Prosper Portland‘s board agreed last week to sell 3 acres to Mortenson Development for a hotel near Portland International Airport.

The parcel at Cascade Station would be home to a 200-room midrise hotel to serve business travelers and visitors flying through PDX.

The final purchase price will be approximately $1.57 million, depending on the final size of the acreage sold, according to a staff report. Any additional land needed for the project will be charged at $12 per square foot, or the final appraised price, whichever is greater.

Prosper Portland has sold off 13 acres at Cascade Station during the past six years for government and corporate offices and a hotel.

Mortenson officials said the airport market is underserved for hotels, particularly at a higher price point.

“We feel it’s a great market for a hotel,” said Brian Gunn, real estate development specialist for Mortenson. “It’s well-suited for it.”

Growth at Cascade Station has added amenities that draw in visitors, Gunn said.

Mortenson has a hotel operator in mind, but has not finalized the deal, said Dan Mehls, vice president and general manager for Mortenson in Portland.

Cascade Station, off of Airport Way, has several big-box stores, including an Ikea, and chain restaurants such as Buffalo Wild Wings. The area’s hotels include Hyatt Place, Residence Inn by Marriott and Aloft, a brand owned by Marriott International Inc. A Holiday Inn Express is under construction.

The FBI also has its local headquarters at Cascade Station in a 121,000-square-foot office building.

Mortenson is also the developer of the 600-room Hyatt Regency at Oregon Convention Center that broke ground last week and an associated parking garage. The Minneapolis-based company previously developed the $50 million, 204-room AC Hotel in downtown Portland.

Developers have rushed into Portland’s hospitality market. Travel Portland, a tourism organization, is tracking 2,728 rooms in the development pipeline.

The post Mortenson to develop airport hotel appeared first on Daily Journal of Commerce.