It’s called Union Way.

Project Ecological Development‘s new, light-filled retail thoroughfare in Portland’s West End is creating a commercial connection between Powell’s Books and the Ace Hotel. The company had a shoestring budget of $1.3 million to merge two former nightclub buildings, but it used a few simple moves and a hyper focus on tenant mix to bring new life to the block stretching from Southwest Stark Street to West Burnside Street. The corridor is scheduled to open in August.

“Everybody in Portland goes right there … everybody in Portland who either visits or lives here,” said Tom Cody, managing partner at Project Ecological Development. “So that’s what we saw. That was the real (eureka moment) of buying this building, because all of a sudden we’d have this incredible funnel to pull to and from Powell’s.”

At the West Burnside entrance, a long hallway stretches directly toward the Ace Hotel. Wood-lined walls, glass storefronts, skylights and wooden trusses dot the airy space. Bright, neon-white signs are designed to lure people who visit Powell’s – more than one million each year.

Halfway down the passageway, a metal joist reveals the end of what used to be the edge of the Aura nightclub. Project Ecological Development originally planned to purchase and renovate only that 4,200-square-foot space, but the idea was flawed – retail shops in the back of the building would be hidden from street traffic.

So, with the help of Debbie Thomas and Alex Hughes of Debbie Thomas Real Estate, the developer approached property owner Dan Zilka about purchasing the space occupied by the Red Cap Garage, a 6,258-square-foot bar on the south side of Aura. Project Ecological Development bought both for $2.27 million.

Now, tenants that would have been buried in the back of the building gain significant visibility.

“We had to decide: Are we just going to renovate this side (the Aura) and do like one or two tenants in this big building of almost 5,000 square feet?” Cody said. “Or are we going to double down and do a much bigger, much more ambitious idea? And so we decided for the latter … By virtue of doing that, we were able to create this new street frontage.”

Thomas Robinson, principal of LEVER Architecture and the designer of Union Way, said he took inspiration from ancient Parisian passageways and Japanese rojis, where people would shop as they strolled. The group focused on three concepts – a straight pathway, a ton of natural light and a symmetrical layout – to amplify the shopping experience.

“It’s really about taking what you can from history precedent and bringing it to the present,” Robinson said. “It’s not like there is a huge budget for this project, but it’s a huge idea. It’s a couple moves that really focus in.”

Retailers are already on board. Project Ecological Development has signed Danner Boots; Self Edge – a Japanese denim store with locations in San Francisco, Los Angeles and New York; and Steven Alan – a high-end clothier based in New York. Little Big Burger owner Micah Camden is planning to open a ramen noodle shop, while the owners of Canoe are launching an apothecary. Also, the Saint Cupcake team is branching out with a candy store called Quin.

“Some of the strategy we wanted to employ was: what was the best in class for Portland (and) what can we import or bring in from outside of Portland that we feel would add to the neighborhood, and add to the retail setting of Portland,” said Jonathan Ledesma, a Project Ecological Development partner who has been heading up the leasing effort. “To date we’ve done all the leasing. We didn’t use any brokers. It was all done on relationships, which was just so that we could oversee the curation of the retail, because we were so sensitive to how that mix really was working.”

For instance, Ledesma said sandwich chain Jimmy John’s approached him early on. From a financial standpoint, it was a grand slam, he said: The business had great credit, it pays its rent and it has a proven, streamlined business model. But Jimmy John’s didn’t fit with the retail mix he thought was necessary to make Union Way a destination. So he passed.

Development came with bumps along the way. One of the original wood trusses was split clean through and had to be patched with a metal plate. Builders also discovered a 50-foot sewer line that was swollen and cracked. Cody said renovating the old buildings was like peeling back the layers of an onion at times.

Project Ecological Development financed the development with a construction loan from California Bank and Trust. And though the deal was speculative, Cody said it wasn’t so risky.

“The neighborhood is kind of the place where people want to be,” he said, “including lenders, I think.”

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is finalizing a renovation of the shell of , a new retail center connecting Southwest Stark Street and West Burnside Street in Portland’s West End. purchased two adjacent former nightclubs last summer which have been combined to create a large multi-tenant retail and restaurant corridor. The 10,500-square-foot space, designed by , includes 12 retail spaces of various sizes, the largest being around 1500 square feet. Work on the project, which is slated for completion this week, includes new storefronts, structural and energy upgrades, installation of additional skylights, and replacement of most of the slab.

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