Plans for a 30-story tower in downtown Portland are on hold as the developer, Greystar, works to finance the deal.

The Washington Center property at Southwest Fourth Avenue and Washington Street is back on the market, said Jordan Menashe, principal at Menashe Properties.

“It was not a bad situation for us at all, but as of (Monday), Fourth and Washington is available,” Menashe said.

Greystar in July 2016 proposed the project with an initial design by ZGF Architects. The Charleston, South Carolina-based developer had the property under contract since July, but the transaction has not closed.

The developer is working to salvage the deal, said Brad Schnell, Greystar’s managing director of development in Portland.

“We’re trying to get the deal back under contract,” he said. “It’s something we’ve worked on for a considerable amount of time, and we’re not just going to walk away from.”

Financing the project has proved difficult, Schnell said.

“Capital markets have changed in the last six to nine months,” he said. “There’s a lot more trepidation, and everybody wants a better yield. We’ve seen lenders tighten up their restrictions. Loan-to-cost had gone to a direction that doesn’t help yield.”

Greystar’s proposal called for a mix of 300 to 350 multifamily units and hotel space. Five floors of underground parking were envisioned.

The tower would be Greystar’s first large-scale development in Portland.

Menashe Properties purchased the parcel for $9 million in 2014. Washington Center has served as a temporary homeless shelter.

“We would have liked to see the project move forward for Greystar,” Menashe said.

Greystar’s project was one of several towers proposed in Portland last year. American Assets Trust‘s Oregon Square is expected to reach 24 stories in the Central Eastside. Downtown Development Group‘s 11 West is planned to reach 320 feet in height in the West End. Security Properties‘ multifamily tower may rise to 250 feet on the Press Blocks site in Goose Hollow.

Developers are working to capitalize on strong demand for urban living and high-end office space. However, the high-end apartment market has appeared to weaken in recent months, with leasing concessions being offered for certain properties. New inclusionary housing regulations have also contributed to uncertainty in multifamily development.

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