Guardian Real Estate Services has received a $37m construction loan for the development of a 166-unit residential building in Portland, Oregon’s John’s Landing neighborhood.
The loan-to-cost works out to 86% based on the development’s estimated $43m price tag. HFF, which arranged the financing, declined to disclose the lender’s identity.
In its place Guardian will construct a seven-story, 195,000 sq ft building with a mix of one- and two-bedroom apartments, 144 parking spaces, a rooftop deck, gym and bike parking.
A new residential property within the underdeveloped John’s Landing neighborhood, tucked between downtown Portland and the South Waterfront area, could potentially offer tenants respite from the more highly-congested areas of the city.
“John’s Landing hasn’t really seen institutional-sized development of any real estate type for at least 10 to 15 years or longer,” Guardian vice president Adrian Boly told the Portland Business Journal last year. “We saw it really created an opportunity to be in an established, well-located neighborhood that probably needs a bit of a facelift in terms of new product being delivered.”
Paradigm Properties’ 133-unit The Boathouse is another residential development rising in the neighborhood. Paradigm secured a $23.5m construction loan in June from HomeStreet Bank Commercial Real Estate to begin work on that project.
Guardian expects to complete its project by year’s end.