Spring/Summer 2015 Bridging Central Eastside News Covering Important Issues, Trends, and Developments in the Close-in eastside Commercial Areas Table of Contents Southeast Quadrant plan toward finish line ...... 1-4 southeast quadrant plan central city plan...... 1-2 Zone changes far & few between...... 2 inches towards the finish line what the hell is EOS...... 2-3 omsi and light rail station...... 3 Central City Plan is taking place and running concurrently that looks at Ground floor industrial bonus ...... 4 the whole city. Central Eastside rents & Values Rising? Yes!...... 4-7 The process to set major goals on a variety of issues for Vaues are up!...... 4-5 the Central Eastside has moved towards the goal line Like in all major city planning processes, there is a Citi- land...... 5-6 this spring with many of the most important aspects of zen Advisory Committee (CAC for Southeast Quadrant buildings...... 6 this tedious but necessary process in place which are has 30 members) that encompasses representatives rent...... 6-7 changes in land use; zoning and overlays. Commonly from a variety of businesses and organizations, prop- CENTRAL EASTSIDE urban renewal area expanded...... 7 referred to as the Southeast Quadrant Plan, it is part of erty owners, and neighborhood groups from the area More weed coming to the eastside?...... 8 a larger planning process called the Central City Plan being studied. Meetings of the CAC, along with the bevy DEALs, projects, moves, transactions...... 9-11 which will get wrapped into the mother of all plans the of planners, facilitators and led by Troy Doss, from the Smith optics, starks & Washington high...... 9 update to the City’s Comprehensive Plan. Without get- Bureau of Planning and Sustainability (BPS) Southeast urban development, specht, Vic alfonso & elephants...... 10 ting too “wonky” and putting you to sleep, the Central Quadrant official meetings started last spring and as siteworks, Fishels & @ Large films...... 11 City Plan is a once in 30 year process (the last plan of this writing has just concluded 14 meetings (one per Food and drink...... 12-15 was done in 1988) by the City of Portland to review month) that cover a wide variety of issues. What is the Ecotrust buys not one, but two buildings...... 12 a variety of factors and characteristics of the Central most heated and is at the top of most everyone’s list Central eastside foodies/beverages...... 12 City such as transportation, land use, sustainability, are changes in land use, namely zonings and overlays All oregon beer coming to central eastside...... 13 access and use of the river, equity, urban design, open which of course dictates what type of uses are allowed commons brewing expanding...... 13 space, and much more. The opening quote off the on an individual property going forward for several ancient heritage dairy churnning...... 14 city’s website provides a good summation: “Central decades at least. Going into this process, it was easy to jaconson salt national reputaion...... 14 City 2035 is a long range comprehensive planning and predict that there would be two basic viewpoints on this former printing co. building goes “sporty”...... 14 district planning effort that will create and plan for the important aspect which has become a somewhat more other central eastside for & beverage...... 15 Central City to guide development, decision-making and heated issue with the rash of apartment and mixed mt tabor brewery moving back home...... 15 investment through the coming decades” The Central use development occurring in the Central Eastside over harsch redevelops dealers supply properties...... 16-17 ODOT Blocks 2.0...... 17 City 2035 Plan looks at a fairly arbitrary group of 3 the last few years, with much more on the horizon. railroad quiet zone concidered...... 18 sub-districts or quadrants that include and wrap around On one side there is the belief that very little, if any, PARKING...... 18-20 the downtown core on both sides of the Willamette zone changes and application of overlays allowing for PARKING in C.E. a delicate balance...... 18 River. The West Quadrant takes in all of downtown, more mixed use (housing), or intensive uses should be research & analysis for parking plan...... 19 Pearl, PSU, Goose Hollow and South Waterfront; the undertaken and that the industrial sanctuary designa- ex zoned properties & buildings permits phased out...... 19 North-Northeast Quadrant encompasses the Lloyd tion of the bulk of the district needs to be preserved PARKING changes are coming...... 20 District, areas around the Rose Garden into the north and even enhanced. This has been entrenched lately by Burnside Bridgehead bursts with activity...... 20-22 Albina Industrial Area; and the Southeast Quadrant the bevy of new development at the Bridgehead, the yale union community blossoms...... 22-23 which mirrors to a large extent the boundaries of the Goat Blocks, and other smaller projects that are geared Corner Apartment...... 24-28 Central Eastside. All 3 of these quadrants are being towards attracting higher volumes of employees, resi- Bollinger, Fowler & Bridgehead...... 24 studied, discussed and analyzed separately with their dents and customers in an already confined area, thus Bridgehead cont. & St. francis Park...... 25 own stakeholder groups, unique issues and public in many people’s minds is bringing more congestion and Bridge Housing & Linden Apts...... 26 outreach all shepherd by an experienced, and at this uses that are having and will continue to have adverse Trinsic & lot near Central Bowl...... 27 point, tired group of planners at the Bureau of Planning effects on some of the long term valuable industrial Mill Creek & Sackhoff...... 28 and Sustainability. The Southeast Quadrant is the last uses that are dependent on production and movement Data Systems set to be sold...... 29 area to be examined with the two other areas already of freight. This viewpoint, it should be noted, is not Capitol gains taxes...... 30-31 having gone through their year-long plus process and against multiple uses in the Central Eastside, but just north rim tackles latest project...... 32 have preliminary concept plans in place. The Southeast thinks there is already considerable mixed use zoning Quadrant plan comes together later this year after a bit along the major commercial corridors that are being more public outreach then receives formal consideration developed and can be developed for years into the by BPS staff and the city council. Once approved, it future. A quote from a DJC article late last year from will then be consolidated with the plans of the two long time business owner, Dave Lorati, sums up this side other quadrants into one document. The Central City of the equation, “The industrial community needs Todd DeNeffe 503-228-0734 2035 plan will be approved by city council and become certainty. It’s about business development, not real [email protected] an amendment into the Comprehensive Plan effort that (continued on page 2) continued stories for southeast quadrant plan What the (continued from page 1) hell is EOS? estate development.” Dan Yates, on the Portland Spirit push out blue collar jobs. We are redeveloping buildings continues, “Somewhere in the city you have to provide that were often empty or underutilized which really We do need to maybe get a new name a place to work where you do not need a master’s did not push any of the business out.” said Jonanthon that more accurately describes what is degree in graphic design. We drove them out of the Maslin. Mike Tevis, a developer of several buildings in becoming the most important aspect of Pearl. Now the Central Eastside is very concerned that the south end of the district even goes further, “Zoning land use in the Central Eastside, the Em- we are going to drive them out to the suburbs. There should allow for investors, users and property owners ployment Opportunity Subarea (EOS). This are a lot of blue collar workers, fabricators and trades to develop high employment, high density residential is basically an overlay on the existing in- we need to protect and encourage.” within a quarter mile of light rail stations. We should dustrial zoning to allow for a much higher allow software companies, more creative type uses and amount of industrial office (up to 60,000 The other viewpoint is one that views the Central even venture backed tech companies”. Eastside as evolving and changing from its older and sf and more with a conditional use) and bulkier uses and that this market driven transformation There are definitely shades of gray between these two also retail (5000 sf versus 3000 sf for to these smaller knowledge and maker type uses needs perspectives and the BPS staff running the process had existing industrial zoning). It came about to be encouraged and accommodated by an active and the difficult task of trying to forge areas of compromise almost a decade ago and was prompted flexible application of zoning and overlays. The argu- between these two camps and everyone in-between. by the initial redevelopment of some of ment continues that larger and heavier uses will natu- It is all about compromise and give and take and you the older and mostly obsolete multi-story rally evolve over time out of the district to areas where know it is working if everyone is not completely happy buildings in the district. Owners and de- their needs for better truck mobility, access and larger with the results and so far that seems to be the case. velopers looked to accommodate the first spaces can be better accommodated. Often times their Generally, it is all about trying to create an atmosphere creative office users seeking out funky former spaces will be repopulated by an assortment of and framework to help preserve many of the long term varied, higher value, technology oriented, innovative businesses in the district while providing more real cheaper spaces that these multi-story in- uses that many times will bring increased employ- estate and space opportunities for more dense “knowl- dustrial buildings offered. “Eastbank Com- ment density and higher wages. Therefore land use in edge” based uses that are more flexible, footloose, merce Center on Water Avenue, which the Central Eastside needs to provide a maximum of and dense. As Joe Zehnder, the Chief Planner at the Beam was in the process of redeveloping, flexibility to both accommodate and encourage a much BPS said, “We are looking at different ways to increase was really the catalyst as Brad Malsin was wider palette of industrial, commercial and office uses the type of businesses that can locate in the Central trying to get certain higher uses allowed that are seeking vibrant core areas like the Central Eastside so we can increase the number of jobs per in this project, and was getting resistance, Eastside. Another quote seeks to capsulize this convic- acre. We are looking for the kinds of industry and uses which prompted the city and select group tion, “I don’t see how expanding opportunities for new that are more able to move upstairs. We see traditional of stakeholders to get together and find companies in the district and allowing flexibility within manufacturers and distributors and newer knowledge a compromise to craft an addition to the the zoning to allow future unknown industries will not workers and “makers” coexisting in balance”. displace existing business. We are not actively trying to zoning code in the area to allow a higher degree of industrial office uses that were (next page) Zone Changes are Few and Far Between Zone changes are the strongest hammer planners have changes have been basically avoided. This is interesting in dictating development and are always the most conten- because even in the goals of the Southeast Quadrant Plan it tious because of the magnitude of change that comes with is stated that “Mix-use Development will be encouraged and it. Changing a property from industrial (IG) to mixed use restricted to main commercial corridors”. There are numerous (EX) can greatly impact over time the possibilities and then industrially zoned properties along some of most intense main realities of a given property and neighborhood. So far the commercial corridors of SE Grand, MLK, Hawthorne, Madison zone change hammer has been kept in the toolbox as the and Belmont, that given surrounding properties, are zoned for response which has been vociferous, is that the Central mixed use. These properties are on some of the most expo- Eastside already has more than sufficient mixed use (EX) sure oriented transit corridors and you would think that these zonings, mainly along major traffic corridors such as MLK, properties have all the attributes for a higher mixed use zoning, Sandy and Grand for years, if not decades to come. “We but so far that is not in the cards. “We understand that there have decades worth of zoned capacity to build condos, are many industrially zoned properties along major commer- apartments, offices, and retail throughout the central city. cial corridors that on the surface has the potential of a more We have, however a finite supply of industrial land”, says intense uses such as residential, retail and office, but given the Troy Doss, the planner running the Southeast Quadrant inventory of higher use zonings, namely EX already in the area Plan process. So far planning staff has gone along with this that have potential for redevelopment, there just is not the will- point of view. Other than looking at a rezone of an outlying ingness to add to this supply and stress further the infrastruc- triangle of land between Gideon and Powell adjacent to the ture in place.” says Doss. The main tool and the path of least light rail station at Clinton; multiple blocks along MKL/3rd; resistance has been the use and application of an updated Grand/6th to EX which are zoned EX in the Comp Plan Employment Opportunity Subarea (EOS) overlay to wide swaths and around OMSI (with no housing), more intensive, zone of the Central Eastside. PAGE 2 wanting to locate in the district, and then people’s minds has been a success, added tweaked and is termed the “Expanded to also potentially breathe new life into jobs and a good compromise that has and updated version of the Employment some of the older building stock that no been a key cog in bringing new and higher Opportunity Subarea”. The biggest chang- longer were conducive to pure industrial density uses to once moribund properties. es are that sites 20,000 sf or less may uses”, says long time planner and Central Under the latest Land Use Concept Plan have up to 60,000 sf of Industrial Office Eastside veteran, Peter Fry. Adopted in which will be close to the final recom- and sites larger will have a floor area ratio 2007, this important overlay was given mendation, the EOS overlay has spread capability of 3:1, so a full block of 40,000 to properties from SE 3rd to Water and its tentacles throughout the district and sf could accommodate up to 120,000 of from Ankeny to Caruthers. Timing was not maybe more importantly has broaden new industrial office. great as the recession clamped down on its definition. It has been extended from most new development, but several proj- its original areas west of 3rd Avenue to Here are the EOS Changes: ects in the area, namely Olympic Mills, encompass the crucial development were able to squeeze through the down- site of the ODOT blocks, south to Powell • The entire building shell may be turn and even in a dicey time proved to (Southern Triangle and around Darigold) rehabilitated to accommodate be a rousing success. This proved that the and north to the UP tracks of Northeast. industrial office uses EOS addition was prescient and needed As somewhat of a compromise EOS is • Sites less than 20,000 sf may have to give property owners and developers being allotted along selected blocks along 60,000 sf of industrial office. more options to provide space alterna- what are mostly commercial corridors of tives to a host of mainly smaller creative Belmont as well as Main, Madison and • Sites larger than 20,000 can accommo- firms that were and are clamoring to be Hawthorne. And probably most contro- date industrial uses up to a floor area in the Central Eastside without upsetting versial, it is being slated for a fairly large ratio of 3:1 too much the industrial character of the swath of property north of Couch from area. While the “industrial office” moniker SE 6th to 12th (around Franz). The allow- • Conditional uses go away. is a bit squishy, the EOS overlay in most ances within the overlay are also getting

OMSI and Light Rail Station (No Housing!) The area around OMSI has been one of plimentary uses to create what was dubbed planners and most on the Citizen Advisory the more controversial areas for land use in the “Innovation Quadrant”. The goal was to Committee are mainly on board with the the district. Going back a couple years now, make a play for a host of uses to mesh with office and industrial aspects of OMSI’s plan, OMSI with the help of ZGF architects, has the expansion of OMSI’s own campus with but have basically been resistant to housing, (next page) floated a very ambitious plan to create a very Research and Development, biomedical, craft noting OMSI is too isolated; there is already dense and mixed use district around their industrial while also trying to create a “24- enough mixed use zoning in the district and existing campus and the light rail station com- 7” area that would be activated further with that more intensive mixed use development ing from the new Tillikum Crossing Bridge set housing, maybe a hotel and retail uses, along outside the realm of industrial would have to open next fall. The plan floated around last with a healthy expansion of OMSI, to create a negative effects on the overall district and po- year showed some rather large and bold col- destination area that could tie into what PSU tentially push out industrial uses that they are lections of buildings that would house office, and OHSU were doing just across the river. seeking to keep and enhance. What is current- light industrial, entertainment, hospitality, This vision landed with a “thud” to many ly on the map for much of OMSI’s real estate structured parking and the most contentious, in the district with far too much space and and some surrounding parcels is the designa- housing on OMSI’s properties as well as sur- development uses that would severely impact tion of the coveted and flexible General Em- rounding parcels to encompass parcels all the surrounding industrial uses, creating conges- ployment zoning (EX) that allows pretty much way from Clay south into more traditional tion and inhibit freight movement. OMSI everything OMSI wants but NO HOUSING. industrial sites in the Southern Triangle to- feels that a strong residential component has OMSI is not giving up without a fight and wards the Ross Island Bridge. This plan which to be part of the long term plan to help them is gearing up to make their case to include depicted tons of space was to show what it monetize their real estate holdings and com- housing on their property to the Bureau of could look like at a maximum build-out and plete the circle of development of the area into Sustainability and City Council in the coming it was eye popping and to many, a bit scary. an attractive and vibrant destination to tie weeks, but so far the city stands by their land OMSI was reaching to try to envision and sell in with the new Bridge and complementary use concept and the lengthy, inclusive and well a multi-use village of what they felt were com- development across the river. Doss, the other thought out process that occurred.

PAGE 3 continued story for southeast quadrant plan Ground Floor Industrial Bonus This is a land use concept that is being floated for multiple blocks from Ankeny to the north and Caruthers to the south and 6th to the west and 11th to the east. It would allow a build- ing to maintain an industrial use (manufacturing, production,warehousing, etc. as defined by the Zoning Code) on the ground floor but allow for potentially multiple floors of industrial office above. Example would be a food production company on the ground floor of a 10,000 sf warehouse and then potentially 10,000 sf of offices on floors above. Some property own- ers and developers found the concept “intriguing” but there needs to be more definition to the concept but more importantly the feasibility of such a combination needs more research. Most think it would need to be a ground up concept but also potentially one or two floors of wood frame offices above a stout well built warehouse could make sense. If this land use concept makes it through, doubtful it will spur much development along these lines given the large amount of EOS that will be in the district, but it would give firms and property owners more options to get density on a large swatch of industrial parcels.

Conclusion: The more than year-long Southeast Quadrant Plan did not produce too much earth shattering land use changes in the Draft Plan that came out in March and for most that is exactly the right path. Call it “preserve and enhance” as the approach that was taken. It was determined there is extensive mixed use zoning to handle residential growth so there was very few unan- ticipated zone changes; the EOS overlay which allows a bit more retail and extensive industrial office development has doubled its size; OMSI and some properties south of light rail received an EX zoning but prohibits housing: and a ground floor industrial bonus was sprinkled on IG zoned properties east of 6th. There will be some upcoming work sessions and presentation and con- siderations by the Bureau of Planning and Sustainability with the Plan projected before City Council sometime in the July/August time frame. Call me 503-705-6380 or email me at [email protected] and I can get you a great map of the land use changes proposed.

Central Eastside Rents and Values Rising? YES! I get this all the time, “What is my building worth?” “I want to buy a small piece of land what should I expect to pay?“ “What is a market rent for my vacant space?” What should I budget to buy a building in the Central Eastside?” I get it as if I owned a building or wanted to buy a building in the Central Eastside, you would want to be very cognizant and educated on rents and property values especially in a very dynamic marketplace over the last 36-48 months and of course because of the gravity of the dollars involved. But placing a present value or even harder predicting valuations or rents on properties going forward in the Central Eastside is probably is one of the more difficult propositions out there in commercial real estate for several reasons with the most prevalent being the fact that the building stock in the close in Eastside is so varied and different. While this is somewhat of the attraction of the area, build- ings in the Central Eastside are about as different as they get. There are huge differences in ages with some over 100 years old. There are bland block buildings to cool turn of the century architectural gems and thus all these structure have varied characteristics and conditions that deal with loading; ceiling height, parking, sprinklers, office space, seismic and to a lesser degree occupancy. It makes for a very imprecise science and some foggy crystal balls. Appraisers tell me all the time that valuing buildings in the Central Eastside is one of their more challenging assignments. Throw in that there are different zonings, overlays and each street is somewhat different with busy major commercial corridors (that has proximity to streetcar or light rail) versus one several blocks away that is industrial heavy with trucks strewn everywhere to less travelled quieter streets and you can have significantly different desirability aspects and more factors to consider for valuation. The fact that the Central Eastside is experiencing unparalleled growth and transformation from a gritty older industrial district to a more vibrant mixed use and lighter and varied industrial and commercial area, determining market rate rents and valuations is akin to predicting the weather next October in Portland, or who will win the 2016 presidential race. I will however endeavor to give some insights on valuations with less on exact numbers but more on the factors that have bigger influences on values.

PAGE 4 This I am not retail; second hand shops; cheap food; users and prescient developers bought afraid to say: and pretty much a cultural wasteland but and renovated buildings such as (Brad seeds of change were underfoot in the Malsin/Beam Development) Eastbank VALUES ARE UP! late 1980’s and more so in the 90’s when Commerce Center and Olympic Mills; both organically and from outside new (Jim Kelly) Rejuvenation Inc. renovation In some cases way up. investments and development started in on SE Grand ; (Concept Entertainment) fits and starts with a few helped along Central Bowl and other projects started a by the PDC by establishing an urban re- second wave of investment and develop- A bit anecdotal but also recent and pend- newal area in 1986. The bigger positive ment. The public sector mostly through ing sales and leases also support the sup- events that heralded that things were the URA also acted as a catalyst, build- position that outside of Northwest Port- changing for the better include OMSI’s ing the Eastbank Esplanade and finally land, the Central Eastside sub-market big relocation and expansion to PGE’s pushing forward on Milwaukie Light has been the most active and productive Station L on the southern end (1992); Rail and the Streetcar Loop so the seeds real estate market in the metro area in US Bank’s big new back office build- were sown with some sparse but strong the last few years. In some cases, values ing (1995 and now home to Multnomah sprouts of development and coolness for certain size and located buildings County); Randy Miller’s Produce Row when the financial blizzard hit in 2008- and land have doubled (or in the some Project (1988); Lorentz Bruun’s three 2009. The Central Eastside had a nice cases more) in the last 36 months or block development of PDC owned land Goretex insulated jacket on and weath- less. Again, some context. The close in on MLK (1996); Users like Coastal Pro- ered the economic winds fairly well with areas and Central Eastside has always duce, Willamette Valley Meats, Thermal basically only a “pause” in activity. So the been a bit of the red headed stepchild Supply, Pacific Coast Fruit and National reason for this brief history, is to set the and suffered from Portland’s decades old Builders Hardware all with full block scene that the area had been “discovered’ Eastside bias of being an area that was developments help pointed out that the and there was a good base of investment cheap, seedy, blue collar and low brow. Central Eastside was shedding its dishev- and growing interest in the Central East- It always had its pockets of genteelity eled image and was a good place to invest side which resulted in some steady but and desirable neighborhoods; Irvington, and do business. Attracted by some great not remarkable valuation increases from Eastmoreland; Laurelhurst; Alameda/ values on some interesting and diverse 2000 on and was ready to break into a Hollywood but generally much of the building stock (land too), accessibility to gallop at the very semblance of better close in areas was considered home to downtown and dense surrounding resi- times after the recent downturn. Most, produce distributors; dirty heavier indus- dential neighborhoods, more momen- including me, could not see just how fast trial uses; older slovenly buildings; cheesy tum came in the early 2000’s as selected and far this horse was going to run.

As we all know, there retail (more by conditional use) and then erty set to close in the coming months is very little vacant IG1 zoned land with the EOS (Employ- for prices at or above $160 psf, one developable land in the ment Opportunity Subarea) overlay being a former used car lot (26,000 sf LAND Central Eastside and which allows up to 60,000 sf of industrial and buyer is Trinsic Development) at 419 if there is, it often it is office and a bit more retail and exists E. Burnside and the Oregon Ballet Block attached to an adjacent buildings as park- presently from Grand to Water and Clay (37,600 sf with buyer being Mill Creek ing or truck loading(or for future expan- to Stark but with much more proposed Residential) at SE Morrison/Belmont/7th sion) which is becoming a very scare and in the current Southeast Quadrant Plan. Ave. The deals at the Bridgehead go from hence a valuable amenity that if sepa- $45 psf for the Key Development Deal rated from the building can significantly To give you a baseline, there were some and $83 psf for Block 75 are a bit of a impact value. Many of the larger devel- pretty amazing deals (if you had a long outlier because of the PDC involvement opable sites were snapped up years ago term crystal ball) 15-20 years for EX and their desire to be very accommodat- and those that are still around have been zoned land when the Central Eastside ing in getting development going there picked over by the apartment guys so was a forgotten and derelict neighbor- after almost 10 years. tracking and understanding land values hood. For example the superblock is challenging given this lack of inventory (92,000 sf) now known as the goat All these deals either have finished, are and thus resulting in few transactions to blocks and which Killian is now develop- under construction or are proposing understand values. There are basically ing was picked up for around $30 psf apartment buildings slated for the sites. three categories of land in the Central in 2000. There were a couple of other Are we going higher? I did not think we Eastside as delineated by zoning/overlays. smaller land deals during this time period would get to these prices this quickly so EX (Central Employment) zoned land in the $50-$60 psf range. But with the my amateurish but somewhat informed which allows almost any type of develop- coming of the apartment freight train opinion going forward is that these ment i.e. industrial, retail, office and the values have jumped quickly and higher. prices have plateaued or at the least are dreaded housing and is located along Deals agreed and done in 2012-2013 slowing in their run-up as those in the mostly main corridors such as Grand, timeframe include 10,000 sf at 10th and development game which is driving price MLK, Sandy, Burnside etc. IG1 land which Ankeny for $75 psf; 20,000 sf at 12th and say the math presently does not support is a traditional industrial zoning and by Taylor (Zoned CS so lower heights) for new projects at prices much more than far the largest component of land in $76 psf and 28,000 sf at 139 SE MLK for these numbers and especially if you are the Central Eastside which can accom- $80 psf. Now hold on to your shorts, in the camp that thinks the apartment modate some complementary office and there are two deals for EX zoned prop- PAGE 5 continue on next page continued market may soon and hence buyers do not see the ability Properties and $75 sf for property for a LAND from page 5 get saturated to go higher and bigger that much of a 10,000 sf property on SE 2nd/Belmont. which is driving benefit. I would not however be floored a bulk if not all of the interest and value to see a $200 psf value, or EX land be- OK I will throw out some numbers of escalation. fore this current cycle plays out. IG1 land without the overlay should be in the $40-$60 range and with the EOS A couple of valuation truisms which is Industrial Land is in the same boat with overlay that can and will range above $60 common sense is that those sites that few properties changing hands over the psf maybe up as far as $100 psf on major allow for more height (200’ versus 60’) last few years and what there was it was streets. Again beauty is in the eye of the and FAR (9:1 versus 3:1) which allows difficult to break out specific land values beholder and with such a lack of supply more square footage to be built will such as the multi-block Dealers Supply and strong demand, users (who can usu- garner a higher valuation. How much? property that has some minor value in ally pay more) and developers will “pay Probably not too much maybe 10-20% as improvements (Best extrapolation was what it takes” to get in the ballgame in most believe that building up past 6 sto- $30 psf). An eye popper was $62 psf the Central Eastside. ries or more is too much space for the for a small 8200 sf IG1 site on SE Third/ market, too expensive and more risky Caruthers sold last year to a Solterra

Buildings in a few years waiting for signs or recovery Here is a bit of the mind blower, a building the Central to keep marching forward as the Central at 1311 SE 7th (at Main) 10,000 sf with buildings Eastside are Eastside was “discovered” as numerous 10,000 sf of parking for $2,525,000($252 like snowflakes, articles even in the New York times lauded psf) February 2014 for an urban creamery all somewhat the areas potential and possibilities. In my and soon to open high end Italian restau- different and they come in all shades, mind the value leap forward was the sale rant. sizes, ages, conditions and with varying a few years ago of a 5000 sf industrially characteristics but I will focus on the more building sold by Brian Faherty of School- The latest to add to the database in the prevalent segment and what seems to house Electric for just under $200 psf in recent sale of the Intrepid Marble building be the most desirable for buyers to make August 2012 to Highball Distillery. Though encompassing 26,000 sf on a full city block a point which is the much sought after an older 30’s-40’s structure it was in good at 1140 SE 7th came on the market and 5000-20,000 sf building. 15 years ago in shape and had some parking but it was an after just a few weeks was sold to Ecotrust the early 2000’s you would expect to pay eye opener at the time but in hindsight for $5.45 million ($210 psf) on March 1st. $50-$60 psf for a 10,000 sf industrially does not look like the abberation it was zoned building on one of the less travelled thought of at the time. Though multiple It is safe to say, for certain types of streets, think Caruthers, Main, Taylor. Pric- deals ensued I will give you a few that I properties especially in the very desir- es kept creeping up steadily thorough the feel are indicative of the valuation trend able 5000-25,000 sf range, building values past decade as the economy and commer- with several buildings along SE 7th leading have more than doubled in 3-4 years in cial real estate zoomed and pricing moved the way. the Central Eastside. Values for buildings into the $70-$80 psf range and in some get enhanced for the following reasons or cases hit the $100 psf barrier. Wham! 628 SE Belmont 10,000 sf building (no amenities (some of which are obvious): The recession delivered a serious body parking) for $1,450,000 ($145 psf) June location on, or near major transportation blow to values in many areas and product 2014. corridors; EX zoning or the EOS overlay; types but in the Central Eastside it was a single level; parking: higher occupancy weak punch where values mainly stopped 1033 SE Main St. 10,000 sf with 10,000 sf classification; architectural uniqueness; increasing and maybe fell back slightly but parking $1,765,000 ($176 psf) Jan 2014. good condition of building envelope and in reality only took a brief breather for improvements.

This is even harder to • Visibility and Exposure on main traffic common to have three or four tenants fight- predict or give hard and fast corridors i.e. Grand; MLK: Hawthorne; ing over a good 2000 sf industrial space with numbers than sale valu- Belmont; Morrison, and even Stark, 7th, a roll up door, a few parking spaces whereas RENT ations because again the Sandy, Couch. some 10,000 sf spaces can take some time Central Eastside as such a to lease up. On the low end, 2-4000 sf wide variety of spaces, buildings and small • Smaller and corner spaces. spaces you see in the Central Eastside many “pockets” that have different demand in concrete block buildings of the 80’s-90’s dynamics. Let me give some basics on rents. For industrial, amenities such as higher vintage have been renting for $.75-$.80 psf ceilings; open layout (few interior posts); NNN (where tenant pays taxes/insurance) but Rents are higher if the space has: loading; sprinklers; HVAC; floor drains; good these are bumping up to $1.00 psf in many distributed power will also command a bit of cases. Smaller creative spaces (some down • Higher zonings or having the Employment a premium. Also the smaller industrial spaces to 500 sf) in cool older renovated buildings, Subarea Overlay (EOS) which allows in the 1000-4000 sf are in the sweet spot many on second or third floors with access higher percentages of pure/industrial right now and there is a definite premium for to common bathrooms/lobbys are pushing office and retail which obviously can pay these spaces as the tenant base seeking these up in the $1.20-$1.40 psf. Many of these just higher rents. spaces is plentiful and aggressive where as have heat and are a ““warm shell” and if you move into spaces towards 10,000 sf, the they havefull HVAC and any interior improve- • Proximity to parking. The more the better. demand tempers considerably. It is not un- ments, prices go up further into the office

PAGE 6 continue on next page or subsidized private developments that ing” urban renewal efforts. These initial have other more market driven financ- proposals have been vetted over the Central Eastside ing sources. Additionally many believe last 12 months in a series of meetings that one of the biggest results of urban with representatives from all the urban renewal is gentrification which increases renewal areas and other civic leaders in Urban Renewal housing and living costs and benefits a order to come up with some consensus small richer percentage of the populace. on significant changes which occurred Don’t get me started on urban renewal’s in late November and then was ap- Area is Expanded perceived historic displacement of proved by city council just recently. traditional ethnic and minority communi- There was some significant tweaking and Extended ties over the years. Even with all these of the urban renewal area around PSU warts, pissed off stakeholders (and tax and in the Pearl District but for us in payers) and bickering, urban renewal the Central Eastside the main mostly Urban Renewal has both a successful has in many cases been an instrumental positive aspect was that the Urban and checkered history in Portland, as in catalyst for significant improvements in Renewal Area was expanded slightly to many other cities. Simply speaking, ur- once moribund neighborhoods. South include properties in the Clinton Triangle ban renewal seeks to improve so called Auditorium from way back in the 60’s (16 acres in the area from light rail to blighted areas by freezing the property and the Airport Way industrial district by Powell east of SE 12th) and probably tax base at the time of the creation of PDX and The Pearl District are recent most importantly, the life of the area was the urban renewal area (URA). Using the examples held up as successes where extended another 5 years to 2023 which inevitable increase in property values urban renewal has positively trans- under the PDC’s arithmetic adds $21 and thus tax receipts (referred to as the formed areas into economic engines. million of bonding authority to the dis- tax increment) to fund through bonds In the case of the Pearl, a prosperous trict which under the old scenario was selected projects and improvements in- multi-use 24 hour vibrant neighborhood, getting to the bottom of the barrel on side the urban renewal area to improve has become something far more than funds. The PDC verbiage promoting and the neighborhood. Urban Renewal like what it was years ago. accompanying this move is as follows: any big public project is a political mine- “The Central Eastside moves aim to field and contentious issues often arise Mayor Hales has mentioned on numer- preserve ongoing industry and commer- around who (Portland Development ous occasions since his election that cial growth in the district while pursu- Commission) decides and what projects he heard some louder and much more ing increased job density, in particular, get funded and how much they get. prevalent voices of unhappiness to the along the new Portland/Milwaukie light The process often gets very politicized, overreach and sometimes mishandling rail line” rightly so, as there can be some outcry of urban renewal in Portland. It has by area stakeholders towards those grown far too big, lost its vision and The question will be if it will be more projects (developers?) being subsidized diverted too much property tax money of the same, or if businesses, property for certain “connected” groups that end from core city services. The mishandling owners and other stakeholders will get up making a killing on their develop- has gone too far and gone on far too REAL input directing this new pot of ments. Add to this that often the city will long, he was often told. There has been money to more substantive issues and often come in and grab huge chunks of a process underway for the last year to needs in the Central Eastside. the dough for selected public projects “refine” the system and return proper- with little, or no input from those in the ties to the tax roll and better target urban renewal area, who feel there are future efforts. ”I think it is updating the much more pressing issues that need to structure, of our urban renewal areas be addressed. In the Central Eastside, to fit the opportunities that we see in the Eastbank esplanade, the trolley and front of us to pursue” says PDC execu- light rail fit that bill in many minds. This tive director Patrick Quinton in his best is all on top of the strong resistance by urban renewal-speak. Hales started with many who think this property tax money the first gambit last spring by floating should be invested in schools, social changes and revamps he wanted to service programs, transportation, or see which was promoted as return- other important functions of city govern- ing considerable chunks of valuable ment rather than in large public projects, property to the tax rolls and “streamlin- rent catgory. Full renovated offices along with Grand at $16-$17 psf in older buildings with you are patient as a property owner, land- some with the open industrial feel office in no parking to $25-$28 psf for renovated retail ing higher on the pricing parameter when new developments are pushing rents in the such as in the Stark’s Vacuum renovation and selling or leasing space is always best and upper $20’s psf (per year) with some going some of the retail space below the plethora then making deals based upon the individual over $.30 psf. Think Washington High, Killian’s of apartment buildings being built. The Goat characteristics and parameters of each deal is project on 3rd/Clay; North Rim’s Waterman Blocks with the catchy moniker LOCA (for best. If you are out looking to buy or rent, you Bldg. and Bridgehead projects. There are still local) is setting the high bar in getting retail have to move quick and be aggressive if the lots of office space scattered throughout the rents for the shop space around the Market property truly fits as definitely the pendulum district from previous decades that are a bit of Choice Grocery and Orchard’s Hardware has swung fairly hard towards the landlord worn but still functional that can be snagged approaching $40 psf. and property owner in the Central Eastside. in the $15 psf and up to $20 psf range but they are becoming a bit more scare over time. I hope this helps but as you can see from this I have and am developing a database of sale dump of information there is no hard and fast and lease transactions in the Central Eastside Retail spaces have even a wider value param- rules for valuations or rents. With a market which I can pass along. Give me a call or eter where I see some spaces along MLK; changing quickly with demand high, and if email.

PAGE 7 More Weed Coming to the Central Eastside? Over the last few years it is not uncommon the University of Colorado and is relocating obstacles. But, some city folks are also worried for me to get calls from an assortment of his family to Portland as the investment group about the big possibility of many who will individuals looking to locate a marijuana he represents is targeting Portland for a $5-10 locate and improve these larger spaces without dispensary in buildings I represent for lease million investment and may want a space up all the required city permits and requirements. or sale. It used to be that the interested caller to 100,000 sf. Though this is on the more “I think we are nervous about the folks not would be a bit coy in describing their use and grandiose scale, I have heard similar stories getting ready to operate legitimately and go- would soon come clean after some grilling from other brokers and property owners over ing through the process of city permits and that, yes, they are selling or growing the hippie the last year with it is really getting hot and inspections. These are legal business and they lettuce. Most commercial property owners are heavy after the passage of legalization last have right to operate in the city, but we want not too thrilled about this use though many November. to make sure they are operating safely and the pot operations are very legitimate and well run public is protected” says Mayor Hales aide businesses that pay their bills and many times A recent article on Oregon Live related Josh Alpert. One grower I talked with at the will pay more rent that the typical tenant. some startling information about what they end of last year told me “We made a asking We have several dispensaries in the Central termed a “land grab for warehouse and retail rate offer to lease a 10,000 sf warehouse Eastside and I know of a couple of under space” by cannabis entrepreneurs with many space in north Portland and were outbid by the radar warehouses that have significant coming from out of state. They mention another grower willing to pay 20% over what “grow operations”. But the scope, variety and 64 large-scale medical marijuana grow sites the landlord was asking for rent”. Landlords frequency of recent inquiries regarding mari- in Portland, a 178% increase since 2012. need to be informed and a bit wary about juana uses has been a bit mind boggling. My Also the article says that we are in the early deciding to rent to a marijuana operation no phone rang recently and saw that the call was stages of major cannabis growing ramp up, matter how professional and well-financed from Chicago. The guy on the other end was where growers and their financial backers are they are. “It is important to do research on inquiring on the availability of a large build- snapping up warehouse space throughout the the individuals, and best yet, have some rather ing down near Produce Row. He was very up metro area to provide what many think will rigid provisions in the lease geared towards front, “I am from Chicago and I represent need to be a big supply chain, in anticipation this type of use that gives the landlord some a large, very legitimate and sophisticated of legalization becoming official this summer. specific strong rights and provisions dealing investment group looking to locate a sizeable It is a combination of small timers growing with the marijuana use in the building. Still warehouse in Portland to serve the cannabis plants in their garages wanting to get bigger, at this point it is a market and industry that industry”. This was a bit different than the to new larger sophisticated operations looking is in its infancy and everyone is making some local guy looking for small space, but this is to go big in Oregon with university trained educated guesses.” says an attorney who re- not the first time recently where the person botanists, high tech growing practices and cently spoke at one of several symposiums put looking for space was not your mom and pop often represented by attorneys with what best on by attorneys (Cannabis Chronicles) trying stoner type dude but rather a very professional can be described as “wall street caliber” capital to help the tidal wave of interested parties person representing “big money” mainly from behind their plan. All of these pot pioneers navigate this fledgling business. out of state. He went on to explain that he are betting and hoping their investments in has a degree in economics and botany from grow operations will get anointed under a still Back to the guy from Chicago. After explain- to be determined rules by ing the real estate economics and dynamics of the OLCC governing this the Central Eastside to our erstwhile mari- new industry. “People with juana king pin, he admitted that it probably lots of resources and so- did not make too much sense to locate such a phistication are rolling the huge operation in the Central Eastside. So the dice” says Amy Margolis, an close in Eastside should remain somewhat im- attorney representing these mune to this Wild West show of the marijua- potential growers. “We talk na growers because rents for warehouse space to people all the time who are double, or more than the more industrial are trying to be prepared outlying areas. Plus we don’t have that much for what’s coming, but we empty space. Landlords have better hassle free have so little information options, and the neighborhood is rather dense to do so” The city is just with other businesses close by and growers starting to understand this don’t like the scrutiny and attention of such huge wave, but also realized neighborhoods. But, I would not be surprised that most of these op- with the big money involved and its central erations, if done correctly location that a few more operations (mostly and legally will fit within retail operators and suppliers/labratories) slip industrial zonings for grow into vacant spaces in the Central Eastside in operations and commercial the coming years. ones for retail sales without much planning or zoning PAGE 8 Deals, Projects, Moves, Transactions….

ing which was bought 3 years ago warehouse and turn it into a upgraded Smith Optics Leases Space by Seattle Developer, First Western and desirable retail development. With on MLK in former Development who was trying to find much clamored for off street parking, a bricks and mortar space for Evo, a high ceilings, exposed wood beams and Salvation Army Building very successful online outdoor snow- new storefronts in 10 spaces, from 900 sf board company that boasts $50 mil- on up for a total of 12,000 sf, this space If you are a skier, snowboarder, or just lion in sales. A major renovation has is going fast. With rents in the $22-$24 love a good pair of sunglasses (doesn’t occurred on the century old building psf NNN range with a healthy TI al- everyone?) you know these guys. Start- with Evo opening last fall in a very lowance, response to the space as antici- ed over 50 years ago near the base of cool retail space, and now Smith pated has been strong with Zoomcare, North America’s preeminent ski resort, Optics will round out the space by a salon, and of course, the perfunctory Sun Valley, Smith Optics have come to taking 12,000 sf on the upper floors. Portland uses of a coffee and chocolate be the gold standard in ski goggles, sun- With Sanfilo having several other purveyor already committing to space. glasses and helmets. Started by a local brands, there may be more to come The broker relates that deals are pend- dentist, Bob Smith who was unhappy as they may increase their presence in ing on the remainder of the space; it with the substandard goggles of the Portland. Says the news release about should be fully leased before the kids get time that cracked and always fogged up, the Smith Optics lease, “This design out of school for the summer. With all he started tinkering with a better design center will serve as the inspirational the apartment and office development with his dental tools which he traded base for the product leadership activi- at the close by Bridgehead and Lower for free tickets at the ski resort. Smith ties of the Global Sports & Outdoor Burnside with substantial retail, this got going by patenting the first thermal division creating and developing all piece to the development puzzle will doubled sealed lens and breathable vent Sanfilo current and potential future just further enliven this incredibly active foam and just kept going. Always head- brands and products targeted for the node in the district. quartered in Ketchum Idaho, Smith was consumer segment”. This design well known but a niche player and was oriented use could not be more per- sold to huge Italian eyewear company fect example of the type of use and Washington High Sanfilo back in 1991. Smith always company that has been predicted, getting Revolutionary profitable and having a quality reputa- targeted and attracted to the Central tion, still languished somewhat with its Eastside. We all know Washington High School bigger parent. “The thought during the is just finished with a spiffy $18 million 90’s and beyond was that Smith would dollar renovation, bringing back a great become a global sports and outdoor Stark’s Vacuum Block old structure to its classy homey roots brand and would somehow be managed Renovation is Headed for with 21st century energy upgrades as an as part of the total Sanfilo company” office building. We know New Seasons, says their CEO. “That never quite hap- Full Lease-Up our beloved au’natural grocery chain pened”. This is changing and part of just moved their Headquarters into this move to become more of a global Maybe somewhat boring, but an 35,000 sf of the building and most of accessible brand is going to benefit everyday necessity, vacuums are the building is leased to a bevy of small- Portland. A recent study was done to something we take for granted but er groups in technology, web design, locate the best place to launch this ef- something many of us could not live branding and more. But, did you know fort to find that trendsetting, outdoorsy, without (especially if you have kids there is a 800 seat, beautiful auditorium vibe that Smith will continue to ex- and dogs). Stark’s has been the go-to in the middle of the building that has ude and manifest. Among those cities source for this household appliance been kept intact and burnished for what looked at for relocation was Seattle, San stalwart for over 80 years with more hopes to be some upcoming great enter- Francisco and San Jose. Sanfilo went selection (they even have a vacuum tainment events. With the name Revolu- with Portland because of its proximity museum!), and knowledge than any- tion, this place will be potentially filling to the outdoors, a major airport, talent one would care to understand. Grow- a hole in our performance art venues and labor force available and access to ing to 10 locations, Stark’s oldest and between smaller Aladdin and the bigger marketing and key consulting firms. A probably best location at SE Grand Schnitz. This space with a huge balcony, headquarters will cease to exist, and and Davis, has been at a key corner state of the art sound system and tons the heart of the company, it’s design in the Central Eastside for much of of wood just looks like it will be a fun capabilities tagged as its Pacific Coast its existence. Seeing the burgeon- “tweener” space musicians and concert Design Center will locate in the reno- ing development and activity in the goers will love. Operated by veterans of vated 1890’s former Salvation Army Lower Burnside area and having a the Aladdin and well regarded Missis- Building at 200 SE MLK in the Central semi-used adjacent warehouse to sippi Studios, they will have two full ser- Eastside, bringing 45 well paying high their retail store made for a perfect vice bars for the space where one will be talent oriented employees. The build- combination of events to take a 1922 open for events and the other will serve PAGE 9 continued from page 9 Specht Development has moved which Alfonso has floated for sale on slightly out of their comfort zone and several occasions over the last couple as a full time café for the tenants of old bought the Nu-Way Printing Building of years. Most likely Lithia will com- building. for just under $2 million for bine his dealership with others they own 14,000 sf of space located at 8th most likely in a more suburban location I recently walked through the space and and Sandy. Todd Schaeffer, presi- leaving very few core dealerships left in it is gorgeous. Already there is a full slate dent of Specht has seen the poten- the city. “Given the expensive real estate of concerts scheduled into the summer tial of the district for some time in the city, need for large swaths of real with some great names. One side issue “We have been watching the Central estate, it is very difficult and expensive to this great music and event venue that Eastside grow and change and when to maintain a car dealership in the city.” probably will need to be addressed is we had some money to place, we Says Bob Wentworth who is somewhat that the Buckman neighborhood is get- thought this building and location of a contrarian with his Subaru/Chevy ting overwhelmed by all the cars com- would be a good long term oppor- dealership on Burnside where they have ing with concert goers, not to mention tunity”. The printing business has invested several millions of dollars into the noise and other issues when the changed substantially with the aug- upgrades currently. The Alfonso proper- concerts end and patrons spread out ment of technology and the internet ty is a big opportunity by Central East- into the areas. where Portland, just a decade or side standards with close to 4 acres of more ago, was a printing hub with land and 100,000 of space under cover. Urban Development dozens of small to huge printing Though zoned industrial, this north of outfits spinning out glossy publica- Couch area is considered for the Em- Partners(UDP), building tions and materials for host of local ployment overlay in the current South- and large national clients. That has east Quadrant Plan/Central City pro- Glassy Small Office Building changed as everything has gone digi- cess which will allow for a wider range tal and web based where few firms of higher uses, namely industrial office. The Design is a glass lover’s dream with have much in the way of printed ma- huge full floor glass panels from floor terials anymore. The Central East- to ceiling. Slightly reminiscent of the B side had numerous firms in the print- Elephant’s on a Roll Side 6 (not surprising since Works Part- ing industry but few of these firms nership was the architect on that project (whole wheat or rye?) remain and many of their buildings and this one as well). This small floor have been sold and repurposed. Nu- These guys were foodies before Port- plate development has a cool futuristic Way will continue and has signed a land was so foodie. In fact you might transparent look that will definitely add lease to size down and continue serv- be able to look at Elephant’s history in to what is becoming a rather audacious ing key clients in about 5000 sf of bringing fresh, gourmet and convenient and thoughtful stable of designs in the the building and Specht will do some food as one of the headwater streams of Central Eastside. Developed by Urban basic upgrades to the remainder of what is now a rushing river of food and Development Partners, a group of pro- the building to appeal to smaller of- beverage related establishments, com- gressive Developers who started in the fice and creative users that are propa- panies, entrepreneurs that we know in Bay Area and now have multiple Port- gating the district. With the coveted the Central Eastside is a huge employer. land projects on their resume, including EX zoning which allows almost all Started in 1979 in a very small space in not 2, but 3 (and fully leased) apart- industrial and offices uses along with Northwest Portland’s uptown shopping ment projects on red hot Division and residential Specht sees a mixed use center, Elephant’s was introducing Port- are partnering with the Malsin guys on potential on the 19,000 sf site. “With land to good coffee, homemade pastas, Block 75 at the Bridgehead. They had frontage on Sandy, potential views to imported cheeses, artisan breads and bought and redeveloped the former 4 downtown when you get up a story much more which often were hard to story 110 year old industrial American or two, this site attracted us because find. Growth was slow, but well thought Brush Building at 116 NE 6th, where of its future flexibility for a variety of they now have their offices, and with out, and really kicked into gear in the uses” adds Schaeffer. that got a 5000 sf lot on the corner of late 90’s into the 2000’s where now there NE Davis and 6th. They now are under is seven deli’s around Portland, a huge construction on five story building with Vic Alfonso sells catering business and a rapidly growing 20,000 sf (1,175 of retail) of “work- online presence. “All aspects of our busi- space where tenants will be able to Dealership, Property Next? ness have grown substantially in the last adapt the space to fit their needs to cre- 4-5 years and with that has come some After close to 50 years in the auto ate collaborative work environments” space needs and challenges”. Says Ann business, Vic Alfonso called it quits with a lot of green elements to be used Weaver, who with her husband Scott, with the recent sale of his Cadil- which is true to their sustainable credo. are the operational dynamic duo behind lac dealership. Located on SE 12th Elephants. Elephant’s main kitchen and across from Benson High School, administration have been in the Central Specht Development makes in the Central Eastside. Alfonso has Eastside on SE 7th for over a decade in owned or been partner in dozens of a non-descript industrial building that foray into Central Eastside dealerships in Oregon and adjoining they have gradually now completely states, and is an iconic figure in the taken over. “We just keep needing more Long associated with business park auto business. Ashland based Lithia, space so now with our latest expansion development in Washington County a behemoth with $2 billion in sales we have the whole building and have where they have built millions of square at over 110 dealerships in 15 states, moved across the street”. They have feet of space in Beaverton and Tigard. signed a 3 year lease on the property 16,000 sf in their original building and

PAGE 10 PAGE 10 took over 13,000 sf recently across the visually striking building renovations tion for a large multi-story mixed use street. With an employee count of over and developments that have pushed development will be big. Many think a 50 and growing, Elephant’s keeps in- the envelope in sustainability and large office project is the next phase of novating and keeps up with a dynamic design, turning bland spaces into ac- development in the cards to capture the local food scene and Portland’s grow- tive, welcoming and inventive spaces tech and creative office wave that has hit ing sophisticated appetites. They love mostly in Portland but in other major downtown and the Pearl is ripe for the the Central Eastside’s vibe, foodiness, cities as well. Geared heavily towards Central Eastside and of course apart- location and transformation. “Though retail, and food/beverage, Siteworks ments will be on the slate too in light of we wish we would have bought prop- provides soup to nuts handling of Key Developments apartment tower just erty here when prices were reasonable, ground up and renovation projects across the bridge to the north. Given the we love our location and the Central with design, engineering, and con- heights and location, I would not be sur- Eastside neighborhood and being part struction. They have done work for prised the eventual price breaks a record of its cool transformation and growth”, Breakside Brewery, Hopworks, Nike, for pricing in the Central Eastside shoot- Weaver says. Stash Tea and many other businesses. ing past $200 psf. It will be interesting to They are just done putting their out watch the competition for this site, who of the box touches on an older ware- is the beauty contest winner and what Siteworks house for their 9000 sf headquarters plans get hatched for this crucial gate- Buys and Renovates building which will also have room way site. By the time you read this I bet Produce Row Building for other tenants. the site is under contract. Tons of activity is happening down in Fishels Site Hits the Market @ Large Films sells building what many of us call the Produce Row Area which is the area around SE Stark This is probably one of the best devel- up for lease going a bit north and south along SE opment sites in the Central Eastside These guys have rode the wave of Port- 2nd and 3rd. House Spirits is finally un- and it is on the market which given der construction on not a micro distill- all that is going on around the Burn- land’s film and video scene which also ery but more of a mega-distillery; Steve side Bridgehead not all that surpris- has a big presence in the Central Eastside. Smith Tea (Tazo fame) is renovating a ing. Fishel’s Furniture has occupied Julianna Lucasik who served a stint as older 24,000 sf building for their HQ; the corner at the Burnside Bridge- Board Chair of the Central Eastside In- New Season’s commissary kitchen and head and MLK for many decades dustrial Council has sold her business @ Olympic Provisions are up and running and the furniture business was sold to Large Films to an advertising Agency large food operations; the Bridgehead the manager long ago, so the Fishel and her building located on now bus- not far to the north is buzzing with family who owns the real estate knew tling NE Couch is up for lease. This three different projects. Add a smaller selling the property at some point building at just under 10,000 sf is in yet no less cool project with Siteworks’ was in the cards. So with the owner pristine condition and has parking so it purchase and very green renovation of the business looking to retire and should go fast and would be great to see of on older two level mid block build- the incredible amount of activity and another film or media company take up ing at 240 SE 2nd. Siteworks, which is interest, the timing is right. With an residence here. let by Jean Pierre Veillet, (what a great EX zoning, 30,000 sf of land, 250’ name) is known for their artistic and height limits and 9:1 FAR the attrac-

This newsletter authored by Todd DeNeffe, founder and owner of Cascade Commercial Real Estate, covers a variety of important issues and developments in the Central Core and beyond. This demonstrates Todd and Cascade Commercial Real Estate’s knowledge, understanding, and expertise in this important marketplace.

For any questions, input, requests for additional information or superior commercial brokerage services contact: Todd DeNeffe 503-228-0734 [email protected]

PAGE 11 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 FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKEcotrust FOOD DRINK FOODBuys DRINK Not FOOD One, DRINK FOODbut DRINK Two FOOD Buildings…to DRINK FOOD DRINK FOOD bring DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKNew FOOD FoodDRINK FOOD “Connection” DRINK FOOD DRINK FOOD Center DRINK FOOD to DRINK Central FOOD DRINK Eastside 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 DRINKThe Central FOOD Eastside DRINK is now FOOD almost DRINK up to double FOOD digits DRINK in distilleries, FOOD DRINKclose to halfFOOD dozen DRINK breweries, FOOD the HQDRINK of Stumptown FOOD DRINKCoffee, FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKmultiple FOOD commissary DRINK and FOOD catering DRINK kitchens, FOOD several DRINK high end FOOD meat producers DRINK FOODand distributors DRINK and FOOD some DRINKof the coolest FOOD new DRINK restau- FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK rants in town. So no wonder that an innovative idea of developing a center dedicated to creating and growing Oregon’s unique food FOOD DRINKindustry FOOD and infrastructure DRINK FOOD is slated DRINK to land FOOD in a 1918 DRINK vintage FOOD manufacturing DRINK warehouse FOOD DRINK at SE 8th FOOD and Salmon. DRINK Part FOOD of the goal DRINK is to FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKbring the FOOD rural toDRINK the city. FOOD “The idea DRINK is to help FOOD connect DRINK local businessesFOOD DRINK in Portland FOOD with DRINK abundance FOOD of the DRINK resources FOOD in the DRINKregion to FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKcreate aFOOD more authentic, DRINK FOOD innovative DRINK and FOODvalue based DRINK food chain”FOOD says DRINK Ecotrust FOOD sensei DRINKSpencer FOODBeebe. RedsideDRINK Equities, FOOD DRINKwhich has aFOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK history of innovative green building development, and has projects and properties in the Central Eastside, is a partner with Ecotrust FOOD DRINKin the purchase FOOD DRINKof the 18,000 FOOD sf building DRINK for FOOD $1,600,000 DRINK at 820 FOOD SE Taylor DRINK from DependableFOOD DRINK Pattern FOOD Works DRINK last summer. FOOD The DRINK project FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKis called FOOD The Redd DRINK after theFOOD term DRINKfor the salmon FOOD spawning DRINK nest. 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 DRINKEcotrust FOOD known DRINK for their FOODsmart and DRINK ground FOOD breaking DRINK redevelopment FOOD ofDRINK an older FOOD building DRINK in the Pearl FOOD over DRINK 12 years FOOD ago turning DRINK it FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKinto a hub FOOD of environmental DRINK FOOD and non-profitDRINK FOOD organizations DRINK bleeding FOOD DRINKdeep green. FOOD It has DRINKan active FOOD and growing DRINK history FOOD in developing DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKhealthy FOOD food infrastructure DRINK FOOD with several DRINK programs FOOD that DRINK seeks FOODto establish DRINK deeper FOOD and lasting DRINK connections FOOD DRINK between FOOD food producers DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK and the regional and national markets. “Ecotrust hopes to provide the space, facilities, and coaching to both create new sustainable FOOD DRINKfood companies FOOD DRINK and help FOOD existing DRINK small producers FOOD DRINKto gain the FOOD expertise, DRINK knowledge FOOD and DRINK access FOODto resources DRINK and FOOD markets DRINKto help FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKthem appropriately FOOD DRINK scale FOOD their operations DRINK FOODto add to DRINK and enhance FOOD the DRINK food system FOOD here DRINK in Oregon FOOD and beyond”. DRINK Amanda FOOD OsborneDRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKof Ecotrust FOOD idealistically DRINK FOODrelates about DRINK the FOODREDD. Ecotrust DRINK has FOOD a strong DRINK bench ofFOOD financial DRINK supporters FOOD of foundations,DRINK FOOD wealthy DRINK indi- FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKviduals FOODand more DRINK that provides FOOD capital DRINK for theirFOOD projects DRINK to rethink FOOD and DRINK re-engineer FOOD our DRINKfood and FOOD natural ecosystemsDRINK FOOD to consume DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK less resources, serve more people with better results. Improving, enhancing and innovating the food system is one of the cores of FOOD DRINKEcotrust’s FOOD mission. 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 Whoa! Ecotrust was not done! Ecotrust, after several design brainstorming sessions with their team found the building, while great FOOD DRINKon several FOOD levels, DRINK did not FOODquite have DRINK the layout FOOD and DRINKlarge open FOOD spaces DRINK to create FOOD their collaborative DRINK FOOD food collectiveDRINK FOOD model DRINKthey had FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKenvisioned. FOOD Here DRINK comes aFOOD building DRINK next door FOOD for sale, DRINK the 26,000 FOOD sf Intrepid DRINK Tile FOOD and Stone’s DRINK property FOOD for DRINKmany years. FOOD At a hefty DRINK ask- FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKing price FOOD of $5.45 DRINK million FOODmany thought DRINK it would FOOD sit DRINKthere on FOODthe market DRINK for a spell, FOOD but DRINKonce again, FOOD demand DRINK for well-located FOOD DRINK owner/ FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK user buildings in the Central Eastside just keeps going. “When we found out the building next door was for sale, we jumped at it as FOOD DRINKit really FOOD complements DRINK our FOOD other building DRINK and FOOD provides DRINK us with FOOD a larger DRINK space to FOOD kick off DRINK our program FOOD plus DRINK we like the FOOD frontage DRINK on SE FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK7th which FOOD is quickly DRINK becoming FOOD more DRINK of a commercial FOOD DRINK corridor FOOD and home DRINK to several FOOD new DRINK food and FOOD beverage DRINK places”, FOOD says Ecotrust’s DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKInvestment FOOD Manager DRINK Nathan FOOD Kadish. DRINK Ecotrust FOOD basically DRINK paid asking, FOOD had DRINK a very shortFOOD due DRINK diligence FOOD and closed DRINK on March FOOD 1st. DRINK Kadish FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKsays they FOOD will be DRINK moving fairlyFOOD fast DRINK on getting FOOD the DRINKbuilding divided FOOD and DRINK prepped FOOD for a DRINKhost of smaller FOOD food DRINK oriented FOOD tenants DRINK that are FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK in various stages of their ideas and growth in order to provide the space, capital, expertise, management, insight and more to add FOOD DRINKto the Northwest’sFOOD DRINK already FOOD burgeoning DRINK food FOOD web. Another DRINK attraction FOOD DRINK to buy theFOOD building, DRINK as it is FOOD in very DRINKgood condition, FOOD is DRINK that it will FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKrequire FOOD much less DRINK capital FOOD expense DRINK to get it FOODready to DRINKbecome anFOOD entrepreneurial DRINK FOOD food hub. DRINK They hope FOOD to have DRINK tenants FOOD moving DRINK in by FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKsummer FOOD and envision DRINK a restaurant FOOD DRINKor public FOODoriented DRINK food operation FOOD in DRINK the very FOODcool showroom DRINK space. FOOD DRINK FOOD DRINK FOOD DRINK F O O D 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 F O O D DRINK FOOD DRINKCentral FOOD DRINK Eastside…..Foodiness…..(Beverages FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD too) DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK F O O D Just like I thought I never would be atmosphere serving Rainier Pound- The second wave brought more and DRINK FOODdevoting DRINK so much FOOD space DRINK to all the FOOD DRINKers and FOODtasty New DRINK Orleans FOOD fare helped DRINK FOODvaried foodDRINK entrepreneurs, FOOD DRINK think FOODBunk DRINK FOOD DRINK FOOD DRINKnew proposed FOOD andDRINK under FOOD construc DRINK- FOODplant the DRINK seed. ThenFOOD came DRINK casual FOOD and DRINKSandwiches, FOOD Boke DRINK Bowl, FOODBeaker &DRINK Flask, FOOD DRINK F O O D DRINK FOODtion apartments...the DRINK FOOD same DRINK goes FOODwith DRINKwell received FOOD Nostrana DRINK on FOOD Belmont, DRINK but FOODBurnside DRINK Brewing, FOOD Doug DRINKFir, and penultiFOOD- DRINK FOOD DRINK FOOD DRINKwriting FOOD about DRINKall the food FOOD and beverageDRINK FOODprobably DRINK the arrival FOOD of Clark DRINK Lewis FOOD with DRINKmate cutting FOOD DRINKedge tattooed FOOD food DRINK place; FOOD DRINK F O O D DRINK FOODoptions DRINK that have FOOD and DRINKwill continue FOOD to DRINKits farm FOOD to table DRINK acumen, FOOD locally famousDRINK FOODLe Pigeon. DRINK The dam FOOD was DRINKbroken and FOOD DRINK FOOD DRINK FOOD DRINKfind a FOODwelcoming DRINK home FOODin the CentralDRINK FOODowners DRINK and funky FOOD industrial DRINK lodgings FOOD in DRINKthe flood FOOD was DRINKon and the FOOD volume DRINK and FOOD DRINK F O O D DRINK FOODEastside. DRINK Not long FOOD ago, a DRINK good burger FOOD DRINK2003 on FOOD SE Water DRINK was the FOOD watershed DRINK FOODvariety DRINKof food and FOOD beverage DRINK options FOOD is DRINK FOOD DRINK FOOD DRINKat the “old”FOOD Produce DRINK Row FOOD or chili DRINK at the FOODevent thatDRINK turned FOOD heads DRINK and shouted FOOD DRINKa bit mind FOOD boggling DRINK where FOOD the Central DRINK FOOD DRINK F O O D DRINK FOODEastbank DRINK Saloon FOOD and a few DRINK other FOOD classic DRINKthat the FOOD Central DRINK Eastside FOOD had some DRINK FOODEastside DRINK is now FOODground DRINKzero for artisanalFOOD DRINK FOOD DRINK FOOD DRINK(Nicolas FOOD on Grand), DRINK but lessFOOD than DRINK fancy FOODserious DRINK food possibilities FOOD DRINK and poten FOOD- DRINKfood and FOOD beverages DRINK producers FOOD andDRINK FOOD DRINK F O O D non-fast food options was about all tial. It started slow but over the ensu- purveyors. And it is more than just food DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK you could find in the close in eastside. ing decade, other food mad scientists with tasty beverages but guys and gals FOOD DRINKThere wereFOOD a few DRINK outliers FOOD like Digger DRINK FOODdrawn DRINK by cheap FOOD space, DRINKthe gritty FOOD yet DRINKin beer, FOOD coffee, DRINK wine and FOOD booze DRINK catch- FOOD DRINK F O O D DRINK FOODO’Dells, DRINK the seafood FOOD restaurant DRINK Earl FOOD DRINKtransforming FOOD area, DRINK and accessFOOD to DRINK down- FOODing the DRINK wave like FOOD Basecamp DRINK Brewing, FOOD DRINK FOOD DRINK FOOD DRINK(some ofFOOD you newcomers DRINK FOOD don’t rememDRINK- FOODtown andDRINK surrounding FOOD neighborhoodsDRINK FOOD DRINKEastside FOOD Distilling DRINK and FOODHouse Spirits DRINK ex- FOOD DRINK F O O D DRINK FOODber those) DRINK and othersFOOD that DRINK were islandsFOOD DRINKstarted FOOD to up the DRINK food game. FOOD Olympic DRINK FOODpanding; DRINK Coffee FOOD sensation DRINK Coava: FOOD huge DRINK FOOD DRINK FOOD DRINKin the culinaryFOOD wasteland,DRINK FOOD but generally DRINK FOODProvisions, DRINK Sauvage, FOOD Biwa, DRINK Farm, FOOD and DRINKnew wine FOOD bar CoopersDRINK HallFOOD joining DRINK Clay FOOD DRINK F O O D DRINK FOODit was prettyDRINK much FOOD a food DRINK desert. FOOD Sure, DRINKmore came FOOD with DRINK most not FOOD being DRINKflash FOODPigeon DRINK winery (IFOOD probably DRINK missed FOOD a few) DRINK FOOD DRINK FOOD DRINKMontage FOOD with itsDRINK party fun,FOOD dark DRINK seedy FOODin the DRINKpan but toFOOD stay for DRINK the long FOOD term. DRINKand more FOOD coming! DRINK Aren’t FOOD we lucky? DRINK FOOD DRINK F O O D DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKPAGE FOOD12 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 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 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 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 DRINKAthletic Association FOOD DRINK (what exactlyFOOD is DRINK pubFOOD as we DRINK are looking FOOD for somethingDRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKALL FOOD Oregon DRINK Beer FOOD Hall DRINK FOOD DRINKthat..a basketball FOOD DRINKteam in uniform FOOD and DRINK muchFOOD more DRINK rooted FOODin Portland’s DRINK past FOODso DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKtoting guns?), FOOD this DRINKbeer hall FOODwill go bigDRINK weFOOD are asking DRINK what FOOD does it DRINKmean to beFOOD DRINK on Oregon craft beer with 99 beers an Oregon craft beer hall? Huffman of- FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKcoming FOOD DRINK to the FOOD DRINK FOOD DRINKexclusively FOOD made DRINKin Oregon FOOD and hand DRINK fers.FOOD The topDRINK space FOOD which has DRINK a musty 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 DRINKcrafted sausages FOOD fromDRINK another FOOD Central DRINK butFOOD fun ballroom DRINK space FOOD with DRINK soaring FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKCentral FOOD DRINK Eastside FOOD DRINK FOOD DRINKEastside foodieFOOD company, DRINK Olympic FOOD DRINK ceilingsFOOD will DRINK be a new FOOD 7000 DRINK sf events 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 DRINKProvisions. FOOD “We wanted DRINK a beerFOOD hall DRINK spaceFOOD called DRINK Portland FOOD Assembly. DRINK It will FOOD DRINK that celebrated Oregon beer tradi- be run by yet another Central Eastside FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOODBeer and DRINK not just FOOD any beer DRINK have be FOOD- DRINKtion, as opposed FOOD toDRINK craft beer FOOD brewing DRINK groupFOOD that DRINK was behind FOOD the similarDRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOODcome ingrained DRINK intoFOOD the OregonDRINK and FOOD DRINKin Portland” FOOD says DRINKHuffman. FOOD“So we DRINK spaceFOOD called DRINK Union FOOD and Pine, DRINK which FOODis DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOODPortland DRINK DNA. Along FOOD with DRINK bikes, farm FOOD DRINKwon’t be FOODserving beerDRINK from FOOD Vancouver DRINK onlyFOOD a half DRINK dozen blocksFOOD away. DRINK I can’t FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOODto table DRINK food, tattoos, FOOD environmental DRINK FOOD- DRINKWashington”. FOOD This DRINK old cool FOOD space from DRINK wait!FOOD The DRINK ballroom FOOD will open DRINK soon and FOOD DRINK ism, Tom McCall, outdoorsiness, urban the turn of century was tired and Huff- the beer hall looks to be pulling some FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOODgrowth DRINKboundaries, FOOD Subaru’s, DRINK facial FOOD DRINKman will FOODbe renovating DRINK “selectively” FOOD DRINK coldFOOD guys DRINK and grilling FOOD up some DRINK pork FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOODhair, coffee; DRINK locally FOOD crafted DRINK beer has FOOD DRINKand saving FOOD all the DRINK good but FOOD definitely DRINK productsFOOD DRINKby late spring. FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOODbecome DRINK part of ourFOOD circulatory DRINK system. FOOD DRINKupdating FOODthe outdated DRINK mechanical FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK Right when you think it cannot have and electrical systems while adding FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOODany further DRINK manifestations, FOOD DRINK here comes FOOD DRINKa circular FOOD bar and DRINK building FOOD out with 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 FOODthe mother DRINK of all FOODcraft brew DRINK venues. FOOD DRINKunique design FOOD touches DRINK with FOOD room for 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 FOODKen Huffman DRINK and FOOD his group DRINK Chefstable, FOOD DRINKaround 120 FOOD seats. DRINK The name, FOOD the Loyal 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 FOODthe brains DRINK and energy FOOD behind DRINK many FOOD of DRINKLegion, also FOOD has Oregon DRINK roots FOOD as it DRINK FOOD DRINK FOOD DRINK FOOD DRINK Portland’s numerous and more revered refers to the old Logger’s employment FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOODrestaurant DRINK and food FOOD iterations DRINK (up toFOOD 15 DRINKAgency from FOOD days DRINK past – The FOOD Loyal 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 FOODnow), suchDRINK as Ox, FOOD Lardo, DRINK Oven and FOOD DRINKLegion of FOOD Loggers DRINK and Lumbermen 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 FOODShaker, DRINK Coopers FOOD Hall and DRINK many more FOOD DRINKEmployment FOOD Services. DRINK Huffman FOOD found 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 FOODis going DRINK big on craftFOOD beer. DRINK Located FOOD DRINKa huge sign FOOD with thisDRINK moniker FOOD on it inDRINK FOOD DRINK FOOD DRINK FOOD DRINK in a funky old two story building that an old Chinatown building which will FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOODhad fallen DRINK on hard FOOD times DRINKand been FOOD DRINKhang over FOOD the bar. DRINK “We don’t FOOD want DRINKto FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOODowned DRINKfor years FOODby the Portland DRINK Police FOOD DRINKbe a pretend FOOD English, DRINK Irish orFOOD German 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 FOODCommons DRINK FOOD DRINK Brewing: FOOD DRINK FOODa Big DRINK Expansion 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 DRINKThe Central Eastside gets a lot of publicity and attention for the plethora of micro distilleries but almost just as prevalentF O O D and growing is the close in area’s breweries. We have some good ones, Burnside Brewing, which is probably the grand- DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOODfather of the bunch, Basecamp and their cool outdoor imbibing area and some new guys like Baerlic Brewing next to DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKBlitz. One of the fastest growing of our brew citizens, Commons Brewing, is making a big leap with the purchase of aF O O D DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOODstrategically located building that will increase their square footage almost four fold. “We have been looking to expandDRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKfor some time and really wanted to stay in the Central Eastside where there are lots of craftspeople and artists that weF O O D DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOODreally relate to. We looked at multiple locations, but this building has the ceiling heights and such a great location so weDRINK pulled the trigger a few months back and are just cranking up our construction.“ says founder and owner of Commons FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKBrewing, Mike Wright. Located in a bit over 2000 sf since the summer of 2011 at a building up off SE 10th and Mill, was F O O D DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOODa big deal after migrating from Wrights’ garage where it all started. Commons has grown quickly as their small batchDRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKquality simple everyday beers by keg and bottle have gained a solid following. They are moving up to a 15 barrel sys-F O O D DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOODtem at their new 10,000 sf building which they paid $1.5 million for last June at the corner of SE 7th and Belmont. The DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKplan is to have a 1000 sf tasting room and some simple food initially “We are not going to be your full service brew pubF O O D initially, but concentrate more on getting our production ramped up” says Wright. Commons, unlike other early stage DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOODbreweries, they bottled their beer from the start and increasing their bottling will be a big part of the new facility plusDRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKgoing a bit more heavy into some Belgian recipes. Commons is now up and pouring beers and the remodel is pretty neatF O O D DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD keeping the place very industrial with a older lookingDRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK brick structure in the middle with a bar. It feels likeF O O D you are right in the middle of the brewery and upon DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD my visit recently there was a huge thirsty line for theDRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK taps. They are doing just some small bar food, but the F O O D DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD cool twist is that they will have a Cheese Annex fromDRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK cheese guru Steve Jones. It will be small 200 sf takeF O O D DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD out space in the brewery where you order anythingDRINK from fondue, cheese plates, grilled cheese and more FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK all probably using some of Common’s brews in theirF O O D DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD cheese products. DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK F O O D DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKPAGE FOOD 13 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 FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD 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 FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOODDifferent DRINK again FOOD but not DRINKsurprising FOODis that we DRINK now have FOODour own DRINKurban cheese FOOD making DRINK operation FOOD with the DRINK recent FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKAncient FOOD HeritageDRINK FOOD opening DRINK of former FOOD Madras DRINK based Ancient FOOD Heritage DRINK Dairy FOOD to a renovated DRINK warehouse FOOD DRINK at 7th and FOOD Main. Bolstered DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOODby some DRINK major FOOD dough from DRINK foodie FOOD money managerDRINK Tony FOOD Anerich, DRINK these FOOD guys have DRINK been winning FOOD awards DRINK for FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKDairy FOOD Churning… DRINK FOODsome DRINK time with FOOD their sheep’s DRINK milk FOOD cheeses. DRINK They have FOOD temperature DRINK and FOODhumidity-controlled DRINK FOOD “caves” DRINK already FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK cranking out the first batches of yummy fermented milk treats. The 10,000 sf building has more in store with FOOD DRINK FOOD DRINK FOODa new DRINK 110 seat FOOD restaurant DRINK coming thisFOOD spring DRINK with what FOOD promises DRINK to shake FOOD the Italian DRINK restaurant FOOD niche DRINKkind of FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOODCutting DRINK Edge FOODlike whatDRINK Stumptown’s FOOD DuaneDRINK Sorenson’s FOOD Ava DRINK Gene’s FOODdid a couple DRINK years ago.FOOD Nick DRINKAernich, who FOOD has a DRINKserious FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOODfood DRINK resume at FOOD the French DRINK Laundry FOOD and a DRINKfew other FOOD SF iconic DRINK restaurants, FOOD has been DRINK operating FOOD a successful DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOODRenata DRINKis Next. FOODfood DRINK pop-up, ProjectFOOD Grace DRINK is bringing FOOD homemade DRINK pastas, FOOD steaks DRINK and seafood FOOD to DRINKRenata next FOOD to the DRINK cheese FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOODmakers DRINK sometime FOOD later inDRINK the spring. 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 DRINKJacbosen FOOD SaltDRINK brings FOOD in DRINK FOOD DRINK FOOD DRINK FOOD DRINKFormer FOOD DRINK Printing FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKnational FOOD reputation DRINK FOOD to DRINK FOODhe and DRINK his other FOOD two employees DRINK would 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 FOODhaul hundreds DRINK ofFOOD gallons DRINK of sea water FOOD to a DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKthe FOODCentral DRINK Eastside. FOOD DRINK FOODshared DRINK kitchen FOODto start the DRINK 45 day FOODlabori- DRINKCompany FOOD DRINK FOODGoing 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 FOODous process DRINK of separatingFOOD DRINK and refining 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 DRINKIt is the FOOD ubiquitous DRINK seasoning FOOD that DRINK FOODpure seaDRINK salt into FOOD a taste DRINKthat chefs FOOD and DRINKSportsy FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKeveryone FOOD seems DRINK to take FOODfor granted: DRINK Salt. FOODfoodies DRINK from coast FOOD to coast DRINK are starting FOOD DRINKI know FOOD this property DRINK well, FOOD as they DRINKhave done FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKBut Salt FOOD is getting DRINK some FOOD major attentionDRINK FOODto crave, DRINK and swear FOOD is the DRINK best around. FOOD DRINKall my FOOD design DRINKand printing FOOD for the DRINK last 10 FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK on the national food scene and part of There were tons of trial and error in the FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKyears, FOODbut Jerre DRINK Petersen FOODis sizing downDRINK a bit FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK making that happen is a small artisanal beginning, but now four years in the FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKand moving FOOD back DRINK to a family FOOD compound DRINK in FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK company that started in small space on process has been perfected, streamlined Minnesota, and had been looking to move his FOOD DRINKthe shores FOOD of pristineDRINK Netarts FOOD Bay DRINK on the FOODand expanded DRINK toFOOD keep up DRINK with demand FOOD DRINKunique FOOD property DRINK for a couple FOOD of years. DRINK One of, FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKOregon FOOD Coast. DRINK Ben Jacobsen, FOOD a formerDRINK FOODthat far DRINK exceeded FOOD supply DRINK from the FOODbegin- DRINKwhat IFOOD think was, DRINK the original FOOD live/work DRINK situa -FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKsoftware FOOD marketing DRINK guy, FOOD taught DRINKhimself FOODning. AsDRINK the business FOOD has DRINK grown, BenFOOD DRINKtions inFOOD the Central DRINK Eastside FOOD at 930 DRINK SE Sandy. FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKa forgotten FOOD food DRINK craft. FOOD After tasting DRINK the FOODmoved DRINK into a 3500 FOOD sf production DRINK facilFOOD- DRINKThe FOODmain floor DRINK has a 4500 FOOD sf work DRINK space, and FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKwaters FOOD of more DRINK than a dozen FOOD sites DRINK up FOODity in DRINKNetarts and FOOD now last DRINK summer FOOD he DRINKalso had FOOD a 1800 DRINK sf condo FOOD above DRINKwith great FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK views of downtown. As mentioned in a recent FOOD DRINKand down FOOD the DRINK Oregon andFOOD Washington DRINK FOODleased DRINK 7000 sf on FOOD SE 6th DRINK and Salmon FOOD in DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK Oregonian article, a Portland bar-owning coasts, he settled on Netarts Bay by Til- the Central Eastside for a retail and tast- FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKdream FOOD team bought DRINK the building FOOD late DRINK last year FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK lamook, that he felt had the consistent ing room facility. The space is uber-cool FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKand are FOOD ripping DRINK and tearing FOOD the building DRINK that FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKpurity FOOD his palette DRINK was seeking. FOOD DRINKHe worked FOOD with aDRINK stark classy FOOD look andDRINK will be FOOD home DRINKcould FOODbecome theDRINK city’s mostFOOD ambitious DRINK new FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK out the permitting and had a local metal to selected food events with local and FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKsports FOOD bar. Led DRINKby John Janulis FOOD who DRINK has creat -FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK worker manufacture his custom evapor- national chefs demonstrating how this FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKed multiple FOOD successful DRINK establishments FOOD DRINK such as FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK ization pans and he was off and running. flaky, delicate and other worldly tasty salt Jackknife, Bye and Bye and Sweet Hereafter, FOOD DRINKOnce FOOD or twice DRINK a week he FOOD would driveDRINK on FOODcan be DRINK highlighted FOOD in a variety DRINK of dishesFOOD DRINKthe new FOOD operation DRINK will be FOOD called Century.DRINK It FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKolder FOOD GMC Yukon DRINK to the FOOD coast whereDRINK FOODand products. DRINK FOOD DRINK FOOD DRINKwill have FOOD multi-level DRINK space FOOD to include DRINK a street 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 DRINKside patio, FOOD fire DRINK pit, two FOODbars inside, DRINK a sports 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 DRINKand movie FOOD viewing DRINK area FOODand a rooftop DRINK deck 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 DRINKwith panoramic FOOD DRINK views of downtownFOOD DRINK Portland. 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 DRINKIf you FOOD know their DRINK other restaurants,FOOD DRINK you can FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK expect some cool vintage design touches. FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKDuring FOOD big sporting DRINK events, FOOD fans DRINKcan watch 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 DRINKthree FOODwalls of DRINKdrop down FOOD TV screens DRINK from 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 DRINKstadium FOOD style seatsDRINK and whenFOOD sports DRINK are not 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 DRINKon the FOOD agenda theDRINK space canFOOD easily DRINKconvert to 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 DRINKviewing FOOD cult movies, DRINK a dance FOOD floor DRINKor space for FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK live music. They are hitting all my highlights 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 in a great bar/pub. Look for an mid summer FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKopening. 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 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 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 FOODPAGE DRINK14 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 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 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 FOODHere DRINK are FOOD a few DRINK more FOOD food DRINK operators FOOD looking DRINK FOOD to join DRINK the FOODCentral DRINK Eastside FOOD 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 DRINKfray FOOD and sure DRINK to FOOD make DRINKyour taste FOOD buds DRINK tingle FOOD and DRINK your FOOD stomach DRINK growl.. FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKBreakside FOOD andDRINK others FOOD - Basically DRINK next FOODdoor to CommonsDRINK FOOD Brewing DRINK new space FOOD on 7 thDRINK at Yamhill, FOOD Scott DRINK Lawrence FOOD of Breakside DRINK Brewery FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK(up FOOD on North DRINK Dekum) FOOD is opening DRINK with FOOD help from DRINK Mike atFOOD Commons DRINK and aFOOD former DRINKchef at Wildwood FOOD DRINK a new culinary FOOD operationDRINK FOODin a DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKbuilding FOOD Joe DRINK Squires FOODof Squires DRINK Electric FOOD bought DRINK in late 2013 FOOD and DRINKrenovated. FOOD ”It will DRINK be an ambitious FOOD DRINKfood and FOODdrink project DRINK with FOOD lots DRINK of fire” Lawrence says. Though it seems repetitious, expect wood fire cooking and full animal butchery and beer, some beer and FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKmore FOOD beer onDRINK the side FOOD and in DRINKthe dishes. 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 Holdfast Dining - is the restaurant darling in the last year getting restaurant of the year (Oregonian) with their voluminous 9 course FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKdinners FOOD out DRINK of KitchenCru FOOD in DRINK downtown FOOD that was DRINK the hottest FOOD food DRINK ticket in FOOD town. TheyDRINK are FOODgoing bricks DRINK and mortarFOOD in DRINK the old SauFOOD- DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKvage FOOD space DRINKat 537 SE FOOD Ash. Will DRINK Preitosch FOOD and JoelDRINK Stocks FOOD are the DRINK Einsteins FOOD behind DRINK this space FOOD that will DRINK scale down FOOD their DRINK multi-hour FOOD DRINK feasts to less courses but still keeping it exclusive with hours that will be only be a few days a week. 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 DRINKNoraneko FOOD -DRINK is an offshoot FOOD of DRINK ramen pioneer FOOD Biwa. DRINK The ownersFOOD of DRINK this beloved FOOD Central DRINK Eastside FOOD place DRINK is doing FOOD a small DRINK 30 seat ramen FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK2.0 FOOD restaurant DRINK at 1430 FOOD SE Water. DRINK Located FOOD in Jim DRINK Pitman’s FOOD latest commercialDRINK FOOD kitchen DRINK project FOOD this place DRINK is a great FOOD food additionDRINK to FOOD the DRINK Water Ave neighborhood. I stopped by recently and had the Miso Ramen and it was off the charts and best stuff you will find this FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKside FOOD of Tokyo. DRINK Order FOOD a Sapparo DRINK beer with FOOD it to DRINKheighten FOODthe taste. DRINK I even liked FOOD better DRINK that there FOOD is a full DRINK bar so hangingFOOD DRINKout after FOODyour DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKramen FOOD here DRINK will also FOODbe in order. 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 DRINKP.R.E.A.M. FOOD DRINK - is another FOOD one DRINK of those FOODitinerant DRINK pop up style FOOD operations DRINK that FOOD wants DRINK a place of FOOD their own. DRINK With FOOD roots coming DRINK from FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKmeat FOOD centric DRINK Ned Ludd FOOD on NE DRINK MLK, FOODand with DRINK serial food FOOD entrepreneur DRINK (Coopers FOOD DRINKHall and FOODabout a DRINKdozen other FOOD restaurants) DRINK Ken FOOD DRINK th FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKHuffman FOOD at DRINK Chef Stable, FOOD is refashioning DRINK FOOD the former DRINK Tennessee FOOD Reds DRINK spot at FOOD 2133 SE DRINK 11 into FOOD a “urban DRINK high energy FOOD neighborhood DRINK FOOD DRINK spot”. The description also says to expect loud music (ugh) a bigger bar and custom built wood-fired oven to deliver pastas, pizzas FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKand FOOD smaller DRINK plates. 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 Smokehouse Tavern - will make us not miss Tennessee Reds by filling the meat void at a space next to Nostrana on 14th and Bel- FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKmont. FOOD In something DRINK FOODthat could DRINK be a Portlandia FOOD DRINKepisode, FOODthere will DRINK be a butchering FOOD DRINKarea where FOOD owner DRINK BJ Smith FOOD will be DRINKable to order FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKa whole FOOD dead DRINK animal FOOD to carve DRINK up for nose FOOD to tail DRINK specials. FOOD Thinking DRINK maybe FOOD there will DRINK be a “viewing FOOD area” DRINK where FOOD patrons DRINK could sitFOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKquaffing FOOD a fewDRINK brews, FOOD chewing DRINK on some FOOD pork rinds DRINK while FOOD watching DRINK a tattooed FOOD chartecurie DRINK surgeon FOOD hacking DRINK up FOOD a whole DRINK cow. Vegans FOOD DRINK are already creating their signs for picketing. 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 DRINKA coupleFOOD of DRINK long time FOOD Central DRINK Eastside FOOD stalwarts DRINK are getting FOOD some DRINK energy FOODinfusion: DRINK First the FOOD Eastbank DRINK Saloon FOOD on SE GrandDRINK Ave. FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKand FOOD Morrison DRINK is an iconicFOOD bar DRINK in the Central FOOD Eastside DRINK that FOOD resided DRINK for over FOOD 36 years DRINK in one of FOOD the oldest DRINK buildings FOOD in the DRINK area. Being FOOD DRINK re-commissioned as the Bit House Saloon with a veteran operator of several other watering holes (Knock Back; Hale Pele; Raven & FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKRose), FOOD it will DRINK upgrade FOOD its offerings DRINK with FOOD a slew ofDRINK cocktails, FOOD whiskeys, DRINK scotches FOOD and DRINK some good FOOD stuff DRINKthey will FOODbarrel age DRINK on premises. FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK“We FOOD are trying DRINK to take FOOD this beautiful DRINK old FOOD building DRINK and put FOOD some life DRINK back into FOOD it and DRINK deliver topFOOD notch DRINK and different FOOD food DRINK and bever FOOD- DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKages FOOD options” DRINK says new FOOD owner DRINK Jesse Card. FOOD A full DRINK remodel FOOD is underway DRINK with FOOD tons of DRINK new fixtures, FOOD an DRINKatrium, fire- FOOD pit out DRINK back but FOOD DRINK maintaining the old school nature of the building but thankfully no more neon inside. They plan to be open before summer. Put it FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKon FOODyour list. 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 When the Produce Row café closed unexpectedly last summer, it was a bit of head scratcher as the place after an extensive remodel FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKand FOOD upgrade DRINK seemed FOOD to be always DRINK hopping. FOOD As DRINKmonths wentFOOD by, rumorsDRINK flied FOOD and manyDRINK were FOOD hoping DRINK for a comeback FOOD asDRINK it is a great FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKlocation FOOD that DRINK needs a FOOD good place DRINK to grab FOOD a beer DRINK and a lunch, FOOD or dinner. DRINK Well FOOD it is coming DRINK back FOOD under DRINKnew ownership FOOD that DRINK fortunately FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKdoes FOOD not look DRINK to mess FOOD with a DRINKgood thing, FOOD just tweak DRINK it a FOODbit to keep DRINK the ball FOOD rolling. DRINK I think I FOODhave my DRINK history correct, FOOD as DRINK McMen FOOD- DRINK namins bought this place in 1974 as the first place to serve “good beer” but they did not make it and shut it down before restarting FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKtheir FOOD ambitions DRINK at the FOOD Barley DRINKMill Pub FOODon Hawthorne DRINK (and FOOD the empire DRINK began). FOOD Alan DRINK Davis bought FOOD the DRINK place a FOODfew years DRINK ago and FOOD re- DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKally FOOD did a nice DRINK spiffy FOODupgrade DRINK and thankfully FOOD kept DRINK and expanded FOOD DRINKthe outdoor FOOD area, DRINKpresented FOOD great beers DRINK and introducedFOOD DRINK much betterFOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKfood, FOOD but for DRINK personal FOOD reasons DRINK pulled the FOOD plug. DRINKTwo new FOOD dudes, JoshDRINK Johnston FOOD and DRINK James Hall, FOOD with DRINK some great FOOD food DRINKbackgrounds FOOD DRINK are bringing it back to life. “I really want to revive it. We want to gather as much information as we can and bring back the stuff FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKeverybody FOOD wantsDRINK as theFOOD beer programDRINK AlanFOOD had DRINK was legendary. FOOD We DRINK want to FOOD build on DRINK what Alan FOOD had DRINKand knock FOOD it out ofDRINK the park. FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKWe FOOD want to DRINK give the FOODpeople their DRINK Produce FOOD Row DRINK back” said FOOD Johnston. DRINK That FOOD comment DRINK says it all.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 DRINKMt FOOD Tabor DRINK Brewery FOOD I don’t DRINK believe FOOD it! Another DRINK brewery FOOD in the DRINK Central Eastside?FOOD DRINKOk, I am FOODa bit facetious DRINK and FOODbeing a long DRINK term qualityFOOD DRINK beer imbiber, I should celebrate another brewery with a frothy cold guy. Mt Tabor Brewing has had a roundabout FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKMoving FOOD Back DRINK Home FOODhistory DRINK starting FOOD like many DRINK in the foundersFOOD DRINKgarage in outerFOOD southeast DRINK then FOOD moved intoDRINK a small FOOD spot in Montavilla.DRINK FOOD They DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKlost FOOD that spot DRINK after a yearFOOD or so DRINKand thought FOOD they DRINKmight have FOOD to throw DRINK in the towel, FOOD but DRINKdecided instead FOOD to DRINKmake the riskyFOOD move DRINK to the founder’s FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKhometown FOOD ofDRINK Vancouver FOOD across DRINK the pond, FOOD which is DRINK a bit of a FOOD beer wasteland. DRINK Started FOOD by twoDRINK dedicated FOOD beer DRINKguys Eric FOODSurface and DRINK Brian Maher,FOOD DRINK they have been doing this on a shoestring while keeping their full time day jobs but now they are all in at a new location at 124 SE 11th, a block FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKoff FOOD Sandy. “Our DRINK goal FOODwas always DRINK to get back FOOD to Portland DRINK and FOOD I really like DRINK the other FOOD breweries DRINK and food FOOD options DRINK nearby” FOOD says Surface DRINK who FOODis busy DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKprepping FOOD the DRINK space for FOOD a larger DRINK15 barrel FOODcapacity atDRINK the 6000 FOOD sf space DRINK which they FOOD hope DRINKwill be operational FOOD DRINK before summer. FOOD They DRINK will keepFOOD the DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKVancouver FOOD operation, DRINK FOODbut will now DRINK be able FOOD to brew DRINK almost 10 FOOD times what DRINK they were FOOD doing DRINK and also FOODhave some DRINK room for FOOD some cask DRINK conditioning. FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKThey FOOD want toDRINK do bottling FOOD too, DRINKand really FOOD he does DRINKnot worry FOODabout the DRINK plethora FOODof other DRINKbreweries FOODin the neighborhood, DRINK FOOD or in PortlandDRINK in FOOD general. DRINK “I don’t like to fit it. I don’t worry about it. We will continue to make beers we like to drink. We always have.” I like this guy’s attitude and in my FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINK FOOD DRINKmind, FOOD the more DRINK the merrier FOOD on DRINKthe beer front! 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 FOODPAGE DRINK 15 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 FOODGotta DRINK go…getting FOOD DRINK hungry. 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 HARSCH Redevelops Dealers Supply Properties

A Semi-Editorial values move upward and diverse and the Central Eastside” says Dealers presi- Good Example of non-industrial uses creep into the area. dent Ken Francis. It was not an easy This is not a bad thing and is a part of transition, as Dealers had been think- Central Eastside Evolution a natural mostly market driven EVOLU- ing, preparing and looking for a newer, TIONARY process that happens in every larger and contiguous location for close The last economic downturn was a city mainly to older core area neighbor- to 5 years. Finally finding a large 10 acre tough one…a game changer some feel hoods and has happened in many areas site in more industrial Northwest Guilds and many thought commercial real es- of Portland over the years. Some busi- Lake area. Dealers made the move, and tate would have a low long slog back to nesses will adapt, some will not, and built a larger efficient headquarters and health. The Central Eastside in Portland some will move to areas that are more distribution hub in 2013. They sold their has proven this prediction blatantly conducive to their operational needs. 3 block Central Eastside complex two wrong as it has not only rebounded but There are firms whose roots go back years ago to long term investor/devel- has undergone a transformation repre- decades that have uses and needs that oper HARSCH Investment who had been senting hundreds of millions of dollars can no longer be viably addressed in an looking for several years for a good core in investment. Apartments (and more area as it grows with more people, cars, redevelopment opportunity especially apartments), but also office buildings, trucks, bikes etc. But this is not a zero in the Central Eastside. HARSCH since commissary kitchens, retail, non-profits, sum game, as former, most likely more their acquisition looked at a variety of creative space, and more are being heavier industrial uses get replaced with higher dense uses with more complex developed in the area that only seems different often times “lighter” uses that (and expensive) redevelopment op- to gain momentum with every passing want and can thrive and actually seek tions such as building a larger industrial month. This is all happening in conjunc- out more dense, diverse, core environ- office complex that was allowed in the tion with a 30 year planning process ments. Often times (not always) with EOS overlay on the property. While they (The Central City Plan) that is bringing this new industrial re-population comes thought demand was there due to the together multiple stakeholders in the innovative, creative, and desired uses success of Olympic Mills next door, this area. With the help of planners at the bringing investment in buildings and was an expensive proposition. HARSCH city, to chart a future course of how the equipment with increased and better came to realize that providing a simple, district will handle this growth, and still employment opportunities. I have a yet artistic upgrade to the site to keep maintain a healthy and economically vi- good example. the industrial character to cater to a able neighborhood while accommodat- newer more creative type of firms who ing a slew of new residents both living Dealers Supply Company has roots in wanted the character of these older and working in the district for the next the Central Eastside going back almost buildings in a great location made more few decades. With all of this has come 100 years, to when it was a feed and sense at least in the short or medium some discussion, many times heated seed supply company started in 1920. term. Fast forward a bit and now about trying to maintain the industrial Evolving (there is that word again) into HARSCH is undergoing a multi-million character of what is to a large degree a construction supply company then dollar investment to accommodate the an industrial sanctuary where long specializing in roofing materials, Deal- operations and headquarters of two term businesses and property owners ers Supply grew to encompass almost flourishing businesses. Steve Smith Tea feel threatened by all this new dense three blocks of buildings and land in the is a globally recognized company that and multiple use development. We close in area known as Produce Row sources, blends and distributes some all often get stuck in our opinions and off SE Water/Stark/Washington streets. of the most sought after tea products. tend to move away from the center and Always dependent on trucks, outside Having started both Stash and Tazo Tea often polarization occurs which helps storage and access, Dealers Supply that he sold to Starbucks in the 1990’s, no one. The term “Pearlization” of the worked with what they had in the Cen- Steve Smith is a guru in the tea business Central Eastside gets tossed around far tral Eastside even though the city block and has steadily grown his own brand to too much as it totally misrepresents layout, freight trains and “pinching” become one of the highest quality and the situation. We have to realize that of new development nearby gradually innovative tea companies in the world. change and growth is coming and the encroached and impacted their op- He, with HARSCH, are bringing their Central Eastside is changing, but appro- erations over the last decade or more. innovation, quality, energy and numer- priately, it is EVOLVING. This will not be “We adapted and made it work even ous employees to Dealers main building your dad’s Central Eastside! It has been though our facilities were old and the “We have had our eye on the Central understood that certain businesses will area started to become less conducive Eastside as an up and coming creative not and cannot maintain operations in to our operations and how we serve community for our expansion. This area the area as density of both people and our customers because we had a long has a host of food and beverage compa- uses take root and thus, parking be- history in the area and loved the access nies and an entrepreneurial energy and comes more scarce, freight movement of the location. But we saw the writing potential that aligns with our brand.” is more challenging, property and rental on the wall and knew we had outgrown Says Smith. The other property is a PAGE 16 ODOT Blocks 2.0 (An Update)

There was some real momentum, at will remove significant questions for metal shed building that was home to least so we thought, a couple of years potential buyers” says PDC manag- Dealers storage of roofing materials has ago when a bit out of the blue, Jason er, Geraldene Moyle who has been now been leased to one of Portland’s Tell, the regional manager for the Or- managing the process from the start. larger and most innovative craft distill- egon Department of Transportation ers; House Spirits. Ten years ago, when stated their intention of potentially The most recent recommendation House started up in a small southeast letting go of three huge blocks of for land use on the site through the location by creating interesting high property on Southeast Water in Cen- Southeast Quadrant Plan is for appli- quality distilled gins and vodkas, there tral Eastside. These three super blocks cation of the Employment Opportu- was a bit of a yawn. But slowly, momen- owned for decades by ODOT for an as- nity Subarea (EOS) overlay which al- tum has been obtained where numer- sortment of reasons had always been lows for significant square footage of ous (now over 20 in Portland) micro dis- a bit of a mystery and minor sore spot industrial office and higher degree of tilleries have been become recognized for stakeholders in the Central East- retail and is prevalent on all the sur- “interrupters” in a staid monopolistic side, especially as the area needed rounding properties. “We are at the business dominated by big companies parking and land for further growth. tail-end of getting environmental re- by bringing tasty and distinctive spirts PDC jumped in as they should to shep- views and appraisals accomplished so to market. They made their mark with herd the complicated surplus property hopefully we can get selected buyer(s) their signature Aviation Gin that got process of a large state agency to po- in place on the part of the property tons of national press kudos, but now tentially take control of the property ODOT has declared surplus by the branching out to whiskeys, Aquavit, and and move it towards possible redevel- end of year”. The property entails more. House Spirits is on a roll with new opment. The PDC dug into the myriad approximately 2.1 acres of the total investment. Joe Montana is a big inves- of issues and questions on the site 4.3 acre site all with frontages on SE tor. In this new location totalling 14,000 such as ODOT’s need for the western Water which the city and PDC want sf of space, House Spirits is cranking up portion of the site for future work on to see as a more active boulevard. their objectives and product reach to I-5 overpasses, environmental issues; The land behind, or to the west to- the next level. The tired, old, three sid- access; zoning on the site. At the same wards Interstate 84, will be able to be ed shed building will be fully enclosed time they moved relatively quickly to- leased long term to a buyer for much with a great edgy industrial design and wards a RFI (Request for Interest) to needed parking for any development will help House to triple their produc- the business and development com- and maybe, and just maybe, provide tion area, provide significant storage of munity in January 2013. That pro- additional parking for our district’s wood casks for their growing whiskey cess resulted in numerous responses mounting parking woes. This gives a business, while also having a very cool and PDC winnowing down interest to buyer some significant square footage tasting room and administrative offices, three qualified firms. Many factors at close to 35,000 sf per parcel to get all bringing new vibrancy, dollars and were in play with putting the site out the economies of scale and “meat” to employees to the Produce Row neigh- to market, verses being developed. It create something potentially iconic, borhood. And yes there will be substan- was not the way to go with the site’s continuing the metamorphosis of tial parking for customers and employ- restrictive IG1 zoning and the coming Water Avenue into an active corridor ees for both these business on each site process of the Southeast Quadrant which is anchored at one end by OMSI which is a big bonus. Plan as part of the Central City process and RiverEast, to the south and East- (which will review land use in the dis- bank Commerce Center to the north. All together several million dollars will trict), therefore, the process to bring be invested in major upgrades to all one of the close-in Eastside’s best de- The plan going forward is to look for the buildings and where Dealers had velopment sites to the forefront, right- a more defined and concrete RFP pro- employed 35 employees, upwards of ly slowed down. But, it also gave them cess to get going in the late spring 80 people will call home in these two time to get the site more shovel ready when more definition on the exact promising and emergent businesses. and get all the questions answered up land use designation will be closer to The takeaway; a larger, freight de- front so that any buyer would have all reality. It will present to market an pendent firm needing more land and of the best information on the site. opportunity that will give a potential space moves out and is replaced by two Now with the Southeast Quadrant buyer the best possible sense of what smaller but growing companies bringing Plan nudging towards the end, real can be built on one of Portland’s best more employees in a desirable industry momentum seems to be returning to core properties. Expect a lot of inter- niche and millions dollars of investment put a much more defined site out to est by both local firms already vested to upgrade several dilapidated build- market “The time allowed us to - bet in the district and probably some out ings. This is change, or better yet, evolu- ter understand the site and ODOT’s of state players who are quickly com- tion that maintains the industrial nature needs while also getting some -clar ing to understand the value and po- of the Central Eastside, but bringing an ity on what land use possibilities will tential of these rare large core sites. activating use with more employees. get consensus on the property which PAGE 17 Railroad Quiet Zone Considered Maybe you think it is quaint, a bit nostalgic or, a sign that the Central Eastside is a working industrial neighborhood. However, if you are sitting at your desk qui- etly working on an important document, it may drive you crazy and play on your nerves when you hear the huge decibels from the multiple blasts of the air horns from the frequent freight and passenger trains that travel through the district every day. With the coming of more intensive office type uses in the Central Eastside, many of which are in new, or redeveloped buildings adjacent or close to the rail lines, the issue of these unsettling horn blasts is becoming more of an issue and considered a blatant example of noise pollution. In response to multiple concerns and requests by several property and business owners, a grass roots group has taken up the issue and started to study the issue with the hope of some solutions. Jeff Reaves, who was president of Mackenzie, is someone who has expansive experience in multiple issues in the Cen- tral Eastside. More importantly, he has ownership of two buildings near the rail line, and is leading the charge of firms/property owners (many along the rail line) to study the issue and potentially come up with some detailed remedies. “There is an old saying in the Central Eastside, when you want to say somethingQUIET important the train will come by. We want to look at eliminating that prospect”, says Reaves. Presently, each train is required, for safety’s sake, to sound their horns up to 4 times at each grade crossing in the district and there are 12 of these crossings which could result in 48 horns blasts in the space of less than a half mile from SE Stark to Clinton Street along SE 1st Avenue. However, there are safety design treatments that can be undertaken at these intersections that could be accomplished. If approved by the Federal Railroad Administration (FRA), it would remove the requirement of the engineers to sound their bone jarring horns which is referred to as a “Quiet Zone”. “There are certain improvements that can be done economically at each of the Central Eastside crossings that could reduce substantially, if not close ZONEto, eliminating the trains having to sound their horns” says Grant Morehead at PBOT. In fact this has been achieved at a couple of crossings a few years ago in the Pearl and most recently in the Central Eastside, the crossing at SE 8th was upgraded due to Milwaukie Light Rail and is awaiting Quiet Zone approval, so there is some good local models out there to emulate. Reaves’ group, which is still forming and counts support from up to 80% of the firms along the rail line will be undertaking a three phase approach: First, get all the players at the table such as the railroad, PBOT, property owners, etc., to agree on a scope of work for the study: Second, evaluate each crossing and what treatments will be needed to qualify for the Quiet Zone designation: Third, develop costs and then see how feasible these improvements would be and if there is a consensus on the importance of making the investment to achieve the Quiet Zone designation. After these are achieved, the biggest question will be whether this plan is determined to be an economical and desired investment. What pots of dough could be tapped to make this a reality and bring a bit more serenity to the Central Eastside? Obviously the extension of the urban Renewal Area and the appearance of up to $20 million of tax increment is looked at as one source. Stay tuned, but keep you earplugs in for now. Parking in the Central Eastside…a delicate balance. I know parking is a bit boring, but boy, it or more cars in this area snuggling into a Central Eastside business and property is important to the viability and success of sweet free street parking space, locking owners, a stakeholder advisory commit- businesses in desirable and quickly devel- their cars, grabbing their work gear, but tee was enjoined in 2010 to study the is- oping core areas in any city and the Central not heading into an adjacent business but sue and come up with the specific defined Eastside is no exception. No matter how rather donning their walking shoes for problems and then develop tools to try much public transit, bike lanes and en- a nice jaunt (or grabbing a bus and now and best manage what most thought was couragement to take mass transit, people streetcar) over one of bridges to down- an inefficient, outdated and confusing sys- will not easily give up their cars. I hear it town, only to return to the area in late af- tem. Studies, analysis, discussion, give and at almost every meeting. Parking! Parking! ternoon and evening for their return com- take and much more took place over al- Parking! “If you cannot provide adequate mute home. “Parking Poachers” was the most two years among a select group with and timely parking for your customers and term Peter Stark, the godfather of Central guidance and input from the Portland Bu- employees, it can severely affect the long Eastside parking, coined for this growing reau of Transportation’s parking gurus. This term viability of your business” says Bob phenomenon. He went on the say about resulted in a management plan that was Wentworth, who has been at the forefront this crucial moment in the Central Eastside adopted by the City Council in June 2012. of finding solutions to parking in the Cen- history in 2012 “We want to try and dedi- tral Eastside. This is due to his having over cate parking in the district for people who a 120 employees as well as dozens of pro- do business in the district” The writing was spective customers at any given time com- on the wall for many years, parking in the ing to his long term car dealership along Central Eastside was becoming difficult Burnside/MLK/Grand. There is one gnaw- and as the area was seeing more develop- ing aspect of the parking situation that ment and more dense uses, the problem has prompted recent action that we have was going to just get more challenging known for years, especially in the west with the coming of the streetcar and oth- side of the Central Eastside. You would see er pressures. Prompted by the Bureau of them early in the morning usually, dozens Transportation at the city and concerned PAGE 18 Research and Analysis for the Parking Plan showed 14,605 parking stalls with 6,324 on street and 8,281 off street

The Central Eastside Parking Management Plan (CEPMP) that came out of the process in June 2012 was extensive (140 pages) so getting into all of the details is not possible and may put you to sleep but there are some highlights that are worthy of pointing out. A few of the Problem Statements are: • Existing Parking policies do not support • Future demand will not be met by the the needs of customers and visitors along current parking supply MLK/Grand, Burnside/Couch, Morrison/Belmont, Hawthorne/ • Future development will be hampered Madison corridors by free on street parking

• Out-of-district parkers are using • Off street parking supply will decrease up the parking spaces as surface lots are development

• Much of the off-street parking is under-utilized

What came out initially from this park- Other important results of the Plan schedule runs from May to April and ing plan, you ask? If you have a business included streamlining and simplifying costs $60 per permit. or own a property nearby along MLK or of the various time-stay formats to two Grand Avenue you know the big thing.. standards: 2 Hour in much of the district But the biggest long term tool was Meters! As you will recall there was as- and 3 Hour for an area mostly down near the establishment of a Transportation sortment of timed-stay types (e.g. 5 Min- OMSI. The buffer parking area along SE and Parking Management Association utes, 30 Minutes, 1 Hour, 2 Hours or 11th and 12th with its combination of time (TPAC) which is a group of businesses, Permit) which it was deemed inadequate stays and unlimited parking stayed as did stakeholders and property owners in the to provide time for customer parking the loading zones. Central Eastside that will provide a “sys- and causes conflict between custom- tem of self-governance” that can serve as ers seeking access and employees. This Another important outcome was the a forum for action, planning and program area is zoned commercial and should be expansion of the Employee Permit implementation and monitoring of the prioritized and managed differently than Parking Area. Previously, business in the parking regulations to meet evolving areas zoned industrial in the area. So by district were able to pay for permits for a growth in the district. The committee, the end of 2013 meters were installed percentage of their employees to park for which is made up mostly of the group in this area from I-84 to SE Clay and unlimited amount of time on over 1800 that was involved in shaping the 2012 the east west streets between the MLK/ on street spaces, mainly in the permit plan, has been in place for over a year Grand corridors. This was a big step parking areas west of 7th to the river. and meets with the PBOT shepherds to and not everyone was on board as long However, there is a large number (2900) “adjust” the aforementioned regulations time business owner Stuart Shleifer, of of no limit stalls spaces, mainly east of put in place by the Parking Management Shleifer Furniture said at the time who SE 7th, that through data gathering were Plan. They have and are changing how feared meters would drive customers determined to have a high occupancy rate these initial regulations can better serve away, “From a business point of view, of 85%, but it was difficult to identify if a district, that with all the new apart- I think it is a bad decision and will these spaces were being occupied by em- ments and other developments, it can negatively affect customers from coming ployees, residents or the dreaded “poach- equitably manage the very important and to businesses”. 65 meters will cover 450 ers” that used this as free parking to use finite parking resources. In the last year parking spaces and was projected to raise for activities downtown, Lloyd Center or they have pulled out some of the under about $436,000 a year. If there is any net other areas. These were assigned with 2 used meters put in place in fall 2013 and revenue, 51% of the this number will be Hour, 3 Hour, or by Permit designation changed some of the time stay spots as dedicated to transportation and parking bring the total potential permitted areas well, but one big change is in the works projects that benefit the district. So how up to 4,715 stalls. Employers are now right now that has many businesses in are we doing now after more than a year allowed to obtain permits for “100% of the Central Eastside very antsy, if not of meter installation? Well, as revenues on-site employees” The permit program downright panicky. (see below) are in line with expectations. EX zoned Properties and Business to have their Parking permits phased out Let’s start with the basic facts: With businesses (residents) having the ability to buy parking permits for their employees, there is a large oversubscribed potential demand for a finite amount of on street parking sites. This is done because employees and residents don’t buy or use all the permits and have parking needs at different times. But with all the new more dense (more employees) office and retail development and over 2000 new apartment units, (a resident in an apartment with a registered car could get a permit) it is quickly becoming a situation where demand and supply of parking spots is out of whack and will only get worse. A reduction or rationing of permits needs to take place. So after looking at up to date parking data and much discussion of options to find the best possible equitable way to reduce permits the following proposal is being floated as the solution. PAGE 19 Continue on next page... parking changes Burnside Bridgehead Bursts with Activity Remember back in 2004 when vaunted national are a developer, OPUS, who after a vigorous competition became the chosen son to redevelop the four acre coming PDC owned Bridgehead in the Central Eastside? This key development site was long blighted and In looking at recent parking data in the Central Eastside there has been severely underutilized and home to aging build- the revelation that there might have been a bit of a overreach in allow- ings that with the city’s help would hopefully spawn ing businesses to obtain parking permits for 100% of their employees a multi-use dense cutting edge development that (up from 75%) as well as seeing a much faster pace of development and would serve as an iconic entrance to this portion of business locations into the district. Right now there is almost a 200% the Eastside and also potentially be a catalyst for new over subscription of permits for the existing on street permit spaces and development nearby in the “gritty” close in Eastside. this will only get exacerbated with new dense office, retail and apartment It was said at the time “The project is envisioned to development. With this in mind, the Transportation and Parking Advi- transform five city blocks and provide a distinctive sory Committee armed with data from PBOT is proposing some major entryway to Eastside neighborhoods and be a signa- changes to the on-street parking system ture project for the Central Eastside Urban Renewal this year. Area”. PDC started assembling the 195,000 sf site for close to $11 million back in the late 90’s hoping

to kick start a pivotal entrance project to the Central • Adding 408 on street parking stalls throughout the district by taking Eastside that many thought because of its location poorly or underutilized 1 hour stalls and moving half to 2 hour and to downtown, transportation and east side neighbor- the other half to 2 hour or permit parking hoods was teeming with possibilities. OPUS, who was coming off the Bridgeport development consisting • Addition of 25 new meters mostly along East Burnside but a few of a spectacularly successful upper scale retail village along Morrison and other main corridor streets. on an old quarry site in Lake Oswego, was thought of being able to provide the financial heft and daring • Ratcheting back the ability of businesses in the IG zone to obtain aspirations that could remake this gateway property permits for 85% of their employees from the 100% implemented into an intrepid urban multi-use project that was val- just a couple years ago. ued at over $200 million at the time. This excitement soon turned a bit snippy as home grown developers Here is the big one: It is proposed to have a new parking Zone called were chucked aside in the selection process that many “N” (the one in place now is Zone G) which will be a zone created citizens felt was the wrong path and the site needed mostly along the major commercial corridors where the zoning is Em- a more native and indigenous approach. Whispers of ployment or commercial. The idea here is that there was a realization discontent in selecting a large out of state developer that parking for these commercial zones have different parking demands gradually grew louder especially when a large urban and characteristics that should reflect more parking opportunities for Home Depot was revealed as the potential large visitors and customers and thus should be managed differently. Under anchor tenant along with hundreds of apartments and the changes, businesses in this new zone will be allowed to get employee condos that smacked more of an antiseptic suburban parking permits for 100% permits for their businesses and actually will take on Portland’s hipper urban core sensibilities. It get more permitted spaces. hit straight on Portland’s anti-corporate big box nerve especially for a property that would entail significant But here is the killer: These permits will be phased out after two years to public dollars. OPUS listened (somewhat) and re- point where these businesses will get a big fat zero. All these spaces will trenched on its plans in several updated scenarios over the coming years trying to capture the keep Portland be converted to time stays of 2 hours or less. The issue is that there is a weird attitudes and cater more to local users and very healthy group of companies located on these employment zoned businesses, but their several design and use iterations properties with hundreds (if not more) employees that in two short years never could gain traction in landing any significant will not have the ability to obtain on-street parking permits for their seed commitments over a 3 year period as both retail employees. This is huge for these firms that do not have access to off and office tenants just could not be persuaded to street parking. commit to a pioneering project and site in such a un- proven basically industrial sub-market surrounded by The long term solution to parking is how best to utilize the large num- a gaggle of slovenly buildings and perceived seedy low ber of off street privately owned parking to better serve the district’s cost section of town. Even Portland borne Columbia parking demand. PBOT data tells us there are 8280 off street parking Sportswear who was coddled to move back to town stalls in the Central Eastside with not all these spaces being utilized could not see the potential. “It was just too early in effectively, but with pressure on parking becoming more and more acute, the development cycle of the neighborhood to obtain property owners are finding their parking resources are more and more early commitments to move the project forward and precious. This is a work in progress but think about the lack of parking that along with resistance from certain neighborhood is a product of a growth, development, and general vibrancy of a desir- elements and multiple changes to the uses and design able neighborhood. made for a challenging project. But the coming eco- nomic downturn and market realities namely in the Call me at 503-705-6380, or email at cascadecommercial@integraonline. financing realm really is what squashed the project in I have some interesting data and background that dives deeper in to the weeds the end.” says Bruce Wood who is now is at the PDC on parking, or better yet, get involved and come to the TPAC meetings. but was OPUS’ local manager at the time. PAGE 20 Burnside Bridgehead Bursts with Activity Brad Malsin and his development firm, true to form of finding gems under what socialize and using that to define the build- Bean Development, was the populist favorite many think are tear downs thought this a ing. Our goal is to really represent this view from the beginning and actually was chosen waste of a perfectly good well- built older of a larger community” It will be a unique to be the developer of the Bridghead site structure. Plus their success at their other and eye-caching design that shows the pos- by PDC advisory committee and when projects nearby of taking older structures and sibilities of the building with its angles and OPUS was selected there was the poignant injecting some thought and creativity such changes in surface that makes you want to comment “That it looks like McDonalds as Olympic Mills and Eastbank Commerce move in for a closer look. A deep hole was was selected over McMennamins”. Malsin Center persuaded the PDC to give him a dug that did not encounter anything weird who both likes to mention both his New shot at looking at potentially renovating the and costly and now you can see the struc- York City feisty roots as well as his under- building to kick off the dormant project. ture rising above street level for completion standing and implementation of Portland’s Like most major rehabilitation projects of sometime in early 2016. rebellious localist indie sentiments in his larger buildings from another era, it took lots projects and development thinking, was the of studies, analysis and of course time and 21 story tower anyone? people’s choice and alternative to what many again Beam’s timing was impeccable as their perceived was the boring, repetitive devel- simple yet complex (does that make sense?) Just as Beam was getting going on his build- opment behemoths that didn’t “really get adaptive reuse hit the market perfectly. The ing recycling of Convention Center Plaza, Portland”. “I was never antagonistic towards important thing is they were able to secure Jeff Pickhardt a developer from Hood River OPUS or their plans as I just thought some- a good large anchor during design and came calling on the 26,000 sf site adjacent thing different, organic and innovative that construction phase when tenant Cascade to Convention Plaza with some grandiose could capture the sensibilities of Portland Energy signed up for 25,000 sf at what came dreams for something different and maybe and its culture could be accomplished on to be known as the Eastside Exchange. This larger to meet the growing demand for what really is a gateway site” Malsin said provided the WD 40 lubrication to move apartments. Again, a long two year plan- back then. He was vocal, proactive and best the project forward faster and now just after ning and design pregnancy involving lots of all in the end he was patient. PDC and completion last year the 97,000 sf project is of thought, (attorneys?) imagination and of OPUS finally cut ties after 3 years in 2008 now fully leased to assortment of small and course financial nurturing took place and and PDC took a necessary “breather” as medium size firms running the gamut from an originally conceived smaller project grew recessionary dynamics froze development traditional to creative users. Bingo! The with the economy and the Central Eastside’s everywhere especially for such risky type of engine was started and now the Bridgehead hip cache to become something bigger… urban projects. The site was cleaned up a bit is alive and humming with three very differ- much bigger. There now is a 21 story apart- and the PDC after learning much from the ent but seemingly complementary mixed use ment and retail project now under way with OPUS false start, went back to the draw- projects. a striking decorative wedge design with its ing board for more study and outreach. steel frame starting to reach skyward above What smartly came out of that huddle was a While having one large integrated project the area. There will be two striking retail Framework Plan that looked at the site has would have potentially had some intriguing components to the building along with the having several parts and distinct develop- prospects, the size of the site and the timing 284 units of apartments (more about this ment parcels that each could have its own just pointed to a phased and piecemeal ap- project is in the apartments section of the separate identity and development potential proach which in the end allows for several newsletter). that pointed to the possibility of several developers providing their innovative take Continue on next page... separate projects each with its own unique on the site which might be slightly more design and market target. This allowed compelling and differentiated. This is rein- for the project to get going in phases thus forced by the eye-popping and daring mod- reducing the overall risk plus by breaking ern design on these projects you just won’t the development into parts it allowed several see in any other part of Portland. When all visions to bring different yet complemen- this comes to completion I think you will tary designs to the site. This also had the know that you have entered an exciting and potential of moving the process along faster energized neighborhood. than trying to put one huge project on the property. Beam’s Newest Project

As the first shoots of economic vitality The success of Eastside Exchange led Beam starting spouting in 2010, Malsin and Beam to move across the street to a vacant PDC were ready with their catcher’s mitt on look- owned property referred to as block 75 for a ing at the only remaining structure on the ten story project that broke ground in Janu- site as potentially being an excellent can- ary. Employing a “bundle of tubes” design didate to jump start the project. Originally concept by Works Partnership, this will be a warehouse the 1924, the 4 story former the first truly mixed use concept employ- warehouse sitting on the hill looking over ing retail (8300 sf ) offices (37,000 sf ) and downtown had a cheap renovation years ago 75 apartments with good dose of work/live to office space that was occupied by a less units and 42 parking spaces. Architect Bill than stellar lineup of tenants. OPUS’ along Neburka at Works partnership had some with other developers who looked at the good design speak to describe the building Bridgehead site originally thought it was a “We’re equating the nature of the space, candidate for a large implosion. But Malsin where you work, where you live, where you PAGE 21 (Continued from page 21)

Not so Dumb of an idea.

To round out the starting lineup at the Bridgehead, Kevin Cavanaugh who loves Yale Union Arts Community Blossoms to push the envelope of development ideas found the most difficult of the Bridghead’s site; a 14,000 sf island of land (Block 76) One of the unique characteristics and and dryers became commonplace and created by the Couch couplet to his liking. main attractors to the Central Eastside many of these old line laundry firms His project name which demonstrates his is the varied and interesting building faded away. The next 50 years brought daring quirkiness is called the Fair Haired Dumbbell which looks like two intertwined stock we have in the district much of several owners and industrial uses and connected Christmas presents con- it a tribute to the industrial history of including an auto upholstery manu- nected by a skybridge on a small island of Portland dating back over 150 years facturer and other smaller industrial land surrounded by streets. Cavanaugh made his iconoclastic mark with such projects as ago. There probably is not a better operations. Fast forward to 2008, the Rocket and the Ocean not far away and and historic example of this then the when the building was purchased for per his off kilter approach to development Yale Union Laundry building, a very $3,500,000 by a benefactor who had turned to a growing funding mechanism for cool structure that sits majestically on a deep affinity and goal of using the his equity financing by doing the Crowd Funding thing (Fundrise) which met with a the slow rising hill off SE Belmont/ building as a grass roots art’s center huge response exceeding his target of $1.5 Morrison and 10th Avenue. With called Yale Union or “YU”. Their million by double with over 1200 people its weathered but very intact brick website sums up the organization’s expressing interest in the $5 million plus development. True to his altruistic develop- façade, soaring arched windows and objective best. “Founded by artists, ment leanings, he says “it will be a lucra- Italian Revival detail, the building the Yale Union is a center of contem- tive but not greedy project and handsome really speaks to the historic industrial porary art in southeast Portland. It is without being gaudy” Encompassing 56,000 sf of offices in four floors above 2775 of history of the Central Eastside. Built led by a desire to support emerging retail on the tight site it will be a capper and in 1908, on a half block but encom- and under-acknowledged contem- frosting to the two larger projects nearby. passing over 40,000 sf on two levels porary artists, propose new modes One of the larger catalysts to this develop- ment is to potentially capture the emergence with a beautiful huge soaring main of production, and to stimulate the of tech and enterprise firms locally and those space, the building was home to the on-going public discourse around migrating from more expensive locations Yale Laundry Operations. This is art” Led by Curtis Knapp, an artist, that are looking for space alternatives that back when many did not wash their an enthusiastic arts promoter with are a bit goofy, out of the box and fun that better reflects many of these companies en- clothes at home but took them to the lots of energy and ideas, Yale Union trepreneurial and anti-establishment culture. laundry. Charles Brown a prominent had very humble and slow beginnings “The Fair-Haired Dumbbell epitomizes local businessman was the builder but over the last 8 years the space the tech pilgrimage to Portland. There is a risk but that is countered with the perfect and owner and employed mainly and organization has started to hit its mix of adventure and imagination” was one women immigrants in somewhat stride with a burgeoning program of description of the motivation. In this vein it dreadful working conditions. The exhibits, events and arts education. will be a Spartan but warm open design with on-site robotic stack parking system, open building played a part in Portland’s “It has been a slow build but we really space timber frame construction and expan- social history when many laundry have had a great response from both sive wood floors that will allow tenants to workers reacting to their deplorable the artist community and the public personalize the space to reflect each compa- nies’ milieu. The 4000 sf floor plates match working conditions unionized in the that was seeking outlets and exposure up with a good size many firms are seeking. 20’s and campaigned publicly and of first class art that could not find a conducted worker strikes to improve venue before” Knapp explains. From Cavanaugh is paying $1.16 million for this orphaned development site and is slated to their job safety. In response to this, the start each year bought lots of chal- get under construction this summer. many smaller laundries were not able lenges and issues but more impor- to keep up and a larger consolidated tantly it also brought more support The Burnside Bridgehead…we have come a long way baby but I think most will sit back company, the Home Services Laundry and an increased trickle of dollars and when all is done and drink in the diversity, Company emerged and bought out or devoted board members, benefactors audaciousness and function of these devel- absorbed these smaller operations in- and artists looking to build something opments and murmur, “Yeah that works!” cluding Brown’s Yale Union Laundry unique and needed in the city, namely company. This larger laundry com- a place to push and educate both art- pany operated in the building until ists and the public to achieve and ex- just after WW II, when home washer pose a wide spectrum of artwork that

PAGE 22 Yale Union Arts Community Blossoms

for the operation with the rest com- ing from artists, donations, grants and memberships. But their biggest hurdle as yet to come is a full seismic upgrade of the building which now restricts use because of the unreinforced brick structure, to only certain amount of events a month. “To really realize the full vision of both the historic nature of the building and the Yale Union arts mission, we have to undertake a retrofit of the building so we can expand our programming and also preserve this building resource for decades to come” Knapp beseeches. They have done considerable analysis with an engineer regarding how they had trouble finding space and exposure. Looking over their recent calendar reveals can phase what looks to be a $9 mil- an eclectic and wide range of events from poetry readings, music, performance art, lion dollar project which also includes film showings and other mixed medium events you just cannot find anywhere else other upgrades to the building outside in the city or probably the northwest. Just really interesting stuff! The building was of seismic. They have boiled this big pretty much a untouched shell with lots of maintenance issues so gradually with a improvement into a 10 year improve- crew of paid and volunteer help they have accomplished numerous projects every ment plan and are just starting to get year such as upgrading bathrooms, plumbing, adding sprinklers, improving their ducks in a row to cobble the the mechanicals; building out artists and exhibits spaces and just taking funding together which they hope care of the decades of neglect while all trying to keep true to the will be made up of individual dona- heritage of the building. My tour recently with Curtis and tions, foundation grants and potential another Board member revealed a print shop, numer- funding through the city’s Urban ous work and education spaces, an artisanal Renewal area for the Central Eastside. coffee roaster, a new kitchen and lounge It will be heavy bucket to carry given and more. It felt vibrant, warm and the non-traditional nature of YU’s hopeful. The jaw dropping programming as well as the many part of the building is the hands that will be grabbing for limited soaring upstairs space URA funds, but as Brad Malsin said with it’s full ceilings, big about the arts at a recent CEIC event, windows and views and “Artists are an integral and important 100 year old red brick. component of any healthy commu- This is their exhibit nity. We need to support, nurture and space as well as a place expand our commitment to arts or- that gets often rented ganizations of all kind which provide for parties, fundraisers, innumerable and valuable benefits to commercial film shoots, our city” business events and also Alleluia to That! provides half the income

PAGE 23 Fowler cashes in on and Sells The Corner Apartment Central Eastide Lofts at 6th and NE Couch

When I was putting together my first newsletter on the close in He was a bit ahead of his time and somewhat prescient in neighborhoods and Central Eastside years ago and being more getting one of the first large apartment projects up and leased of an industrial sort of guy, I did not think I would ever have to in the Central Eastside and now he and his partners are taking put together regular “Updates” on the apartment market, but advantage of a red hot market for apartment investments. Brad given the avalanche of both under construction and planned Fowler started eying the Central Eastside as a potential apart- units in the close in Eastside, it is a new reality that many think ment market years ago and was very prescient in purchasing is here to stay. So here we go… two key 20,000 sf sites at NE Couch/Davis and 6th avenue almost 10 years ago. “We saw the potential in the Central Eastside early and really thought over time this area was underdeveloped with Bollinger & Sons site on Grand tons of potential for the long term” says Fowler. He moved to become Mixed Use Project ahead with a 62 unit project called Central Eastside Lofts that came on line in 2012 and was ahead of the curve and leased up You may get your coffee or one of those tasty frozen treats at fairly quickly as he had the only game in town. “We really hit the Dutch Brothers where they have a very visible location right at market well as there were really no other apartment options the Morrison Bridgehead site on SE Grand. This time next year nearby and there was already developing some great amenities that probably will not be possible as this half block property is in the neighborhood especially along lower Burnside” He says. angling to become a retail/office/apartment project. “This is This smart move demonstrates Fowler’s forward thinking and really one of the best sites in the Central Eastside because of it pragmatic view of what has become a gusher of apartment being on the bridgehead and Grand Avenue” says Tim O’Brien development throughout Portland’s core areas where he could of Urban Asset Advisors and formerly a big deal maker as an have moved forward on Phase II on another site adjacent but apartment broker at HFO. O’Brien has waded up to his shoul- felt the market was already starting to get overheated and risk ders in apartment development after saying goodbye to was entering the picture. He recently cashed out with a $19 apartment brokerage and loves the Central Eastside. “I have million sale of his complex to a 1031 buyer out of California at a had my offices here for over a decade and really watched this capitalization rate under 5%. “I am not a pessimist but just feel market change and transform to a vibrant area where mixed use there may be just too much inventory in the pipeline that is all development really could and has become a complement to the trying to serve a similar rental market which is basically the industrial and retail base” he says. Bollinger and Sons a long millennial clientele and I just do not think that market is very time Central Eastside insurance firm and owner of some great deep so the timing was right to take some chips off the table” real estate was looking for ideas for redeveloping this key site he wisely opines. He kept his other development sites and is and O’Brien with his local roots, creativity and more importantly happy to sit back and watch the coming wave of new units his willingness to include the landowners as partners in his hitting the market at the Bridgehead, Lloyd Center and North- development snagged the deal. Design and costing is shifting west Portland before figuring out what move or any may be in into high gear and at this point it looks like there will be 26,000 store for his sites which could be more apartment or even sf of office, 75 apartments units and an undetermined amount creative office which is seeing a burst of development too. of retail along busy SE Grand in a five story configuration. The good thing is that there looks to be a high degree of parking We (CEIC) just completed our apartment survey of the Central with at least 80 spaces which can be shared with office users Eastside and there are tentatively 1,953 (heavy on studio and and apartments as they have different time needs. Timing is one bedroom) units either completed, under construction or still up in the air but the goal is to have construction going proposed in the district with 940 off-street parking spaces. sometime next fall. O’Brien is putting the finishing touches These projects with have also have approximately 158,000 sf on his other Central Eastside project, Lower Burnside lofts of retail and 61,000 sf of offices in the developments. This which is a 62 unit project at 10th and SE Ankeny that another basically doubles the apartment inventory in the district which Central Eastside firm, Bremik Construction is building. Overall is mostly made of smaller older units. O’Brien does not buy in to some of the growing “noise” about the market heading towards saturation. “We have such pent 21 Story Apartment Tower Finally up demand from having not built any multi-family units for so long, great in migration that wants and needs to rent and some Underway at Bridgehead healthy job creation that in my opinion we have several years or more for this current cycle to run its course. Plus even with Though it has received a fair amount of press, I don’t think some healthy rent appreciation, Portland is still very affordable people understand how this development will change the compared to many other west coast cities.” Says O’Brien. He physical landscape of the Central Eastside but I think the size does mention also that as more and more units hit the market and design will wash over the surrounding area in a way that it will put pressure to develop on well located sites like the says the Central Eastside is no longer a gritty gentrifying Bollinger property which will be more crucial to determining industrial district with a slew of funky buildings and develop- long term successful projects.

PAGE 24 ment. With it’s stunning design by rock star architect Jeff Kovel St Francis Park Affordable Development of Skylab, it will look like an artsy sentinel rising to 206’ that by sitting at one of the main entrances to the Central Eastside will gains funds and picks up speed give the area a certain a healthy dose of big city style and audaciousness. The Design Commission got all giddy over the Good or bad, most everyone in the Central Eastside knows the design with comments like “It’s a fantastic project” and “All very wooded and neglected green space at 12th and Stark. Started thoughtful and creative” It is a very healthy bet by Jeff Pickardt, under idealistic and grassroots pretenses back in 1969 when the a Bend based developer that cut his teeth with several inventive St Francis Parish donated the land for a park, the parish and oth- buildings including several along Hood River’s waterfront. With er neighborhood activists brought together architects, artists, 284 apartment units and fortunately 203 underground parking sculptors and hundreds of volunteers to create Portland’s ver- spaces (also a whopping 426 bike parking spaces) along with sion of Berkeley’s version of the “people’s park”. Combing fifty 20,000 sf ground floor retail evenly split on the lower level along truckloads of dirt coming from the construction of the Wells SE 2nd and above on the intersection of Couch on to the Bridge, Fargo tower downtown with the creativity of school kids and this is a game changer for the Central Eastside from a scope and hundreds of volunteers, the dirt was contoured in imaginative design perspective. The design definitely pushes the envelope ways as the foundation for the community space. Over the next for the staid Central Eastside with a wavy steel and metal base couple of years, all sorts of plants and trees arrived, an artistic that some have described as a “wedge”. steel play structure took shape and then the biggest feature, was a cubist shaped fountain and concrete riverbed that circu- It is basically a paralleIogram that seems allergic to 90 degree- lated water from a windmill attached to a decommissioned navy angles and will have some colorful glass and metal panels that battleship mast which remains on the site. All very funky and undoubtedly give off some interesting hues as the sun moves organic which was the goal. For the first 15 years, the park was over the structure. The retail fronting on NE Couch as it curves a safe, mellow, neighborhood gathering spot. Things changed in on to the Bridge has its own striking appeal with an undulating the 80’s as the parish closed the school and the dining hall was metal roof, tons of glass and an green eco-roof. “We wanted to expanded which was catering to a growing transient population. create something iconic and that will last and be memorable A good recent quote was “When the school closed and with the given its location on the bridgehead.” says Pickhardt. The $85 schoolchildren, went the parks’ energy” It was a slow decline million project will take close to 18 months to complete. He first as demographics of the neighborhood changed and the park approached the PDC with his daring plans for a tall building on slowly became populated with those “clients’ of the dining hall the site over three years ago. I asked Jeff if it was difficult to making it their living room and made the park less inviting and make both equity and financing partners understand the safe feeling. While many of dining hall recipients were harmless project, Portland’s culture and the unique milieu of the Eastside. and just down on their luck, a criminal element from time to “A couple of years ago there was some gymnastics involved in time could dominate and make use of the lush foliage for lots making people understand the unique but energetic nature of of unlawful activities to where many neighbors were afraid to the Central Eastside and its potential but as other projects at venture close to the space after dark and the Portland police the Bridgehead, the Central Eastside and even the Lloyd Center became frequent visitors and finally closed the park for much of have been moving forward, the sell became much easier and 2003 because the place just got to be too unsafe. The park over everyone we talked with really listened and understood the the last decade, just limped along neglected with the surround- story and the potential of the site and the area. Plus Portland ing neighbors, businesses and property owners tolerating the has received great press recently and is on many people’s radar conglomeration of “residents” and occasional spikes in criminal screens for investment for all the reasons we know well” It was activity but wondering if something better could be produced all systems go when they secured a $71 million construction out of what has become some very valuable real estate. Many loan last September from mortgage company HFF and previ- in the neighborhood were buoyed by Catholic Charities plans ously brought in Andersen Construction as both a minor equity last year to buy the site to create a housing and retail complex partner and quality builder. There will be 42% studios, 45% one on the site. Vaunted corporate developer Gerding Edlen was bedroom and 13% two bedroom units. Jeff would not let on brought on board, concepts were floated and neighborhood what rents might be but in talking around and given the scope outreach was started on a 144 unit apartment complex cater- and type of construction he may have to push up close to the ing to a mix of income groups with 12,000 sf of complementary $3.00 psf per month threshold but given the world class design retail but it came with an extended time frame for completion and location it probably will find a deep pool of renters looking out three years. to be part of something special. They did make a deal with the Portland Housing Bureau to reserve 20% of the units for people The last year has brought changes to the make-up and time- making 80% of the median income in exchange for some frame of the project. “We reevaluated the scope and scale of property tax breaks. The crane has been in the air now since the development to better meet the needs of what we wanted early in the year and you can see the structural steel is starting to accomplish in the community and how to make this project to rise from the ground floor on SE 2nd up past the height of the mesh better with our mission and programs” says Trell Ander- Burnside bridge. This will be a very cool development to watch! son, the Director of Housing and Community Development at Catholic Charities. That means Gerding Edlen is out and Home Forward (used to be Housing Authority of Portland), the most experienced affordable non-profit local housing developer is in. The project has been scaled back with the retail being nixed and the unit count down to 102 units most of which will be single bedroom or studio units, with the bulk of the units reserved for households earning from 30-60% of median income but also

Continues on next page (26) PAGE 25 Continued from previous page (25) done. They acquired a 30,000 sf site in the Central Eastside in partnership with a local developer in early 2014. The property 25% of the units reserved for women transitioning from home- at SE MLK/Ash formerly owned by the Salvation Army sits along lessness and domestic abuse. the trolley line and early designs pointed to a potential large project of up to 12 stories and over 300 units with some ground The $20 million project is also on a faster track bolstered by a floor retail but now that may be scaled down to better reflect recent $6.5 Portland Housing Bureau grant and $1.1 million in the neighborhood and the changing dynamics of the financing, equity from Home Forward. “We’re very pleased to be part of grant and tax credit markets that really makes these projects go. this collaboration. It will bring affordable housing to an area Additionally their request for funding for the project through that is adjacent to workforce jobs in the Central Eastside area the Portland Housing Bureau did not make the cut last year that has very limited housing opportunities for those workers” which has prompted a reevaluation of the project “We love the says Mike Andrews of Home Forward. Catholic Charities closed site but we need to step back and think further about the best on the $2 million land sale last August with those proceeds possible scope and mix of this project.” adds Wiblin. He would slated to be used to fix and upgrade the adjoining parish’s not commit on timing but thinks that summer approaches that dilapidated facilities. There will be 32 below ground parking there will be further clarification on the scope and timing on spaces which should be just fine as affordable housing because the project. One thing they are looking at is maybe going ahead of demographics, residents have a much lower car ownership with a demolition of the existing buildings which are empty and make-up. At a recent CEIC land use meeting presentation there in poor condition and is consistently attracting graffiti and our was continued concern on how this development will affect and seemingly growing group of urban “campers”. deal with the persistent camping problem in the area that is mostly related to the dining hall at the parish. There was a good neighbor agreement signed years ago that of course which will Foursquare’s Linden Apartments are Full not apply to the new development so obviously there will need to be some consensus effort to come up with a more compre- Located at the key intersection of SE 12th, Sandy and Burnside, hensive agreement probably with the parish, Catholic Charities, the Linden apartments hit the market at almost the perfect Portland Police and the neighborhood to try and deal with the time. First envisioned several years ago as an active senior living camping issues which even with this new development will project, the owners of the land and developers, the Foursquare most likely continue to be an issue. Trell mentioned that they Church Foundation had a church nearby for many years and will work closely with the parish and dining hall operation to owned the parking lot where the Linden was built. The Founda- deal with security and the camping issue in a “responsible man- tion is an interesting entity and is arm of the 90 year old Los ner” Walsh Construction is the builder, MWA is the architect Angles based evangelical Foursquare Church (look up their and Cascade Management will be the manager of the property. history on the web and their founder evangelist Aimme McPher- Design is moving forward with early renditions showing 3-4 son which is an amazing story and a bit weird too) that got its story building fronting on Stark; 12th and 11th with an interior money from a $250 million sale of a church owned radio sta- courtyard and a large garden area towards the parish building. tion a decade earlier and is using the dough for a wide variety Ground breaking is slated for next June and completion pro- investments, grants and in a couple of cases development of jected for early 2017. church owned property to align with the goals of the church. As design and financing moved forward, the church quickly saw the burgeoning demand for apartments and switched directions to Bridge Housing Takes a Step go market rate and decided to open it up to all demographics Back on Central Eastside Project and change their amenity package. Smart Move. The 132 unit project which was completed in 2013 has a huge rooftop terrace Bridge Housing is one of the largest affordable housing develop- (11,000 sf), large community gathering room, upscale appli- ers and mangers on the West Coast. The 30 year old developer ances, balconies, yoga classes/fitness room and has over 100 was birthed in San Francisco which was experiencing an afford- indoors spots for parking (which they charge extra ). A recent able crisis back in the 60’s and 70’s. Bridge has been hugely call a couple months ago to the management office revealed active in filling the affordable housing void with both a combina- that only two units were available for rent and pricing was a tion of acquired and develop units that now totals over 20,000 healthy $2.20 psf for a two bedroom at $2.60 psf for a one units throughout California. Bridge is making a concerted effort bedroom. Though many think the exterior architecture is bland to expand beyond its large California roots and started a Port- and bit “cheesy” there is no doubt the project by hitting the land office a few years ago to correspond with their purchase of early wave of apartment development is a resounding success. a site in Northwest Portland for a 142 unit affordable housing One interesting tidbit. Though they have a good ratio of parking development which broke ground in November called the Aba- spaces for the project, the latest count was that less than 50 gail. “We saw opportunities in the Northwest and Portland spe- parking spaces had been leased for the asking price of $100 per cifically to bring our collaborative and successful housing model space which has surprised the owners and management. and we could see some of the same issues related to a lack of affordable housing that we have been addressing in California for the last 30 years” says Bridge’s Brad Wiblin. Bridge also bought a 111 unit existing project in Hillsboro and a huge 474 unit in North Seattle to further establish their base in the North- west. Bridge because of its size, donors, and previous success taps a variety of financing sources including the standard grants and low financing offered by local, state and federal programs but also can work well with conventional banks who get tax credit benefits from placing money into affordable projects but also can bring substantial cash resources to get developments PAGE 26 Trinsic on the Homestretch of their Project across from Central Bowl on Tap

East Burnside Project John Plew of Concept Entertainment that owns the Central Bowl complex and multiple other restaurants and bars in Portland Getting close to 18 months since they first agreed to purchase and beyond knows real estate, “The restaurant business is really a 18,000 sf site on East Burnside which is site of a used car real estate driven and that is what attracted us to Central Bowl lot, Houston based Trinsic Development is ready to tie a bow originally was that it was just great real estate in a neighbor- around the deal and start construction here this summer. “This hood that we could see had great potential and was changing project has changed a couple of times and expanded and that for the better”. Plew observes. When they bought the old bowl- along with getting through city processes has extended the ing alley property in 2005 and poured close to $ 7 million into timeframe on this deal” says Trinsic’s Jack Pauu. Originally Trin- its hip renovation they also got in the deal a 20,000 sf half block sic was planning a 100 unit plus project on the used car lot but site across the street to the east. With parking in the basement went to Central City Concern/Chiers people who inhabit the rest and along the west side, this vacant land was always envisioned of the block and made a deal to buy their 10,000 sf parking lot as a potential development site and given the strong market in as long as they replaced the parking for their 20 or so parking the area and the coming huge development at the Goat Blocks spaces in the new expanded project. Now up to 159 units in the called LOCA by Killian and the completion and lease up of now very standard five over one configuration, the development Washington High nearby, the market in the Belmont/Morrison now has 50 parking spots for their units which is a bit light for corridors is really coming along. Plew under his development many in the Central Eastside who want to see a minimum of .5 name Foresight Development first floated an apartment project parking space per unit. Located along some the best commer- a year ago and given almost 2000 units planned or under con- cial corridors in the District of Burnside, MLK and Grand, up to struction in the Central Eastside, a few observers (me included) 6000 sf of retail mostly along Burnside and some square footage thought some of the projects might fall by the wayside think- along Grand is also in the mix. Additionally, PBOT has pushed ing there was too much apartment product in the pipeline but Trinsic to make the entrance into the project front on NE Couch John’s plans and motivation to get a shovel in the ground has as they want to keep Grand a retail corridor which has added not waned. “We are going full speed ahead with Design review to additional design work but all the pieces seem to be in place coming up, detailed building plans are being developed with the now. Like many projects, the units will be heavily tilted towards hope of breaking ground next summer”, he projects. Details at studio and one bedrooms with 3 live work units included. Other this point are a 105 unit project in the standard wood frame five little details from their Design Review approved in December th9 stories over a concrete pedestal. Retail will be relatively minimal revealed a “bike lounge” and arcade (whatever that is)over the with only two 1800 sf spaces at the corner of Belmont and Mor- sidewalk on Burnside but generally the Design commission was rison. There will also probably be work/live units fronting SE 9th. laudatory of the final product that started out with a less than Ankrom Moisan who seems to have their hand in many of these inspiring design over a year and half ago. Trinsic is setting a new core mixed use projects is the architect. Here is the stickler record in the district with their $160 psf land purchase price which may get many in the Central Eastside a bit sweaty, only 20 which two years ago when this deal started looked a bit crazy parking spaces are being considered right now which is a fairly but as rents go up and up and demand for a limited supply of low ratio but Plew thinks there will be many tenants that will EX zoned land in good locations is red hot, this does not look so not have cars and street parking after 5 PM in the area is plenti- nutty now and most likely we will see the $200 psf number get ful. The design will try to reflect the industrial character of the surpassed. With the all the new developments at the Bridge- neighborhood with lots of brick and “industrial touches” “We head, this intersection will look quite different in a year or so really want to try and create an older industrial loft spaces that and generally everything planned and under construction has a are very open, simple and funky and also have a very competi- great mix of variety and design acumen which should age well tive price point because we know we are catering to people that and really provide some pizazz to what many consider the front will be on a budget” Plew explains. door to the Central Eastside. Continues on next page (28)

PAGE 27 Continued from previous page (27) Mill Creek Ventures into the Central Eastside Sackhoff continues his Apartment Rumble

“I think Portland has a long term bullish run ahead in the around the Close In Eastside multifamily market, probably much longer than most people think” said Sam Rodriguez, local partner of national apartment There is a great saying in real estate development, “You do not developer Mill Creek Residential Trust at a recent developer know who is swimming naked until the tide goes out” 2008- breakfast for NAIOP. He added with some self-effacement “I 2009 brought an ebb tide that was the biggest in decades have to be positive on the apartment market, that is what I do”. which exposed and took down a large percentage of leveraged Though part of a national company and platform, Sam and his developers and builders. The Gorilla in home building, Arbor group could arguably be the most active and aggressive apart- Custom Homes was not quite swimming naked but were scantily ment builder in the Portland market who does not shy away clad but was one of the few large builders that survived and from difficult or long term projects. They have multiple projects came out of the economic darkness but it brought changes completed, under construction and in the pipeline. All of these and a much more cautious approach going forward. One of have been on Portland’s west side or the burbs until recently the founders, Dennis Sackhoff grabbed the wheel of his home when they won the financial beauty contest for one of the best building business and swerved quickly in the ensuing years into blocks in the close in Eastside, the Oregon Ballet Theater site urban apartment in-fill development in a big way. Like always he sandwiched along SE Morrison/Belmont/7th. OBT put out an was early into what he saw as a need for core area apartments offering to sell over a year and half ago on their home which so he quickly starting throwing offers around like candy and used to be a bank branch in order to alleviate some crushing securing mixed use zone sites along major commercial corridors debt and find a more economical location. Mill Creek came out like Division, Belmont, Morrison, Fremont, Ankeny and more. He the winning bidder at a rumored $165 psf and has been doing a now has half a dozen completed or under construction projects bit of work on the site but also waiting for OBT to find another throughout the close in eastside but is not slowing down. He location. That work is heading into the passing lane now with has purchased the iconic Old Wives Tale restaurant site when lots of design and site analysis to determine the best possible long term owners retired at the nexus intersection of Sandy, development for a site that has the much sought after EX zoning Burnside and 12th for a 60 unit plus apartment development but better yet is one of the few blocks in the Central Eastside and now has under contract and starting to plan for a similar that has height limit of 250’ and ability to build over 300,000 sf amount of units on the triangle property a couple blocks away of space. “We were struggling with two options, a more dense at SE Sandy and Burnside (it is parking lot surrounding Michael’s high rise project or something smaller like a standard six story Italian Beef and Sausage). Dennis has not been on providing too development because we wanted to see if it made sense to take much parking much to the chagrin of his neighbors in his other advantage of the FAR and heights on the site” Rodriguez notes. developments he has done and probably will do the same here One interesting aspect going into the decision is that the site but given the huge amount of transit in the area it might not be has a very high water table of around 17’ which makes digging too much of a problem. underground for parking problematic. The site is plagued like the Goat Blocks with being in the path of long known under- ground stream several of which meander underground through- out the Central Eastside. With that reality the idea of having several stories of above ground parking with housing on top of that was a viable possibility. “We really want to provide a good parking ratio at or above .5 parking space per unit so above ground parking with a higher rise building is a definite possibil- ity”. But with a higher building comes higher costs associated with the necessary steel and concrete construction rather than the less expensive wood frame building on a concrete pedes- tal. The higher version did not make the cut as their architects, SERA and Mill Creek related recently at a CEIC land use meeting that they will bring the scale down to a small U shaped design that will contain 208 apartment units (with up to a dozen live work units) and 110 spaces of parking. Additionally Rodriguez wants to build in more retail spaces than he normally does in his projects to take advantage of the big exposure and car counts especially along Morrison. Best case is that construction will start next fall. Rents should fall into the $2.50 psf range.

PAGE 28 Surburban Looking Office Building on SE Sandy Set to be Sold. It looks a bit out of place. The 25,000 sf brick office building sitting on SE Sandy and 9th looks like it belongs in Beaverton, Tigard or some other suburban location rather than among the eclectic and varied building stock of the Central Eastside. Built more than 40 years ago by Bill Hold- ner and a partner, it has housed his long time accounting firm along with other tenants and large computer company he founded and owned called Data Systems. When that business went away years ago, several other tenants occupied the building including a very popular dance studio that continues to thrive and grow in the bottom floor. Having done account- ing for over 50 years and not as motivated to manage his building and seeing the strong activity and values rising in the Central Eastside, Holdner had put his building up for sale over a year ago. “I think the timing is good to look at a sale. It is a great building that was really well built and though initially the preference was to find some good tenants, we just have not seen the quality and long term type of tenant that we feel com- fortable with”. Not surprising, as many of the office tenants that are seeking space in the Central Eastside are much more interested in cooler, renovated creative space and not necessarily the more mundane subur- ban building sitting on almost a full city block. No one would have known initially it was for sale except for a small Home Depot-ish for sale sign posted on a telephone poll out front. It did not take long though for word to get out and interest to ratchet up. “We probably have had 20 potential buyers through the building since last summer and we have had multiple offers and the interest has seemed to have grown over the last few months” Now under contract for around $ 5 million to Langley Investments, it will either be sold by the time you read this or be under the auspices of another buyer as he relates he has several back up buyers for the EX zoned site. The property is a bit of a development conundrum because it is a solid even with its somewhat unexciting and humdrum presence and has many years of economic life in front of it so with its price knocking it down and building offices or apartments might be stretch financially (though it is being done elsewhere in the neighborhood). Then trying to re-tenant the building might encounter the same chal- lenges Holdner has had. An owner user may make the most sense but given the amazing desirability and big dollars following into the Central Eastside, larger mixed use zoned properties even with their flaws and challenges are attracting motivated buyers looking to get a foothold in the district.

Get the Best Information & Representation Before Making a Move.

Information and Knowledge is king in commercial real estate. I have been helping companies, non-profits, individuals/families, developers, make smart decision about their commercial/industrial properties in the close in areas from Milwaukie through the Central Eastside all the way to Jantzen beach for many years. I have successfully represented numerous firms that have grown out of the area which has become too congested and no longer conducive for their operations to find alternate buildings and locations, then as- sisting them in selling the properties they are leaving for the best possible price and terms. I have been on numerous committees with the city, Central Eastside Industrial Council and more to learn and have input on important issues like land use, transportation, development and public investments in this key part of Portland. I am involved. I know the details or have been involved in a lot of the transactions so I understand valuations of buildings and land and rents and which direction they are going and why. Why? I love this area of Portland: the entrepreneurial energy, all the different and cool types of buildings, the history, the potential, the companies who have been here for 100 years mov- ing and making things to small start-ups involved in tech, food, design, services and everything in-between. I also want to see it continue to grow and change positively and maintain its ability to keep long term employers as well as new, exciting uses. This newsletter I think proves much of this. With this experience and knowledge and commitment I can assist you with making the best possible decisions about commercial real estate such as: moving, leasing, redeveloping, buying/selling and every aspect with your personal or your firms real estate and facilities.

Cheers! Todd at Cascade Commercial Real Estate 503-228-5734

PAGE 29 Reviewing Capital Gains Taxes As prices continue to spike for many capital for much needed investments State of Oregon Taxes properties in the close in areas and in and business formation. 1997 was many cases in the overall metro area, somewhat of a watershed year when I love Oregon, don’t you? But maybe (especially apartments) long time during the Clinton Administration and not so much if you are looking to cash property owners’ might have some facing a much more Republican con- out of a long depreciated commercial profit adrenaline running through gress, Clinton forged a tax cut agree- property because of our lack of sales their veins and are thinking that it ment with Congress which resulted tax we as a state depend heavily on may be time for“taking some chips off in the long term capital gains taxes one of the highest state income and the table” to take advantage of this (along with other tax rates) dropping capital tax rates in the country. 41 somewhat unexpected rise in prop- from 28% to 20%. With the dot com states have an income tax and if you erty values after the big downturn bust resulting in a “mini-recession” look at Oregon’s highest tax bracket 5-6 years ago. “As property values and George Bush and more republi- which covers income over $125,000 have risen and interest in well posi- cans coming into office in 2001 anoth- (It only drops to 9% below that level) tioned, quality commercial real estate er tax cut deal was made that reduced Oregon’s income rates come in third is reaching a fevered pitch in some long term capital tax rates (and for behind Hawaii (which has better surf- markets and product types, owners dividends too which were taxed at or- ing and Mai Tais) and tax crazy Califor- are looking at taking advantage of a dinary income tax rates up to 39.6%) nia. Oregon does not really differenti- significant value gains in their invest- to 15% with a 10 year provision. ate on capital gains taxes which has ments but the tax landscape has President Obama faced like many the same rate as ordinary tax rates so changed somewhat over the preced- presidents with political setbacks in add 9.9% to federal capital gains rates ing years which property owners the midterm elections of 2010 agreed (for incomes over $125,000)when do not often realize” says CPA Joel to a two year extension of the Bush selling that property. We are still not Fitkin. While we can get stuck in the area tax cuts but the acrimony and done. weeds looking at the cornucopia of polarization of congress coming into tax changes over the last 30 years I the 2012 election stymied both Re- Depreciation Recapture will stick with concentrating on long publican and Democratic sides coming term capital gains rates as that is what to a long term deal regarding Bush’s Never heard of this tricky little term? affects commercial real estate most original tax policies from 12 years ear- You will when you go to sell that profoundly. lier as well as addressing other issues building you have owned for a long like the Affordable Care Act (Obam- time that has been depreciated. One A Little Bit of History acare) which in press circles came to thing great about commercial real be termed the “Fiscal Cliff” contro- estate, namely structures (not land) Taxes for both short term and long versy. What resulted was some brutal is that it allows you to depreciate the term capital have been around as wrangling in the fall of 2012, is the value of buildings you own to reflect long as the general income tax system law that was signed in January 2013 technically what is its economic life which has its originations in the pas- which is a mish-mash of certain Bush or usefulness. It basically helps you sage of the 16th amendment to the tax cuts expiring while some staying offset income and thus pay less taxes Constitution in 1913. Capital Gains put and for long term capital gains, a on income which is a great idea. Cur- taxes like rates for ordinary income new additional tax. As far as long term rently that depreciation schedule for has bounced around in the ensuing capital gains rates the overall rate commercial buildings is 39 years (ten- 100 years based mostly upon politi- stayed at 15% except for individuals ant improvements can be depreciated cal considerations and the growth of earning more than $411,000 it moved over 15 years) which is for buildings government’s funding needs (de- to 20%. The kicker for many was the bought or “placed into service” after fense, wars, and social programs). implementation of a 3.8% tax for indi- 1993 where before that depreciation Rates bounced around in the mid to viduals earning $125,000 or more (for schedules were 15-19 years. Depreci- high 20% range from the 1950’s into couples it is $250,000) as a result of ation allows you offset income dollar the 80’s. Generally however, capital the Affordable Care Act (Obamacare). for dollar your rents and is beyond gains tax rates have had a preferred So in selling a long term capital asset the property’s income one of the best and lower rate than ordinary income (commercial real estate) people that economic benefits that owning com- throughout much of its history to have healthy incomes will be faced mercial real estate offers. A simple align with the general philosophy with a tax of 23.8% on the gain and at example is if you have a $1,000,000 that lower capital gains rates encour- lesser income levels it will be 18.8%. value for the structure when you ages investment of capital and helps Hold on, we are not done yet when bought the property, you take 1/39th facilitate the movement of money looking at a sale of a property. of that value and reduce you income throughout the economy to provide by that number each year you own PAGE 30 that property. In this case, that is approximately (Adjusted Gross meaning after deduc- still the big and much used solution to 2.56% a year or $25,641 which is a tions). The City of Portland charges avoiding the plethora of capital gains significant reduction of your ordinary you 2.2% (Business License tax) and taxes which many astute and sea- income and thus taxes. Most buildings Multnomah County gets you for soned commercial real estate own- have a life longer than 39 years and 1.45% which applies to the gain you ers know well and take advantage of thus can be depreciated over much get when selling a property in Port- which involves buying another prop- longer periods as when they change land/Multnomah County. If you say erty for at or above the value of the hands depreciation starts all over live in Gresham and the property is in property you are selling thus deferring again. You cannot depreciate the land Gresham you would avoid the City of the gain. But with interest and values which in the government’s eyes does Portland tax but still pay the County bouncing back strongly for commer- not deteriorate over the years. The charge. So potentially add another cial real estate, owners contemplat- ratio (percentage) of the value of the 3.65%. There are some very limited ing an exchange are just not finding building to land is established when exceptions on this tax. “reasonable” real estate investment you buy the property which means alternatives that replace the returns you have to establish at time of acqui- This is a simplified explanation as all and sense of comfort and familiarity sition separate values for the building properties and situations are a bit dif- they may have had with the property and the land which is a key compo- ferent and there are some exceptions and product type they are selling. The nent to maximizing fairly your depre- and your trusted bean counter can half glass full view is that these taxes ciation. Higher building to land ratios come up with specific tax ramifica- have been around for a long time and give you more of the overall value tions (and ways to minimize the tax) historically may be on the lower end of the real estate asset from which given your ownership history with of spectrum if you look back decades you derive depreciation benefits. But the property. But given Portland does where gains were taxed at high ordi- that great depreciation tax benefit seem to have a commercial real estate nary income levels. Sellers getting big can come back to get you somewhat market heavy in long term owner- premiums or have properties that are when you go to sell that property ship, it gives some pause to long term close to being fully depreciated or are especially ones you have owned for a property owners salivating over that facing a big bill for deferred mainte- long time. Say you have owned that very generous offer that comes knock- nance may justify absorbing capital million dollar building for a long time ing at their door to buy their property. gains taxes prompting some to justify and it is fully depreciated and you sell But thinking about it long term, all a sale. Though somewhat out of res- it for $2 million (again building value these taxes except the Obamacare ignation, one property owner told not the land). That million dollars of surcharge has always been there for me recently “Though I have to pay a the original value you depreciated some time so there is not much new bunch in taxes, the increased value I gets “recaptured” when you sell by here and historically still probably be- am getting for my property helps me the good old IRS at the rate of 25%, low average taking into account some not be as pissed off about the taxes I which is more than the 20% capi- of the rates from the not too distant am paying in selling my property” tal gains rate or in this case a tax of past which were considerably higher. $250,000 versus what would be stan- Tax deferred or 1031 exchanges are dard capital gains rate where the tax would be $200,000. Even if you were somewhat financially clueless and did not take the depreciation on any of your taxes or in some of the years you owned the property you have to pay the recapture rate as if you did. But if the property is in the city of Portland/ Multnomah County you get one more blow to the pocket book.

Business License Tax/Mult- nomah County Income Tax You know that if you operate a busi- ness in the city of Portland you pay a couple of taxes based on income

PAGE 31 North rim tackles latest Central eastside project It is a prominent building in the Central trial heritage in a market that is tight- of food entrepreneurs and who were his Eastside, but also is easy to miss and ening. The building was beat up a bit customers at his food equipment supply you may only know it by the large bill- and had some pretty weird uses in the business. “I have been approached regu- board type advertising on the side of building over the years, but the shell is larly by my customers and others in the the building that screams at you as you bomb proof which really helps give you food industry for well-designed and turn- pass along the Hawthorne Bridge. Often a good starting point to start with as key food preparation space for years with referred to the McDowell Bag Building, seismic upgrades to a large part were the inquiries just getting more urgent in it sits on the south side right up against not necessary. Purchasing the building recent years.” Says Dan Pitman. With his the Hawthorne Bridge Ramp on the east for $2 million and putting that and more innate knowledge of the food and restau- side. Now re-imagined as a creative of- in the retrofit, they are in process of put- rant equipment supply business, Pitman fice building called the Waterman, this ting in core bathrooms on each floor; teamed with North Rim a few year ago to 40,000 sf building is the latest addition energy efficient upgrades; a cool ground build 6 state of the art food prep spaces to the cadre of repurposed former in- floor lobby, recessed decks on the up- with offices just across the street of his dustrial buildings to cater to a growing per floors and substantial bike ameni- business in the Central Eastside. The most need for flexible office space in the Cen- ties due to its lack of parking. “Parking spacious were basically spoken for before tral Eastside. With office vacancy rates is always great to have but given the shovels hit the ground for the project. in the core area steadily declining and buildings location near tons of bike in- This quick lease-up and success of this a wave of creative and tech users both frastructure and ability to find parking project pointed Dan to continue the trend coming in from outside Portland, as well nearby, we should do just fine” says on a building he owned at 1430 SE Water as growing organically looking for non- Schweitzer. With a full basement they Avenue to accommodate what basically traditional office space, the Waterman have tons of bike parking, showers and became a waiting list for similar space. is sure to find a receptive market and is may have an on-site bike maintenance So the finishing touches are being put exactly what the industrial office overlay service. They will be able to do deals on 3 fully equipped production kitchens (EOS) in the district wanted to encour- down to 500 sf up to full floors of over that have already been leased to a variety age. “It will be hard to predict what our 8000 sf at rates in the $16-$20 psf range of food companies such as restaurants; tenant interest will be, it should run the with $6.95 for expenses and will be food carts; caterers; growing craft food gamut, but most likely it will be smaller ready for occupancy in late 2015. Bremik manufacturers and more. “Often times to mid-size firms and individuals that is more than half done with the rehab. there will several related groups that will want a great central location at good go in together to share the space so as to rates. We can hit most of the require- Pittman Commerce Center Phase II: spread out costs and better use the space ments for a large bulk of the users that North Rim and Schweitzer are continu- sometimes on close to a 24-7 schedule” are out looking for space now and into ing their food centric development pro- says Scheweitzer. The spaces are around the future” says developer Matt Sch- jects with this new project located on SE 2500 sf with loading area and everything a weitzer, principal at North Rim Develop- Water/Hawthorne. As you may know, food business could want such as the valu- ment, which has accomplished several North Rim teamed up with long time able ventiliation hoods, coolers, large gas successful rehab and ground up projects restaurant supply firm Pitman Equip- ranges, ovens, sinks, floor drains, sinks in the Central Eastside. The building had ment that has been selling restaurant and more. Asking rents are in the $25 psf been on the market for a long time as and kitchen supplies for over 28 years range. The upstairs area like the other pro- several buyers tried to figure out a - fu to build a very successful commissary ject is an assortment of small offices and ture life for a 4 story multistory dilapi- kitchen and office building at SE 3rd and a large conference room that often times dated former industrial building with no Clay. Being very close to those involved get rented by the food firms using the parking. North Rim saw potential in its in Portland’s food crazy milieu, Dan Pit- kitchens bellows. With what seems like an location, increased close by neighbor- man saw a huge opportunity to provide insatiable demand for such space North hood development, visibility and poured turn-key commissary kitchen space to Rim is planning other similar commissary in place thick concrete walls and indus- restaurants, caterers and the large gamut developments in other buildings.

Todd DeNeffe Cascade Commercial Real Estate 2323 N Williams Ave Portland, OR 97227 503-228-0734

[email protected] www.cascadecommercialnw.com