A 235-unit affordable housing community in downtown Portland is undergoing renovation; work is expected to finish this summer.

The U.S. Department of Housing and Urban Development (HUD) has provided Section 8 project-based rental assistance at Rose Schnitzer Tower. But that contract was set to end in December 2027. Via recapitalization, developer Guardian Real Estate Services preserved the subsidy for the next 20 years.

Portland has properties totaling more than 1,000 affordable housing units with regulatory agreements approaching expiration.

“Preserving existing buildings and preserving existing subsidies is huge, and frankly, just as important as new construction,” said Tom Brenneke, founder and president of Guardian Real Estate Services.

Rose Schnitzer Tower, at 1430 S.W. 12th Ave., was constructed in 1979. The 17-story building has one-bedroom units for low-income seniors. Residents pay 30 percent of their adjusted income for rent and utilities, while HUD provides a monthly subsidy payment to the owner to cover the remaining cost of maintaining and operating units.

The $9 million rehabilitation is addressing critical building systems and accessibility. The building envelope, mechanical and fire/life safety systems, accessibility features, interior common areas and designated mobility units are receiving improvements. Site work will include landscaping and entryway upgrades.

Approximately 12 residents will be temporarily relocated to available vacant units within the building or to nearby hotel rooms with kitchens.

The project team includes architect Leeb Architects, interior designer Tello Interiors, Denver-based construction manager and consultant Marx Okubo, general contractor R&H Construction, and relocation specialist Peregrine Relocations.

Guardian Real Estate Services recapitalized and executed the project for Robison Jewish Home, a Portland-based nonprofit. The company assisted with the building rehabilitation.

“We are a co-general partner, they (Robison Jewish Home) are a co-general partner, and a new tax credit investor, Royal Bank of Canada, is a limited partner,” Brenneke said.

Harold and Arlene Schnitzer donated the property to Robison Jewish Home around 20 years ago, Brenneke said, and the nonprofit will continue to own the property.

The project owner is Rose Schnitzer Tower Affordable Limited Partnership, which includes Robison Jewish Home, Guardian Real Estate Services, and tax credit investor Royal Bank of Canada.

Guardian Real Estate Services closed on financing for the project in December. A Freddie Mac Tax-Exempt Loan combined with 4 percent Low-Income Housing Tax Credit equity and $37 million in housing development revenue bonds from Oregon Housing and Community Services were used to complete the recapitalization.

“To really understand the way the state funding goes, you’ll find what I would characterize a very lopsided set of funding resources where around 75 percent of it is going toward new buildings and 25 percent is going for preserving existing affordable housing projects,” Brenneke said. “I’m an advocate for maybe some more balance here.”

Crafting a deal to preserve affordable housing is an enormous effort, Brenneke said, and it usually comes with rehabilitation.

Construction began in December and is expected to finish in July.

The post Rose Schnitzer Tower gaining upgrades, subsidy extension appeared first on Daily Journal of Commerce.

A new mixed-use building under construction in Portland’s Goose Hollow neighborhood will have 214 housing units – and all will be available at affordable rates.

But the project didn’t start that way.

The six-story structure now dubbed Tiller Terrace was previously called Alta Centric – and would’ve had market-rate apartments. The project, on half a block at 1670 S.W. Alder St., was poised to become Wood Partners‘ third in the area – following the Alta Peak Apartments and the Alta ART Tower.

However, feasibility issues blocked the project for Wood Partners. The firm then approached Guardian Real Estate Services with the possibility of it purchasing the property and turning the project into one with affordable housing (for people making 60 percent of area median income or less), Guardian President Tom Brenneke said.

“It was a fully baked project,” he said.

Plans had been approved by the Portland Design Commission. Building permits could be sought. So, in April 2021, Guardian opened a contract to purchase the rights and then proceeded with permitting. Six months later, the deal closed.

“If you know affordable projects, that’s light speed,” Brenneke added.

Financing first

Typically, such projects can require one to five years for financing and permitting to be set, Brenneke said. Tiller Terrace is unique in that it has only one public funding source – a $500,000 Metro transit-oriented development (TOD) grant because the site is located directly across from TriMet‘s Providence Park light-rail station.

The team needed to keep public funding under $700,000, Brenneke said, so the project wouldn’t be subject to prevailing wages and thus have infeasible construction costs.

Other financing came from partners PNC Real Estate and Red Stone. The project team also used Oregon Housing and Community Services tax-exempt bonds and low-income housing tax credits.

The development budget for the project is approximately $66.5 million.

A week before the deal closed, however, the builder’s risk insurance carrier lined up for the project saw a news headline about protesters in downtown Portland breaking windows and scrawling graffiti, and pulled out of the deal, Brenneke said.

Guardian Real Estate Services returned to the market to seek alternative builder’s risk insurance, but none could be obtained.

The next possible closing date for Tiller Terrace was three months away. Such a delay would have been “catastrophic,” Brenneke said, because all subcontractors were holding 30-day fixed-price contracts that would no longer be valid.

So, left with no risk insurance in hand, Brenneke got on the phone with the financing partners at 7 a.m., trying to complete the deal on the closing date.

The partners

It was the first housing deal for Red Stone in the Portland market. The investment company handles only affordable housing developments. The firm, since being founded in 2002, has financed 65,000 affordable units across the U.S., Red Stone CEO John Sokolovic estimated.

Yet Sokolovic said he couldn’t recall any previous project with a similar insurance dilemma.

“Certainly not a week before,” Red Stone Managing Director Brian Renzi added. “That’s pretty rare, obviously.”

Nevertheless, Red Stone believed it was working with the right people – an “experienced team,” Renzi said. The firm set aside money to purchase the builder’s risk insurance once it became available post-closing.

“That’s how we operate,” Sokolovic said. “If we can figure it out quickly, we will do it. The goal is to get the deal done and get those affordable housing units built. That’s part of our mission.”

Fortunately, PNC Real Estate also agreed to the plan. The deal was closed without insurance secured, Brenneke said.

The whole venture was a learning experience, Brenneke said. If an agent can’t secure risk insurance, “that’s a major issue in capital closing,” he said.

“It damn near killed the deal,” he added.

Ultimately, the project team secured a risk insurance policy (at a much higher rate), and construction crews broke ground two months after the closing date.

“Even though it was our first deal, we look to continue to be a lot more active in the Portland area on the affordable side,” Renzi said. “We’re excited to get our first transaction done and hope there is many more.”

A few changes

The six-story building will have a simple exterior of brick cladding to match surrounding historic properties such as the Commodore Lounge and Hotel deLuxe. An outdoor courtyard will face Morrison Street.

The project was originally envisioned as workforce housing, SERA Architects principal Kurt Schultz said, so there wasn’t a complete turnaround when it became affordable housing. Also, the Design Commission approved the project in March 2020, so any exterior changes became challenging.

The main design change was done post-permit. The switch in development type meant that inclusionary housing requirements no longer applied, and all the three-bedroom and four-bedroom units could be converted to studios, one-bedroom and two-bedroom units. That allowed the number of units to increase from 203 to 214.

Apartments will range from roughly 470 to 700 square feet. Some will be two-story townhomes – a configuration not often found in market-rate or affordable housing developments – on the top floor.

In addition to the apartments and courtyard, Tiller Terrace will have 3,500 square feet of retail space, a community room and classroom space, according to Guardian Real Estate Services’ website.

R&H Construction is serving as the general contractor for the project. Completion is slated for March 2023.

The post An adventure in mixed-use development appeared first on Daily Journal of Commerce.

Guardian Real Estate Services is on the verge of breaking ground on a 234-unit apartment project in Milwaukie, making it the Portland developer’s second multifamily project in the southeast metro suburb.

The project follows Axletree Apartments, a five-story, 110-unit building that was delivered in downtown Milwaukie in November 2019. Axletree is now 95 percent occupied, Guardian President Tom Brenneke said.

Guardian is eager to double down on Milwaukie, he said.

“People are fleeing the city, and they’re finding Milwaukie, they’re finding Vancouver (Washington), they’re finding these other areas,” he said.

Milwaukie is 20 minutes from Portland’s central business district and easily accessible via TriMet‘s MAX Orange light-rail line, Brenneke said. The area has its own strong employment base, including Oregon Tool, Bob’s Red Mill, Precision Castparts and Dave’s Killer Bread.

“You know, there’s real employment there,” Brenneke said.

Guardian found itself with essentially a turnkey project after another developer, Johnson Development Associates, based in Spartanburg, S.C., backed out. Guardian approached the land seller to secure a deal. Guardian was able to buy the plans from Johnson and keep the project team together.

“They got all the way to the altar with permits and walked away,” Brenneke said. “It dropped right in our lap.”

The project team includes LMC Construction, BC Group, Arris Studio Architects, DOWL and Tello Interiors. Guardian Management will manage the property.

Milwaukie, unlike Portland, has no inclusionary housing requirements, making it easier for a multifamily project to pencil out despite commanding lower rents. The city of Milwaukie encourages development, Brenneke said.

“We get red carpet treatment in that city,” he said.

In a news release, Ann Ober, Milwaukie’s city manager, stated: “For the past five years, the Milwaukie City Council has been dedicated to the development of housing through their housing affordability goal. We are excited about these units coming online as well as the construction of a portion of the Monroe Street Neighborhood Greenway, another critical city project.”

The Guardian project at 10999 S.E. 37th Ave. is more spread out than Axletree. The forthcoming development comprises five residential buildings on 7.2 acres. The property will also have a clubhouse with a kitchen, a lounge, a conference room, a fitness center and a yoga studio. An outdoor plaza will feature a barbecue and picnic area, a pool and spa, a dog park and a playground.

Apartments will range in size from 495 square feet to 1,198 square feet in studio, one-bedroom, two-bedroom and three-bedroom configurations. A washer and a dryer will be included in each unit.

“I’m just so confident in this project,” Brenneke said. “There’s such a need and demand.”

Completion is expected in April 2023.

The post More multifamily units planned in Milwaukie appeared first on Daily Journal of Commerce.

Along MAX Orange light-rail tracks, visions of transit-oriented multifamily development are slowly becoming reality.

Completed in 2015 at a cost of $1.49 billion, the route between Milwaukie and downtown Portland was meant to more tightly link the region and encourage car-free transportation alongside dense, transit-oriented multifamily development.

Only now is the multifamily piece of the puzzle beginning to fall into place.

One example is the Dean River Apartments, which is rising in Southeast Portland. The four-story, 72-unit building is being constructed on a 0.32-acre triangle left over from creation of the Orange Line. A light-rail station is located only a block away at Southeast 17th Avenue and Rhine Street.

The project is from Northwest Sustainable Properties and Siteworks Design-Build. Both companies are owned and managed by Jean-Pierre Veillet, a local sculptor-turned-developer who has focused on urban infill projects in Portland neighborhoods.

The Dean River Apartments will have living units on all four floors, and no parking. The building will include 47 studio units, two one-bedroom units, 21 two-bedroom units and two three-bedroom units. The project is subject to inclusionary zoning, and a complement of units will be provided to renters at 60 percent of median family income.

“I don’t think this is just for young people,” Veillet said. “It’s for people who don’t want a big house in the West Hills, or even a small house.”

The building – named for a pristine natural river in British Columbia – might also make sense for retirees, Veillet said.

“They can retire to an environment where they can get everywhere on transit,” he said.

The building, designed by Siteworks’ David Mclaughlin, places a premium on units. There was no room within the 45-foot height limit for a rooftop deck. However, the building does have an amenity deck and bike parking. Special attention was paid to soundproofing in the busy corridor.

The small parcel at 3255 S.E. 17th Ave. was carved out from land left over after construction of the Orange Line. Neighbors had urged TriMet to allow them to cultivate a garden on the parcel. Instead, the transit agency sold the property to Veillet for $959,000.

“They put $1.5 billion into the MAX line,” Veillet said. “The best and highest use is apartments that are going to drive (rail) traffic.”

Veillet said he expects the project to cost approximately $13.5 million. Earlier this week, a crew from subcontractor Barry Bray Construction Co. was pouring concrete for the foundation and doing some framing. The project is expected to go vertical soon, with completion anticipated next summer.

“The Orange Line was really unique,” said Bob Hastings, a TriMet official who serves as a liaison with developers. “It was cutting through so many different sectors, from downtown to OHSU’s Schnitzer campus. When we crossed over to the Eastside, we realized this would be more fine grain, more entrepreneurial. So what it’s attracted is folks who see a different thought or spin on things.”

Another developer, Michael Tevis of Intrinsic Ventures, is planning to construct a seven-story building at Southeast Eighth Avenue and Division Street on land purchased from TriMet. The building would have 115,600 square feet of occupied space, including industrial and traditional office, manufacturing and production, and ground-floor retail.

Further south, adjacent to the downtown Milwaukie stop, Guardian Real Estate Services is building Axletree – a five-story, mixed-use building with 110 apartments. The developer’s website touts Axletree’s close proximity “less than 300 feet away” from the MAX station.

“If we were urban planners, we’d be drawing this project up,” said Shawn Sullivan, senior project manager for Guardian. “It’s right in the core … It’s the poster for light-rail stop multifamily urban development.”

The building is on track to be ready for occupancy in mid-to-late September, Sullivan said. Earlier this week, crews were finishing siding and the fifth-floor punch list.

TriMet has been more aggressive in recent years working with developers.

“We want development to happen around our light-rail stations, so we’re looking to be more proactive,” Hastings said.

There may be more to come. A new proposal was submitted Aug. 2 to the Bureau of Development Services for a 160-unit multifamily building designed by Hacker. The building at 4245 S.E. Milwaukie Ave., in the Brooklyn neighborhood, would be five blocks from the Orange Line.

Discussions are picking up to develop the Clinton Triangle, an industrial area off of the Orange Line that includes land owned by Portland Fire & Rescue. The Portland Housing Bureau has expressed interest in eventually building affordable housing in the area.

“The whispers are turning into audible voices and discussions,” Hastings said.

A new home for the fire bureau would have to be found prior to developing the site. Hastings said TriMet still has plenty of remnant properties that could conceivably host a fire station. Discussions are still in an early stage, according to Housing Bureau spokeswoman Martha Calhoon.

“There hasn’t at this point been coordinated conversation about the removal of essential city services from the property for future development,” she stated in an email.

Veillet said he has taken an interest in the Clinton Triangle.

“That whole area is locked up and it’s right near a transit station,” he said.

Some commercial growth has occurred too, including Mt. Hood Brewing Co.’s Tilikum Station location and Ruse Brewing’s taproom in the Iron Fireman Collective building.

The Oregon Museum of Science and Industry is working on a master plan to develop its 18.5-acre campus along the Willamette River. Gerding Edlen is serving as master developer.

For Northwest Sustainable Properties and Siteworks Design-Build, the Orange Line project followed previous ones, including a major historic building renovation for Pine Street Market. Veillet’s multifamily portfolio includes Sunshine Apartments, a 90-unit development next to Hopworks Urban Brewery off of Southeast Powell Boulevard and 29th Avenue, and ecoFLATS on North Williams Avenue.

The post With tracks laid, development now following appeared first on Daily Journal of Commerce.

A downtown Milwaukie site that was formerly the home of local landmark Bernard’s Garage is being redeveloped into a multifamily housing project, the first such project to be built in the city in years.

Dubbed Axletree, the five-story, 110-residential unit mixed-use building is being developed by Guardian Real Estate Services on a parcel at the corner of Southeast 21^st Avenue and Washington Street in the heart of the city. General contractor R&H Construction is building the roughly $31 million project, which was designed by SERA Architects and is one of under way in the downtown district.

“I think we got a catalyst deal here and a catalyst project,” said Tom Brenneke, Guardian’s president and a Milwaukie native. “We need housing, and it’s ripe for it right now. We’re going to see some interesting things happen when this development is completed because there are lots of capital projects going on right now. It will begin happening, but we’re the first ones in.”

When it comes to commercial development, Milwaukie has lagged somewhat behind the rest of the metro area. But this year large projects have gotten under way at Milwaukie High School and the Northwest Housing Alternatives campus, both just blocks away from the Axletree site. Further plans also are on tap in the city center thanks to a city of Milwaukie master planning effort.

“I grew up there,” Brenneke said. “I know the neighborhood well, and that makes me unique. But you look at the proximity to Portland and you think of yourself being in downtown Portland working, and you can go left or right; left to Vancouver and right to Milwaukie, and I don’t know why you’d go left.”

Downtown Milwaukie, lacking the chic factor of Portland proper, has long been known as the home of Dark Horse Comics and not a lot else.

“Downtown has historically been very quiet,” Brenneke said. “Maybe it’s just not as cool or hip.”

A development surge that was expected to follow completion of TriMet‘s orange line in 2015 has resulted in multiple transit-oriented projects near stops in southeast Portland, but downtown Milwaukie has yet to see the same type of mixed-use building that has proliferated in Portland.

“We’ve always been around that area, but why develop?” Brenneke said. “I’d say obviously light rail is very compelling, and then the proximity to downtown Portland. And I think you have to distinguish downtown Milwaukie from the rest of Milwaukie. You get out to King Road and 82^nd and you have a lot of development out there.”

Brenneke also blamed Portland’s inclusionary zoning policy for slowing residential development to a standstill.

Deals in Portland are not working right now, Brenneke said. “Inclusionary housing has really done this in. The math doesn’t work,” he said. “Trying to get these to pencil just doesn’t work. So we’ve started looking elsewhere where we don’t have those requirements, and obviously Milwaukie fits.”

Axletree’s 110 residential units will be split between four stories and programmed to provide 44 studios, 58 one-bedroom and eight two-bedroom units ranging from 440 to 1,044 square feet. The ground floor will be split into four commercial spaces totaling 7,300 square feet of floor area.

The building will contain 78 parking spaces, including a 17-stall mechanical car stacker.

Crews broke ground earlier this fall and the first concrete deck pour took place last week. Andy Hernandez, site superintendent for R&H Construction, expects to begin placing prefabricated wood-framed walls by next week.

Prefabricated components are being manufactured by Pacific Wall Systems of Tumwater, Washington, and trucked to the job site. Walls are hoisted into place with a tower crane, saving significant amounts of time and manpower, Hernandez said.

“It’s huge,” he said. “We’ll get truckloads of panels and we’ll probably be framed in 15 weeks, where to do it conventionally not only would it add three weeks to our overall, we would have two to three times the labor on site, which gets to be a problem.”

The post Mixed-use multifamily coming to Milwaukie appeared first on Daily Journal of Commerce.

Portland’s Northwest District could gain hundreds of new apartment units if a proposed two-building development proceeds as proposed.

Applicant SERA Architects submitted initial site plans and elevation drawings to the city on behalf of the owner’s representative – Preg NW Portland LLC, which shares the San Mateo, California, mailing address of Prometheus Real Estate Group. Those drawings show the two six-story buildings proposed for two full-block parcels — blocks 291 west and 292 west — covering a total of 2.43 acres.

The Portland Bureau of Development Services issued on Aug. 16 a Request for Response concerning the project. Local neighborhood groups and other organizations have until Sept. 13 to raise any concerns or issues. Public records show the project is scheduled to go before the Portland Development Commission at a hearing Oct. 4.

The northern half of the site lies between Northwest Raleigh and Savier streets and Northwest 20th and 21st avenues. The southern half, also between 20th and 21st avenues, stretches from Raleigh Street to as far south as Quimby Street. The property was purchased in October 2015 by Guardian Real Estate Services for $4 million.

As submitted, the plan calls for a total of approximately 354 market-rate apartments and 8,000 to 9,800 square feet of retail space on the ground floors in the two buildings. At least 250 below-grade parking stalls are envisioned for the north building and 130 more for the south building, according to documentation filed with the city.

Because the site falls inside the Con-way Master Plan area designated in 2012, any zoning changes or other regulations enacted by the city thereafter – including its inclusionary zoning policy – do not apply to development proposals.

“Therefore,” the Request for Response states, “the proposal will be reviewed under the zoning in effect the date the Master Plan application was filed (April 24, 2012).”

Site plans show both buildings’ retail space would front Northwest 21st Avenue. A pedestrian way, meanwhile, would feature prominently on the east side of the site, along Northwest 20th Avenue.

For more information, visit: .

The post Multifamily project planned in Con-way area appeared first on Daily Journal of Commerce.

Multnomah County and city of Portland officials are eyeing a long-vacant warehouse near the Steel Bridge as a potential site for a 200-bed permanent homeless shelter.

Converting the warehouse, at 320 N.W. Hoyt St., into a shelter could exacerbate tensions with property owners and business operators in the Old Town Chinatown neighborhood, but it also would offer public officials a long-term alternative to the temporary-shelter hopscotch they’ve engaged in recently.

“We haven’t had a big permanent shelter in the downtown core, and we still see that need,” said Denis Theriault, spokesman for Multnomah County and the Joint Office of Homeless Services.

Negotiations with the property owner, Alco Investment Co. of Seattle, are under way, Theriault said. The Joint Office is seeking a long-term lease for the shelter.

“There isn’t a lease yet,” he said.

The Joint Office has applied for an early assistance meeting with the Bureau of Development Services to determine whether the property could host a shelter.

The warehouse, built in 1925, needs significant renovations before it can function as a shelter, Theriault said. Carleton Hart Architecture and project management consultant Shiels Obletz Johnsen are at work on the project. Transition Projects, a Portland nonprofit, would operate the shelter.

Some neighbors are fighting the drive to establish another center for homeless service in Old Town Chinatown. The Old Town Chinatown Community Association has held public forums on the topic, and met with Mayor Ted Wheeler and Multnomah County Chairwoman Deborah Kafoury.

“It’s just not the right time to add any additional social services to the neighborhood,” said Helen Ying, chairwoman of the neighborhood association.

The group has sent a letter to Wheeler and Kafoury protesting the proposal.

Guardian Real Estate Services President Tom Brenneke said adding a shelter would not conform to a years-old agreement with the neighborhood that there would be no net gain in shelter beds. Guardian owns two properties nearby – Block 33 and the Tuck Lung property.

“I am opposed to it,” Brenneke said. “The area’s overburdened with that type of social service. We already have a significant facility in Bud Clark Commons, and adding 200 more beds doesn’t seem to be in keeping with the agreement.”

Theriault said the shelter could make a positive contribution to the neighborhood.

“We understand there are livability concerns in Old Town Chinatown,” he said. “This shelter is a way to help.”

Public officials continue to receive complaints of homeless individuals lining up to wait for a bed in Portland’s few available shelters. Part of the strategy to address those complaints is to offer a 24-hour, low-barrier shelter with in-house services, Theriault said.

The Joint Office is evaluating the possibility of closing other facilities in Old Town Chinatown if and when the Hoyt Street shelter opens to lessen the burden on the neighborhood.

Wheeler supports the Joint Office’s strategy, spokesman Michael Cox said.

A large shelter would also lessen the city’s and county’s reliance on short-term, temporary shelters hosted by developers. In recent winters, the Menashes, Malsins and others have agreed to host short-term shelters.

The Portland Business Alliance supports using the Hoyt Street site, president and CEO Sandra McDonough said.

Neighbors have legitimate livability concerns, she said, but those are being addressed by measures such as increased police patrols on foot.

“There’s not a lot of sites,” McDonough said. “So this represents a good, long-term site that will work.”

The post Multnomah County pushes for homeless shelter appeared first on Daily Journal of Commerce.

The Block 290 project at 1417 N.W. 20th Ave. finally has a green light from the city of Portland, allowing construction to start. The City Council on Wednesday finalized a previous 4-1 vote denying the Northwest District Association‘s appeal of the Portland Design Commission‘s unanimous approval of the project.

Commissioner Amanda Fritz cast the council’s lone dissenting vote.

“As I have said, I don’t support this and would have rather upheld the appeal,” she said.

The council did add one condition: the developers must consult with the Regional Arts and Culture Council regarding inclusion of art at both the private development and an adjacent park.

Development of Guardian Real Estate Services‘ project has now dragged on for more than two years.

LRS Architects’ design calls for a mix of luxury and market-rate residential units on top of ground-floor retail space. The development will also include below-grade parking, a public square and a roof terrace.

The plans call for a horseshoe design with elevations ranging from 57 to 70 feet.

The neighborhood association has contended that the project didn’t meet requirements set forth in the Con-way master plan. Of particular concern was a public square that designers claim will measure 16,008 square feet and be able to comfortably hold 50 to 100 people at once.

The neighborhood association believes the size of the square is exaggerated and doesn’t meet requirements set forth in the master plan.

Much of the debate during the City Council’s original hearing on Oct. 12 centered on the need for housing and whether mostly market-rate and luxury units would significantly help alleviate the lack of housing in the city.

Ultimately, the majority of the council deferred to the judgment of the Design Commission, which decided that the project met city guidelines and master plan requirements.

The post City Council rejects appeal of Block 290 approval appeared first on Daily Journal of Commerce.

Developers of the Block 290 project at 1417 N.W. 20th Ave. will have to wait at least one more week to gain final approval. The Portland City Council on Wednesday delayed finalizing a tentative 4-1 vote denying the Northwest District Association‘s appeal of the Portland Design Commission‘s 5-0 vote to approve the project.

A revised report by city staff was not ready for a formal vote by the City Council, Mayor Ted Wheeler said. The project will return before the council on Nov. 8 at 11 a.m.

LRS Architects‘ design calls for a mix of luxury and market-rate residential units on top of ground-floor retail space. The building will also include below-grade parking, a public square and a roof terrace. Guardian Real Estate Services‘ project spent nearly two years winding its way through the city’s design review process.

Plans are for a horseshoe-shape building with two seven-story elevations and one four-story elevation. The elevations would range from 57 to 79 feet.

The neighborhood association contends that the planned public square wouldn’t meet the requirement set forth in the Con-way master plan. The design team claims the current layout would provide a 16,008-square-foot space able to comfortably hold 50 to 100 people at once. The neighborhood group believes those numbers are inflated because they include space under canopies.

The City Council’s key concern during a hearing Oct. 12 centered on the housing that the project would provide: mostly market-rate and luxury units. Commissioners questioned how much those units would help ease Portland’s housing crisis.

“We have a glut of market- and luxury-rate apartments,” Commissioner Chloe Eudaly said during the Oct. 12 hearing. “That being said, I can’t find significant enough problems, and defer to the Design Commission (decision).”

Commissioner Amanda Fritz cast the council’s lone dissenting vote.

“We are told that we need the housing,” she said. “The affordable housing isn’t the crux of the issue here. Does it abide by the master plan and provide the open space?”

The post City Council delays final vote on Block 290 appeal appeared first on Daily Journal of Commerce.

A proposal to remake a property with deep roots in Old Town Chinatown‘s Chinese-American community has stalled after running into opposition from Portland’s Historic Landmarks Commission.

Guardian Real Estate Services aimed to reposition the Tuck Lung building, at 140 N.W. Fourth Ave. The developer purchased the building for $8.25 million in May from investor John Beardsley.

After receiving design advice from the Historic Landmarks Commission, Guardian President Tom Brenneke said it appears unlikely the commission would accept the project team’s proposed alterations. Now, the developer may give up on updating the existing building and wait until a larger one can be constructed on the property, he said.

“Our proposal was to improve the façade and install a new storefront,” he said. “We don’t feel we’re going to be successful to convince the Landmarks Commission to allow us to do that. We’re unsure of our path. It’s frustrating.”

The two-story building’s ground floor is vacant, spurring Guardian’s desire for an update, Brenneke said. The second floor is leased by Allied Health Services of Portland, which operates an addictions treatment clinic there, while the basement is leased by Beardsley.

The existing building occupies approximately a quarter-block, and opened in 1978. It was designed by Chinese-American architects Edwin and Jessie Chen, and includes a number of characteristic Chinese architectural features, including a tiled roof, hexagonal windows and the use of red and green colors, a city staff report states.

The initial design by SERA Architects would have added glazed storefront openings on the ground floor and a wooden slat screen on the second floor. The proposal called for removing railings.

Brenneke defended the design put forward by SERA and Guardian.

“We’d like to bring a more modern look,” he said. “We appreciate the Chinese culture and attempted to bring in those motifs, but it’s not a particularly attractive building at all.”

Carin Carlson, a member of the Historic Landmarks Commission, did not return messages seeking comment on the Tuck Luck proposal.

With the planned façade improvements stalled, Brenneke said he may wait until the property is ripe for full redevelopment. The existing tenants have seven to eight years remaining on their leases, he said.

“That property is long-term suited for a larger building,” he said. “That’s certainly in the back of our mind.”

The existing building is regarded as a “non-contributing” structure to the New Chinatown/Japantown Historic District. But the property has long been an anchor of Chinatown. The property was known as The Paris House (also known as the Panama Rooms) from 1889 to 1946. It had a ground-floor Chinese-American restaurant called Chop Suey and a smoke shop below an inn, according to a historical photo included in city documents.

The 39-year-old building hosted Tuck Lung, a restaurant and associated grocery store owned and operated by the Wong family. The businesses closed permanently in the 1980s.

The Tuck Lung building is part of the changing story of Old Town Chinatown. The neighborhood has a large homeless population, and much of the metro area’s Asian community has shifted to Beaverton or to the so-called Jade District in East Portland.

Guardian is among the developers pushing for a taller, more modern Old Town Chinatown that would have fewer links to its history.

Guardian also owns Block 33, the lot neighboring Tuck Lung to the west across Fourth Avenue. The parcel is currently a surface parking lot. Guardian has proposed to build a 10-story, 125-foot-tall mixed-use building on the property.

Brenneke said the Tuck Lung building’s proximity to Block 33 was part of its appeal.

“We felt that owning more rather than less in the Old Town Chinatown neighborhood was a good strategy,” he said. “It was a bit of a defensive play to gain assurances that we knew what was going to happen there (at the Tuck Lung property). And we made a good real estate deal.”

Block 33 was the subject of a design advice hearing in January. Brenneke said the project is on hold until at least Jan. 1, when the city’s 2035 Comprehensive Plan takes effect. The plan raises the allowable height on Block 33 to 125 feet, up from 100 feet.

The post Tuck Lung building makeover on hold appeared first on Daily Journal of Commerce.