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Becky Scharf is watching progress of Hoyt Street Properties’ Block 15 condominium tower under construction in the Pearl District. But what the principal broker at Urban Properties Group really wants to know is if the first condo project to emerge in Portland after the recession is a sign of more to come.

鈥淚 have clients asking me about new projects all the time,鈥� she said. 鈥淓verything is leased out. Definitely, we could use more inventory.鈥�

Scharf and other Portland-area brokers say too few Portland condos are available in areas like the Pearl District and South Waterfront District to keep up with rising demand.

Yet, despite eager buyers, and indications that a strong resurgence of the condo market in larger West Coast cities like Seattle and San Francisco could trickle down to Portland, the planned 28-story Block 15 tower stands alone. Real estate experts say that could soon change, especially if the $110 million project’s 150 units sell quickly.

鈥淚t certainly will be a trendsetter,鈥� said Skip Rotticci, associate vice president of multifamily with the Portland office of Colliers International. 鈥淔or the past six or seven years, condo has been a dirty five-letter word.鈥�

The idea for Hoyt Street Properties to build more condos didn’t come up until the company teamed up with developer Joe Weston, who pointed out that Portland’s rental market was starting to become oversaturated, Hoyt Street Properties President Tiffany Sweitzer said. She also reasoned that in the time needed to build another condo project, the market would improve.

鈥淲e started to look at the resale market take off,鈥� she said. 鈥淲e thought we have an opportunity. We can be the first one out.鈥�

Developers and banks leery

The fate of Portland condos overbuilt during the recession 鈥� in some cases, conversion to apartments 鈥� is one reason why other developers are hesitant to build more, Rotticci said. At this point, all eyes are on Block 15.

鈥淭hat caution has certainly limited the amount of new product that has been proposed,鈥� he said. 鈥淎s soon as the first one that gets out of the ground 鈥� shows there’s demand for condos, many more will get on the bandwagon.鈥�

Another barrier to more condo development in Portland is financing, said Rhonda Slavik, director of business development for San Francisco-based Polaris Pacific. The sales and marketing firm tracks real estate trends up and down the West Coast, including Portland and Seattle, for developer clients.

鈥淏ecause there has been so little activity over the past several years, people’s big question is: Is there the interest?鈥� Slavik said. 鈥淭hat has been the hesitancy on both the development and the financing side.鈥�

This was the case with Block 15, but Hoyt Street Properties’ past success building condos helped bring the project’s lender, Wells Fargo, on board, Sweitzer said. Inability to secure financing is a significant reason why Portland hasn’t seen more condo projects, she said.

鈥淔inancing is the biggest challenge,鈥� she said. 鈥淵ou’re not seeing the big projects that you used to see because the banks are leery.鈥�

Slavik said Polaris Pacific researchers expect Portland in about a year to follow Seattle and other West Coast cities where condo development is on the rise.

鈥淪ome of those markets are stronger than others,鈥� she said. 鈥淒evelopers, when they look at Portland they look at that as a secondary market, and they’re reluctant.鈥�

Condos continuing to sell

The glut in condos that existed in Portland during the recession has long since been filled, according to brokers. Despite the city’s hot rental market, plenty of people, ranging from families to retirees, are looking to buy, they said.

鈥淢y clients are not trying to decide between renting and buying condos,鈥� Scharf said. 鈥淪ome, they’re willing to wait for a project (to be built).鈥�

A trend among buyers to seek out walkable neighborhoods close to the city core has made Portland’s urban condos particularly attractive, said Kathy MacNaughton, principal broker of the MacNaughton Group.

鈥淢ore than ever, Portlanders are really embracing the idea of living in a condo,鈥� she said. 鈥淭hey’re becoming a much more accepted and sought-out residence.鈥�

Condos also take less time to build than a new single-family development, making them more attractive as that market sector catches up to rising demand, Rotticci said.

鈥淐ondos can fill the void that the single-family market cannot fill over the next few years,鈥� he said.

Strength of demand questioned

Although the demand for condos is creeping back up to pre-recession levels, MacNaughton said she’s unsure if it has reached the point of warranting a slew of new projects.

鈥淒emand is still in excess of supply, but I don’t see it as a tidal wave of demand,鈥� she said.

Block 15 might be sufficient to meet demand for new condos at this point, MacNaughton said.

鈥淭hat’s going to bring a lot of inventory to the market,鈥� she said. 鈥淚 am sure that it’s going to sell and I’m sure a lot of units will sell relatively quickly because it’s the new thing. But are they going to be able to sell out within a year of completion?鈥�

Because Block 15 is a higher-end development, it will cater to a certain sector of the market, said Sean Becker, a principal broker with Realty Trust Group.

鈥淚 think it’s a stand-alone (project) honestly,鈥� he said. 鈥淢y guess is that it will probably push velocity in the resale market.鈥�

Block 15 will capitalize on the tight market for Portland condos, Becker said.

鈥淭here is just not a lot to choose from right now,鈥� he said. 鈥淭hat’s something that Block 15 has going for it, but it’s going to come at a premium.鈥�

If you go 鈥�

What: 鈥淢ore Than an Encore to the Encore: Block 15 Condominiums鈥� talk hosted by CREW Portland and featuring Hoyt Street Properties President Tiffany Sweitzer

When: Sept. 11 from 11:30 a.m. to 1:15 p.m.

Where: Multnomah Athletic Club, 1849 S.W. Salmon St., Portland

Cost: $30 for CREW members, $45 for guests. Beginning Sept. 8 at noon, prices increase to $35 for members and $50 for guests.

More information and registration: