take out FOOD is easy DRINK and a bigFOOD part DRINK FOOD orDRINK award FOODwinning DRINK Renata toFOOD multiple DRINK Danwei FOOD DRINK Canting FOOD DRINK FOODof their DRINK business. FOOD DRINK FOOD DRINK FOOD awardDRINK winning FOOD breweries DRINK takingFOOD pub DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK I look around the Central Eastside FOOD foodDRINK to new FOOD levels. DRINK This last FOOD year saw DRINK FOOD DRINK FOOD DRINK FOODRevelry DRINK FOOD DRINK FOOD DRINK an acceleration of new food and bev- and I cannot think of one Chinese FOOD erageDRINK options FOOD with DRINK many startingFOOD upDRINK restaurant. FOOD DRINK Can you? FOOD We got DRINK Thai, FOOD DRINK FOOD DRINK FOOD DRINK FOOD earlierDRINK last FOOD year and DRINK the diversity FOOD and DRINK Korean, FOOD Vietnamese DRINK FOOD and recently DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD inventivenessDRINK FOOD of theDRINK food isFOOD pretty DRINKmore FOOD than DRINK a couple FOOD Japanese DRINK ra- FOOD DRINK FOOD DRINK FOOD DRINK FOOD freakingDRINK amazingFOOD DRINK which just FOOD adds toDRINK men FOOD establishments DRINK FOOD but no DRINK Chinese. FOOD DRINK FOOD DRINK FOOD DRINK No longer. This restaurant in the FOOD theDRINK great FOOD environment DRINK for FOODnew resi DRINK- FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK dents and employees. bottom of Beam’s new Stark office FOOD DRINK FOOD DRINK FOOD DRINKbuilding FOOD has DRINK a bit of FOOD a stark DRINKindus- FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKtrial FOOD feel with DRINK a big FOODcounter/bar; DRINK but FOOD DRINK FOOD DRINK FOOD DRINK World’s Biggest Cider fairly small dining area but that does Tucked into the former Salvation FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOODArmy DRINK drug andFOOD alcohol DRINK center FOOD that DRINK FOOD TaproomDRINK FOOD Comes DRINK to FOOD DRINKnot FOOD take away DRINK from FOOD the great DRINK take FOOD DRINK FOOD DRINK FOOD DRINK LOCA (Goat Blocks) on an interesting brand of Chinese now has been smartly renovated FOOD DRINK FOOD DRINK FOOD DRINKtreats. FOOD This DRINK place is FOODthe brainchild DRINK of FOOD into DRINK cool space FOOD for snow DRINK sport FOOD re- DRINK FOOD DRINK FOOD DRINK FOOD DRINKbusinessman FOOD DRINK James FOOD Kyle, a DRINKbusiness FOOD tailer DRINK Evo and FOOD optics DRINKand sunglass FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKguy FOOD who livedDRINK in China FOOD for DRINK10 years. FOOD pioneer, DRINK Smith, FOOD is a niftyDRINK little FOOD Ko- DRINK He Shanghaid (you like that pun?) rean food gem. This is more than a FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOODrestaurant DRINK with FOOD the vibe, DRINK décor FOOD and DRINK FOOD DRINK FOOD DRINK FOOD DRINKrenown FOOD chef DRINK Kyo Koo FOOD formerly DRINK of FOOD DRINK FOOD DRINK FOOD DRINK snobby Blue Hour and Clark Lewis to milieu bordering on seedy Seoul FOOD DRINK FOOD DRINK FOOD DRINKbring FOOD some DRINK value conscious FOOD DRINK dishes FOODafter DRINK hours night FOOD club DRINK chic. One FOOD of DRINK FOOD DRINK FOOD DRINK FOOD DRINKwhich FOOD tend DRINK towards FOOD the popular DRINK de -FOODthe DRINKowners isFOOD a DJ so DRINK music of FOOD all DRINK FOOD DRINK FOOD DRINK FOOD DRINKscription FOOD these DRINK days FOOD of “street DRINK food” FOOD sorts DRINK bumps FOODespecially DRINK later inFOOD the DRINK often found in the capital of Bejing. evening and there are old Boom- FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOODboxes DRINK mounted FOOD on theDRINK wall and FOOD DRINK It was announced last summer but Let’s see what stands out: I had the FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOODother DRINK furnishings FOOD that DRINK give off FOOD a bit DRINK really has not sunk in here in Port- La Zi Ji chicken which is great with FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOODof Warhol DRINK type FOOD of waft DRINK of bygone FOOD DRINK land that we will again be first in peppercorns and chilis that gives design culture. Definitely geared to- FOOD somethingDRINK FOOD inspiring…Cider! DRINK FOOD The DRINKyou FOOD a nice DRINKdose of heat;FOOD the DRINK cooked FOOD DRINK FOOD DRINK FOOD DRINK wards a bit younger and later night FOOD proliferationDRINK FOOD of Cider DRINK makers FOOD in Port DRINK- in FOODfat Green DRINK Beans wasFOOD fatty DRINK good FOOD DRINK FOOD DRINK FOOD DRINK demographic, Reverlry is energetic land has been biblical over the last and though I did not indulge my FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOODand DRINKfun to watch FOOD the DRINK mish mash FOOD of DRINK few years and someone (who had buddy had one of the three differ- FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOODpatrons, DRINK groovin FOOD cooks DRINK and bar FOOD guys DRINK drank too many ciders) told me that ent Chinese street burgers and it hit FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOODall gettingDRINK together FOOD andDRINK having FOOD fun DRINK there are now over 30 cider mak- the spot that was helped by some and gulping down some unique FOOD ersDRINK in Portland. FOOD But DRINK it takes FOOD a Seattle DRINK unique FOOD fries DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK dishes. The food is really different FOOD DRINKbased company FOOD DRINK to up the FOOD anter DRINKwith FOODon the side.DRINK FOOD DRINK FOOD DRINK FOOD DRINK and generally hits the spot but the Schilling Cider House to locate a the Dumplings FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOODre-known DRINK Seattle FOOD chefs DRINK who brought FOOD DRINK mother of all cider establishments (pot stickers FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOODthis placeDRINK to fruitionFOOD haveDRINK a wide FOOD tar- DRINK at the Goat Blocks development to me) are FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOODget butDRINK so far FOOD they seemed DRINK to FOOD have DRINK with over 50 taps. By the time you everywhere in hit the bullseye. FOOD DRINKread this, FOOD the sweet DRINK savory FOOD and DRINKvery FOODP-town DRINK these FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKalcoholic FOOD concoctions DRINK will FOOD have beenDRINK FOODdays and DRINK this FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKflowing FOOD for months DRINK as their FOOD opening DRINK FOODplace has DRINK got FOOD DRINK FOOD DRINK FOOD DRINK PAGE 22 FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKwacky FOOD establishment DRINK FOOD in its hey DRINK day in FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKa historic FOOD Victorian DRINK building FOOD at DRINK SE Grand FOOD DRINK FOOD DRINK FOOD DRINK and Ankeny. It was bit seedy, could FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK get crazy as the night careened past FOOD DRINK FOOD DRINK FOOD DRINKmidnight FOOD and DRINK it’s basement FOOD bar DRINK and FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKmusic FOOD venue DRINK smacked FOOD of someplace DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKlike FOOD the famous DRINK Cavern FOOD bar the DRINK Beatles FOODTwo DRINK Sandwich FOOD ShopsDRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKplayed FOOD in back DRINK in the FOOD early 60’s. DRINK It FOOD DRINK FOOD DRINK FOOD DRINK Scout Beer seemed disorganized, dirty and prob- Speaking of sandwiches, I thought FOOD DRINK FOOD DRINK FOOD DRINKably FOOD violated DRINK many city FOOD and state DRINK health FOOD that DRINKfood craze FOOD had its DRINKday in the FOOD sun DRINK FOOD UsuallyDRINK I sniffFOOD out aDRINK new brewery FOOD open DRINK- safety FOOD ordinances DRINK but FOOD people DRINKespecially FOOD in Portland DRINK as FOODwe move DRINK on to dump FOOD- DRINK FOOD ingDRINK before FOOD it happens DRINK then bringFOOD my DRINK night FOOD owls lovedDRINK the FOODplace and DRINK many FOODlings, DRINK ramen, KoreanFOOD barbeque DRINK andFOOD DRINK FOOD sleepingDRINK bagFOOD and campDRINK out FOODthe first DRINK under FOOD the radar DRINK music FOOD artists foundDRINK it FOODwho DRINKknows what’s FOOD next? DRINK But with FOOD DRINK FOOD nightDRINK before FOOD the opening. 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FOOD The building DRINK has FOOD traded DRINKhands to aFOOD much DRINK more staying FOOD power DRINK in the FOOD DRINK FOOD signDRINK and swervedFOOD DRINKover to take FOOD a look DRINK more FOOD involved DRINK and active FOOD owners DRINK who FOOD food DRINK scene. Central FOOD Eastside DRINK stalwarts FOOD DRINK FOOD whichDRINK of courseFOOD led DRINK to a pint FOOD of beer. DRINK have FOOD spiffed DRINK up the upperFOOD floor DRINK offices FOOD Bunk DRINK Sandwiches FOOD and DRINKBread, Meat FOOD DRINK These guys are throwing stuff into their and now the East End may has made & Cheese took the sandwich to the FOOD sudsDRINK that FOODI think is DRINK making evenFOOD crazy DRINK a comeback FOOD DRINK and has FOODan Elvis theme…DRINK FOODnext DRINKlevel over FOOD 6 years DRINK ago and FOODit DRINK FOOD PortlandDRINK brewingFOOD scratchDRINK their FOOD heads. DRINK the FOOD King lives! DRINK A group FOOD of guys DRINK who FOODhas stayedDRINK there. 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FOOD DRINK called Gose (a German wheat beer) the double decker layout into an Elvis Stacked Sandwiches opened in the FOOD withDRINK nori seaweed.FOOD DRINK Their self-admitted FOOD DRINK Presley FOOD themed DRINK bar withFOOD the nameDRINK of FOODbottom DRINK of what FOOD is now DRINK in many FOODeyes DRINK FOOD “noDRINK holds-barred FOOD beerDRINK culture” FOOD will DRINKthe FOOD “Elvis Room”. DRINK I peakedFOOD my DRINK head FOODis called DRINK The Simple FOOD (because DRINK mobile FOOD DRINK FOOD pushDRINK the envelopeFOOD DRINK that will FOODtouch upon DRINK in recentlyFOOD toDRINK check outFOOD the place DRINK and FOODbanking DRINK firm, FOOD Simple leasedDRINK the FOOD whole DRINK FOOD ingredientsDRINK FOOD such as DRINK peanut FOODbutter; DRINKboy FOOD it takes DRINK the kitsch FOOD and gaudy DRINK in FOODbuilding) DRINK Building FOOD but technicallyDRINK FOOD it is DRINK rd FOOD yams;DRINK pomegranates; FOOD DRINK cinnamon FOOD raisins; DRINK your FOOD face motif DRINK up a FOODnotch. I deferDRINK to FOODKillian’s DRINK Clay CreativeFOOD onDRINK SE 3 . FOODGabriel DRINK hazelnuts. 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DRINK and FOOD more like DRINK Elvis’s FOODevil and DRINKdrunk FOODsome DRINK good beers FOOD on tap DRINK and having FOOD an DRINK FOOD TheDRINK small FOOD1500 sf DRINKspace has FOOD the feel DRINK nephew FOOD who DRINK had the FOOD Kings credit DRINK card FOOD alum DRINK from Multnomah FOOD DRINK Whiskey FOODLibrary DRINK FOOD ofDRINK a concrete FOOD basement DRINK in BerlinFOOD but DRINK for FOODhome furnishing DRINK purchasesFOOD DRINK from an FOOD at the DRINK bar helm FOOD helps. DRINKThe French FOOD Dip DRINK FOOD outsideDRINK the FOOD picnic DRINKtables garner FOOD great DRINK Egyptian FOOD Bizarre” DRINK But FOOD was this DRINK not the FOODis getting DRINK raves FOOD and my DRINK Turkey RueFOOD- DRINK FOOD afternoonDRINK FOOD sun and DRINK large garage FOOD doors DRINK weirdness FOOD andDRINK tackiness FOOD of Elvis’s DRINK life FOODben wasDRINK spectacular FOOD and DRINK he does FOOD get DRINK makes everything nice and breezy. Joe towards the end? I would have taken it a bit high on the horse gourmet with FOOD StDRINK Martin FOODand Sean DRINK Oeding FOODthe Timo DRINK- more FOOD towards DRINK the endearing FOOD DRINKrockabilly FOOD other DRINK sandwiches FOOD with DRINK bison tarter FOOD and DRINK FOOD thyDRINK Leary FOODbeer obsessed DRINK owners FOOD started DRINK hic FOOD of the years DRINK but I FOODam sure DRINKthis will FOODsmoked DRINK trout FOODbut so far DRINK the sandwiches FOOD DRINK FOOD inDRINK two different FOOD cart DRINK pods but FOOD now with DRINK be FOODa conversation DRINK piece FOOD and popularDRINK FOODare rankingDRINK up FOOD there with DRINK the best FOOD in DRINK FOOD bricksDRINK and FOOD mortar andDRINK a small FOOD five barDRINK- late FOOD night hangout. DRINK And FOOD yes theyDRINK do FOODPortland. DRINK Interesting FOOD breads DRINK from FOOD Pearl DRINK FOOD relDRINK brewing FOOD system DRINK they look FOOD to start DRINK have FOOD peanut DRINK butter and FOOD banana DRINK items FOODand LovejoyDRINK BakersFOOD are DRINK a highlight FOOD and DRINK small to become like other humming on the menu! up the interesting factor on many of FOOD breweriesDRINK FOOD in our district DRINK like FOOD Commons; DRINK FOOD DRINK FOOD DRINK FOODthe sandwiches.DRINK FOOD Great DRINKstuff but FOODpricing DRINK FOOD BaerlicDRINK and FOOD Basecamp. DRINK Great FOOD addition DRINK FOOD DRINK FOOD DRINK FOODis stiff DRINK with sandwiches FOOD DRINK pushing FOOD into DRINK FOOD toDRINK the scene!! FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOODthe teens.DRINK is FOODthe other DRINK entrant andFOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOODresides DRINK in the FOODback of DRINKthe Ford BuildingFOOD DRINK th FOOD FamedDRINK FOODEast EndDRINK Bar FOOD DRINK FOOD DRINK FOOD DRINK FOODannex DRINK at SE 12 FOOD and Division. DRINK This FOOD one DRINK Making a Return... Elvis does not try so hard to be upper crust FOOD Lives!DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOODwith DRINKits ingredients FOOD but DRINK hits the FOODmore DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOODbourgeois DRINK crowd FOOD with DRINKsimpler fare FOOD and DRINK FOOD YouDRINK probably FOOD did notDRINK frequent FOOD this DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKPAGE FOOD 23 DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK love, adventure and the essence mentioned by those in the know as FOOD DRINK FOOD DRINK FOOD DRINKof FOOD human DRINK experience FOOD and DRINK we also FOOD the DRINKmost creative, FOOD funDRINK and inventive FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKfound FOOD BEER DRINK in every FOOD corner, DRINK coun FOOD- food DRINK culture FOOD in the world.DRINK Tucked FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKtry FOOD and culture. DRINK We FOOD found DRINK beer FOODinto DRINK a now smallerFOOD CentralDRINK Eastside FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKbrought FOOD peopleDRINK together FOOD DRINKand was FOOD favorite, DRINK Biwa, FOOD comes DRINK a great FOOD casual DRINK FOOD DRINK FOOD DRINK FOOD DRINKa FOODuniversal DRINK and bonding FOOD DRINKlanguage. FOOD Spanish DRINK themed FOOD gathering DRINK spot FOOD that DRINK The idea of Vagabond Brewing has been open almost a year and FOOD DRINK FOOD DRINK FOOD DRINKwas FOOD to build DRINK a place FOOD where DRINK we FOODperfectly DRINK caters FOOD to Portland’s DRINK FOOD warm, DRINK FOOD DRINK FOOD DRINK FOOD DRINKcan FOOD support DRINK each FOOD other likeDRINK in FOODless DRINK formal andFOOD lighter DRINK drinking FOOD and DRINK FOOD DRINK FOOD DRINK FOOD DRINKthe FOOD Marines DRINK and alsoFOOD give DRINK back FOODdining DRINK desires. FOOD Geared DRINK almost FOOD for DRINK FOOD DRINK FOOD DRINK FOOD DRINKto FOOD the community DRINK FOOD and be DRINK a place FOOD standing DRINK up FOOD and talking DRINK with FOOD friends DRINK FOOD DRINK FOOD DRINK FOOD DRINKto FOOD demonstrate DRINK and FOOD cultivate DRINK our FOODwhile DRINK sharing FOOD cocktails DRINK and appetizFOOD- DRINK passions and creativity”] They ers, Bar Casa Vale (BCV) is a great FOOD DRINK FOOD DRINK FOOD DRINKhave FOOD really DRINK FOOD DRINK FOODearly DRINK or late FOODstop to DRINKshed the FOOD stress -DRINK FOOD DRINK FOOD DRINK FOOD DRINKhit FOOD a vein DRINKas FOOD DRINK FOODes ofDRINK a work FOOD day. With DRINK a low FOOD key DRINK better pricing. Billed as a neighbor- FOOD DRINK FOOD DRINK FOOD DRINKtheir FOOD Salem DRINK FOOD DRINK FOODbut DRINKvery noticeable FOOD DRINKSpanish FOODmotif DRINK hood sandwich shop, choices are brewery is of tile and Mediterranean décor, FOOD DRINKmore basic FOOD (a good DRINK thing) FOOD but you DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK huge hit and BCV has more than 40 snacks and FOOD DRINKcan build FOOD your own DRINK and thereFOOD are DRINK a FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK they are taking mains with Catalan roots built for few hot baked sandwich selections, FOOD DRINK FOOD DRINK FOOD DRINKit FOODto the next DRINK FOOD DRINK FOODsharing DRINK and FOODdefinitely DRINK is different FOOD (is DRINK like the Turkey and Bacon. They FOOD DRINK FOOD DRINK FOOD DRINKlevel FOOD by coming DRINK FOOD DRINK FOODthat DRINK possible FOOD in Portland DRINK anymore?). FOOD DRINK make their own bread and have an FOOD DRINK FOOD DRINK FOOD DRINKinto FOOD the jaws DRINK of brewing FOOD Nirvana DRINK FOODElements DRINK such FOOD as quail DRINK eggs; FOOD crispy DRINK outdoor patio that should be popu- by establishing a larger 10 barrel pig snout; 4 year old Iberica ham FOOD DRINKlar and thenFOOD after DRINK a filling FOOD sandwich DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK brewery in Mike Tevis Dairy Build- slices and octopus tentacles and FOOD DRINKyou can FOODwalk across DRINK the streetFOOD to DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK ing on south end of the Central some Spanish dishes that are a Apex and sit in the sun at a picnic FOOD DRINK FOOD DRINK FOOD DRINKEastside FOOD down DRINK by FOODDarigold. DRINK This FOODmystery DRINK unless FOOD you DRINKask what FOOD it is. DRINK table and try one of their dozens of FOOD DRINK FOOD DRINK FOOD DRINKplace FOOD is a DRINKrenovated FOOD older DRINKfeed and FOOD While DRINK cocktails FOOD and DRINKgreat Spanish FOOD DRINK beers. This intersection for 11th/12th FOOD DRINK FOOD DRINK FOOD DRINKseed FOOD warehouse DRINK and FOOD it will DRINK have a FOODwines DRINK abound FOOD they DRINKalso publicize FOOD DRINK and Division has really become full kitchen; seating for over 100 pa- their larger sherry (is that not what FOOD DRINKa food hub FOOD with DRINK10 food FOODoptions DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK trons; an outdoor seating area and my mom drank?) selections which I FOOD DRINKnearby. FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK something I think we need more of guess is a big deal in Spain. FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK Salem’s Vagabond Brewing and that is a stage for live music. FOOD DRINKBets Big FOOD in Dairy DRINK Building FOOD DRINK“It FOOD will be DRINKa warm FOODand welcom DRINK- FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKing FOOD place DRINKfor everyone; FOOD young, DRINK old, FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKThere are FOOD all sorts DRINK of human FOOD com DRINK- families. FOOD PortlandDRINK mayFOOD seem DRINK like a FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKbinations FOOD that result DRINK in the FOOD creation DRINK crowded FOOD brewDRINK town FOOD but it DRINK really is FOOD DRINK FOOD DRINK FOOD DRINK because there is such an accepting FOOD DRINKof breweries FOOD in Portland;DRINK FOODold friends DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK from college; family members; and experimenting culture which FOOD DRINKneighbors; FOOD guys DRINK(girls too) FOOD who DRINKaligns FOOD with DRINK our mission FOOD and DRINK goals” FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKplayed on FOOD the same DRINK sports FOOD teams; DRINK says FOOD the former DRINK Marine FOOD and DRINK owner, FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKbut this isFOOD the first DRINK one that FOOD I have DRINK Dean FOOD Howes. DRINK There FOOD is a lot DRINK of work FOOD Pizza…Pizza…Everywhere DRINK FOOD DRINK FOOD DRINK FOOD DRINKseen that FOOD was started DRINK by FOODthree guys DRINK to FOOD be done DRINK which FOODwill probably DRINK take FOOD DRINK FOOD DRINK FOOD DRINK these three former Marines into the Pizza is ubiquitous in the American FOOD DRINKthat were FOOD in the DRINKMarines. FOOD Vagabond DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK which has been operating a very early 2018 before Vagabond meets culinary landscape and Portland is FOOD DRINKsuccessful FOOD Salem DRINK brewery FOOD for the DRINK a receptiveFOOD DRINK audience. FOOD I think DRINK it FOODno exceptionDRINK FOOD and then DRINK when FOOD you DRINK FOOD DRINKlast half dozenFOOD years DRINK came FOOD about DRINK shows FOOD the DRINK spread FOODof a more DRINK active FOOD think DRINK how can FOOD anyone DRINK bring FOODa new DRINK FOOD DRINKdue to three FOOD gentleman DRINK whoFOOD met DRINK in and FOOD people DRINK friendly FOOD vibe into DRINK the FOODidea DRINK to this centuriesFOOD DRINK old staple, FOOD DRINK Portland always seems to have an FOOD DRINKuniform FOODthen wandered DRINK theFOOD world DRINK south FOOD end DRINK of the district FOOD (South DRINK of FOOD DRINK FOOD DRINK FOOD DRINK Division) which has always been a answer and another idea. One of FOOD DRINK(hence the FOOD name DRINK Vagabond) FOOD try- DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK ing to find themselves and a bit of bit more industrial and somewhat of our new options is somewhat mys- FOOD DRINKmeaning FOOD and a whatDRINK is important: FOOD DRINK a boringFOOD zone…butDRINK FOOD no more! DRINK FOODterious DRINK which FOOD adds toDRINK its attraction FOOD DRINK FOOD DRINKand BEER FOOD seemed DRINK to be theFOOD answer. DRINK FOOD DRINK FOOD DRINK FOODand DRINK seems likeFOOD it makes DRINK the FOODhungry DRINK FOOD DRINKFrom their FOOD website DRINK [“After FOOD serv -DRINKSalud! FOOD ADRINK bit of FOOD Spain DRINK FOODpizza DRINK lover workFOOD for DRINK his reward. FOOD This DRINK at Bar Casa Vale pizza under the simple name Ranch FOOD DRINKing our countryFOOD DRINK for the betterFOOD part DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK of a decade in a time of war, we Pizza is only available if you are FOOD DRINK FOOD DRINK FOOD DRINKWhen FOOD you DRINK think of FOOD the best DRINK food FOOD DRINK FOOD DRINK FOOD DRINK set out to find ourselves and our frequenting three different beer es- culture in the world, France and FOOD DRINKpath. The FOOD journey DRINK took FOODus to every DRINK FOOD DRINK FOOD DRINK FOODtablishments DRINK FOOD in the DRINKsouthend FOOD of the DRINK Italy seemed to pop to everyone’s FOOD DRINKcorner ofFOOD the globe. DRINK We FOOD found DRINK FOOD DRINK FOOD DRINK FOODdistrict; DRINK Baerlic FOOD Brewing; DRINK Apex FOOD and DRINK mind, but Spain has been often FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOODBeermongers. DRINK FOOD I even DRINK tried to FOOD do a DRINK PAGE 24 FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK bit of detective work on this pizza thing has pivoted in the last year grandmother also went to Washing- FOOD rumorDRINK and FOOD the bartender DRINK FOODat bottle DRINK to FOODa new nameDRINK but FOOD kept the DRINK wood FOODton DRINKhigh way FOOD back whenDRINK and FOOD then DRINK FOOD shopDRINK Beermongers FOOD DRINK on SE FOOD 12th/Divi DRINK- fired FOOD Pizza DRINK theme FOODof the food. DRINK Many FOOD playfully DRINK added FOOD “James DRINK Beard FOOD was DRINK FOOD sionDRINK blew FOOD me off DRINK like I was FOOD not wor DRINK- Portlanders FOOD DRINK were a FOOD bit pissed DRINK when FOOD a graduate DRINK tooFOOD so we DRINK need toFOOD make DRINK FOOD thy.DRINK I did FOOD find a DRINKnumber FOODand found DRINK the FOOD hip hop DRINK pizza barFOOD Pream DRINK closed FOOD him DRINK proud”. FOOD DRINK FOOD DRINK th FOOD theDRINK scoop FOOD on these DRINK elusive FOOD pies DRINKafter FOOD a pretty DRINK short FOOD run on DRINKSE 11 . FOOD DRINK FOOD DRINK FOOD DRINK which are delivered to these three It is back with the name the Associ- FOOD establishmentsDRINK FOOD by DRINK foot and FOOD come DRINK as ated FOOD and isDRINK under theFOOD guidance DRINK of FOOD DRINK FOOD DRINK FOOD DRINK FOOD bigDRINK heavy FOOD square DRINK concoction FOOD that DRINK one FOOD of most DRINK successful FOOD restaurant DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD willDRINK easily FOOD satisfy DRINK 5-6 mouths. FOOD “Our DRINK groups FOOD in DRINKthe city, FOODThe Lightning DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD firstDRINK inspiration FOOD DRINKwas actually FOOD leftover DRINK Bar FOOD Collective, DRINK who FOOD also dreamed DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD pizza,”DRINK says FOOD Richard DRINK Corey FOOD who runsDRINK up FOOD and executed DRINK the FOOD millennial DRINK FOOD DRINK FOOD DRINK FOOD DRINK Ranch with his buddy Eric Wood. oriented upscale sports bar, Century FOOD DRINK FOOD DRINK FOOD DRINK FOODth DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK “We love really good pizza that you up on 8 and SE Sandy. While the Get going and check some of these FOOD canDRINK reheat FOOD in a cast-iron DRINK panFOOD and DRINK cracklin FOOD pizza DRINK oven FOOD is still there,DRINK FOODplaces DRINK out and FOOD I know DRINK I have FOOD even DRINK FOOD ovenDRINK and FOOD it gets DRINKa little char FOOD and DRINKis the FOOD motif hasDRINK become FOOD a little DRINK more FOODmissed DRINK a couple FOOD other DRINK well regardFOOD- DRINK FOOD crispy”.DRINK TheFOOD model DRINK is Detroit-style FOOD DRINK laid FOOD back butDRINK cocktails FOOD which DRINK were FOODed optionsDRINK thatFOOD have DRINK been around FOOD DRINK FOOD whichDRINK I hadFOOD never DRINK heard FOODof but I DRINKa bigFOOD part DRINKof Pream FOOD are still DRINK intact FOODfor aDRINK bit or coming FOOD spotsDRINK such FOOD as the DRINK guess is the trendy thing in the but food is moving farther afield FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOODrestaurant DRINK Rue FOOD in the DRINK bottom FOOD of the DRINK pizzaverse right now. These guys with lots of taco options, salads and apartment complex at SE 10th and FOOD playedDRINK around FOOD for DRINK months FOOD with dif DRINK- some FOOD greasy DRINK but tasty FOOD looking DRINK ap- FOODAnkeny; DRINK Heralded FOOD Russian DRINK restau FOOD- DRINK FOOD ferentDRINK recipes FOOD and DRINK combos FOOD but have DRINK petizers. FOOD DRINK FOOD DRINK FOODrant DRINK Kachka’s FOOD big expansion DRINK FOODinto the DRINK hit the sweet spot which I can attest LOCA development: Also I wanted FOOD DRINK FOOD DRINK FOOD DRINKWashington FOOD DRINK High FOOD Gets DRINK a FOOD DRINK FOOD DRINK FOOD DRINK FOOD toDRINK which FOOD is kind DRINKof a thick FOOD sheet ofDRINK FOOD DRINK FOOD DRINK FOODto give DRINK a take FOOD on exclusive DRINK (Only FOOD DRINK nirvana that is both chewy with a Big New Food Option FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOODopen DRINK Friday-Sunday) FOOD DRINK Holdfast FOOD Din- DRINK crispy crust with a sauce that feels ing inside the Eastbank Lofts at 537 Already a swinging success with FOOD likeDRINK it came FOOD out ofDRINK ripe tomato FOOD an DRINK FOOD DRINK FOOD DRINK FOODSE AnkenyDRINK butFOOD have DRINK yet to crack FOOD its DRINK New Season’s corporate headquar- FOOD hourDRINK earlier. FOOD “The DRINK owners FOOD of each DRINK FOOD DRINK FOOD DRINK FOODvery DRINK booked FOOD reservation DRINK list. FOOD The DRINK ters and probably the best music place were really happy to get real- Central Eastside really sets the bar FOOD DRINK FOOD DRINK FOOD DRINKvenue FOOD in theDRINK city with FOOD Revolution DRINK FOOD DRINK FOOD DRINK FOOD DRINK ly good food, especially good food high for some of the best food op- FOOD DRINK FOOD DRINK FOOD DRINKHall, FOOD the renovated DRINK FOOD Washington DRINK FOOD DRINK FOOD DRINK FOOD DRINK that can be delivered right there so tions in Portland! FOOD DRINK FOOD DRINK FOOD DRINKHigh FOOD is completing DRINK FOOD the develop DRINK- FOOD DRINK FOOD DRINK FOOD DRINK people wouldn’t have to leave their FOOD barsDRINK to it” FOOD Corey DRINKsaid. FOOD DRINKment FOOD circle DRINK with a FOODmondo DRINKsize FOODIconic DRINK Portland FOOD DRINK Food FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK300 FOOD seat newDRINK dining FOOD establish DRINK- FOOD DRINK FOOD DRINK FOOD DRINK ment; Buckman Hall. This place just Brand, Salt & Straw goes FOOD AlsoDRINK on theFOOD pizza DRINK front is FOOD Virtuous DRINK FOOD DRINK FOOD DRINK FOODBig DRINK in the FOOD Central DRINK Eastside FOOD DRINK Pie which just opened in the same opened in the northwest bottom FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK part of the Hood in the Ford Build- corner of the old high school build- Lemongrass Curry; Pear & Blue FOOD ingDRINK annex FOOD at SE 12DRINKth and FOODDivision DRINK ing FOOD and has DRINK a great FOOD outdoor DRINK patio FOODCheese; DRINK Arbeqwina FOOD DRINKOil; Black FOOD Olive DRINK FOOD (acrossDRINK from FOOD Apex) DRINK this concept FOOD isDRINK area. FOOD The foodDRINK will FOODbe all over DRINK the FOODand DRINK Goat Cheese; FOOD Pinot DRINK Noir FOOD with DRINK FOOD aDRINK meat and FOOD dairy DRINK free which FOOD on the DRINK tasty FOOD culinary DRINK map FOODbut will DRINK be big on FOOD Oregon DRINK Ham. FOOD Sounds DRINK like some FOOD DRINK the often used description of “com- FOOD surfaceDRINK sounds FOOD challenging DRINK FOOD and likeDRINK FOOD DRINK FOOD DRINK FOODgreat DRINK courses FOOD at one DRINK of Portland’s FOOD DRINK saying a burger place is dishing up fort food”. The Mississippi Studios FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOODbetter DRINK dining FOOD establishments DRINK FOOD or your DRINK great burgers with no meat or a guys who run the concert venue Wolfgang Puck wannabe neighbors FOOD bun.DRINK But FOODthis Vancouver DRINK BCFOOD based DRINK have FOOD been DRINK instrumental FOOD is DRINKrecruiting FOOD dinner DRINK party FOOD menu. DRINKWRONG. FOOD These DRINK FOOD DRINK FOOD DRINK company FOOD DRINK the FOOD concept DRINK and the FOOD three DRINKguys run FOOD- are DRINKfreaking FOODice cream DRINK flavors FOOD that DRINK FOOD DRINK FOOD DRINK has FOOD had DRINKning FOOD the operation DRINK FOOD as a compliment DRINK FOOD many DRINK might FOOD initially DRINK wince at FOOD trying DRINK to their shows. “After interviewing FOOD DRINK FOOD DRINK success FOOD and DRINK FOOD DRINK FOOD DRINK FOODor thinking DRINK wouldFOOD hit DRINK the sweet FOOD DRINK puts some us, they liked our ideas and what FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOODspot DRINK of their FOOD taste buds DRINK but almostFOOD DRINK interesting we wanted to do and these busi- every time these strikingly strange FOOD DRINK FOOD DRINK stuff FOOD on DRINKnesses FOOD will DRINK really complement FOOD DRINK each FOOD ice creamDRINK combinations FOOD DRINK hit itFOOD out of DRINK FOOD theseDRINK pies; FOOD look forDRINK tempeh FOOD bacon, DRINK other FOOD for allDRINK the people FOOD that DRINK come toFOOD the DRINKpark. Thus FOOD the appeal DRINK and FOOD the DRINK FOOD jackfruit,DRINK FOOD“cheeses” DRINK coming FOOD from DRINKthe FOOD shows DRINK and want FOOD a before DRINK or af -FOODreason DRINK for the FOOD blossoming DRINK of FOOD one of DRINK ter place to settle in and have great FOOD veganDRINK lover FOOD ingredients DRINK likeFOOD ca- DRINK FOOD DRINK FOOD DRINK FOODPortland’s DRINK most FOOD recognizable DRINK FOOD and DRINK shew, almond ricotta and tofu food and atmosphere and we will FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOODrepresentative DRINK FOOD food DRINKcompanies FOOD and DRINK feta. Really? Ok. Let’s keep an be big enough to handle big groups more importantly…brands..Salt & FOOD openDRINK mind. FOOD DRINK FOOD DRINKwhich FOOD is hard DRINK to find FOOD in Portland” DRINK FOODStraw DRINK Ice Cream. FOOD Born DRINK in 2011 FOOD by DRINK FOOD DRINK FOOD DRINK FOOD DRINKsays FOOD David DRINK Regan (formerFOOD DRINKowner FOODtwo DRINK restless FOODbut energetic DRINK and FOOD cre- DRINK FOOD WeDRINK are not FOOD quite DRINK done with FOOD Pizza, DRINK of FOODItalian restaurants DRINK FOOD Tucci DRINKand FOODative DRINK cousins, FOOD Kim and DRINK Tyler FOODMalek DRINK as another spot that started as one Fenouil) who also added that his FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOODwho DRINK are now FOOD moving DRINK Salt & FOODStraw DRINK PAGE 25 FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK into other West Coast markets with their growth in the close in area “We may also become one of their FOOD 5DRINK stores inFOOD LA and DRINK two coming FOOD to DRINK but FOOD getting DRINK that size FOOD chunk DRINK of space FOOD biggest DRINK customers FOOD for DRINK their products FOOD DRINK FOOD SanDRINK Francisco FOOD and DRINK one just FOOD opened DRINK with FOOD parking; DRINK truck FOOD staging DRINK and FOODas part DRINK of establishing FOOD DRINK some FOODcred- DRINK FOOD inDRINK Seattle. FOOD If you DRINKsaw where FOOD they DRINKpotential FOOD forDRINK expansion FOOD is someDRINK- FOODibility DRINK and solidify FOOD their DRINK customer FOOD DRINK FOOD wereDRINK and FOOD what theyDRINK do in FOOD the claus DRINK- what FOOD of a winningDRINK FOODlottery ticket.DRINK The FOOD base. DRINK We had FOOD so many DRINK people FOOD help DRINK trophic space off SE 7th you will FOOD DRINK FOOD DRINK FOOD DRINKbuilding FOOD located DRINK two FOOD blocks DRINK from FOODus soDRINK it is natural FOOD that DRINK we give FOOD back DRINK need to rub your eyes to see how it the Bridgehead was built in the and make an effort to help grow FOOD isDRINK even possible. FOOD DRINK Well that FOOD is chang DRINK- 1990’s FOOD by DRINKMichal MyersFOOD for DRINK his pro FOOD- the DRINKwonderful FOOD web ofDRINK food entre FOOD- DRINK FOOD ing…fast…andDRINK FOOD onDRINK a huge FOOD scale. SaltDRINK duce FOOD distribution DRINK company, FOOD DRINK Coastal FOOD preneurs DRINK in theFOOD city” DRINK Malek hopes.FOOD DRINK FOOD &DRINK Straw FOODinked a DRINKlong term FOOD lease DRINKBrokers FOOD and DRINK then was FOOD rented DRINK to FOODAnother DRINK component FOOD DRINK and stipulation FOOD DRINK FOOD lastDRINK year FOODfor an imposing DRINK FOOD28,000 DRINKsf national FOOD produce DRINK company FOOD DRINK Lip- FOODof the DRINK PDC help FOOD is an DRINK aggressive FOOD DRINK building in the Produce Row area of FOOD DRINK FOOD DRINK FOOD DRINKman FOOD who boughtDRINK Myer’sFOOD business DRINK FOODhiring DRINK program. FOOD S & DRINK S hopes FOOD to add DRINK the Central Eastside on SE 2nd. With 5 years ago. Malek also mentioned up to 20 new employees with their FOOD $2DRINK million FOOD in improvements DRINK FOOD now DRINK al- that FOOD being DRINK across the FOOD street DRINK from FOODnew DRINK 4 times FOOD larger facility.DRINK “We FOOD DRINK FOOD mostDRINK done FOOD this buildingDRINK willFOOD be their DRINK friends FOOD and DRINK fellow foodFOOD operations DRINK FOODput DRINKour new FOOD employees DRINK through FOOD a DRINK FOOD headquarters;DRINK FOOD production; DRINK FOOD distribu DRINK- of FOODOlympia DRINK Mills and FOOD New DRINKSeason’s FOOD great DRINK and extensive FOOD DRINKtraining FOODpro- DRINK FOOD tionDRINK and FOODR & D home. DRINK “We’ve FOOD been DRINK commissary FOOD DRINK kitchen FOOD was a DRINKbig plus FOODgram DRINK covering FOOD food DRINKsafety; leader FOOD- DRINK looking and looking for an expand- FOOD DRINK FOOD DRINK FOOD DRINKand FOOD validation DRINK of the FOOD decision. DRINK FOODship; DRINK marketing FOOD and DRINKmore. We FOOD also DRINK ed location and wanted to stay in hope to add to the diversity of our FOOD theDRINK city ofFOOD Portland, DRINK and betterFOOD yet DRINK Another FOOD big DRINK component FOOD of DRINK this FOODworkforce DRINK and FOOD potentially DRINK using FOOD our DRINK FOOD hopingDRINK to FOOD stay in DRINK Southeast FOOD because DRINK investment FOOD DRINK and move FOOD is the DRINK assis- FOODtraining DRINK program FOOD for DRINK other targeted FOOD DRINK FOOD that’sDRINK where FOOD we DRINKare currently FOOD with DRINK tance FOOD of the DRINK Portland FOOD Development DRINK FOOD groups DRINK as a FOODway to getDRINK them FOOD ready DRINK FOOD ourDRINK kitchen FOOD and ourDRINK employees FOOD live DRINK Commission FOOD DRINK which FOOD is providing DRINK FOODfor employmentDRINK FOOD in theDRINK food indusFOOD- DRINK near and love the area. It took a lit- FOOD DRINK FOOD DRINK FOOD DRINKsome FOOD tax credits,DRINK grantsFOOD and DRINK fi- FOODtry andDRINK beyond. FOOD “Malek DRINK offers. FOOD S&S DRINK tle more than two years to find that nancing. “When I first started Salt offers an attractive package of pay FOOD combinationDRINK FOOD and DRINK we were FOOD able toDRINK & FOODStraw back DRINK in 2011, FOOD we DRINKwere FOODand DRINK benefits FOOD not to DRINKmention FOOD lots of DRINK FOOD secureDRINK a FOODlease on DRINK this space, FOOD which DRINK $40,000 FOOD short DRINK to be FOOD able to DRINK open FOODfree DRINK ice cream. FOOD Their DRINK new facility FOOD is DRINK FOOD isDRINK bigger FOODthan we DRINK needed FOOD but we’re DRINK on FOOD Alberta DRINK Street and FOOD they DRINK gave FOODnow DRINK up and FOODrunning DRINK and yes FOOD they DRINK FOOD excitedDRINK weFOOD are going DRINK to beFOOD able toDRINK me FOOD a loan DRINKto get that FOOD store DRINK open. FOODare DRINKlooking atFOOD putting DRINK a small FOOD scoop DRINK make it work.” Says Kim Malek. FOOD DRINK FOOD DRINK FOOD DRINKNow FOOD here DRINKwe are atFOOD our next DRINK phase FOOD shop DRINK in the buildingFOOD DRINK when they FOOD DRINK S & S will be occupying 18,000 sf of growth and they are partnering have seen how many apartments FOOD withDRINK 10,000 FOOD sf left DRINK over for FOOD a sub -DRINKwith FOOD us. You DRINK do not FOOD get to DRINKsay very FOOD and DRINK new development FOOD DRINK occurring FOOD DRINK FOOD leaseDRINK which FOOD they DRINK were able FOOD to lease DRINK often FOOD that DRINKthe City FOODhas been DRINK there toFOOD nearby. DRINK With FOOD Towne DRINK Storage FOODall DRINK FOOD toDRINK long time FOOD friends DRINK and anotherFOOD DRINKinvest FOOD in you, DRINK and theyFOOD have DRINK been FOODleased DRINK up and FOOD the great DRINK projects FOOD at DRINK FOOD iconicDRINK Portland FOOD food DRINK brand, FOOD Stump DRINK- there FOOD time DRINK and time FOOD again.” DRINK Malek FOODthe DRINKBurnside FOOD Bridgehead DRINK and FOOD all the DRINK town Coffee. It was a good blend of FOOD DRINK FOOD DRINK FOOD DRINKhappily FOOD related. DRINK As FOOD part of DRINKPDC’s as FOOD- new DRINK and coming FOOD restaurants, DRINK FOOD it is DRINK cultures and mission. The produc- sistance Salt & Straw will be partici- not strange to think this area could FOOD tionDRINK and FOODdistribution DRINK in this FOOD new DRINKpating FOOD in anDRINK entrepreneur FOOD programDRINK FOOD be ourDRINK own andFOOD much DRINK more FOODcool DRINK FOOD facilityDRINK could FOOD potentially DRINK supportFOOD DRINKthat FOOD has them DRINK working FOOD with DRINK two or FOODrendition DRINK of FOODNW 13 thDRINK where inFOOD the DRINK FOOD andDRINK serve FOOD up to 25DRINK retail FOODstores. DRINKthree FOOD artisan DRINK food manufacturersFOOD DRINK to FOOD evenings DRINK the FOOD pedestrian DRINK traffic FOOD is DRINK FOOD SaltDRINK & Straw FOOD really DRINK want toFOOD continue DRINK help FOOD them DRINK get to the FOOD “next DRINK level”. FOODubiquitous DRINK and FOOD jumping DRINK from FOOD place DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOODto place. DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKParking FOOD DRINK in the FOOD Central DRINK Eastside: FOOD DRINK FOOD DRINK FOOD DRINKPARKING FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOODMore DRINK Meters; FOOD LessDRINK Permits FOOD DRINK and HigherFOOD DRINK Fees… FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOODFirst DRINK a Bit ofFOOD Background DRINK FOOD DRINK FOODside. The DRINK jist of FOODthe story DRINK is that the FOOD Central DRINK Eastside FOOD has DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOODand will DRINK continue FOOD to grow, DRINK expand FOOD and develop DRINK at a FOODvery DRINK FOOD IDRINK thought FOOD twice about DRINK this headlineFOOD DRINK as smacking FOOD a bit DRINK of FOODhealthy DRINK clip. With FOOD over 2000DRINK apartments FOOD hereDRINK or under FOOD DRINK FOOD justDRINK being FOOD a bit too DRINK negative, FOOD but maybe DRINK more FOOD importantly DRINK FOODconstruction; DRINK several FOOD hundred DRINK thousand FOOD feet DRINK of new FOOD offices DRINK FOOD itDRINK does not FOOD explain DRINK the whole FOOD story andDRINK actually FOOD with DRINKa bit FOODand older DRINK industrial FOOD buildings DRINK being FOOD renovated DRINK into FOODmore DRINK FOOD moreDRINK digging FOOD these DRINK occurrences FOOD are DRINKa natural FOOD evolution DRINK FOODintense DRINK uses means FOOD hundreds DRINK if not FOOD thousands DRINK more FOOD people DRINK FOOD ofDRINK the growth FOOD we DRINKare experiencing FOOD inDRINK the Central FOOD East DRINK- FOODwill be DRINKworking FOODand living DRINK in the CentralFOOD Eastside.DRINK FOODMany DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKPAGE FOOD 26 DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK of these new neighbors and employees process in 2010-2011. They took a will drive and own cars and will need comprehensive look at the Central • Restricting residential permits places to park and many of these new Eastside’s parking facilities; how they to make more spaces available for em- projects will not have much parking are used; and how these resources can ployees but establishing two different on site ( it is very expensive) for the help retain and expand access to busi- parking districts (Zone G for industri- residents and employees that will be nesses by putting every parking space ally zoned areas and Zoned for mixed living and working in their develop- to its best use. use zones) ments. The fact is that there is much Peter Stark no longer the director of • Strategically placing meters at more demand for a finite amount of areas where their impact serves the parking spaces and this will only get the TPAC (sadly moving on ) and one of multiple leaders who got this ball use in that particular area. We have to exacerbated as the district continues to understand that meters are inevitable. grow and more people live and work rolling has been there every step of the way in a process that has helped to The TPAC and those involved have in the Central Eastside. So instead worked with PBOT to make the roll of looking the other way and letting understand current parking resources and how they best can be utilized to out of meters organized, sensible and this situation turn into an evitable well communicated. situation of stressful parking anarchy, serve a growing demand for spaces. forward thinking Central Eastside Now 6 years in many changes have For you who are not attuned to this stakeholders along with partners at occurred in how we manage parking in history and all these parking nuances the Portland Bureau of Transporta- the district but to many who live, work you understand the two most impact- tion started thinking that a formalized and own property and businesses, it ful actions that came out of these structure of managing and to a larger has been a somewhat painful transi- “accomplishments”: The installation of degree smartly rationing the precious tion. But we have to realize parking meters in selected areas of the district resource of parking was crucial to get was basically cheap and relatively and some rather healthy increases in out in front of this challenge, thus abundant for many years. Peter out- costs and restrictions to the annual the creation of the Central Eastside lined a few of the more compelling parking permit program. Change is Parking Management Plan back in events in this parking timeline. hard but often times is necessary in 2012. Basically it is more specific order to manage and minimize nega- moniker for a broader generic entity • Allowing business and property tive impacts to an agreed upon prob- that has been around for quite some owners to control their own destiny lem. So when meters were installed time and employed in cities nationally; through the formation of the TPAC along main streets like Grand, Burn- Transportation Management Associa- which is under the control of the side and MLK a couple years ago and tions (TMA). These associations are Central Eastside Industrial Council. then permit fees were significantly in- most often public/private partnerships This gives stakeholders in the district creased this past year, there was signif- formed so that employers, developers, real and concrete input into manag- icant blow back about the “inordinate” building owners, residents, and gov- ing parking resources in the Central costs and impacts of these policies will ernment entities can work collectively Eastside rather than having the city have especially to smaller businesses to establish policies, programs and being the final arbiter and designer of and their employees who see this as services to address local transportation these important parking decisions and a big cost they cannot afford and felt issues and foster economic develop- programs. was arbitrary. Also larger employers ment. While the word “Transporta- saw the amount of parking permits tion” permeates this generic term, • Developing detailed and ac- they can now obtain curtailed where many times the over-reaching issue curate information about the parking sometimes dozens of their employees that these associations endeavor to resources in the district: where these have few or no options for parking in manage effectively is PARKING. parking spaces are, how they are used the district. Though not often loudly and how this very finite supply can voiced, it is understood that the long Thus the more appropriate term you be best utilized to serve the users in term implicit goal of these actions of see more often in our neighborhood is the district. This is big as you cannot making parking more restrictive and the Transportation Parking Advisory utilize a precious resource unless you expensive is to move users to employ Committee (TPAC). With foresight know what you have, how it is used the use of alternative transportation and a good crystal ball to see the com- and what is the scope and type of options; bus; trolley; bike; car pool etc. ing parking issues in the Central East- demand. Previously the permit and I know getting people to not drive and side, a diverse group of property and on-street parking in the Central East- to take alternative transportation is in business owners, CEIC members, and side was poorly managed and accurate many minds akin to violating a basic adjacent neighborhood groups met 12 information was not available. human right but at some point it must times during the course of a planning PAGE 27 Continue on next page... bike routes; car share options and Where is the several more. Hopefully you were able Money Going? to be part of this outreach and put PARKING your two cents in as these transpor- Yes, parking permit fees are going tation issues are at the forefront of up…way up so where is that money challenges to keep the Central East- happen to a larger degree for the going. “We have done a lot with the side viable and a place where business, Central Eastside and other areas of limited funds we have been receiv- employees and customers can continue the city to remain functional and pro- ing such as collecting better data that to operate and grow. There is also ductive. This is occurring in cities all has led to increasing overall on-street an agreement with PBOT regarding across the globe. So let’s look at some parking stalls; reduced rates on the splitting up of the net parking meter of the more impactful current policies streetcar; advocated successfully for revenue which should be growing over that are in place and are coming: better freight access and mobility and time as more and more meters are moved ahead planning and direction being installed in the district. Techni- • Permits for the smaller Zone on a new ped/bike bridge over I-84. cally like in other downtown parking N which is located along most of But with increasing permit fees we impaired areas like Lloyd, Pearl and the commercial corridors (mixed use have a real opportunity in the com- Northwest, 51% of the parking rev- zonings) can only be renewed by ing years to invest in real projects to enue will go back into the district for residents and employers who bought help business and property owners an assortment of transportation relat- permits the previous year so if a to remain viable and thrive” says past ed projects which run the gamut from permit older leaves or does not renew TPAC president Peter Stark. This more bus shelters, curb extensions or their permit a new business or tenant year that number is $617,000 and better pedestrian or bike facilities. I in this same area cannot get a permit with the increasing fees that could think I am not alone in being a big thus providing the objective of reduc- jump considerably in the next couple proponent of both of these aforemen- ing permits in this area over time. of years. So TPAC has been reach- tioned revenue sources being targeted ing out to everyone in the Central to get more parking which means • Permit Stalls will continue to Eastside to get their input on what mainly funding a garage or some sort be replaced by time stay or meters priorities they have regarding parking off street solution but these are by far over time but initially the meters are and transportation in the district and the most expensive solutions. So look- only going to replace time stay spaces. how best to use these resources. These ing at how to incentivize people to use Over 60 new meters were installed choices in a recent email questionnaire other forms of transportation will be a last summer. Consistent and accurate mention: structured parking; more off big part of spending these additional street parking options such as stackers; dollars because those sorts of carrots annual data collection of parking uti- improved freight mobility; subsidized and programs are much more immedi- lization will eventually lead to further and more transit options; enhanced ate and less expensive. attrition of permit stalls. • Parking permits for both park- ing zones (Zoned G & N) have been reduced to 70% of full time employ- More Meter Info ees (FTE) down from 85%. Further I know you are not thrilled about a large batch of meters coming near you in FTE percentage reductions will most the Central Eastside but here are a few more details. The new meters in this run likely occur based upon anticipated are only being placed on time stay spaces so none of the much coveted permit higher parking utilization rates. spaces will be affected... For now. The 60 new meters (we presently have 50) all were installed last June so you may have already used one of these new gizmos Annual guest permits will no • by the time you read this. And yes they are the new updated techy ones which longer be available. does away with the paper ticket hassle. “Over half the calls we get for service on • Permit Fees have increased this meters has to do with the printer or it being out of paper. We spent a lot on paper year to $210 with a fee increase next and these new Pay by Plate will really eliminate that problem along with giving year to $310 us more up to date information and help in enforcement” says PBOT Parking Manager Chris Arms. So basically you go plug in your plate number to the ma- You have to realize that these chine and pay for whatever time you like and you are done. That information decisions were not easily made goes up the “cloud” and when so those dreaded meter readers come by, they can and came with considerable pull up your information by the plate and check to see if you are legal. You will discussion, analysis of parking also be able to pay with an app on your phone too. These meters are proven and data and input from a whole host in use in several cities already with some good results making the system much of people in the Central Eastside. more efficient. As information comes in from warranted districts additional meter installations are to be expected. PAGE 28 Central Eastside Employee Commuter Survey Report I found this recent report done by PBOT very interesting and telling. This online survey was done last summer to learn how Central Eastside employees get to work and what types of issues they face when commuting and parking. There were 750 survey responses. Employees of 125 businesses took the survey. More than one third live within 5 miles of the district. 72% of respondents drove to work alone each day which is more than the 57% for the entire city. 83% say they commute the same way every day. The takeaway from this information was that with such a high percentage of single occupancy vehicles coming into the district there also with a healthy amount of respondents open to other modes. From this data come the following recommendations; • Create a carpool network especially among larger employees. • Leverage and continue the $50 streetcar pass program • Work with the new BIKETOWN (you have seen the the orange bike rentals around the city) • Incentivize biking with to offer discounted gear such as lights; reflective vests and address other bike safety issues to make commuters more comfortable. • Research and potentially develop a program for providing low cost Trimet Passes.

Initial preliminary costs for these programs would be in the range $72,000. So if that 72% of commuters driving alone into the district can be reduced by several percentage points it could make a big difference.

Got a Parking Opinion or Input? Juliana Lucasik has replaced Peter Stark as the President of the Transportation and Parking Advisory Committee, and now is the so called Central Eastside Parking “czar” (she would say without the power) does want to hear from businesses and property owners about their parking woes, opinions, viewpoints etc. She has a thick skin and is doing a great job in a tough situation and though she, many times has to be the messenger of some challenging news, she really listens and responds to every concern. She is also a great contact for the enhanced services district ESD being proposed and covered on page one.

Juliana’s email for your parking question, comments or suggestions (ESD too) is [email protected] Be patient and kind with her as she is shouldering lots of projects and responsibilities but she is great at giving you accurate and honest information and feedback!

PAGE 29 Community Center at Washington High…Where Are We? such declining enroll- work and there was lots of outreach ment. A fun fact is that to get a more specific design, site initially Cleveland, not layout and breakdown of uses with Washington High, was the hope of an upcoming bond levy slated for closure but the might be able to provide funds for Cleveland H.S. prop- construction in the not too distant erty had been donated future. Multiple options came out by an early Portland of the process with combinations of pioneer, Clinton Kelly, using the former school building as who designated that part of the community center and Remember this one? Washington his property be used exclusively for one that was stand alone which had High School has been closed now a school. Realizing this, PPS made its challenges mainly being that PPS since 1981 and talk and discussion the decision to close Washington still controlled the building. But the ever since led by adjacent neighbor- High instead in 1981. For the next general use outline of the site includ- hood groups has been occurring to 20 years the building was used for ing over 60,000 sf of space encom- strategize in finding a higher and school district administrative offices passing a combination of acquatics better use for a key publically owned and various programs but finally in facility; classroom/workout rooms; property adjacent to a gentrifying 2003 it was considered surplus by child care; indoor track; lockers/ neighborhood and huge and grow- the school district. bathrooms and large gymnasium ing employment center of the Cen- to the tune of $47 million in what tral Eastside. It has been a bit of a The southeast community mainly was the Concept Plan. The site got a “trail of tears” in that there has been centered in the Buckman neighbor- Master Plan conditional use approv- lots of work, excitement, disappoint- hood was very proactive with PPS in al in 2012 for a community center ment, to some a broken promise or a first advisory committee to accom- on the site that is good for 10 years. two and years of waiting but like plish some significant programming With the Parks Department shelving usual it often is a function of money. for a community center and then ad- a bond measure, PPS could not wait vocated for a purchase of 4.5 acres around to try and work with Parks Washington High has been around of the site by the city. The city paid on a project so they had to jump and since 1906 and was originally named $4.5 million in 2012 with the inten- try to derive some sort of value out the “Eastside High School” and has tion of using the underutilized land of the existing Washington High been at the SE 14th and Stark loca- which was the old football field and Building. There were multiple inter- tion since 1924. It thrived and was track for a community center when ested buyers for the historic old high a community hub of education, funds came available. The School school building but it was not an activity and sports. Washington had District kept control of the old three easy project to understand as it has some very notable alumni, with the story school building which was significant structural needs; had a only two time nobel prize winner always envisioned as housing by the huge auditorium in the center of the Linus Pauling being the most well neighborhood and additional 1.3 space and big somewhat inefficient know graduate, as well as, former acres of land along SE Morrison hallways not to mention buyers were governor Aic Atiyeh, culinary icon but gave parks a five year option to still smarting from the recession. James Beard and civic developer Bill purchase the excess land. In 2009, Art DeMuro of Venerable Proper- Naito. But like many cities during Portland Parks received a HUD ties whose love for older buildings the 60’s and 70’s which saw a dimin- grant to form a 2nd advisory commit- was only exceeded by his expert ishing population of especially of tee to develop a scope and program ability to piece together complicated school age kids in the urban central for a facility on the city owned prop- real estate developments came out core, Washington High suffered a erty. SERA architects did tons of the winner mainly due to his vision slow decline in and success on enrollment to less other similar older than 800 students renovation projects by the 70’s. (mainly the U of Portland Public O campus in Old Schools did not Town). Sadly less have the resources than 8 months to keep all the high after he had his schools open with PAGE 30 Long owned by the Nase family, the full block has an older two story agreement to buy Three Key Sites Under office somewhat worn office build- Washington High, ing but does have Mad Sons a nice Art succumbed to Contract for Development neighborhood bar and one of my cancer putting the favorite spots, Tony Starlights in a project into the hands I know I have spent a bit of time in this small older family, the full block has of his partner Craig newseletter talking about some current an older two story office somewhat Kelly that has his Art DeMuro market (and government forces) that worn office building but does have hands full keeping all circa 2009 may pump the brakes on development Mad Sons a nice neighborhood bar of Art’s balls in the air, in the Central Eastside but then low and and one of my favorite spots, Tony behold multiple new developments are Starlights in a small older ballroom but was able to bring in heavy hitter in the works that basically runs counter in the building. The building and the PacTrust to help get Art’s vision off to my “calming” or “plateauing” prognos- associated adjacent parking lot and the ground. Though housing in the tications of new development. My con- half block across the street are under building ended up not making the cut tention that with all the new apartments contract to be redeveloped into 72 (much to chagrin of many involved coming in the core area and the city’s apartments and 66,000 sf of “maker” from the beginning), Washington very restrictive inclusionary zoning policy space. Again all fairly preliminary as High hit the market perfectly with the that new development for apartments the pre-applications with the city just Central Eastside really blossoming might take a pronounced “breather”. occurred and many hoops to jump and creative space demand hitting the Additionally with 1.5 million new square through, bars to clear and banks and feet of office under construction or soon investors to appease before anything upswing. The commitment of New to start in the city and over 300,000 in happens. But with the redevelop- Seasons for their HQ space was the the Central Eastside that this market ment of the Custom Blocks a block anchor along with several other local segment might also find a way to hit the away and locally grown business soft- firms, including a popular restaurant, “pause” button. But…NO! Here a few of ware company AltSource redevelop- taking all of the space almost before these “Damn the torpedos” projects in ing the former WL May company next the beautiful renovation opened. The the works but it must be stressed all are door this node around Hawthorne th th auditorium in the middle of the build- in the early stages and have a long ways and 11 /12 could really be another ing was smartly preserved and upgrad- to go to a shovel turning or even buying jumping spot of uses and of course the land they have in contact. tons more jobs and companies that ed and now is one of the city’s best what exists there now. music venues even though on concert 203 NE Grand Avenue. This 22,000 sf site nights parking runs rampant around zoned EX is made up of two parcels with Mr. Formal Owner Selling Off the surrounding neighborhood. one owned by the Stark’s Vacuum folks Central Eastside Real Estate Washington High on almost every and is basically a parking lot fronting level is a development homerun which along SE MLK two blocks north of Burn- I remember my powder blue tux with makes the vacant field now used as a side and another parcel fronting on NE ruffles fondly. It was kind of a joke a few dog park even a bit more melancholy Grand of 9000 sf home to the Autobella buddies and I had when we picked the detailing shop. The pre-application lists most kitschy and brightly color tuxes for a and a bit of travesty given all the work 156 units in a seven story building with formal dance decades ago during a hiatus and effort to get a much needed com- 8500 sf of retail and 46 parking spaces. from college (at least I did not get stuck munity center built. So it sits wait- As mentioned previously anticipated land with the pink one!) We of course went ing for Portland Parks to figure out acquisition costs will be in that $250ish to Mr. Formal to execute our charade. Ed Honeycutt the founder and owner has how to cobble together the funding psf range Fairfield is the developer. been the facilitator of this much needed which looks to be close to $60 million attire for thousands of weddings; proms to provide a community center and 234 SE Grand Avenue. Just south is a and other life events for close to 35 years corresponding park for an area that is 20,000 sf property owned by one of with his Mr. Formal chain of stores. At the Shleifer Furniture clans and has a one time he grew the chain to over 50 growing rapidly and becoming much building with a gay bath/steam operation stores in multiple states but found that more dense thus making this type of called Hawks(don’t look up the reviews it was way too much work and tough facility more needed than ever. Now is on the web...might make you a bit to manage and then he hit some tough the time people believe to finally move queasy) and then a vacant building which economic headwinds over a decade this site forward towards construction used to house a great fishing gear repair ago, so he sized it back down to more of an Oregon/SW Washington operation place called Ollie Damons. Talk about of a community center. which it is today. Ed was looking out into polar opposites. Anyhow the pre-appli- the horizon that hopefully had far less cation for this site lists a 7 story 108,000 work, stress and more time for family and sf office building layout with 6000 sf of pastimes and has been looking for ways to retail and 46 parking spaces. Lincoln start winnowing down his commitments property company is the developer. which combined with the best values for ever for commercial real estate in the Cen- 1120 SE Main: This property entails a full tral Eastside which prompted him to put th up for sale his three key desirable buildings city block and half block along SE 11 and th th in the Central Eastside. His SE 7 small 12 and main just north of Hawthorne. building outlet store has already been sold and his half block tuxedo warehouse on SE Grand and full block site multi-tenant warehouse on SE 2nd and Madison are all PAGE 31 under contract to be sold. MORE Happenings IN THE CENTRAL EASTSIDE

Commons Brewing to Close... San Diego Brewery to Step In I did not see this one coming. Everything seemed to have to explain the beer and kind of sell it, then rather Spartan tasting room where most drinkers had be going swimmingly…award winning beers: a busy you are swimming upstream with lots of people.” to stand up and it was not that family or large group and constant crowd imbibing suds in their tasting But many, when they heard it was shutting here gathering friendly, as well as fairly limited in their room; a bustling brewery operation and one of the nic- this fall, went on to lament Commons’ passing and food selection did not help. They went their own way est and hardest working guys in the local beer scene. potentially a sign of something bigger and maybe a and should have been appreciated and supported for So when I heard Commons Brewing at the corner of bit distressing in the beer world. Common’s operation doing that in Portland which values “different”. The SE 7th and Belmont was shutting down it was a bit was unique and there most likely will not be anything place will not go dark but will be backfilled by a much of a shock. Mike Wright founder/owner of Commons to take it’s place, but because it was different in bigger ‘out of stater’ brewer from Sand Diego that Brewing had a typical but still compelling story of ironically a city that prides itself on being “weird” may Wright has known for some time and respects (a good starting in his garage then moving into a small quickly have been its downfall. How so? Commons did not sign) and forged a deal with to take over the space cramped space on SE 10th then a big leap to buying a take polls of its customers or the larger beer market or and pay him a good rent. Modern Times Brewing is key 10,000 sf building on SE Belmont and establish- gauge the taste buds of the majority of beer drinkers well thought of down south and brings both scale and ing a state of art brewing facility that followed with but rather made beers that were challenging, what financial muscle to the space that now has doubled some great and creative beers and laudatory reception they liked and were interesting and not always in the with them taking over a vacant building next door for by beer aficionados. It was a big bet and done on mainstream where IPA’s, Pilners and Lagers with some more space to encompass over 20,000 sf which is a very “tight budget” as Mike did not have the big rather commonality seem to dominate. They delved good size operation in our micro-brewery dominated backing many talented guys have to weather these into that misunderstood vortex of esoteric beers often scene. The space with the somewhat kitschy name of type of big investments in the fickle beer business in a category with the less than attractive moniker of the “Fermatorium” will have a full kitchen and much which gave him time to establish himself. It came “sour” or the better name of “farmhouse beers which expanded food service along with a coffee roastary down to the basics of debits and credits in the don’t often appeal to the “recreational” beer drinker’s (of course they will). They say this will all be in place crowded Portland beer scene which finally caught up palate and many times needs explanation of its early in 2018. Let’s keep an open mind as most with Mike and Company. “It’s the sinister simplicity origins, ingredients and craft. That does not work on a likely given the location along the hottest corridors of a cash flow problem. Your debt is clearly defined, larger scale when there is a bulk of the customers ask- in the close in eastside with over 1200 apartments but revenue is a rollercoaster” he reluctantly admitted. ing “Which one is the IPA?” Commons was a humble coming on line within 10 blocks, these surfer dudes But this beer amusement ride with the loss of a couple and low key operation that wanted to let the product from Socal with a bigger wallet and more typical of key people especially their brewer had momentum speak for itself and hopefully the drinker eventually beer and food fare will have much more success but downward even as their beers were lauded and loved would come around and understand the quality and Commons’ inventiveness, quality and humility will by most beer geeks. But in the end their beers did not uniqueness of their product. But that only goes so far be missed. Mike says he may “reconstitute” and go resonate with the somewhat homogenized tastes of in a crowded beer scene where most are looking for back to his guerilla brewing roots with a smaller less those who are the larger portion of the beer drinking the familiar, plus their on-site operations where mar- ambitious (and stressful) small operation…we hope public. As one beer writer said, “It is hard to create gins are much better always lagged. That space might so and Mike, you are always welcome in the Central something original in a town of 70 breweries. If you have worked against them from the get go with a Eastside.! Keep it going!

PAGE 32 Do We Need More Daycare in the Central Eastside?

I was at a Central Eastside Industrial Council Board future employees have children in families where both is prompting a bigger discussion on maybe how to Meeting recently and it was brought up by a Board parents work. It hit me a bit recently too, as I have a entice or incentivize developers or daycare operators Member that a company she knew that was growing son with two small children and his wife is a second to establish a daycare facility in the Central Eastside in in the district was lamenting the lack of daycare op- grade teacher and he mentioned to me last spring that order to provide this much needed service as a larger erations near their business for their employees, many the monthly cost of daycare for two small children is effort to help existing or relocating companies that of which had children. She said it was a real problem over $1500 a month…Whoa! I did a quick google need this important amenity. for her employees not to mention recruiting future search of “daycare in the Portland’s Central Eastside” good team members for her company. This was a bit On a list of “10 best daycare centers near the Central of a revelation to me and something I doubt many of Eastside” the closest one I saw was over east of Lloyd us think about in the Central Eastside, city wide and Center…Really? From a pure market perspective if beyond. We seem to be stuck thinking and catering the need was so acute, an operator would figure out to that much publicized millennial job seeker and so a way to find a building and make it happen in the often neglect or fairly realize that many present and Central Eastside, but I don’t think it is that simple. This

Business Watch Starting Up in the Central Eastside The stories were somewhat shocking and dishearten- with lately, Mark Wells. He is the crime prevention which you can get the attention of the city and police ing. “One of my employees was assaulted after work coordinator running both Business Watch and Neigh- to address chronic problems. He says you have to call one evening and someone broker her arm and stole borhood Watch programs for the Office of Neighbor- the non-emergency number (503-823-3333) and her purse” “We have had three break-ins in the last hood Involvement since 2008…not the city police hang in there and make the complaint and be calm, month and found one night a homeless man sleeping he will quickly tell you. With his rapid fire delivery, descriptive but forceful and if you feel your needs in our business” “All of my employees have become knowledge of statistics and how Portland does and are not being heard, or it takes far too long, by all a bit afraid to walk to the bus or their cars after dark. does not work, he is an evangelist for communities to means ask for a superior or sergeant. Otherwise be Many have started carrying guns” “We find feces and take matters into their own hands and bond together the SQUEAKY WHEEL! He also says getting to know garbage in our parking area and often times next to to prevent crime and heighten livability and safety. the officers who have responsibility for your street or the doors of our business every week.” On and on. “I admit the system with the city is broken and neighborhood is key. Find them; introduce yourself; Besides this, I had heard directly from the Autodesk convoluted. The city is reactive not proactive due to exchange numbers; have coffee; get to know them Software folks, who are bringing over 150 employees staffing constraints but also due to historical attitudes” and stay in touch are all important relationship in from the perceived very safe suburbs to the Towne he quickly admits apologetically. He then launches building actions that can be valuable when problems Storage building right at the south base of the Burn- into what people and in this case businesses can do arise. Also, he said fill out the online police report too side Bridge, that many employees, especially women to address their crime and safety issues. “You have to as it helps the police understand trends, geographical are very concerned about their safety at this location. connect with your neighbors and your community and problems and patterns. He threw out some interesting Wow! All of these testimonials were from various begin to develop trust and good communication meth- factoids: Violent Crime has been declining for years businesses that had gathered at the Melody Ballroom ods in which to share information. Coming together in the city but in the last year burglary is up 20%; in August to both vent their frustrations, commiserate and really being observant and also consistent is a vehicle theft is up 40%; and petty crime is up 16% with each other, but more importantly to learn some great foundation and start to be effective and from and though he did not have concrete numbers, we all tips, strategies and preventive techniques to deter there reaching out to the city and the police really know drug use; homelessness and graffiti has been crime and just bad things happening at your place of can make some big positive changes” Wells says steadily increasing for years. One other interesting business hence the city name for it: Business Watch with the conviction of a football coach. He went on fact I learned is that in 1970 with a population of to go through a cursory review of how to coordinate, 382,000 we had 1200 police officers and today with Business Watch has been around for years but never organize and work together so there is a unified effort a population of 640,000 we have just under 900! in the Central Eastside, but as problems have mounted and voice with the city. He also covered what to look That was a bit hard to believe. There are over 20 busi- and more and more businesses (residents too) have for as suspicious activity; how best to report incidents; ness signed up for the Business Watch program in the reached out about some very distressing stories and interact with police; organize your neighbors and how Central Eastside and they are just getting organized situations, it was time to band together and get best to communicate and delegate responsibilities and and more I am sure will be raising their hands to join some veteran help and organization. Spearheaded by duties. He rammed home several times that you have as the more businesses get involved the better the the Central Eastside’s one woman buzzsaw activist, to REPORT REPORT REPORT your crimes and incidents network, coverage and strength of the effort to make Bridgid Blackburn of Cargo, this program needed to the city and the police. He knows that many the Central Eastside safer, secure and thriving. If you to happen as crime and security issues have risen business and individuals don’t do this because they want to get involved touch base with Bridgit Blackburn steadily but also seem to have become more chronic believe it makes absolutely no difference and they at Cargo. and serious in nature. It is run by one of the most are often treated like they are crazy and complainers intense and passionate people I have come in contact when reporting but he went through various ways in

PAGE 33 Property Values and Rents stay stong... begin to stabilize. A good thing.

I always try to address where rents and some good credit for our great quality developers are willing to pay for sites property values are going in the Central of life (though I think the homelessness for apartment projects especially in the Eastside in each newsletter which is a and unaffordability is starting to wear). short term as they begin to understand combination of some fairly imprecise This all has helped move Portland up how the program works and pencils and methodologies: on the ground market national lists for investors and develop- also see that absorption of new units knowledge; a review of recent sales ers. While we saw local firm Capstone is slowing. Gerding-Edlen paid $ 285 (and leases) of properties, understand- Partners get into the market over a year psf for this deal which was forged over ing of local and regional trends affect- ago with a big purchase of the Custom two years ago for their 17 story site right ing development and property values Stamping Complex, we are also starting at the Bridgehead on the Fishels block (interest rates, vacancy rates, economy; to see out of state larger groups also but this more a function of location and government regulations etc.) and then getting in on the action. Westport Capi- the ability to go high with 250’ height some basic “dart throwing” and “crystal tal, a private equity real estate firm that limits and 9:1 FAR and yes they did get ball cleaning”. The lack of precision looks nationally, purchased the Towne in under the IZ rules. That deal will be of this gets even a bit more dicey Storage Building which is undergoing hard to duplicate as such sites with this when you have a place like the Central a $20 million renovation and had its type of density potential mostly located Eastside and its surrounding neighbor- 100,000 sf of space leased to Autodesk around the Bridgeheads don’t come hoods with so many different types, 4 months before completion, along with around much for sale and then again IZ size and ages of buildings, two very nationally known ASB Real Estate (man- zoning will temper pricing as almost any different zonings, and several unique ages $6 billion in real estate assets) buy- developer looking to go high will have sub-market dynamics. Generally pricing ing the 1515 SE Water Building in 2016 apartments as part of their formula. But for commercial real estate has contin- (Mackenzie and Viewpoint Software are then you see development still marching ued upward over the last year or more the main tenants) for just shy of $34 along and properties being sold such as from when I last reported and I thought million is another example of national NE MLK/Grand (22,000 sf) and Davis that the momentum may be slowing just a guys making their mark. Fairfield Lincoln is in escrow in the $260 range for a seven bit which is a really good thing because Property Mill Creek are also exapmles story apartment project as well as the the run up in values was and is getting of large natural companies involved in former Ollie Damon’s site on SE Grand for a bit overheated in my humble opinion the CE. just over $200 psf for a 107,000 sf office and is basically unsustainable and hurts building. Both these sites with good high the overall affordability of our neighbor- heights and FAR could have traded into hood and city. But after reviewing a On the land pricing front, dynamics the $300 psf range or higher me thinks in few recent sales of land and buildings in remain strong and one demand factor the pre-Inclusionary Zoning world. Got to the Central Eastside that hit some new we did not see coming is the big push think there will be a bit of leveling off in records I may be wrong …again! Also on the part of public storage companies land deals (said that before) with the lack when you see property values spike the who pulled off two purchases in the last of supply of good sites along with many danger of a bubble increases when the year (two more on in the works) with developers perception that we are in the next downturn (and yes a downturn will one particular deal at SE 7th and Bel- later stages of the development cycle and come) comes home to roost. Stabiliza- mont pushing industrial land (IG1)prices the fact there is a ton of both apartments tion of values albeit at much higher to an all-time high. I thought this was and office in the development pipeline. levels than a few years ago is a good an outlier than I heard a 16,000 sf IG1 But given the dearth of larger well located thing but right now the trajectory is still zoned parcel down on SE 2nd and Ash sites and all the money washing around upward and the plateau that may be a in the hot Produce Row area owned by out there it is just too difficult to say val- healthy symptom has not quite been Bridge Housing was getting offers above ues will temper anytime soon on the land reached yet. $200 psf…really for industrial land? front but the run up in mixed use zone Apartment developers already active sites may be at a crest as the numbers on There is still lots of money washing in the city and the Central Eastside the development front especially with the around for investment and develop- continue to double down on land sites increase construction costs are starting to ment of commercial real estate (both such as ravenous Mill Creek Residential get a bit too tight for equity and financing locally and nationally) that is helping to buying the half block behind LOCA on sources. push pushing values but also the small SE 12th and Belmont to add another 180 to medium business owner and investor units to their Modera Belmont down As mentioned, industrial land prices now who wants into a commercial build- the road which is finishing up. This that the industrial office overlay (EOS) ing is also a strong demand factor and closed at what is an all-time high at is coming district-wide next year due to some of the higher recent sales were $265 psf (they have offered more for the adoption of the Central City Plan/ by owner-users who can usually justify other sites in the CE) for a site that does Comprehensive Plan, has probably shown paying more than the larger investor not have big FAR’s or heights above the more robust price appreciation with or developers whose motivations are 100’. Pricing for these Mixed-Use EX pricing rising above $100 psf consistently quite different. Portland still remains a zoned sites is staying strong with valua- throughout the district with the fringe very desirable market for both inside tions at or above $200 psf but that may area dipping under that and the higher and outside market investors due to its and has already flattened out due to the values are for sites that are on or near a still good in-migration (of both people adoption of Inclusionary Zoning (10-20% and companies), job creation, and of new units need to be reserved as employment numbers and we still get affordable) which really impacts values PAGE 34 major thoroughfare like MLK; Grand: rental rates as closely as developers and side Bridgehead and Beam’s new office Belmont; Morrison; Hawthorne etc. Valu- investors and so those prices into the mid project at the Portland Music site and ations in this situations can really vary $200 psf is becoming a bit more common. even at older buildings that are getting by location of just a half dozen blocks. This type of pricing often comes in the completely upgraded like Custom Stamp- The $150 puff price for industrial land form of the much sought after one story ing that has an asking price of $29.50 but the storage guys paid for the 18,000 sf 10,000 sf (or any building from 5000- like all new office comes with a certain TI at SE Belmont and 7th and aforemen- 20,000 sf) older industrial building in the allowance (that can range from $40-$60 tioned brisk $200 plus psf deal down in district which is a rare commodity. These psf and again will be reflected in the the Produce Row area again have set the puppies are now commonly going for coupon rent and can be very negotiable bar but it will be interesting to see if this over $200 sf as was the sale of the older depending on size and quality of the ten- holds in the coming year or two as the and drab shell of a building at SE 6th and ant). Towne Storage was asking low $30’s Comp Plan finally gets adopted. That is up Belmont at over $200 psf and the sale of psf for their upper floors and the same from $60 psf $70 psf range for industrial the Gilbertson Machine Building at 7th and for the new 35,000 sf office building on SE land with the EOS overlay only 18 months Yamhill which has some cool older indus- Division by Solterra. That coupon rental ago. Almost all of this is being pushed by trial architecture but needs tons of work rate is not the only outlay as all these the stroll by developers into the creative that went for just under $240 psf. Yes rents are basically what they call triple office market which has picked up a bit of there was a very kooky sale at over $400 net which means the other expenses a speed due to the fact that apartment ab- psf of a 6000 sf building that was built out tenant has to pay for such as taxes; insur- sorption especially at the top end is slow- with offices (zoned EX use) at 619 SE 6th ance. For office space this can go as high ing and the impediment of inclusionary by the tenant which I think is an outlier… as $7.00 psf. Retail rents again can be zoning. Office vacancy rates are still pretty well at least I hope it is. These higher all over the map given where it is in the low and then deals Killian’s Simple lease prices tend to come when these indus- district, age and amenities of the space of 70,000 sf (they leased an additional trially zone buildings are close to main but generally smaller retail spaces under- 50,000 next door in a new building under commercial corridors like those men- neath the several new large apartment construction) a couple years ago and the tioned above. We have seen a couple complexes are in that $30-$35 psf range new Autodesk 100,000 lease help give of buildings off the beaten path a bit go and spaces in older established buildings developers confidence that the market for $150-$180 psf but going forward that will be somewhat lower in the low to mid is pretty deep for office space. This too may be a hard number to hit again unless $20’s psf and really again it is based on may get a bit of reality check as there is the building has some real issues. There the street, exposure, traffic count and of 1,500,000 sf of new office under construc- are a few full block one story buildings of course if you have parking you are golden. tion in the core area with the bulk being 40,000 sf or more on one level and it will The Goat Blocks development pushed downtown and in close in northwest be interesting to see if any of these trade retail to new heights with many of the (Pearl) but 400,000 sf is coming on line or at these higher levels being garnered by smaller more visible shop spaces zooming on the books for the coming year or more the much more in demand smaller build- past $40 psf fairly easily. in the Central Eastside. Ifz much of this ings. There are a couple of these in play gets absorped then we continue upward! so we will see. I know you may be confused and I scratch Half blocks to full blocks are the desirable my head too when I see two fairly similar sizes as quarter blocks for office are dif- Rent’s for small industrial spaces are re- buildings asking for rents that could be ficult and expensive to develop especially ally at a premium if you can find that very 40-50% different. Hopefully this some- to go higher and parking is next to impos- elusive say 2000 sf -4000 sf space with what wide rental goalpost I have given sible to achieve on such small sites. decent ceilings, roll up door, bathroom helps but that is both a bit of the rubix and small office. That nugget is up to the cube of commercial real estate valuations Building prices continue to stay strong $1.25 psf range per month and goes up in a very frothy and hyper-competitive with values regularly now in the $200 psf from there if it has special features such market but also the uniqueness of our range and sometimes higher (yes we have as significant office; floor drains; parking; Central Eastside where there is such a seen $300 psf plus) if the building has heavy power etc. Rents for warehouses differentiation of spaces and properties some pizazz or is near major commercial that get bigger say at 10,000 sf start which leads to some pretty wide varia- corridors and if it has any parking..pricing dropping down around $1.00 psf or tions out there. Landlords and property definitely goes higher. We are seeing slightly less for just the shell (Salt & Straw owners are seeing these values and rents multi-story renovation candidates (hardly deal and others) but not for long as al- and are coming to market higher and any left) pushing past the $100 psf mark ready seeing asking rents move higher the higher every 4-6 months to “test” the up towards $125 psf, driven mainly by the line gets drawn between industrial or in market and they are usually getting what these building needing seismic upgrades many cases the term “maker space” and they are asking or pretty darn close. and are mostly candidates for creative of- industrial office of just plain office space fices which have rents in the $28-$30 psf is whether the space has central heating, range such as what is occurring with the ventilating and air conditioning. That is “I put together a bi-yearly book of all (well beautiful Towne Storage renovation and where rents bump to $2.00 psf ($24.00 most) of the sales in the Central Eastside but Custom Stamping (and the pending sale per year) and will go up towards $35.00 keep in the compliation the trailing two years of Sanderson Safety Supply too). Users psf per year for brand new or completely of sales so you you can see the changes (in- in general push values to the higher levels renovated office space like what Gerding- creases) Email me at cascadecommercial@ as they don’t look at the economics and Edlen is doing at the Fishels Block/Burn- integraonline.com and I can send it along.”

PAGE 35 Biotechnology Development on the Horizon. The holy grail to many cities and economic A non-descript building located on SE summer. They are going to put in place development officials in cities the world Alder/8th has been purchased and plans all the infrastructure stuff needed for over is the incubation, recruitment and are full speed ahead for a redevelopment biotech companies such as HVAC systems growth of firms in the biosciences. While into a bioscience facility. This two story to clean room specs; extensive plumb- the actual economic multiplier effects and 20,000 sf older warehouse (known as the ing and electrical ready for wet lab uses positive impact of bioscience firms in a former Reliable Parts Building) just sold to and generally everything a bioscience given city are a bit murky, it is an industry Summit Development which is headed by company needs to come in and put their niche many cities covet and dream about. a proven and connected tech/bioscience final TI touches on the space to get go- It is cutting edge, a bit sexy, smacks of an pioneer. Chris Marsh, the lead investor ing. Rates of around $40 psf reflect the educational workforce, dreams of curing has a good track record growing Portland heavy investment in all these specialized or addressing some huge pressing disease tech firm Unicru and then selling it for improvements and Myers thinks compa- and generally brings a certain economic $170 million and then being intimately nies will only need to spend $50-$60 psf chest thumping on the part of those cities involved in current health start-up Pulse or less to get to their finished space. It is able to establish a burgeoning biosciences which has an innovative breath analyzer hard to determine if this is market because sector. It is also an extremely difficult technology (Revelar) which helps de- we just do not have that much space like business segment to establish, cultivate termine multiple key health indicators. this around which is just the point and I and grow without an already existing Marsh who I don’t think sleeps at night is did a google search and saw biotech space base. Often started and entrenched near involved in 8 different tech and biotech in other cities up in the stratosphere of world class universities, biosciences firms firms and is always thinking of the “next $70 psf and more for shell rents. They are often want and need to be around each thing” and really brings connections and not stopping there as they are working other because that is where the research gravitas to the project. “This is going to on buying the huge full block Sanderson is taking place, the money is as well as be a real game changer for the Central Safety Supply building at 110 SE 3rd that hit the talent and that is why places such Eastside and for the growing biotechnol- the market early last year for the “second as San Diego/LA; Boston; Bay Area and ogy sector in Portland. We hope to bring phase” of their biotechnology aspirations now Seattle and few other places with some really innovative and creative people which could with the existing 60,000 sf a long history and strong biotechnol- and ideas and add to the entrepreneurial with another 20,000 usable basement be ogy sector seem to have a lock on the spirit and innovation of this growing area” another magnitude of development and larger presence of these firms. Portland says Summit Prez Eric Myers. Right now project. This could be a two year project and Oregon with OHSU as the root has their team at Summit Development Group before this puppy can get through the tried over decades to get its foot in the is putting some finishing touches on their hoops at the city and financing and such door but often we have often seen great plans to turn this building into a bioscience but these two projects are a HUGE deal young companies after a certain period hub with a big infrastructure investment for the Central Eastside given the very cool of growth relocate to these bioscience in the building necessary to bring all the re-use of existing buildings; the millions of hubs because the venture guys with the detailed and specific improvements (such dollars of investment in the buildings; the money and the talent and infrastructure as needed for a wet lab) to accommodate high salaried and very creative workforce they need dictate such moves to get to the biotech companies. Marsh’s company it will employ but also as a huge stamp “next level”. But with OHSU reaching new Revelar will take 10,000 sf on the first floor of approval for the Central Eastside that heights (especially with the Knight Cancer which will leave another 10,000 sf avail- it can be an environment and creative Research Center’s massive investment), able on the second floor as well as they petri dish for a strong bioscience invest- a deeper talent pool and more venture are adding a third floor to the structure. ment. These big initial type of investments money flowing into Portland, the coming There is a full very usable basement which have an uncanny ability to build on itself years may finally give our city a fighter’s will have a 5000 sf lab space and the to attract more biotech firms and more chance to finally establish a sustained and remainder as storage and bike parking to investment. Let’s hope this is some high larger bioscience presence. That is why a bring the property to 35,000 sf of leasable octane fuel necessary to get our biosci- proposed bioscience development in the space. They are ready to start construction ence industry into the passing lane with Central Eastside is both exciting and hopeful. in February with delivery in mid to late the Central Eastside a growing part of it.

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