The Prosper Portland Board of Commissioners on Wednesday authorized a $750,000 loan to the developer of an approximately 230-unit, net-zero, middle-income housing project in the Broadway Corridor. The loan will pay for a share of predevelopment expenses associated with the development of Parcel 6 on the 14-acre former United States Postal Service property.

The site is at the northeast corner of the intersection of Northwest Ninth Avenue and Johnson Steet. Prosper Portland acquired the USPS property in 2016 and has since secured approval of a master plan, completed site preparation activities, and coordinated with city bureau partners on the construction of public infrastructure and utilities to serve the district.

Related Northwest is developing the project. The team includes ZGF, Mithun, PAE and Walsh Construction.

Apartments will range from studios to three-bedroom units and be for people earning 60-120 percent of area median income, Prosper Portland spokesperson Shawn Uhlman stated in an email. Plans call for inclusion of structured parking and a commercial component.

Prosper Portland was awarded $33.5 million from the Portland Clean Energy Fund (PCEF) for the redevelopment of Parcel 6. Once funding is received, Prosper Portland will add $250,000 to the loan under the same terms and conditions, for a total of $1 million.

The Parcel 6 project is one of the first net-zero developments of its kind via PCEF, Prosper Portland senior project manager Sarah Harpole said.

Wednesday’s action allows Related Northwest to advance predevelopment activities that are necessary for determining project feasibility, a Prosper Portland staff report states.

“The scope of work will move Related and their team through conceptual design and schematic design, some early environmental assessment work, geotechnical work, some market analysis, and most importantly, some updated construction pricing,” Harpole said.

The project is estimated to cost approximately $130 million, but the predevelopment process will help the team refine the numbers and create greater certainty, Uhlman stated.

Another Broadway Corridor project, led by the Portland Bureau of Transportation, is under construction to extend Northwest Johnson and Kearney streets. Johnson Street will serve as the heart of the district and include wide sidewalks. Construction of the street extensions is scheduled to finish in late 2026, Harpole said.

Meanwhile, a 14-story, approximately 230-unit affordable housing proposal is still in predevelopment. Home Forward and the Urban League of Portland are developing that project for Parcel 4A, directly south of Parcel 6. Apartments are expected to range from studios to three-bedroom units.

The Parcel 6 project is on a similar timeline as for Parcel 4A; both buildings are projected to open to residents in late 2028.

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