Summer 2020 Bridging Central Eastside News Covering Important Issues, Trends, and Developments in the Close-in eastside Commercial Areas A New Reality! About this Newsletter Excuse My A Coronavirus World in Our Central and Me… Typos! Greetings and thank you for taking Eastside, Cities, States, Countries... the time to read, peruse, skim, study, scan or even just glance at this mostly well researched, mildly factual and energetically written Usually, I stick to Central East- these once in a lifetime challenges, newsletter about all that is going on in the close in eastside. I have been putting this together side news, issues, projects and without any sense of certainty every year for 6 years as a way to dive a bit commercial real estate news in about the present and future reper- deeper into issues, developments, projects, general, but given this new pan- cussions. Then add to this the re- topics and also challenges in one of the most demic world, it has made me cent racial social justice unrest and dynamic and rapidly shifting commercial deviate a little to address this a very combative election cycle neighborhoods on the West Coast: The Central Eastside. Sandwiched between the river and once in a lifetime event. and this is a time of unprecedented some of the most classic and picturesque events. With many differing views residential neighborhoods to the east, this area These are some very interesting on the depth and timing of when has been a eclectic and dynamic business and and challenging times!!! I am writ- the coronavirus will become more employment engine for the city of Portland for ing this in late-June and almost manageable, and our society and over 150 years. It is a neighborhood that has such all states, counties and cities are a compelling collage of businesses, buildings, economy may start getting back to people, uses and potential that is undergoing slowly opening up their businesses any degree of normalcy, (whatever amazing growth and expansion at a swift pace. and economies in various stages that may be) makes any sort of pre- This newsletter is a way to promulgate, inform with some moving faster than oth- dictions and decision making feel and educate those who work, live and own ers, all with varied health protocols futile. It is a very fluid situation of businesses and properties in the district about all (masks, distancing, limited contacts this is going on as well as to show those looking week to week, or month to month, in from the outside what a unique and exciting etc) in place. Unfortunately, we are changes and occurrences. We just area this is. I welcome your questions, input, seeing many places experiencing don’t know. corrections, criticisms and if appropriate... new spikes in cases that shows this accolades regarding all that is in here. And I ugly malady may ripple throughout As a somewhat of a news and infor- apologize as to its length (typos) and size as I the summer and as many health mation junkie, watching what was have been trying for a couple years to pare this down but have not been all that successful (much experts have told us, this event will a lightening quick unfolding of this to my designer/printers chagrin) but there is so not be short-lived, but will be more virus hurricane in March, has been much happening it has been hard to leave like a ”rolling epidemic” where painful, especially when seeing the anything out. Having successfully represented a one city, or part of the country, will lack of coordinated response and variety of property owners, businesses, non- see some subsiding of cases, while the and dearth of resources and profit organizations, tenants, developers, public agencies and more with their space, facility and others will see a continued dra- planning by many of our health and property requirements for over 25 years in the matic increases in case numbers. governmental organizations. On Central Eastside, I also welcome your questions Then, there is this “second wave” one hand, there is the overly opti- or need for assistance as it relates to: property scenario, that many believe is an mistic prediction that the epidemic valuations; development ideas, opportunities and eventuality that may be coming has peaked and cases will start slid- trends; selling/buying properties; finding space; leasing; redevelopment; financing; construction; next fall, or winter. This will be a ing throughout the summer, which land use and more. I may not be an expert in all new normal and hopefully, some of is now not looking so certain, of these topics but I have the connections and the most challenging aspects with particular states seeing some resources to usually get your questions answered related to the Coronavirus rather disturbing increases in case and your needs addressed if I am not the best pandemic is behind us, and Ore- numbers. There is a prevalent feel- match for the assignment. gon, and Portland, which has done ing that this sharp downturn in our relatively well and is slowly open- economy will have a consequent ing up sees virus numbers continue sharp upturn in economic activity to fall. Right now it is pretty scary by early fall with travel, restaurants, with many more questions than offices, retail, and more, not quite answers. The swiftness of these back to normal but close. The “V” changes has left everyone strug- shaped scenario. That seems overly Todd DeNeffe 503-705-6380 gling to understand and assimilate optimistic, given the very real and [email protected] (continued on page 2) also emotional impact these last Where else am I getting few months have had on people my information? and businesses, and how they will operate and try to prosper Being a news hound, even though far into the future, especially in it can be a bit of a depressing ex- more crowded living and work- ercise in this new Covid-19 world, I ing spaces. I, like others, want to have found it fascinating to peruse think positively and see the half the wealth of information, opin- glass full, but I find this viewpoint ions, reactions, stories and more mostly unrealistic and misguided about how cities, states, countries, in that it may give everyone false businesses, institutions, health of- hope, which may hamper con- ficials and more are dealing with tinued long term measures to the multitude of ramifications of really defeat this epidemic. Even the Corvid maelstrom. The if this is the case, the damage opinions, predictions and “facts” done to our institutions, govern- are all over the place and often ment, society and economy will change daily. One great website is take many quarters to ameliorate www.City-Lab.com which is as the general population will be associated with Richard Florida, very cautious and reticent to “get the thinker, planner and social back to normal” as the trust and scientist that burst on the scene confidence of many has been so like a quasar with his book and severely impaired. Even if there are thesis “The Rise of the Creative lots of verifiable good news about Class” back in 2004. Florida’s the Covid-19 cases subsiding, supposition is that there is a it will take many months for our growing segment (40 million) of bludgeoned consumptive society dence that things will get better knowledge based workers that has to “believe” it is safe out there and by both the population and busi- and will continue to transform the future will not see a reoccur- nesses in order for investment and society, and our working culture rence of this insidious malady. Even spending to increase and with how (and more specifically) influence with diminishing cases and deaths quick and deep the effects have how the workplace is organized, going through this summer and been to this point and may con- how companies will prosper or not, fall, restaurants will not start filling tinue has damaged the psyche of and even how cities and states will up… Hotels see increased book- the whole economy which will take need to adjust to thrive or wither. ings… People will be travelling considerable time to repair. I think Florida has partnered with Bloom- and businesses most importantly we need to be realistic regarding berg to bring considerable and will start any measureable invest- these projected facts and look for varied content by all sorts of think- ing and bringing people back to only week by week or month by ers, journalists, business people work. There will be less savings, month positive progress that will and academics on a variety of cur- high unemployment, more debt lay a foundation of confidence and rent issues and trends, mainly with personally, corporately and with safety that can instill a building a bent towards our urban environ- all local and federal government’s feeling that the worse is over and ments, but also heavy in how the budgets taking a bit hit. There will that better days are consistently coronavirus (and also now racial be less resources and flow of dollars ahead. At least this is what the justice issues) has and will continue to bring the economy to where it crazy (and in my opinion to permanently affect how we live, was pre-virus. The economy to a disconnected) stock market is work and play. I also find websites large degree is fueled by future saying which whether you believe associated with the major news- expectations and strong confi- or not is a positive indicator. Have papers, such as the Washington I got you too depressed? We all Post and New York Times, always need to employ the old maxim of compelling along with other great “Prepare for the worse and hope sources and writing on the web- for the best” and understand that sites of Pro Publica; NPR; Politico; this much more a marathon or The Atlantic, and then internation- large mountain to climb with one ally, Reuters, CNBC, Bloomberg positive step at a time to get to and the Wall Street Journal are the a stronger society and economy. “go to” websites in the business We will get through. world. Most have pay walls, but not all.

PAGE 2 How it Looks in the Central Eastside encouraged lately by the amount of In the close-in eastside, which this “Hiring back workers, resupplying movement (I saw my first traffic jam newsletter covers (along with other my business and then adhering to last week!) and general increased city and market issues), is no excep- these health restrictions to only activity as the pent up existence tion to all the aforementioned chal- revive a small percentage of my over the last 4 months is starting to lenges, but given our wide diversity business may not be worth it with wear thin and people want to get of businesses the Central Eastside, I the costs, time and stress. But stay- “out there”. Plus, we are so good believe may bounce back faster than ing completely shut down is not a about supporting our local business- most other sub-markets. While see- good option either.” Another food es in Portland. Later this summer ing some rather very difficult initial business producer that sells into and into fall will really be a tell-tale impacts, there are some glimmers grocery stores related that they are time to understand the resiliency of sunlight with many businesses holding steady as the grocery chan- of many smaller business to survive still operating, albeit differently, and nel is staying strong and local stores and make it long term. a few unbelievably actually expand- like New Seasons and Market of ing. This has more recently been Choice are ordering more products The Central Eastside Industrial complicated by the recent protests from local businesses. In a recent Council’s (CEIC) ESD programs with a bit of riots thrown in. Retail walk and drive around the district regarding safety, cleanliness, graffiti, business are suffering dispropor- during the early days of this gradual and more are operating, but inun- tionately, as are obviously,most re-opening, most business are giv- dated with not much support from restaurants, or any food or bev- ing it go, as I had my first beer at the city that has been slammed by erage enterprises that are most a brewery, The Lucky Lab, and had the virus shutdown, then by some dependent on sales to the general some great hangover food at Pine of the chaos of the recent protests. public, as all were shut down for Street Biscuits!!! I was thrilled to see The CEIC has been great about close to four months, or were trying people out and about and spending providing updates from our elected to survive on the skinny take out some dough… and most had masks officials and disseminating great in- business. The current restrictions of on. A good thing! Many businesses formation to small businesses about this first phase of re-opening while a received chunks of PPP and got the PPP program; how to access positive step will be a tough some rent deferrals by smart and Prosper Portland and state resourc- process for many establishments accommodating landlords, but that es; how to address employee issues; given the costs and labor issues that is a short term solution. Office interacting with city officials on how will be required for many of these oriented business are still figuring it to support businesses; tips on how food, beverage and retail out, but many have made the to deal with landlords regarding operations to start up and try to somewhat bumpy, yet still fairly leases and rent deferrals and much maintain enough business to make productive transition, to remote more. Check out their website for it worthwhile. As one business working with technology firms updated information and resources. owner related to me recently. already somewhat versed in this www.Ceic.com new paradigm. I am

Two Sites in Central Eastside Portland on SE Water next to the for Camping Open Esplanade and is slated for devel- opment as the Workshop Blocks We knew this was coming. Given dination with Multnomah County by Beam Development. Given the the current restrictions and ap- and the Joint Office of Homeless fast moving nature of the prob- prehension regarding coronavirus Services, began reviewing this lem, and the emergency declara- effects, it is not surprising that the situation and concluded that es- tion by the city, planning and dis- prevalence of camping and overall tablishing supervised and sanitary cussions with the neighborhoods, paranoia of the homeless popu- designated aggregated camping businesses and stakeholders in lation has spiked. In the Central areas as the best solution. Given the Central Eastside about the Eastside, it is easy to take note of the homeless are among the most nature, timing and conditions of the increase of camping through- vulnerable to Covid-19 because these organized camps has been out the district, which I am told many have respiratory issues and somewhat limited. The concern can be partly attributed to the weakened immune systems from for those living on our streets, and fact that many on the streets feel harsh living conditions, and once how we can protect them is not in that shelters, that were previously virus infected, could be spreaders, question, but the lack of engage- an option, are not so safe given this is an understandable move. ment and collaboration with the the close quarters of all these After surveying multiple sites they CEIC and other stakeholders was operations and can be the anti- have settled on two vacant lots in a bit distressing. Each location thesis of “social distancing”. The the Central Eastside (one also in has about 40 tents (80 total in two city, starting in April, with coor- NW Portland) owned by Prosper sites in the Central Eastside) on

PAGEPAGE 33 wooden platforms. The city is restrictions. While these camps safer, organized and a cleaner providing tents and sleeping were being considered, there option, but so far that has not bags, so as, to be hygienic and all was hope (including me) that it been the case. Additionally, these the sites will be fenced. There will may substantially lessen those organized camps are considered be practicing of social-distancing, camping throughout the Central a “one off” and temporary, but access to portable toilets, show- Eastside, as many would move to there is legitimate fear they could ers and some food service and the these safer, more sanitized areas become more long term and what sites will be regularly disinfected. offering services, thus making many fear in the Central Eastside: Well regarded homeless services the increased spread of camp- permanent. There are actions organization JOIN is operating the ing in the district less prevalent, afoot to get more and better co- camps. It took awhile to fill up the haphazard and difficult for many operation with the city and county sites, but they are close to property owners and businesses going forward regarding estab- capacity now. The issue with many who in many cases are being lishing better forms of communi- in the Central Eastside is that over-whelmed by the situation. cation and hopefully community these camps will be only open There is a “sign up” at St. Francis oriented oversight of the start-up to those “already in the system” Dining hall and CEIC safety am- and operations of these camps, which is often not easy or pre- bassadors have been trying to so as to maximize positive social ferred to many homeless camp- coordinate with JOIN to get more impact, minimize problems and ing on our streets. To many, it is a of the Central Eastside’s homeless make sure they are temporary. hassle and has too many rules and population into these facilities, as It is a work in process. it is a place that is more secure,

Enhanced Services District (ESD) Programs are Rolling!!! A program brand and name has of-kind program started up last employees, scads of new resi- been chosen called Central East- October in the Central Eastside. dents are moving into the over side Together (CET)…garbage is 2000 apartments that have been being picked up…sidewalks are For those of you who have built with another 1000 coming; being cleaned….graffiti is being not been following, over three assorted new restaurants, retail- painted over…Safety Ambassa- years ago during a contentious ers and makers were activat- dors are out daily engaging and squabble with the city in their ing older buildings: the Central assisting in getting some of the unsuccessful effort to locate Eastside was on a roll! But, at most vulnerable into services Right2Dream’s operations onto the same time, there were more and whose presence is making a small industrial site in the houseless people, graffiti, -gar for a more safe atmosphere and Central Eastside, a movement bage, crime, parking issues and more services and innovative started to think about how there was this overall seemingly efforts are being planned and to innovatively address some less caring, clean and welcoming implemented to address some escalating and alarming issues environment in what previously very chronic and perplexing in the Central Eastside that were was confined to the many nooks issues in one of Portland’s most severely affecting the prosperity and crannies of the Central East- diverse and vibrant neigh- and quality of living and work- side, but now had boldly leaked borhoods. The Central ing in the district. It was a tale alarmingly to some of the most Eastside’s bold and innovative of two neighborhoods. Beautiful visible and commercial corridors program to make the Central buildings had been built:, there of this burgeoning district. Eastside safer, cleaner and more were many more cranes for new welcoming to both existing projects dotting the landscape; Many businesses, residents and business, residents and visitors older buildings were getting property owners who before has moved from idle to first makeovers into all sorts of desir- seemed to accept these blem- gear..and is picking up speed. It able creative spaces; dozens of ishes grew more concerned and has taken three years of new companies were putting frustrated with the escalating creativity, advocacy, outreach down roots with hundreds of nature of these problems and and planning but this new one- the lack of concern and response CEIC and other leaders in the some caveats in February 2019. by the city, or anyone for that Central Eastside, with encourage- It looked bleak at certain times matter. The stories and reality ment from the city, really came with many property owners could not be denied with camp- to realize that the Enhanced feeling a new “tax” was too ing in almost every area of the Services District (ESD) program much and the city should step up district exploding; human waste was the best and proven tool and deal with these issues. What fairly common; open fires on to use, but it could not be done really helped is that the CEIC had many nights; dozens of buildings without some sort of public put a pilot program in place in tattooed with extensive graffiti, cooperation. So some very direct the fall of 2018 in a few of more piles of garbage and unfortu- conversations with the city about needed areas of the district to nately multiple and regular re- how to partner to come up with show how a smart and directed ports of crime with several very something unique and equitable effort to deal with some of these distressing public homicides all to stem the tide of problems in chronic livability issues can make during one of the best economic the Central Eastside took place. an impact. Albeit it small, people expansions of the city and in These were hard discussions. Be- saw the changes and how on a the Central Eastside. There was cause like some of you I felt “We larger, more robust, consistent a sense of sadness, some anger pay our taxes. Why is the city and targeted service program and just a growing belief that not doing its job and addressing could make a real difference for our neighborhood was becoming these issues and why do we basi- the betterment of the Central unsafe and degrading on many cally need to assess ourselves Eastside. levels. Led by the main more fees to solve these prob- neighborhood and business lems?” But the status quo was With the goal of “Ensuring the advocacy organization, the and is unacceptable. The timely Central Eastside is an ideal place Central Eastside Industrial tool that really helped this effort to create, innovate, work, live Council (CEIC), concern turned to to coalesce and move forward and visit” there was consid- action after the R2DToo debacle was the potential resources from erable effort to design a with the idea quickly turning to a the increases in parking permit program suited to address the proven program of an Enhanced fees. It took some healthy arm specific quality of life issues for Services District (often referred wrestling, but the city and PBOT the Central Eastside’s diverse to as a Business Improved Dis- came around to commit to us- combination of uses, businesses, trict in other cities) where in a ing a substantial chunk of these organizations and people who given neighborhood, stakehold- permit dollars to contribute half live and work here. It is a “one of ers band together to basically of the cost for this ESD effort a kind” type of area that needed tax themselves to obtain with the other half coming from a “one of a kind” approach. That resources to develop programs an assessment on each property required considerable outreach and responses to specific in the district mainly tied to its and input by a wide range of problems that the governing size and value of the property. constituencies; small and large authorities have neither the From there specifics on the size, businesses; property owners; resources nor capacity to scope, timing and structure of non-profits; social service address. The attraction of such ESD organization and how and organizations; residents; the an organization and effort is the what services would be offered houseless community and direct CONTROL a given district began to form. By law, property partners at the city to really dig or neighborhood has to develop owners representing over 50% deep into how best to take solutions uniquely affecting their of the assessed value in the precious resources to be area. In Portland we have a fairly district would need to support compassionate yet strong and successful history and models to this program to get adopted by consistent and flexible in how to draw upon with the 25 year old the city council. It took lots of develop programs. The contracts Clean and Safe program information gathering, resource- with service providers have been downtown and a less robust fulness and outreach to get buy in place now for 9 months and a program, but still impactful, in from businesses and property smart and measured ramp up of organization in the Lloyd District owners to where the city council services has taken place since that really have made a adopted the ESD proposal with last October. differences in the quality of life and work in those areas. The PAGE 5 Frequently Asked Questions: will interact directly with the services such as trash removal homeless population and those (bio-hazards and bulk items, too) What are the Boundaries in need to interact and connect general cleaning, including in of the ESD? them with transit, social or sup- some cases, power washing of port services and be a resource sidewalks in both the rights of Basically boundaries follow estab- for helping to prevent and allevi- way as well as on private prop- lished lines of the Central Eastside, ate instances of unsafe and dan- erty (with signed waiver). with some small exceptions: I-84 to gerous conditions on the streets the north, SE 12th to the East, the and sidewalks. One of the more Graffiti Removal Services is an River to the West and SE Division unique additions has been a the extremely well qualified firm to the South. addition of a Coordinated Care successfully operating in the city person who has a social services for over a decade and will handle background who will be a direct graffiti documentation and What will the ESD do? point person interacting directly removal in a very timely man- with the houseless population to ner which will include paint over The most important components help minimize their time on the with matching colors of all types of the ESD are as follows: streets. of graffiti.

Sidewalk Operations and Safety: Central City Concern is one of More specific details of all the This is the largest and most im- the most capable and accom- services provided with above portant aspect of the program plished social service agencies in mentioned programs can be and will be handled by three very Portland with a much deserved found at the Central Eastside In- experienced and capable contrac- stellar reputation of helping the dustrial Council Website. http:// tors that were well vetted through most vulnerable in our city, and ceic.cc/centraleastsidetogether/ an extensive and inclusive Request is another one of main contrac- for Proposal process. Northwest tors and will handle cleaning Enforcement which has a decade long successful track record in the city, is the safety and security contractor who will provide well- trained individuals on the street daily to daily interact with business and property owners to docu- ment crime, graffiti and “unsafe” conditions. Most importantly they

Other important components and programs of the ESD are as follows: Streetscape Improvement and District Identity: Branding of the district; website; newsletter and commu- nications. Marketing and Promotions strategies including district wide events to promote and showcase businesses. Public amenities including murals and trash cans.

Parking and Transportation:Transportation demand management and road and safety improvements. Advocacy for continued and improved freight movement in the district. Dissemination of discounted passes for transit (bus, streetcar) for district employees.

Community and Workforce Support: Grants and support to innovative workforce development strategies such as job training, appren- ticeship to work; houseless to work employment as well as community and social service organizations providing services in district to support ESD goals and programs.

How is it Funded? The ESD allows a district to create a fund and in this case is a combination of two rev- enue sources. The first is a yearly surcharge on all properties within the ESD district boundaries which is

PAGE 6 proportional to the value of the property. The second is funds derived by the parking permit surcharges and meter revenue in the district.

What are the Timelines? The ESD was officially launched in October of 2019 and has an initial 3 year length of time at which time it can be extended or ended depending on measureable results and impacts and the desires of the stakeholders in the Central Eastside.

How do I know if it is working? The ESD is developing measureable metrics and will track all services and provide regular district reports about what is working and what is not. Transparency on all the programs is a key goal.

Who Runs the ESD and how is it governed? Central Eastside Together (CET under the umbrella of the Central Eastside Industrial Council (CEIC) is a non-profit business association and has a board of directors of approximately 15 members overseeing and giving input on all the programs. Directors will represent a wide variety and diversity of stakeholders in the district in order to include valuable and encompassing interests and experiences. This board has formal and vetted by-laws and policies and other governing documents. Additionally there is a committee underneath the board that will help monitor and give input on the very important and crucial Safety and Sidewalk operations efforts and programs. There will be two full time staff members (CEIC)that will be responsible for implementing, monitoring and communicating all efforts and programs of the ESD.

To Access Services: For All Requests Please Call Safety for All Provided by 503-236-8830, Push 1 to access Northwest Enforcement: ESD Services then access correct Hours 2:30 -1:00 AM. extension for the services needed. Extension 702. [email protected] Graffiti Removal Services: Cleaning Services Request Provided by Monday-Saturday 8:00 – 4:30 Extension 702. Central City Concern: [email protected] Waiver form required for Hours Monday-Friday removal. Average response time 24-48 hours. 8:00 AM – 4:30 Extension 700. [email protected]. Billing Questions: When requesting cleaning services please Questions handled by the City of Portland specify if it is needles and or bio-waste to Revenue Division: Roger Kroppy 503-865-2857. receive immediate service. [email protected] I know some of the biggest business and property owner concerns surrounds camping occurring in the Central Eastside so it is good to know what can and cannot be done regarding this vexing issue. The Safety for All team can verbally ask people to keep the right of way clean. They can also ask people to leave private property but cannot (legally) forcibly remove anyone. The goal is to document, interact and build relationships and connect people with appropriate services and options to help lessen health and safety concerns and make those living on the streets time and presence safe and minimized and problems reduced. Our Safety contractors are well trained and work closely with Portland Police but legitimate crime, safety concerns and problems should be directed towards Portland Police resources and 911 numbers. This is a very unique program with multiple contractors and coordination challenges all dealing with some rather chronic and complex issues. It will be like “flying a plane while building it at the same time” so patience and adjustments especially in this new virus world is necessary to make changes, improve efforts and use resources wisely to make these programs successful over time. PAGE 7 St. Francis Dining Hall… Its Complicated

John Beckwith serves cake during constrained and just chaotic a Sunday meal this last summer which has directly translated at the St. Francis Dining Hall in into increasing health and safety the Close in Eastside, sandwiched issues for business, residents between SE 11th and 12th just and homeowners for blocks and north of Stark. Volunteers that blocks around the dining hall, as day that were helping to serve there can be dozens of tents and meals, and the turnout that Sun- people camping and just hanging day was low but not unexpected out in the vicinity on any given in the summer and being the first day. The growing presence of of the month. The Archdiocese of problems is proven by the 123 Portland, because of some service (911) calls received last mounting long term problems summer around the area of the with safety, camping and general dining hall. The situation had to operations at the dining hall, has change. A 3 month period was with its affiliate Catholic Chari- established to access the situation ties, stepped in last year to make and think about improvements. It is part of Catholic Charities some changes at the dining hall. Because of their large investment nationwide mission of Healthy That is when a bit of a revolt took in the new St. Francis apartments Housing Alternatives. They place as the 25 or so core long next door and its considerable brought in a consultant who ran term parishioners pushed back social service experience and the much improved and lauded against the Catholic mothership resources, Catholic Charities lead Blanchet House in Northwest coming in and dictating some the effort to “rethink” the dining Portland to give input, feedback norms, rules and changes that hall with the goal of trying to and possible solutions. In these they felt impinged upon their ide- bring some acceptable initial reviews, it is already ap- alist, iconoclastic and hippish 60’s compromises and a more parent the dining facilities have more liberal credo and customs accommodative and deliberate deteriorated and are unsanitary that guided their noble efforts approach. As their director Rich- and may need $100,000 or more at St. Francis. It has been a bit ard Brikel related at the time, “The to upgrade to make it safer for of turbulent year since, with lots parishoners have a long tradition both volunteers and those they of back and forth between this they are proud of and we certainly serve. It will be a delicate dance committed group and the Diocese wanted to honor that and build on as the recent refusal to open who they felt were looking to it. We want to include everyone in the dining hall if the camping severely cut back, or change their discussions including campers and problems, on any given day is 25 year-long mission to provide police to lessen issues and major step towards corralling the food and services for the house- continue the mission.” While still problems. “Our main concern that less community. The dining hall serving daily meals, the goal is to the mission of the dining hall stays for years now, while having a help connect people with various true to its vision of radical and magnanimous mission, has been services, including addiction and inclusive hospitality”, one of its often times disorganized, money mental health treatment. supporters attested. In my al-most daily travel and visits to the area around the dining hall this spring has seen some notable improvements.. Stay tuned, but unlike much of the last decade, some much needed and thoughtful changes have been made with more to come that hopefully provide a much more organized and healthy atmosphere while still upholding much of what is noble and positive about the mission of St PAGE 5 Francis. Affordable Housing Project Central Eastside freed up $6 million projects and opportunities. After months dollars for investment. With the city in a of back and forth, mostly centered Put On Hold housing crisis and the URA coming to an around some bureaucratic requirements It may be a bit of a secret, even after end in the not too distant future, the and site control, the funding was pulled 30 years of existence, but the Central Portland Housing Bureau went out to to rethink the approach. “It just was not Eastside and its 708 acres is an Urban the market with a funding request in the a great fit as there was not a secured Renewal Area which dates back to 1986 fall of 2018 for a project in the Central site and costs and size of the project and will sunset in 2023. Under the Eastside for a minimum of 40 units. I really did not fit our funding capacity auspices of manager Prosper Portland know that is a pretty low bar for that right now” said Jill Chen at PHB. With (PDC), millions of dollars from this investment, but the difficulty of Metro bond money coming, some left well-worn tax increment financing tool developing these projects in the core over funds ($45 million) from PHB bond has over the years gone into financing areas of Portland was quite evident and lots of moving pieces occurring in projects like Trolley; Light Rail; storefront when only one affordable housing the city’s affordable housing process improvements; Eastbank Esplanade; developer submitted a project and approach, hopefully there will be a small business loans, Burnside Bridge- application; Bridge Housing. There is just better, more targeted funding request head; light rail and more. Back in 2015, a dearth of sites properly zoned that can when it hits the streets next year. It will the city council voted to up the percent- be acquired and pricing for land often not get easier, or cheaper, as finding a age of URA dollars going to developing exceeds $200 psf, so many affordable site with the appropriate zoning will affordable housing to 45%, which in the housing groups saw this as a high continue to be an expensive challenge. mountain to climb compared to other

Red Door Meet… Still Flourishing, but also Brings Concerns If you have been anywhere west of families hanging out with small continues to grow and the fear of SE MLK to the river on a given Sun- barbeques, vendors selling all sorts the “bad apples” may increase in day late afternoon, you may have of car gear and several food trucks the bushel. I have seen some days heard the sounds and seen traffic feeding the masses. The organiza- Portland Police “monitoring” the go- jam forming along SE 3rd Avenue tion and management of the event ings on and other times, the police from the Morrison Bride under- is pointedly disbursed and secret, so presence is nowhere to be seen, pass all the way down to SE Stark. as to avoid direct responsibility, with which seems a bit strange given the You will hear the mix of dozens of much of the activities and commu- recent crackdown on street racing bass heavy stereos blasting rap, nication being done through social the police have been doing after Electronic music and maybe a bit media, where there are the incred- some disturbing gruesome accidents of Latin Hip Hop. Hundreds of cars ible 15,000 member strong followers over the last couple of years. It is a of every size, type, and vintage all on their facebook page. “No burn conundrum as the police feel a bit tricked out with some of the most outs. No revving. No drugs. No alco- out-manned as there is no organiza- inventive accessories and expen- hol. No disrespect. Keep it clean this tional structure in which to engage sive wacky restorations you will see is a family event”. But with any sort and most of the participants and ac- anywhere are parked on both sides of large ad hoc sort of event of this tivities are often lawful and sedate. of the street while a slow parade of size entailing the underground tes- Certain members at the Central similar cars make circuits alongRDM the tosterone fueled car culture, not all Eastside Industrial Council and prop- street dodging hundreds of walk- participants are altar boys, which is erty owners are looking for options ing, talking and loitering car junkies. leading to some real concerns about to engage with police on this event This is the Red Door Meet, a weekly issues surrounding garbage, graf- in order to try to avoid a real serious gathering of Portland’s automotive fiti and the most concerning aspect incident from occurring which many mad scientists that peeks in the hot being when the sun goes down and think is just a matter of time. summer months but now is almost the meet breaks up, there is some now a 12 month occurrence. I have rather dangerous speeding and hair visited and walked through this raising driving shenanigans as cars exhaust soaked Burning Man sort of peel out to the next venue. Business gathering and have to admit most and property owners are becoming times I am pretty surprised at the more concerned about how to deal placidity and calm organization on with such a “flash” sort of event as most of these Sunday evenings. It problems are mounting and the fu- is not uncommon to see kids and ture looks a bit frightful as the event

PAGE 9 Wait... Wait... and Wait Some More! The Central Eastside Train Problem

Anyone who works, lives or spends experienced and insightful on all things much time in the Central Eastside rail lives close to the Central Eastside knows the vagaries and frustration of and he has experienced and studied one of our most vexing transporta- these mounting issues of train traffic, tion issues. The seemingly unending wait times and the consequent con- number of slow (or many times totally gestion, pollution and frustration. The stopped) moving freight trains. They cool thing is he has come up with some move through our district at what rather novel potential improvements solidations, Southern Pacific became seems to be the most inopportune but railroads being notoriously obsti- the dominant operator on Portland’s times often during rush hour and with nate, cheap and basically operate like eastside and expanded operations and the current Coronavirus epidemic do their own independent country, getting at the turn of the century and not seem to be less in number. With them to realize the issues and deal with established a much needed railroad 15 different rail crossings and trains them is a steep hill to climb. While the yard south of Powell in 1910 which that are over a mile long, these freight biggest traffic hairball (and most dan- became known as the “Brooklyn monsters often move at a slug like gerous) is at the 12th/11th Division, the Yards” (on over 50 acres at SE 26th and pace and even worse stop and back up increase in both size and length of Holgate) to connect and complement where wait times can often approach Union Pacific trains and inadequate yards to the north in Albina and 30 minutes and sometimes over an infrastructure to support these Northwest Portland. As Portland grew hour. There has even been documented changes, presents other problems through the 20th century, the railroads waits at an hour and half…crazy!!! This throughout the Central Eastside grew with it serving the growing freight results in daily occurrences of snarled Bill has put together a very laborious businesses that still remained and traffic of both passenger car and freight and well researched report of the prospered close to the core of Portland. truck traffic and basically a paralyzing current problems and some But with more people living near these of the transportation system. While the rather (but also expensive) solutions rail lines, especially in southeast Port- rail line runs along SE Division and then and presented it to our land use com- land, more conflicts grew and in 1956 between SE Water and 2nd, these slow mittee at the CEIC in February. These Eastmoreland and Sellwood neighbor- moving behemoths create negative issues have been brewing for decades hoods got an injunction against South- transportation effects that can often but lately the problems have ratcheted ern Pacific limiting train movements cascade throughout the whole 700 upward with the growth of the district, especially near these neighborhoods acre Central Eastside district. Since my longer and more frequent trains and due to nuisances of noise, safety and offices are near the worse bottleneck of complications of Milwaukie light rail. perceived negative effects on their the district at SE 12th/11th and Division, But the biggest challenge is that we property values. Union Pacific bought I find myself after many years having have several rail yards still function- Southern Pacific in 1996 and took over almost psychic ability to ascertain the ing and moving increasing volumes of the Brooklyn Yard which they made pending coming of a long slow mov- freight out of yards in close in areas into an intermodal yard which was the ing freight train. I then run through of the city that seemed smart and dominating freight movement where in my brain how best to maneuver prudent 50 years ago but now heavily overseas containers often stacked two through the Central Eastside to “beat” conflict with the growth, development high are now the main form of freight the train and get to where I am going and acitivities of some important close operations. The Brooklyn yard had and not have to undergo a 20 minute in neighborhoos of Portland. First a bit seen very little investment and or longer wait. I am not alone as many of history and background. improvements for much of the past other train avoiders are weaving century even as freight traffic had around to avoid the unpredictable long In 1868, the Oregon Central Railroad increased exponentially. UP reached an wait times creating a bit of “train began developing operations on agreement with the Brooklyn Eastmo- escape chaos.” “The Central Eastside of Portland’s eastside to complement reland neighborhoods to lift the 50 Portland is one of, if not the worse, burgeoning operations on the westside year old injunction to complete a $75 bottlenecks in the rail system on the and over the ensuing decades really million expansion and modernization of west coast” says former Union Pacific helped Portland’s close in eastside the Brooklyn yard. This upgrade was in dispatcher and now railroad consultant, develop and grow both its business and conjunction with a decision in 2014 by Bill Burgel who has been involved and industrial base but also housing that UP to consolidate their intermodal studying Portland’s increasing rail prob- often grew around railroad operations. operations at Brooklyn yard from their lems for 40 years. Bill who is incredibly Through several acquisitions and con- Albina yard north of the

PAGE 10 Marquam bridge thus bringing more ing through the gaps in the rail cars to frequent trains into southeast Port- avoid the wait. land to be “assembled” for their final destination.r M . Burgel mentioned to The other big issue affecting the me that he met numerous times with western heart of the Central Eastside the city transportation folks and Union is when these long freight trains move Pacific to demonstrate how this deci- like a glacier or stop completely along Railroad Whistles sion could lead to some rather severe the 12 crossings from SE Clay to Stark. and Safe Zones congestion and advocated against this This happens when a train is waiting either to enter Brooklyn yard until the Another big part of the equation is the move and strongly advocated for con- constant and loud blaring of railroad above mentioned train completes the solidating operations elsewhere out of horns through the heart of the Central laborious assemblage of appropriate the city. It was like yelling into the wind Eastside on the 12 crossings from Stark cars to move out of the way. But there as the railroad like with many of their to Clay. As older buildings along these decisions unilaterally moved ahead as is also structural problems to the north rail lines have been often repurposed they were not going to walk away from caused by passenger train movements into creative office developments and a recent big investment to upgrade the at Union Station and UP’s Northwest other more intense uses, hundreds of Brooklyn yard. Portland rail yard as well as negotiation employees have been added next to or of some sharp 17 degree turns at the near these obnoxious horns. Many a Currently there are 24-30 freight trains grain terminal just north of the Steel time I will be sitting in a meeting in a per day that come through the Central Bridge so trains often can be “held” building near the tracks and we have to Eastside augmented by 6 Amtrak trains in the Central Eastside. Basically we take minutes or longer to pause as the and then of course on the south end are screwed several ways!!! More and horns make hearing anyone talk next to of the district this gets complicated by longer trains are being squeezed into impossible. Combine this with the slow over 144 Trimet Orange Line moves. infrastructure that has been marginally and stopped trains nearby and many The big problems and waits occur when improved over 100 years all in an urban tenants in these buildings are seriously these over mile long freight trains have environment that has grown 10 times considering relocating when they lease to make multiple movements assem- in the same time frame. Instead of comes up not to mention the angst for bling the appropriate freight cars lined like in many cities, where the railroads the property owners who have poured up on the side tracks at Brooklyn often along with cities saw the need to move millions into these redevelopments. stopping and moving back and forth older freight lines and rail yards out Since these horn blows are basically to get the appropriate freight cars into of compressed and rapidly densifying required by law as a safety measure what can often times be a 7600’ long urban cores, Portland and the railroads to nearby bikes, pedestrians, cars and train!!! Whoa!!! That is well over a punted and continued to milk and al- trucks the solution involves construc- mile long and just wait it gets worse. low these old obsolete lines to operate tion of what are called “Quiet Zones” Often there are glitches in getting the as freight volumes rapidly increased. which requires upgrades of every cross- right cars in the right places which ing to standards of the Federal Railroad takes time to correct as the train idles Solutions, you ask? Not many easy Administration. I had always heard often blocking several crossings. Then ones. Mr. Burgel the train operational that each crossing may cost up to half after the train is assembled and ready guru floated multiple band-aid fixes. million dollars, which translates to the to move mainly north, a brakeman Some are very expensive and lengthy cost of creating a quiet zone through sometimes has get out of the like constructing an overpass over the the Central Eastside being $6 million. locomotive to physically check each car tracks at various spots along S.E. Divi- True to form, UP does not pay a dime to make sure the braking system is sion or adding lines to UP’s system in for these improvements but Bill Burgel educated me and gave me some hope. “I operative. This can take 15-20 minutes other parts of its network thus taking did a study of creating quiet zones and much longer if a defective rail car pressure off Brooklyn to easier but several years back and we came up with is detected. While this mostly affects much less impactful ideas like better some novel approaches that might be the south end of the Central Eastside warning cameras or a smart phone ap- able to drive those costs down to a total and the mother of all choke points at plication that would alert drivers earlier th th of $2 million.” I have to think with the 12 /11 and Division it can often ripple so they can avoid crossings. It is a tough Central Eastside being a big driver of into the other 12 crossings from Clay to nut to crack but something needs to be employment and investment in the city Stark. There are docu-ented wait times eventually done. A group of stakehold- and other state and federal resources at that intersection of over an hour and ers involving the Central Eastside Coun- that this investment cannot be cobbled because they are one way streets, cil and the city’s Bureau of Transporta- together at some point. Given the many motorists are trapped but often tion and the Planning Bureau, is unengaged attitude of UP and everyone will turn around and back up down one starting to coalesce around this vexing headed into maybe a prolonged time way streets which obviously is problem to finally engage with the of frugality, I may be dead before this dangerous!!! Then there are the many railroad on some prudent and feasible comes to fruition but it is worth now to instances of both pedestrians and solutions. It will take time but it is a start talking, thinking and acting to see bikers dangerously climb start. if this vexing issue can be addressed. PAGE 11 Some Other Deals, Projects, Developments…

Newhouse Hutchins The deal had all sorts of twists and and Mill over two years ago to a Property Sale turns, such as arranging for Bruce to group led by local construction out- slowly wind down his business after fit, Lorentz Bruun, and investors SKB, I have known Bruce Schneider, the closing; arrange for a lease for a part that has now been converted into owner of long time towing Com- of the property to the group taking a higher end, beautiful creative -of pany Newhouse Hutchins, for over 8 over Bruce’s business; line up time- fice and maker project called; Glass years. He owned a large acre site lines regarding a 1031 exchange and Lab. She held on to a quarter block with a very cool 1920’s vibe, but very other minor details. Tevis, who has and 11,000 sf building on SE MLK/ “tired” two story warehouse on the mastered being efficient and eco- Main that was leased to Columbia south end of the Central Eastside nomical in his renovations is looking Bank for many years, but who had near SE Powell. He would often call to “gently” bring the building back vacated the property even though me when receiving my newsletter to its glory while creating usable they had a couple years more to run about the Central Eastside asking space in the huge (rare 14’ ceilings) on the lease. As Priscilla values local about commercial property values basement area as well as adding ownership, people and companies, and trends. More importantly, he mezzanine space to take advantage it was a good fit when long time wanted to know about how the of the clearstory windows to get to respected development and invest- laborious 6 year Comprehensive over 20,000 sf of space in a 8000 sf ment firm, Schlesinger Companies, Plan process, which was adopted a footprint while plotting bigger ideas came calling with interest and a couple years ago, would affect his for the 30,000 sf vacant adjacent lot. strong offer to purchase. “We have property, as he knew that in the not Bruce, when you see him next, will too distant future he would want to probably have a much deserved year exit stage left and sell his business around tan and lower golf handicap. and property. Bruce wears his Duck colors proudly and has many of his Schlesinger Companies tow trucks adorned in the “green Buys MLK Site and yellow”, and rightly so as he was star lineman for them in the 1960’s. Priscilla Morehouse’s roots runs He knew he wanted to hit more golf deep in the Central Eastside, with balls in a warm climate than contin- her parents running one of the most been looking in the Central Eastside ue battling in the rough and tumble successful glass companies in Port- for several years for a key acquisition towing business. So when a deal to land for over 40 years. Morehouse to get into the Central Eastside that buy his key property on SE Wood- Glass was a heavy hitter in Portland’s is rapidly transforming and growing. ward, near Powell, blew up last burgeoning and large cluster of glass Though a lot has happened already, spring after almost a year of hassles, businesses. When the glass busi- we think the long term potential for he looked to his neighbor in the ness was sold in 1976, she become the Central Eastside is bright and south end of the Central Eastside, involved in actively managing the long term. It is just one of the most Mike Tevis of Trinsic Development. tenants in several of her family’s for- diverse and coolest areas of the cit- Mike, whose portfolio of buildings in mer glass industrial buildings in the ies, if not on the West Coast.” said the Central Eastside is past double Central Eastside. She is very much principle, Josh Schlesinger. They digits, is one of the toughest ne- a detailed person and loved the nu- liked the fact the property, with the gotiators around and bringing these ances of owning these key proper- Columbia Bank lease, that it gives two football guys (Tevis was John ties and keeping alive the history of them time to understand the market Elway’s center at Stanford) together her family’s legacy in these build- and develop a plan for redevelop- was going to be a gladiator sport. ings. But the changing higher use ment and re-tenanting of the build- nature of the Central Eastside, along ing (and maybe as a launching pad with the city of Portland’s continued for other acquisitions nearby). rules and regulations making it hard- er on property owners, she began Burger King on SE Grand to to sour somewhat on the property Become CVS Drug Store? management game and saw the writing on the wall as a time to take One big brand is becoming another her property chips off the table with one with the recent proposal for a valuations at an all-time high. She change at the long term Burger King sold her larger building on SE 3rd in the south end of the Central East- PAGE 12 side, at 1525 SE Grand. Located on their place and can be some added SE 2nd that was long term leased to a valuable full block site, this Burger incentives to real estate guerilla arts and music operation; King is a bit dated and in Portland’s development in needed areas. Audio Cinema since 2005. I had earthy and local food scene the (Though I do have a problem with been in the building a few times and question of “Who eats at Burger some of the OZ locations… i.e. Pearl talked to the Bohemian curator, Ilan King anymore?” is not a crazy District?) It is just early and a bit Laks, and loved his enthusiasm for proposition. Though I eschewed the undefined still. An investment and art, music and community. Sporting fast food option years ago, I at a redevelopment company, Libertas rough spaces for events, art studios, weak moment on a recent trip (great name by the way) has moved music rehearsals and more, it had wandered into a Burger King and into the Central Eastside with a that great underground gritty and ordered up a Whopper and I have to couple of acquisitions of some older imaginative feel Portland is known admit it was a quite tasty burger warehouse properties that they feel for. And sadly like, Troy Laundry and (per Samuel Jackson describing the are ripe for some value-add Towne Storage, it most likely will Kahuna Burger in Pulp Fiction). Plus renovation. Looking at both of these be going away. With some decent give them a bit of credit for pio- deals, I have to agree. “Both cash flow in place, Libertas paid neering the Impossible Burger! De- Properties were in Opportunity $6,500,000 and has the ability to veloped by former fast food Burger Zones and while that was not our renovate in a couple of phases to King magnate Joe Angel decades main attraction or goal, it does give bring the buildings into the new ago when he had up to 35 Whopper you another strong conduit for and desirable genre of creative and locations before selling, Angel still raising equity for investments. The maker spaces that seems to have owns the property and now the ag- real estate, market and plan for a bottomless demand. The other gressive behemoth drug store chain adding value has to stand on its complex of buildings Libertas added CVS is looking to develop a 15,000 sf own, but the OZ does help make to their monopoly board, was the store on the site. They probably these deals somewhat more were additionally attracted to the attractive.” said principle, Cameron ability to maintain the gold coin Johnson, who with partner, Craig amenity of a drive through facility Firpto, sport considerable commer- which Portland has banned in new cial real estate resumes working for developments years ago. CVS, the some big established names. They Paul Bunyan in the drug store space, have headed out on their own over with $200 billion in revenues, is the last couple years with some empty former Kennedy Restoration adding dozens of stores in the metro strategic investments with the buildings on SE 7th at Pine and Oak. Central Eastside firmly in their Paying $3,000,000 for a newer two gunsights. They have picked up two story 15,000 sf tilt building on a half buildings, both with good potential block and $2,800,000 for a 14,000 for some creative repositioning. 210 sf of 1910 connected warehouses SE Madison is a full block (always a across the street, both buildings are good investment) located just north more of a blank canvas where each of the Hawthorne Bridge overpass are quite flexible in their own way and has a mish-mash of four build- and could cater to different types area to take advantage of a potential ings loosely put together to total of users. “We liked both buildings void of the faltering competition of 58,000 sf space on multiple levels. for different reasons where with Walgreens and slowly dying Rite- Owned and loosely redevelopment some imagination and smart interior Aid. If this comes together, it will by tuxedo magnate, Ed Honeycutt, upgrades, we can hit a wide range take time for this to shift into gear, of Mr. Formal fame, these buildings of uses and tenant sizes” Johnson so it will be well into 2021 before had some rather “economical” and relates. Working with Central East- you see demolition and a new store slapdash improvements separating side architects, Sum Architecture, rising. spaces all sorts of ways. But rents Libertas is quickly moving to devel- were low and spaces seem to always oping their game plan for New to the Central East- be full with all sorts of little guy renovation for both projects with side... Libertas Companies tenants. The big potential in my work hopefully both projects Picks Up 2 Key Properties. mind is the half block building along hopefully finishing up by the end of OZ Played a part. the year. More and different spaces for smaller entrepreneurial and I have written previously about the growing small business is always a tax incentives and what I consider good thing in the Central Eastside some premature and maybe over- and both these projects seemed hyped aspects of Opportunity Zones prime to address that need for (OZ), but I do think they will have PAGE 13 these type of spaces. Harsch with Works Progress Archi- the guys go through Iphone Creative Office tecture put together a futuristic and applications submitted by all the Creative Office classy building that strikes initial nerdy Joe Schmoes’ of the world, Takes Over the observers as a conglomeration of and they hammer test them to make Takes Over the neatly fitted glass cubes on top of 4 sure it works correctly, does what it Development levels of parking. It took me a bit, supposed to do and basically hits Development or time, to warm up to a design that the high standards of Apple before Mantle in the at first looked too futurist to the it gets the privileged place in the Mantle in the more gritty and organic industrial App store. At 28,000 sf the building Central Eastside buildings nearby, but now with beer will get a much needed boost and Central Eastside in hand and turning 360 degrees may give Harsch some jaunty Apartment development has been on around at the grand opening last feelings about thinking more a tear over the last 5-6 years in the fall, I was nodding in approval of seriously about a renovation, or tear Central Eastside as over 3500 units the final product. Sporting 78,000 sf down, and ground up of the Coast have either been completed or are of leaseable space with high Auto Building across the tracks on inching towards the finish line. But as ceilings, no columns and terraces on SE Stark. Roselli mentioned they sites become more rare and projects every floor, the place is airy, open have several smaller firms close to rushed to get in under the inclusionary and on that sunny day… very taking space which should bring zoning deadline in February of 2017 bright. “It really shows well and them to over 75% ..Nice! Though finish up, office development in the once people walk the spaces, there the Apple lease was one of the worse Central Eastside is taking center stage is really a wow factor” says the guy kept secrets in the real estate with several projects opening doors who pioneered Harsch’s investment community since it was signed last in the first half of 2020 with more in the Central Eastside and this fall and the press leaked the deal in planned, or on the way! development in particular: Steve January, there will be no ribbon Roselli. There has been a bit of cutting or big announcement due to 7 SE Stark Open for developer insomnia as a blast of the extreme CIA confidentiality Business and Adds initial interest in what is called 7 SE nature of Apple and technology Huge Name Stark did not turn into any signed companies in general. That is a bit of to Tenant Roster leases during construction, but now a downer as it could really be a there is finally one big cemented great PR boost and seal of approval Gazing around the top floor of deal with probably one of the for the Central Eastside as a growing Harsch’s newest glass box of a world’s most iconic tech companies tech center. Now with healthy creative office building straddling taking a third of the building… presences and commitments by the shoulders of I-5 at the open Nope, not Amazon, not IBM… even Autodesk, a resurgent fintech house, I thought “I could work better in my mind… APPLE! Yes, software group Simple, a growing here”. Gazing at the floor to ceilings those descendants of the great (and construction software company glass windows with expansive ascerbic) Steve Jobs are expanding Viewpoint, locally grown AltSource views of downtown to the west and into the building. Apple has quietly and lots of smaller tech companies, Mt Hood to the east, I was picturing had a presence in the Central the Central Eastside is building a dozens of future workers scurrying Eastside for going on a decade with real core synergy of technology about coffee in hand soaking in the a small but growing skunk works businesses. Maybe some new afternoon sun on the way to their type of operations in the former fire branding for the Central Eastside? stand up desk. Harsch who picked station building at SE Stark and “Silicon Central”? “Technology up three key city blocks along the 11th . This group I am told are part of Row”? streets of SE Water/Stark and the “application scrubbers” which Washington five years ago was initially enamored with trying to wedge a 6 story office building on a 10,000 sf lot a couple blocks away. Tight quarter block sites are a tough and expensive proposition to develop especially if you are looking to provide parking so that exercise hit a financial dead end and they turned more wisely to a larger half block plus parking lot at the sweeping turn at SE Water and Stark for a more bold and prudent development. Betting big that parking will win big in the area PAGE 14 Tree Farm is wedged on a quarter Tree Farm block off SE 3rd street close to City Huge Biotechnology Finally Sprouts! Liquidators and has been in the Project Still on Track works for over three years. “We “The Trees are in!” And with really looked at a fairly straightfor- It was a bold vision when I first summer there is a very leafy cos- ward wood framed design on slab- learned of what will be one of the metic feel for this one of a kind on-grade as a cube, but the trees largest projects in Portland, let building development. Let’s review. and supporting planters, of course, alone the Central Eastside. A Kevin Cavanaugh of appropriately are quite unique and a bit of de- 350,000 sf biotechnology project named Guerilla Development (Is Che sign challenge,” says the architect in two buildings off SE Stark and Guevara part of his branding?) in Ben Carr. They basically designed Alder. What? It is not crazy to his idea a minute commercial real a “exoskeleton of tube steel” to say that these mostly flying estate development mind wanted to support the almost metric ton of under the radar projects could be combine a bit more nature and the planters where the 54 trees will the most impactful develop- environmental stamp to an office grow over time and help envelope ments in Portland in years, and project and settled on 54 metal the building, thus bringing shade probably far into the future for planters attached to the outside and nature to its inhabitants. The several reasons. Biotechnology is shell of his latest project. After lots $11 million project in conjunction the holy grail of economic de- of research, the resilient Oregon with another developer, Alta Ur- velopment and is lusted after by strawberry trees were chosen to ban, is geared like many of Kevin’s any city or state because of the give his 40,000 sf creative office projects to hit some rather economi- high quality and well paid jobs development hugging the Morrison cal office rent numbers in the $25.00 it brings; It has a big multiplier Bridge on SE 3rd a very novel and psf range where new creative office effect through the local economy earthy vibe, and always with Kevin, space in the Central Eastside is at and can quickly burnish the im- a great PR story to tell. Kevin, as I $30.00 psf and above. With floor to age of any city as “cutting edge, have covered before, brings a ceiling windows and “killer views” educated and forward thinking”. whimsical, altruistic and should I of downtown to Mt Hood, the target Additionally, these projects that say, a bit of pleasant screw the norm tenant will be on the smaller side, strive to establish a life sciences to his real estate projects such as the but will also allow a firm to take cluster and infrastructure has a much heralded and sometimes 6500 sf on an entire floor. He hopes momentum of attracting more and derided Fair Haired Dumbell at the to attract growing entrepreneurial more firms of similar ambitions Burnside Bridgehead. But also more firms going from “the garage and and increased venture money. importantly he hit successful singles basement to the real world”, non- Portland for decades has tried to with a more local and small business profits, small biz, and anyone look- plant and grow a biotechnology focus developments like food ing to “know their neighbors, smile garden but too often was working projects of the Zipper and the Ocean and change the world”. With no in barren soil with a broken hoe. out on NE Sandy and several parking, which is now not uncom- Many promising biotechnology smaller apartment projects catering mon, Kevin adds “Why build for an start-ups after getting to a certain to groups like teachers and single antiquated and changing transporta- stage, were either gobbled up by mothers that are finding affordable tion system. We need to understand larger firms or often had to leave housing a tough task. Employing car parking is a not a good use of at certain points of their lifespan crowd funding and also crafty pub- resources on many levels especially to other more established places lic relations, Kevin assembles a in accessible core neighborhoods that had the money, talent, lab small investment army of do- that have multiple other options”. space and support not found in gooders and anti-avaricious He has already signed up several Portland. That has been slowly investors that want to jump on his tenants…no surprise. changing with OHSU becoming a real estate development acid test preeminent life sciences institu- bus to help nibble at some societal tion and spinning out more com- ills, while hoping and mostly panies and patents. The lifeblood accomplishing building community of money and talent is finding that his projects strive to do. I love Portland more attractive to it as real estate development in create, but more importantly to Portland and everywhere does have stay and grow life sciences start- a somewhat money centric and ups. How-ever, one large obstacle bland ambiance and Kevin is good of having well designed and at blowing that up, not with any collaborative laboratory space has anger, but with a laugh, and also always been a stone around the maybe a “Come Follow Me” pied neck of our nascent life sciences piper attitude. cluster, as firms that move from idea-to- PAGE 15 incubator-to full-fledged business, Stark last summer. Dubbed near the site…who knew? often in Portland, hit a wall of not appropriately enough New Indus- Biotechnology Labs are very having the space to go to that next trial Revolution or NIR, this project expensive due to the complicated level… that may now be changing. will have a $110 million price tag… and special electrical, plumbing and Yowser!!! I have to admit whenever air handling systems they require. The first project called Eastside I see these huge out of the box Summit is basically providing all Innovation Hub (EIH) was an- projects announced I many times these unique foundational systems nounced in 2018 and is the first, think “This will not make along with specialty needed but smaller brother in this it to ground breaking in our uber amenities such as back-up power biotechnology development family, conservative town.” But everyone I and deionized water capability in a and entails the renovation of a have talked to says the NIR money is “warm shell” with a rent north of 20,000 sf older building into a in place; construction financing is $40.00 psf which is pretty good as 35,000 sf $15 million biotech hub coming and they will be in for in bay area or Seattle these asking that is now finally under permits this summer with rents are 20-40% higher. Tenants construction. Eric Myers, the initial foundation digging starting in the then will come in and easily make project manager of the project: fall. Designed by Henneberry investments into $100 psf to make Summit Development, offered a architects with R & H as the further investments to customize view of getting these complex contractor, the NIR building has a their space for their particular projects off the ground, “Like usual striking and unique H-pattern with operations. This is a welcome in development and especially in courtyards and ground level spots cutting edge commitment for the Portland it took more time and for retail and eateries on a 35,000 sf Central Eastside and Portland! money than anticipated and being a site. This educated and well thought Watching Glaciers biotechnology building adds to that out life sciences development bet is Recede…ODOT Blocks timeline even more”. Close to half also a real kick start for the Inno- Crawls Ahead…. of this building is already spoken vation Quadrant effort which has for as a commitment by local testing been a seven year planning effort Real Estate Development anywhere company Revelar which develops encompassing educational institu- and especially in Portland is not a breath tests for preventative and tions, and city of Portland and other sprint… often more like a slug like personalized disease treatment has thinkers, developers and investors marathon while crawling on your committed to a large chunk of to cultivate a collaborative, knees. So when you have a large space. It helps that the founder of synergistic and linked network of complicated site owned by a public this company, Chris Marsh is one of research and industry in technology, entity that also needs public the main owners of the project and life sciences, design and subsidies for infrastructure and is spearheading this game changing manufacturing. The geography goes environmental work; is surrounded project. Myers mentioned that they from PSU over to the OHSU’s south by three city streets that need are close to signing tenants for the waterfront campus and across the upgrading; a long term lease for part rest of the project but many wanted Tilikum Bridge to OMSI and the of the site to ODOT and if that is not to see construction started before whole Central Eastside. The enough the project is tasked with signing on the dotted line. That is Innovation Quadrant was part of the hitting various development goals very Portland in the leasing game. location's attraction as the thinking (equity; uses; etc.) by a public Everyone should be ecstatic to have of being in the core of Portland with owner, Prosper Portland, and you this smaller but still proximity to the institutions, the have a syrupy process that eats up service providers, transportation, months on the calendar. Such is the lifestyle, housing and more that the reality of three key industrially Central Eastside offers would be a zoned sites also known as the ODOT big attraction. One thing I found out blocks to be redeveloped in the that I did not know, is that massive Central Eastside. This summer will data analysis is a huge part of life mark over two years since Prosper science efforts these days and there Portland after a 6 month RFP is big fiber optic data cable with process selected (it was a shoo in) tons of capacity located adjacent tried and true Central Eastside developers Beam Development and long term partner Urban Development Partners to construct cutting edge project in the Central something amazing on this tasty Eastside but they blew this out of 100,000 sf of developable land along the water with the unveiling of a 5X SE Water next to the Esplanade. times 340,000 sf (10 stories) follow Prosper had spent over 3 years up project up the street on 9th and previously arm wrestling the former owners; the Oregon Department of PAGE 16 10,000 sf of space for some er, KP is employing terraces on all 6 high end industrial space levels that should get bathed in the centered around advanced afternoon soon and have good views manufacturing, R & D or downtown and of the hills beyond. proto-typing that could be It will employ what everyone is a place for makers, manu- using right now, heavy timber facturers, designers and construction that just gives a much engineers to test and incu- more earthy, flexible and open feel Transportation over a purchase of bate some great ideas that other accented by 13’ ceilings. One thing these vacant blocks which they tenants in the project could hopeful- many of us in the Central Eastside owned for decades thinking it ly leverage off of. It has been a long appreciate is that Killian is going big would be the place to have a south 10 or in some eyes 20 year road to on parking at 230 spaces which is a bound on ramp to Interstate 5 get this under-utilized but now this 2:1000 ratio which is almost un- which was in hindsight myopic, huge key site has its development heard of in the core Portland right not needed and way too expensive. engine finally running. now. I understand we need to get The big barrier was ODOT want- people to ride bikes and on transit ing to maintain good chunks of the Killian to Add HIGHWIRE but we also need to realize for many site on the west end to “upgrade” to its Clay Creative Village businesses this not always possible parts of the freeway in the future plus parking on the street in the not to mention the environmental Killian Pacific (KP) has been a Central Eastside is always under and geotechnical concerns. Since transformative force in the Central attack. Killian is going to have a being selected, Beam/UDP cemented Eastside especially with their Goat more formal roll-out of this project a Memorandum of Understanding Blocks mixed use project on 11th and in Q3-Q4 this year and pre-leasing is with Prosper and with their archi- Belmont and additionally they were already underway. There is not a tects Hacker have come with rather the first developer to build a large definitive commitment on a compelling designs for all three ground up creative office project in construction start as they keep their blocks. “It has gone well albeit it’s an industrial zone with their two eyes peeled on the creative office going slower than we would like” phase 150,000 sf project Clay Cre- market dynamics or better yet says Brad Malsin of Beam. Next step ative project at 3rd and SE Clay. They hoping to land a big pre- is a Disposition and Development now have another chapter coming in commitment to get this stylish Agreement which will start the de- their Central Eastside development looking project off the ground. velopment engine which hopefully novel with a glassy smartly Rumor are that Viewpoint Software comes this summer or more likely designed addition just south of Clay that I cover in the newsletter and is with virus delays, this fall. One thing Creative. Located on a parking lot of a homegrown construction software that is helping lubricate the process an older warehouse property that firm in two buildings at SE Water is the very low price of under was leased for many years to Oregon and Clay and employing over 350 $25.00 psf paid for by Prosper for Electrical Group, the project called folks is looking to stay in the the developable square feet. Granted Highwire will add another 125,000 district and is eyeing leasing over there were substantial other costs to sf of office space to what is quickly 100,000 sf here from Killian in the get the site ready for a shovel but becoming a village of buildings and Highwire Building. Killian I have even if that is a couple of million uses that Killian owns in the area felt has had the inside track since bucks their basis is in the range of a and has been rightly named the Viewpoint leases a building from very cheap $50.00 psf where market Electric Blocks which will then total them with a fairly significant lease may be closer to $100 psf for over 350,000 sf “We really like the over-hang down the street. It would be industrial land now in the district. design and feel of the project and awesome to see them stay in the Another brake in the process is will be just another great addition to Central Eastside at Highwire! Prosper is seeking millions from the what we have created in the neigh- state for infrastructure reimburse- borhood. It provides a great book ments to the site. Beam in a very iffy end to Clay Creative” says Michi office market will probably phase Slick the Director of Development at the three block development with Killian. I agree as the light airy glass the northern block going first with intensive feel of the design is a good space up in the range of 200,000 sf counterpoint to their plans for the which in this environment really renovation of the older OEG requires a big pre-lease commitment warehouse building next (50%). Initial designs are spec- door (which will add another 29,000 tacular and pays great homage to sf) and serves as definitely the industrial history of the Central something different than Clay Eastside. The Innovation Quadrant Creative. With it being up on a bluff folks are interested in taking up to looking west down towards the riv- PAGE 17 Beam/UDP District grains throughout the interior of Office is Ready! the space. CLT also makes for more clear spans, open floor plates and This half block masterpiece project ability to configure floors many ways on SE MLK at Stark and Washington a much easier task. Leonard threw is open and humming and though out a word in a recent description of this kooky corona virus is keeping the project that I have never heard people at home, this new project is before referring to the organic and bring new activity along a stretch of sustainable nature of Cross Laminat- MLK. Beam Development and ed Construction as “Biophilia.” Lov- Urban Development Partner's latest ing words, I had to immediately get and Omnibus, this vertical collaboration had been well on the internet to check this term warehouse has sat in the close in received with two big commitments out… Shazam! It was coined by one eastside as a kind of sentinel of old early on by long time co-working my favorites guys, noted naturalist gritty industrial Portland until it company Regus for 33k of office Edward Wilson, and basically means was redeveloped back pre-recession space (unlike WeWork they actually “humans innate tendency to con- in 2005-2006 by Beam Development. make money!) along with vaunted nect with nature and other forms At 8 stories high, it was built local architectural firm, Hacker who of life.” So CLT might have some originally as a cereal mill for the took 23,000 sf and provided the cool mystic secret sauce that could help Olympic Cereal company in 1920 as design of the building to get to 70% people connect better within its Portland at the turn of the century preleased. environs??? I like it! The building became a flourishing shipping site was originally home to Portland center for flour and baking products Music which is a bit of an icon in mainly because of access to the Portland’s music scene and the own- wheat raw material in the Palouse of er is a minor partner on the project. Washington and Eastern Oregon. In There is 9500 sf of retail with big 1923 a subsidiary of General Mills open spaces where undoubtedly a bought the business and the restaurant or two will find a cool building and continued operating home. Parking of 40 spaces are one there until after WW II. Served by level down. The project has not been two huge freight elevators and a rail totally seamless as I watched during siding, huge bags (weighing tons) of District Office utilizes the sexy and construction as they had to change flour and cereal were moved up and practical cross laminated timber out to a larger pile driver to go down down the floors. A local family (CLT) construction methodology past 100’ to hit rock with their pil- bought the building in the 1950’s which is basically a wood panel ings which as many know well is a and ran a bit of a rag tag sort of product made from gluing layers of rampant symptom of our sketchy warehousing company in the solid sawn lumber together and then and often “mushy” soils throughout building for the ensuing decades. layered in such a way to get the the Central Eastside… not to men- “When we first went through the strength and seismic resiliency that tion our underground creeks. Here building, is was pretty rough with is close to steel. It makes sense to is to more Biophilic Design!!! all sorts of products and odds and use such technology in timber rich ends everywhere. It was hard to see Oregon where a local company is Coronavirus and what was what and it was very pioneering CLT manufacturing: DR Uncertainty Nixes dusty and dirty and we knew noth- Johnson. The panels and beams get Olympic Mills Sale ing had been done to the building pre-fabricated off site and is put for decades. But you could tell that together like an erector set thus In this new coronavirus world and it had great bones and potential in limiting time but does take Swiss how frozen major sectors of our an area that was quickly changing,” train like scheduling. “You really economy have become, it was in- said Brad Malsin, reminiscing a bit have to get your contractor and evitable that commercial real estate about one of his landmark rede- subs talking and working together projects and purchases would be velopments. At 135,000 sf of total because of how CLT construction extended, paused or in the case of a space the building, Olympic Mills works together and make sure all pending sale and redevelopment of sits on a full block with two stories the people and parts are on a tight the iconic 100,000 sf Olympic Mills encompassing the whole block, then schedule” says Leonard Barrett at creative office building at SE 2nd 6 stories rising along the half block Beam. With structural rigidity but and Stark, would not be fronting SE Stark. It was a challenge also 5 times less weight than consummated with the potential: to envision how to knit the building concrete also gives CLT the ability Buyer Rialto Capital walking at the together to make it an efficient and “to move” and better absorb finish line. Often referred since flexible layout, yet keep the seismic forces then of course 1950 as the B & O Warehouse industrial and authentic feel. That everyone loves the feel and warmth building which stands for Baggage job fell to Works Partnership, that of seeing the wood did a great job by PAGE 18 cutting in a series of four interior occupancy for the last decade and and add value to this bit worn but courtyards with skylights and cat- at certain points even had a waiting perfectly positioned creative office walks in the first two stories thus list! The equity behind the redevel- gem. With closing pushed back giving it a real open feel and posi- opment, J& R group led by original more than once, Rialto was set to tion spaces mostly along the outside investor Morgan Zhang took over complete the purchase in March, of building. This allowed “gathering ownership and has been running the but unfortunately that is when spaces” at different locations in the building in a spartan fashion since the pandemic hurricane started interior of the building which was keeping rents and investments low blasting across the landscape. Di- augmented with a funky furniture for what is now the management amond mentioned that the stock aesthetic for each space to foster col- challenge of over 80 tenants, some as market had some of the biggest laboration and a warmth of activity small as a couple hundred square losses in the weeks leading up with people interacting to form a feet. As the Central Eastside has to their scheduled closing of the sort of intra-building community. grown into a pre-eminent office deal which like with many buyers Wood slats re-milled from parts of market in the city with both new brought some very serious re- the building provide fun “garage” and renovated projects upping their consideration of their capital and accents and street art adorns the game with more amenities and investment expenditures. Rialto hallways all giving it a friendly spiffier spaces, Olympic Mills looks with so much uncertainty walked warmer and lived it feel. It worked! like the old uncle with the rumpled away from the purchase on the People always mention “location, jacket and holes in his pants but still five yard line to which was not location, location” when talking loved. With guys toting huge all that surprising and might be about real estate, but I think just as baskets of investment dollars for an all too regular event heading important is “timing, timing, these strategically located into the rest of the year as buy- timing” and Olympic Mills hit renovation projects in great ers recalculate their investment perfectly a forming wave of ten- locations are like investment white assumptions. “It was unfortunate ants, mainly in the smaller category sharks and Portland is now hotly on as we really liked the asset, Portland under 2000 sf looking for economic, their radar screen. In steps Rialto and the long term prospects of the earthly, simple and cooperative Capital Management, based in Central Eastside market. We may spaces in “hidden” unpretentious Florida, that has raised over $8 be back but right now it is just a parts of town, and the Central East- billion in the last decade to invest very difficult environment to have side and Olympic Mills checked all across multiple commercial real any clarity of demand for space this those boxes. Asking at the time of estate asset classes from loans, year and into next and how best to completion in 2007 a very attrac- securities and direct property deploy capital. We still love Port- tive $18 psf with cheap expenses, investments. “We just saw Olympic land and will continue to invest, but the building filled its 100,000 sf of Mills as a compelling opportunity in obviously in a much more judicious rentable space rather quickly before a great up and coming city" said manner,” Diamond mentions. Rialto the economic sledgehammer hit in investment point guy on Olympic did close earlier in the year in buy- 2008-09. Artists, and firms involved Mills, Jason Diamond, who has deep ing the Fremont Place office complex in dozens of businesses in design, roots in Portland. “The Central on NW Front to reposition that tired clothing, textiles, non-profits; tech, Eastside has established a great asset and is continuing to monitor PR; branding; web-design; architec- entrepreneurial aesthetic and base of the market and Portland as one of ture; consulting and more found an quality development that we feel their investment targets, but with a economical and collaborative home. has a long runaway, and Olympic prudent and much sharper pencil. I It was a microcosm of the great and Mills has potential for an intelligent have to think with the Coronavirus growing cadre of nimble and cre- and organic upgrade and refresh to maybe starting to take its toll on ative firms being attracted to think, compete in this up and coming sub- office tenants, Olympic Mills has grow, make, employ and add to the market.” Diamond added. Rialto lost a good chunk of their tenants, blossoming entrepreneurial milieu had the project under contract since but I have to think with its great of the Central Eastside. Olympic last summer and was going through historic bones and location, it will Mills weathered that downturn very their standard due diligence of get loved and virus or no virus will well and maintained a 90% plus looking in every nook and cranny of be bought by another group soon. the project, and how best to strategi-cally and economically upgrade

PAGE 19 Three Other Office Projects in Early Stages Unico Plans three levels of underground parking. the market in the next year or more to for Weatherly After writing a big check to pick up the make this sort of major bet. Building key corner piece owned by the Bollinger family, Unico got a rather cool I walked through reception in spring 2019 from the city the hallways of the and Historic Landmarks Commission on iconic 1930’s art deco the design as they felt the “size, scale Weatherly Building last and look were inappropriate for the December and it felt historic” district along SE Grand cold and eerie. Mail Avenue. The project has gone fairly piled up on floors in quiet since this time except for the slow front of office doors “Current” exodus of tenants out of the Weatherly, former salvation Army site and peering in through but this planned vacating of the build- Poised for redevelopment some of the office windows revealed ing was much planned. Stay tuned for lots of empty offices. Unico which is a more detail and pretty pictures of the The full block former Salvation Army huge private equity commercial real coming makeover of another Central warehouse just south of Gerding Edlen’s 17 story mixed use project still estate outfit from Seattle closed on the Eastside icon of the Weatherly Building sits forlorn among a rapidly changing Weatherly Building almost two years along with maybe a hopefully compli- commercial corridor. Sold over 5 years ago in a $20 million dollar deal for the mentary sister building next door. 12 story 80,000 sf point tower built in ago to affordable housing developer; 1928 on SE Grand at the Morrison Bridge Housing, it changed hands over bridgehead. The history of the two years ago to an investment group Weatherly Building and the out of SoCal called LLJ Ventures, as accompanying huge, gaudy and just part of an Opportunity Zone move plain weird Oriental Theater by one of their wealthy clients. With (demolished in 1970) on the block is a local developer Willamette Stone and wild story that every Portlander should principle Adrian Brody handling the look up and read. Unico is a smart and local aspects of entitlements, design savvy developer/investor having print- and more, the project is slowly nudg- ed millions of dollars of profits for their Vanessa sturgeon Picks up ing forward. “There are no hurries and investors in Seattle for years, but has Half block Proposes 130,000 sf we want to do this right and really turned one of their major investment new building on se grand understand the best size and combi- gun turrets to Portland with the pur- nation of uses on the parcels but the chase of huge Montgomery Park and Known for downtown office towers like industrial zoned parcel will most likely Galleria buildings last year. Plans are 1000 Broadway and Fox Tower, go first for a creative office project” He being set in motion to seismically ret- Vanessa Sturgeon, the determined and is referring to a slightly smaller than half rofit the historically registered structure astute honcho at TMT Development, block IG1 zoned property they got in has been moving in other directions in nd along with a total upgrade of the the deal on SE 2 and Ash which they the last few years with multiple other offices and big upgrade to the have concentrated on first as a place projects outside of the downtown core common areas to bring it from the for a 70,000 sf creative office develop- with projects like the retrofit of the 1950’s into the 2020’s. “We think the ment in six stories. The first designs are former Premier Gear building under the small floorplates are an advantage impressive, clean, simple and really Fre-mont Bridge and an apartment because Portland really has a dearth of plays off the surrounding aesthetic of project on Lower Hawthorne. She nd options for smaller creative firms and as the warehouses that populate SE 2 . raised some eyebrows last year with you rise up the floors the views are With the smaller site, floor plates will be the aggressive goal of assembling a spectacular. We want to pay homage more economical in the 12,000 sf " large $300 million bazooka of cash to to the Weatherly’s history and great range which I think is a good target for invest in the flavor of the year/decade, architecture while providing state of the deeper tenant market in that 5000- Opportunity Zone Properties which the art space and amenities for smaller 8000 sf range. They are pointing for a allows investors many ways to avoid firms in Portland” said Unico last fall 2021 delivery which means they capital gains taxes on their real estate summer. Along with this redo there was will need hustle to meet that timeline investments. One of her first forays with floated a “sister” new building of 12 but all these projects always have this fund is buying an 18,000 EX zoned “flexible” schedules especially if pre- stories along the south side with parcel along SE Grand for a proposed leasing is a prerequisite to getting the creative office project. Picking it up for project out of the ground as that is an economical $180 psf. She and her always a tough slog in tenant con- group are in the early queue at the servative Portland who like to see the city with a six story 130,000 sf cross building being built before committing laminated timber project on the site to leases. but given a rising office vacancy rate Oh yeah there is also a and over 400,000 sf of new space pandemic going on. Check out the hitting the market in the Central design link here: https:// Vintage Proposed Eastside, eyes will be peeled to www.willamettestone. com/copy- of-121-n-beech PAGE 20 Pretty cool. Tevis Dials up Office Building in South Central Eastside It started with the purchase of the old tracks at 8th and Division from Trimet Ford Building at SE 11th and Division which was one of orphan pieces they in 2005 that was a forlorn turn of the acquired for the Light Rail project over century brick warehouse that housed a decade ago. His plan is for a 70,000- the property division of the County. 90,000 5-6 story office building with But investor and developer Mike Tevis parking and a big outdoor landscaped who was migrating north from the area. To many this may be a bit of Bay Area could tell it was a unpolished a quizzical location for a big office gem. At three levels and over 70,000 building but if you look across the sf of space the building was built in sf for what is now over 60 tenants street the 35,000 sf Solterra building 1914 and was used by Ford Motor that run the gamut of Portland’s sits full and active. (I have to mention Company which assembled Model creative landscape. Putting in one of that Solterra building has the absolute T’s, Falcons and an Edsel or two in the best cafés in the Central Eastside coolest mural anywhere which at 70’ the building. “You really could see with Ford Food & Drink and turning portrays a woman in a pose of grati- the potential, the brick was in decent the common areas into an Art Gal- tude with over 1000 plants serving as shape and it was well built because lery has made the Ford Building a real her hair… a great, peaceful and artsy Ford assembled cars in it back in the warm and comfortable beehive of addition to the hood). Tevis has skilled 1920’s and 30’s. It also had a strategic activity and commerce. He used the architects at LRS putting initial designs location on Division at a major inter- Ford Building as his base of operations together and they will be doing some section. I just loved it when I saw it” to play monopoly over the ensuing refining and tweaking as he moves Tevis gleamed. It was intuitive to see decade to pick up now over 12 through the entitlement process this the need for simple, flexible smaller properties in the nearby year. Tevis thinks he will need to get a spaces so Tevis did a phased humble neighborhood each catering to a pre-lease commitment and may size and economic upgrade keeping the variety of retail, office, light the project down to get to some industrial old aesthetic but creating manufacturing uses with all tenants economies and provide a lower cost a variety of spaces mostly under 1500 mostly homegrown. He recently alternative in this changing virus picked up a parcel down along the world in order to move forward. light rail Apartments still Going... but the Pace is Slowing

In previous newsletters I would cases downward in the short term. or breweries and people will con- devote several pages to all the new This along with consistent increases tinue to be attracted to Oregon and apartment projects in the Central in construction pricing over the last Portland’s natural and off-kilter Eastside but this will be a bit of an several years has made for a flashing brand” he said between bites. Off- abbreviated review. That is partly due yellow or red lights for many devel- kilter? I kind of like that and looked to the fact that like elsewhere in the opers contemplating any new prod- up the definition: “Unconventional, city the pace of apartment construc- uct and who patiently are waiting to unexpected, eccentric” Yup. That’s tion is markedly slowing but it is watch absorption of all these new Portland. coming off a few record years from units to contemplate their next 2016-2019 where over 15,000 new move. The Coronavirus has There has been 2900 apartment units have hit the market with many complicated this even further with units completed in the Central being in the core of Portland. This apartment demand more uncertain Eastside since 2013 when Brad was mainly due to the fact that in- than ever. But there remains a strong Fowler’s 62 unit Eastside Lofts was clusionary zoning (IZ) which makes cadre of developers who believe that completed which I use as my starting developers include up to 20% of all these new units will painfully get point. There are another 900 units in units as affordable (thus less monthly absorbed and because there is a real construction or pre-planning. I will rent) hit the books in February of constriction in the pipeline of new give you highlights on a few of these. 2017 and there was a huge rush units in the next few years that if a by developers to get in under that project hits the market in 2022 or Mill Creek Rumbles On! requirement. With it taking over 3 beyond the market will be back in Mill Creek Trust (MCT)is hands years to go from initial permit sub- equilibrium. As one developer said to down the most aggressive apartment mittal to when they open the doors me over a Rueben sandwich recently builder in Portland. Led by deter- many of the projects that escaped the “While in-migration and job growth mined local honcho Sam Rodriquez, IZ are now just hitting the market are slowing somewhat, it is still he is known for outbidding everyone thus swamping demand somewhat strong and we will continue to if he wants a site and deal. He is in that upper end price point. This attract companies and people hard to compete with if he wants has caused many developers to offer escaping from Seattle and SF which a site… I know. MCT is a huge some growing concessions for leases are overheated and expensive. Plus national apartment machine that thus pushing rents flat or in some they are not going to move the needs to be fed and cannot standstill. Gorge or Mt. Hood, the food scene, PAGE 21 I thought it might be interesting to show you some apartment rents for specific developments in the Central Eastside to show you what you get for you money these days in the apartment world for a couple of the newer projects. Hard to say what the virus will do to rents but got to think it will provide some pressure downward in the short term. I looked at the new stately looking Grand and Belmont apartments that has a great red brick look facing SE Grand at Belmont/Morrison developed by Urban Asset Advisors. Sporting 160 units, I found one bedroom units in the 600 They have a whole block at 1120 sf range for $1700.00 a month. But moving up to the top floor with a nice SE Morrison under contract to deck/views jacks the rent to $2400 for 680 sf… my nose is bleeding a bit! make for their third project in the Two bedrooms in the 980 sf range hits the $2500.00 price point. Like all Central Eastside across from their new apartments it has the standard arms race amenities now finishing up smaller project . Rooftop terraces, Moderna Buckman (their other fire pits, dog wash, on and on. project was on the former Oregon Ballet site at 6th and Belmont). Paying more than $280 psf, they have maxed out the site at 240 units and a much needed 170 parking stalls planned on the site for ground breaking this fall. Apartments Come with SoHo House Hotel There is a very cool small hotel, SoHo House coming to the Troy Laundry building at SE 10th and Oak which I at the end of this newsletter, but that is only part of the development on this full block site. The buyer of this site is AJ Capital which is moving quicker on a large apartment development land to the Moderna Buckman next to the Goat Blocks has 170 units and has north of the Troy Laundry building just started leasing units. Though floorplans differ a bit, the average, I which will have over 130 units in a 6 discerned is around 550-600 sf for a one bedroom at $1550.00 per month story building configuration and 950 two bedroom units at $2500.00 a month. Again a lot of the same While I was rooting for a bigger amenities and expect to pay a bit more the higher you go up in the building. hotel investment, after seeing the apartment design and how it knits well with the historic Laundry building, I could see the synergy that could be created between the two different uses that could really activate this area. Even with our world turned upside down in the last few months, they are moving ahead with getting this project permitted this year and underway next year.

PAGE 22 Viewpoint – Out Looking for Consolidated Space The Central Eastside has quickly envisioned building in 2007 become home to numerous soft- and helped be a catalyst for ware and tech companies over the other developments of older last few years; Autodesk, Simple, warehouse buildings in the AltSource and many smaller firms Central Eastside for higher, have grown and have established more dense and innovative visible operations in the neigh- uses. It was smart move as the Trimble a $3 billion Silicon Valley borhood. The original software Central Eastside has exploded Software company for a the tasty pioneer in the district though is and values have rocketed price of $1.2 billion... KaChing! Viewpoint, which was known for upwards since. many years as Coaxis. It dates back The deal now is Viewpoint is out to 1976, but really hit its stride in Coaxis really picked up steam looking to put both of these spaces the 1990’s, when CEO Jay Hala- coming out of the recession, as on SE Water and Clay together in day and partners took control of construction firms starting- em an expanded building which would the company and started really bracing technology and the cloud total around 120,000 sf of space. growing the business. Viewpoint to make their businesses more The fly in the ointment is that they designs enterprise software to pri- efficient and organize their opera- have almost 7 years left on their marily help mid to larger construc- tions and projects. Renaming to Killian lease which any new land- tion industry clients perform back Viewpoint in 2012 and making lord will need to figure out how office functions such as tracking, some strategic fit acquisitions after to best handle. Their Request for project management, planning and taking on some outside invest- Proposal (RFP) has been out since accounting. It was not a get rich ments, it was a growing enterprise last fall and there is considerable quick scheme, but a methodical and soon had over 600 employees hope that they can stay and grow and laser focused development and $140 million in revenues when in the Central Eastside, but of of software tools to help a very vaunted private equity firm Bain course economics will have a big disparate and somewhat chaotic Capital came calling in 2014 to buy impact. With several new and huge commercial construction indus- a controlling stake for $230 million. empty buildings out there such as try become more responsive and Haladay kept his ownership stake the Fields Office on NW Front and streamlined. One smart and key and drew on Bain’s connections, Tanner Creek (Previously 9 North) real estate move was Haladay’s dough and expertise to continue both with deep pocket owners, teaming up with vaunted design, the growth which pushed them to rumors are out about some major planning and engineering firm, lease an additional building across dollars being shoveled towards Mackenzie, in buying a dilapidated the street which was a former PGE Viewpoint to come over to the three story old moving and stor- service facility that Killian Pacific westside (especially when the age warehouse at the foot of the purchased in a bidding war and re- office market is a bit anemic and Hawthorne Bridge on Water Av- developed for Viewpoint to almost remote-working becoming more enue in the Central Eastside in the double their footprint. Haladay prevalent) with some big vacancies early 2000’s for the bargain price rode into the sunset of retirement and demand being somewhat of $400,000. They bought this old in 2015. Then he and the principle tepid. Killian, which owns the concrete bombshell from the PDC at Mackenzie, Jeff Reaves sold their building with the long overhang of on a long term ground lease and original building for $34 million the lease, has to because of this, be embarked on classy sustainably in 2016 to real estate developer/ a front runner along with the fact designed retrofit to create one investors Lincoln Property and ASB they have a great building site and of the first creative and pioneer- Investment. Whew! Busy times! design called Highwire a few blocks ing office spaces that now is the Viewpoint kept going but after hit- away. This requirement has been de rigueur type of creative office ting $200 million plus in revenue pretty quiet and I have not heard development almost everywhere with 800 employees, everyone the latest landing spot and have to in the city. Both firms moved into exited in an all cash deal in 2018 to think coranavirus may lengthen the the 100,000 sf four story totally re- decision making process. PAGE 23 A Better Way to Get Quality, Local Food

Here is a great glimmer of hope story connection that is so important. While in these trying times. Over five years Farmer’s Markets have exploded and ago, a former tech digital marketing weekly delivered produce and meat manager fell in love with food and be- of community supported agriculture came a small farmer in Canby Oregon (CSA) has proliferated, these options trying to figure out how to bring fresh, were often seasonal and a fairly niche healthy food to more people and rare oriented outlet for producers who as it seems …make money! Well, not need consistent distribution channels a lot of money and in those early days for a wider range of products that it amounted to just keepng the lights was more direct and profitable then on and the bills paid. She soon selling through even local community realized the long hours, financial oriented grocery stores. As she built challenges and learning every day, a great network of small food mak- while tough, were worth the effort. ers while growing her farm business, But in befriending and talking with she wondered “How do we get our The site and business has seen steady other small farmers there were some products consistently and profitably increases but now with the definite bottlenecks and issues with to our friends, neighbors and com- Coronavirus sequestering people in- our distribution system especially for munity and help the next generation side and grocery stores being chaotic small producers that were making of creative food producers grow and and out of many items, this negative some of the best tasting and natural thrive?” The idea of MilkRun was event has injected some rocket fuel produce and food products. Armed born. Started with less than a dozen into the MilkRun model. A typical with a lot of idealism and a farms, a hand written sheet and a good day was maybe a couple of “never say die” attitude, Julia Niiro van, she started bringing great food hundred orders but that blasted to set upon remaking in a small way our to a small but appreciative audience over a 1000 recently with it ratcheting local food web. Her research found within a short distance of her farm back to 500-600 a day recently. Long that many longtime family farms were south of Portland. With increasing located in a cramped shared space in slowly selling, or just dying out as demand and harnessing her grow- outer Northeast, Julia and MilkRun farmers got older, or just plain gave ing network of energetic producers, had been looking for a larger, more ef- up due to financial hardship of trying employing a stubborn attitude and ficient location for close to a year but to make even a meager living in our getting lots of advice along the ywa , this latest surge has added increased messed up food chain system. Her MIlkRun has painfully but optimisti- pressure. They found a temporary research found 75% of farmers are cally grown to now serve over 3000 space in the Central Eastside and are over the age of 65; only 10% of what customers and 100 producers. Now are close to finding a much larger is spent on food makes it back to the up to 70% of the purchase price goes space in the Central Eastside. She small farmer and while we have lost back to the farms to provide a livable related that she really appreciates the thousands of smaller food producers, wage, a stronger community and the food distribution history of the the coming decades will likely result building blocks for a what Julia Central Eastside and the hub it has in the extinction of thousands more millennially says is a “rad future” for been for food delivery to Portland for both impacting access to quality food farmers. This is how it works from the over 100 years. While that model but also the loss of community and MilkRun website “MilkRun is a remains intact, albeit with less that local and all important bustling hub of farmers, butchers, companies, new innovative food pro- bakers and makers. It is where the ducers like Stumptown Coffee; Salt & magic happens. From our website you Straw; Jacobsen Salt and others have will fill up you virtual basket or set up anchored a new local creative base of a recurring subscription and then food companies in the Central select what day or week you want Eastside that is attractive to Julia and your delivery. Once the order window MilkRun. It seems to fit their closes, all of our producers bring community credo perfectly. goods to one of our micro-depots. MilkRun's e-commerce model is From there our team aggregates your perfectly positioned for this new order and drops off a box of radically world where more of us will be eating local groceries on your doorstep.” and cooking good food at home . Huge Commissary Kitchen Coming to Building on SE MLK

The Central Eastside has center of Portland's famous This shared model is much long been home to produce foodie culture. Now, a huge more efficient and more and food distributors and smart kitchen operation is importantly less expensive. their warehouses of all sizes coming to add another page Cloud Kitchens moniker is and types. It goes back to to the food story of the “Better, faster, cheaper” the turn of the century, district. A company called Cloud Kitchens has over 20 when armies of horse drawn Cloud Kitchens bought a such operations in various truck carriages, filled with 10,000 sf building on SE stages of development. One all of the wonderful bounty Main and SE MLK to create interesting factoid is that the of Willamette Valley’s farms, up to 20 micro kitchens that money for this soon to be would trundle around the will be like a WeWork for global operation comes from Central Eastside 24-7 go- food purveyors who don’t Travis Kalanick, the founder, ing out to spread their tasty have the time, resources or and then ousted leader of cargos to a growing metro manpower needed to build Uber who has been area. We still have a great out the expensive food unloading his $3 billion cadre of these legacy food infrastructure when they stake in Uber for the last 6 distributors, but many have may only need such months with a big chunk moved on but have been expensive spaces for short going towards Cloud Kitch- replaced by a whole new web periods of time. With state of ens. Construction is of creative, sustainable and the art design and all the underway on the space growing food and beverage fixtures and equipment entailing a multi-million plus producers and distributors. foodies crave, but with the investment in this older While not too scientific my key of flexibility, Cloud 1920’s building. Cloud quick back of the napkin Kitchens are geared towards Kitchens I am sure will be math leads me to believe food makers, carts, bustling by early next year to that there could be 3000 restaurants, food delivery provide another crucial and jobs directly related to the services and caterers who forward thinking tool in the food industrial in the Central need well equiped but short Central Eastside’s robust, Eastside. Making this are the term commissary space. complex and inventive food scene. PARKING and Transportation Updates (TPAC)

I have recounted and summarized hard choices had to be made the history of parking management regarding parking permit fees and in the Central Eastside in previous and metering in the district. We newsletters so here is a brief revisit need to keep in mind that these of that along with some productive parking demands are the result of a updates about how parking and healthy, growing and prospering transportation issues are being ad- Central Eastside neighborhood. parking permit fees, this instrument dressed in 2020 and beyond. gives users significant discounts for New TPAC Members: The CEIC is light rail, bus, trolley, bike share and To recap, in 2010 as the Central welcoming 13 new members and E-scooters as a way to incentivize Eastside was starting to change, advisors to this important commit- people to use other transportation grow and develop, a stakeholder tee representing a great cross sec- options, and make less vehicle trips advisory group of property and tion of residents, business/property into the Central Eastside. It is a great business owners, public institutions, owners, employees and deal in that it has close to $700 neighborhood representatives and stakeholders in the Central Eastside. worth of value for just $99!!! The more worked with the Portland They have begun to meet regularly use of the Wallet has been growing Bureau of Transportation (PBOT) to to continue to build on the good in popularity. There will be a low develop an action plan to try and work done over the last few years to income transportation wallet com- improve parking and allocate a finite continue to gather and analyze up to ing soon that will offer even more supply of parking in an area that was date parking and demand discounts, and in some cases, may seeing considerably more residents information and working with PBOT be free to those who qualify. and employees. The result was the to make the best decisions on adoption in 2012 of a comprehen- policies regarding parking and Parking Masterplan Update: The sive parking plan that was endeavor- transportation. CEIC is in process of updating the ing to match up parking supply and original Parking Masterplan for the demand in the district. With that Parking Permit Fees Remain the district as the area becomes more effort, was the establishment of a Same: Admittedly there has been a dense and welcomes more residents Transportation and Parking Advisory bit of heartburn when parking per- and employees. This needed data Committee (TPAC) that has since mits were restricted and increased collection is essential and needs worked with Portland Bureau of significantly over the last few year to periodic assessment of how resi- Transportation on these important fund innovative parking programs dents and employees are travelling parking management issues by figur- and be more market oriented but in the district: pinpoint barriers to ing out best practices to answer they were low for years and needed using mass transit, and analyze how some important questions like: how adjustment. After extensive the finite no street parking supply best to allocate the finite and also outreach and feedback, not to men- is being used. Led by parking and diminishing on-street parking tion the economic challenges associ- transportation savant, Rick Williams, spaces; encourage multi-modal ated with Corvid-19, parking permit this updated census will study the transportation; find off street fees for 2020-2021 will remain the district’s parking needs holistically parking options; establish smart same. $370.00 per year. Hooray! including: identifying possible off- metering installations and other Transportation Wallet Continues: street parking locations for a parking policies and programs to meet the This wonderful incentive offered garage, identifying funding options growing demand for parking. With through the city and Trimet is a col- and opportunities, uanq tifying the several thousand more residents lection of credits and incentives for off treets parking need, proposing and employees populating the employees, or residents, in the Cen- other off-street parking solutions Central Eastside over the last 6-7 tral Eastside. Made possible by the and adopting Demand Manage- years, understanding and managing ment best practices that can be best parking is a very delicate balance adapted for the district. Rick, and his where undoubtedly not every group, are in process of this study, person or business will get what but with the coronavirus disruptions, they want but TPAC and the city timing to get this census completed have been successfully in threading could extend to early next year. this difficult parking needle. Undoubtedly there has been some Real Estate Values Will Take Virus Hit…Will It Rebound? I put together every 6 months or so a com- can be determined at this very early consumption and investment be able to prehensive list of building and land sales stage. I like everyone, developed opinions come back to help our economy recover in in the close-in eastside. I then try to and insights, but no answers and it all the short-mid, or even long term? Lots of extrapolate what values are doing on seems to change regularly. Then of course questions, and none of us has ever been commercial property across the wide and how this shut down ripples through to here before, so the crystal ball is cloudy if diverse spectrum of buildings we have in employment, consumption and spending, not cracked. It has been eerie to travel the Central Eastside. When I was conclud- and general economic activity and then around the Central Eastside, to see the ing my latest compilation in early March, the impact back to my vocation of lack of traffic, activity and commerce. We we got gobsmacked by the lightning commercial real estate is the Rubix cube to however may fare bet-er than most sub- strike of the coronavirus resulting in a solve. It is not all that encouraging at this markets in Portland, or even nationally shut down of most of Oregon’s economy point in early July as many states and because we have such a diversity of for now 4 months. I was thinking much cities start slowly opening up. It comes businesses and “our eggs are not all in one of this sales information feels like fiction down to a few crucial questions with basket”. Tech, retail, industrial, creative and has really lost its relevance in looking uncertain and constantly changing office, design, apartments, makers, service forward at real estate values. It is a new answers; How long and how restricted will users and more all in one area may help world. For this year, and maybe for a cou- the current societal and economic activity soften the Coronavirus blow, The ple years following, we may look back on be curtailed? What is the short and mid- economic wreckage will cut across all 2019 as the “good old days.”Over the last term economic damage of this shut down? sectors centered on small businesses, couple of months, I have been talking And how many businesses will be able to especially those that are involved in retail with landlords, tenants, developers, recover and prosper? While some business food/beverage, hospitality, or retail that bankers, appraisers, businesses, types and sectors continue to operate and involves person-person contacts which organizations and even a couple of elected some even prosper, many small and medium abound in the Central Eastside. Some officials to get a sense of this unfolding and businesses basically stopped in their tracks. obviously will not make it through but quickly changing shock to our society and With so much un-employment and the many of these businesses are very resilient economy. While many predict a impact on the finances of both consumers and we in Portland have a great affinity to growing rebound in the economy by and businesses, being damaged and supporting local. Go out when you can next year, I just don't see how how this curtailed, will and buy local!!! Vacancy rates will rise and rents will decline pretty much across the board, which will negatively affect property valuations in the short term. It is just a matter of how much, and for how long. Many retail users, especially those smaller and dependent on direct to the public sales, will not be viable and may shutter. Predictions are that over 30% of restaurants and related businesses will not make it. While payment of apartment rents are holding up in the 90% plus range in June, apartment properties will undoubtedly see increased vacancies and rental price declines, especially in the higher end units as unemployment persists and PPP payments subside. Costar, the go to national commercial real estate analytic firm, proposed a 18% decline worse-case scenario in rental rates for Portland over the next 12 months. I think that is flawed and mostly an overreach. Those projects in lease up will be very challenged to find new tenants and will need to increase concessions which were already quite prevalent as the market was in a saturation point as thousands of new units have and will hit the market. The office market and effects are less predictable and will take time to work out. It is safe to say in the short term office users depending on the niche in which they operate have and will continue to pull back looking for new or expanded space as the new remote working paradigm and self-distancing becomes more permanent and their book of business becomes more uncertain and may fall off.

Property valuations will be flat (optimistically) and will undoubtedly decline in the short and probably mid-term (1-2 years) depending on what product type and tenant strength and mix. Retail and hospitality oriented properties obviously will be the first to struggle and will take the longest to rebound. Apartments will stagnate and may weather the storm but will be in survival mode for the next year and new projects will pause or get shelved. Office demand will be uncertain and “stuck” for the short term and empty or new office space which Portland had a lot of, especially on the high end will struggle to entice new tenants. Industrial and warehouse space will not be immune but should be one of the better commercial property types to weather the virus storm but again depends on the industry and the channel industrial users operate.

Though interest rates are at an all-time low, there will be more restrictive financing options with banks and mortgage sources being much more picky about their product and l oan requirements (lower loan to value and higher debt coverage ratios) and will gravitate only to the strongest owners, product types, quality properties and geographies. There will be a diminished and more aggressive buyer pool for properties which will push up expected returns (capitalization rates) and many will be seeking “discounts” which will put more pressure on valuations. Already many deals in process are being renegotiated with price "adjustments".

The question on the above insights is how long and how deep these commercial real estate woes will be. Hang in there. The good news is our economy was strong going into this quick and massive disruption. Portland and Oregon are really doing well (one of the best in country regarding virus cases and fatalities) weathering this crazy pandemic which means a rebound more quickly is plausible.  International Hipster Hotel: SoHo House On Track for the Historic Troy Laundry Building

The Soho House is pretty darn ex- approved (ugh) to see if you have the the industrial history and the entre- clusive, but more than that, it is just appropriate “creative soul”. Cost are preneurial and creative uses populat- plain cool. Through its lounge spaces, around $3500 annually to access Soho ing the Central Eastside and Portland spas, rooftop pools, screening rooms, Houses globally, but that only gets and it is a great fit for a Soho House gyms, special events, hotel rooms, you in the spaces, as rooms and more location” said an AJ Capital overseer. artwork and edgy curated restaurants, are charged separately. Guests can go While the exact scale and program- Soho House endeavors to cater to with members, but need to stay close ming for Soho House here in Portland the younger, city dwelling, creative to the member while in the space. is in process, there could be up to 2-3 class, providing them with beauti- Who gets accepted? Hard to say what restaurants which is Jones the founder’s ful spaces. Soho House is a member’s the selection criteria is, but it seems to passion and most of the food spaces only hotel and life-style space which revolve around a life lived as authen- are moderate priced and reflects the is now a global hospitality brand that tic, community minded and “real” so vibe and culture of each city and loca- has a presence in some of the hippest hedge fund managers, corporate at- tion and is really at the core of their cities around the globe; Berlin, NYC, torneys and Kim Kardashian are out… avant garde and iconoclastic mission. Barcelona, London, Miami, Hong independent film makers, musicians, The billionaire, Ron Burkle, bought Kong and more. Now add Portland artists are in. Rumor has it there is a into the Soho House a few years back and the Central Eastside to this illustri- waiting list over 20,000. Whoa!!! Each and now they have the financial rocket ous list. Started in London’s uber hip club tries to reflect the city in operates fuel to push their brand into new Soho neighborhood by restaurateur, in. Soho loves older beat up, yet often cities. They are now endeavoring to Nick Jones (above his French restau- historic, and many times industrial open around 3 locations a year which rant now 20 years ago) it was meant type spaces in previously seedy yet Jones the founder still is instrumental to be a less stuffy, earthier and geared transforming up and coming neighbor- in choosing, curating and only if the towards those in art, film and creative hoods in core cosmopolitan cities that building and space “comes their way”. industries. It grew to several locations have an established and growing base AJ Capital is slowly working through in England, then hit it big with a larger of art, film, music, food, and creativity. the early design and programming for development in NYC’s meat packing They have a team of over 50 designers Troy Laundry, but this is slow term district. As Soho House virally grew who come up with all sorts of cutting- hipster sausage making. So it could be as a place to be and hang out, Jones at edge designer furniture, art and design a couple years before we can all party one point even had to step in and boot touches ranging from indoor graffiti, at Soho House on the roof in the the corporate types that started infil- rooftop pools, and a sort of overall evening summer breeze, cocktail in trating his spots in order to get back Burning Man aesthetic. They partner hand swaying to some remastered to its more bohemian cool roots. LA’s with various investors and develop- Beastie Boys music. They are moving Soho House with its “No assholes!” ers to bring their eclectic milieu to much faster on a 130 unit apartment rule established 10 years ago, ce- fruition. AJ Capital, a progressive complex on the other half of the site mented SoHo House’s brand by being hands on Chicago based developer has which they hope to break ground on dubbed “the most important club and worked with Soho House on multiple next year and that they will “blend and place in Hollywood”. Now over 27 locations and is looking to do the same knit” into the Soho space. With their cities around the world have individu- right her in River City by converting successful track record and brand alistically designed and curated“home the historic red brick 50,000 sf Troy Soho House's commitment to away from homes”, and Soho House is Laundry building on SE 10th and Pine Portland is a fantastic stamp of not slowing down. into a 20 room SoHo hotel, with approval of the Central Eastside’s rooftop pool and all the gathering arrival as a place to be. Potential members actually have to rooms and amenities they are famous submit to a lengthy application and for. “We just loved this look and the I am putting in my application soon! I interview process (a photo; essay; feel of the older brick building along think I can get in, but I may be references; career overview) and be with its history. Combine that with too old… Oh, well.

todd@cascadecom www.cascadecommercialnw.com 2828 S.E. 14th Avenue Portland, Oregon 97202 503-705-6380