Washington County and the city of Tualatin on Friday announced a proposed agreement with semiconductor equipment manufacturer Lam Research for it to invest up to $1.7 billion in Tualatin through 2041.

Negotiations took place via Oregon’s Strategic Investment Program (SIP), according to a press release. The SIP, a private-public partnership that provides property tax exemptions, was authorized by the 1993 Legislature to increase Oregon’s ability to attract and retain capital-intensive industry and high-wage jobs.

Lam Research, headquartered in Fremont, California, designs and builds products for semiconductor manufacturing, including equipment for wafer fabrication, thin film deposition and plasma etch systems.

The proposed SIP agreement would support Lam Research’s expansion of its operations in Tualatin. Plans call for creating a large, state-of-the-art research and development facility spread over multiple buildings. Previously, the company’s 120,000-square-foot Building G was completed in September 2025.

The property tax abatement would help support the company’s investment in the community and regional job creation. As with previous SIP agreements, property taxes would be partially abated for investments in the advanced facility, the press release states.

Lam Research would be required to make payments under two categories: those required by state law and those negotiated locally. Based on current models, the required payments would total an estimated $84 million in property taxes and fees over the life of the agreement, but actual amounts would vary based on finalized assessed values, timing of the company investments, and inflation. Additional fees are expected to total $27 million over the same period.

The Washington County Board of Commissioners and the Tualatin City Council will gather public comments on the proposed SIP agreement. The board of commissioners is set to meet at 10 a.m. on Tuesday, when it will receive public testimony and vote on the proposal. The city council will consider the proposal when it meets at 7 p.m. on Aug. 10.

State law would then require the Business Oregon Commission to approve the agreement before it could take effect. The group’s next meeting is scheduled for Sept. 24.

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A major Midwest industrial developer is looking to make its mark on the Portland–metro market with a speculative project in Hillsboro.

Scannell Properties plans to seek bids in the coming weeks for construction of a 126,000-square-foot industrial structure with a 32-foot clear height. Mackenzie is designing the project for Scannell, and CBRE will search for a tenant.

The developer, based in Indianapolis, saw opportunity in the Portland market after completing two build-to-suit projects in Salem, said Mohnish Narlanka, a Scannell senior development manager who oversees the company’s Pacific Northwest projects.

Scannell built approximately 1 million square feet of logistics space for Dollar General and 300,000 square feet for Gensco after approaching the city of Salem to forge a land agreement to develop an industrial park.

“That was kind of our first dive into the greater Portland market,” Narlanka said. “As we got some positive momentum in the region, our next mandate was let’s go find that speculative deal that we like and plant the flag.”

Narlanka said he’s not among those investors turned off by the “optics around downtown Portland.” The developer said his wife grew up in Beaverton, and he’s become familiar with the area.

“Yes, there are challenges for downtown Portland, but it’s not indicative of what’s going on in Clackamas or Hillsboro or these submarkets that are doing really well,” he said. “So, we’re going to continue to invest where there’s demand. Our broad thesis is the Portland area is an area where there’s durable demand.”

Scannell develops some $4 billion in industrial real estate annually, split between speculative and build-to-suit projects. The privately held developer has in-house construction managers, along with accounting and legal staff, and typically works with local architecture firms and contractors.

In Hillsboro, Scannell was encouraged by limited land availability and activity from Washington County users.

“What we really liked about Hillsboro is it’s kind of a captive demand audience where people want to be close to those they serve, whether that’s Intel or someone else,” Narlanka said.

The developer is investing in a market that has seen its share of ups and downs in recent years. A spate of speculative construction led to higher vacancy rates and softening rents in some submarkets.

In the second quarter, leasing activity grew 25 percent compared to a year earlier, and leasing was up 7 percent compared to the previous quarter. That led to net absorption of 508,147 square feet.

Vacancy rose as new projects opened with limited preleasing. “Despite these headwinds, demand for modern Class-A space remains strong in select submarkets, particularly the Sunset Corridor, where premium facilities command some of the market’s highest rental rates,” CBRE stated in the quarterly report it released last week.

Vacancy in the Sunset Corridor remained low at 4.2 percent, compared to the market average of 7.7 percent.

An undisclosed tenant signed the quarter’s largest lease at Prologis Park Clackamas for 304,000 square feet. Consolidated Supply Co., Nuna Baby Essentials and Ferguson Enterprises also signed major leases, according to CBRE.

The construction pipeline remains robust, with nearly 3.5 million square feet on the way. Developers have delivered 1.6 million square feet year to date in the Portland market.

Scannell will seek one or two tenants for the Hillsboro speculative project, Narlanka said. The development is located at Northeast Starr Boulevard and Meek Road in Hillsboro, just south of U.S. Route 26 and near a cluster of new construction, including an Amazon fulfillment center and data centers.

The warehouse “theoretically could demise into two suites,” Narlanka said. “Many users prefer (an) entire building.”

Scannell is in the final phases of permitting and expects to begin clearing and grading the site in late September, Narlanka said. The company expects a 10-month construction phase, with availability in summer 2027.

Correction: An earlier version of this story incorrectly stated that Mohnish Narlanka leads Scannell Properties’ West Coast projects. Narlanka is in charge of the Pacific Northwest for Scannell.

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An 85-unit apartment complex southwest of Portland has sold for $18.85 million.

The Habitat, located at 5745 S.W. Oleson Road in the Raleigh Hills area of unincorporated Washington County, was snatched up by Crown Point Real Estate Partners, which is based in Oakland, California.

The seller, Pathfinder Partners, achieved a valuation of $221,765 per unit and $280 per square foot for the 48-year-old multifamily asset.

Marcus & Millichap’s Institutional Property Advisors represented the seller and procured the buyer.

“The property is in a premier Portland neighborhood, but within Washington County boundaries, and thus it has long been an outperformer versus similarly aged comparables,” Anthony Palladino, IPA’s senior director for investments, stated in a news release.

“Previous ownership completed renovations and upgrades on roughly 40 percent of the units and the remaining units present a clear path for continued revenue growth, Palladino added.

Palladino, Philip Assouad, Giovanni Napoli, Ryan Harmon and Nick Ruggiero of IPA, in association with David Tabata, Marcus & Millichap’s broker of record in Oregon, arranged the deal. Brian Eisendrath, Cameron Chalfant and Jake Vitta of IPA Capital Markets secured acquisition financing.

Crown Point is led by co-founders and managing partners Chris Gordon, formerly of Baker Street Advisors, and Kyle Raines, formerly of NSW Corp.
The investors recently produced a white paper about multifamily investment opportunity in Portland.

“After several years of negative net migration and flat rents following the COVID-19 pandemic and civil unrest, Portland is experiencing the early stages of a market recovery that positions forward-thinking investors to capture significant value,” Crown Point stated.

Built in 1978, Habitat offers studio, one-bedroom and two-bedroom apartments with in-unit laundry and a private patio or balcony.

The property previously fetched $15.3 million in a 2017 transaction, according to public records.

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A 155-unit apartment community near Beaverton has sold for $29.85 million.

The buyer of Cedar Square Apartments was a joint venture of Glencrest Group and Sky Alps Capital; both are San Francisco-based investment firms.

The purchase values the asset in unincorporated Washington County at $192,581 per unit.

Cedar Square was built in 1980, with additions completed in 2016 and 2024. The garden-style apartment complex has large floor plans averaging 853 square feet, and each unit has a patio or balcony. Units come in one-, two- or three-bedroom configurations.

Additional amenities include a fitness center, playground, on-site laundry, parking and green space. The seller completed capital improvements, including replacements of siding, windows, decks and roofs. Also, areas were repaved.

JLL represented both the buyer and seller, the Baricevic Irrevocable Trust, a local entity.

“The overwhelming demand for housing and limited supply in the submarket reinforces the value of this asset,” JLL Capital Markets Senior Managing Director Ira Virden stated. “Cedar Square offers a compelling value-add opportunity in a premier suburban location characterized by strong employment growth, excellent schools and superior transit connectivity.”

JLL Capital Markets’ Investment Sales and Advisory team was led by Virden, Managing Director Carrie Kahn and associate Owen Wise. JLL’s Debt Advisory team was spearheaded by Charles Halladay and Jonah Aelyon.

Cedar Square is located at 10480 S.W. Eastridge St., less than a mile from the Cedar Hills shopping center and at the intersection of Oregon Route 217 and U.S. Route 26. The property also is close to the Sunset Transit Center.

“Glencrest Group was attracted to Cedar Square because of its quality construction and outstanding location,” stated Mike Bergelson, the firm’s managing partner.

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Beaverton’s first permanent emergency shelter is in the works.

The year-round shelter will provide a safe place for people experiencing homelessness to stay and access assistance with housing. Construction crews broke ground on the shelter earlier this month.

The shelter will include space for 60 guests, three meals per day, showers, laundry, clinic space and supportive services available 24 hours a day, every day of the week. Housing navigation and supportive services will also be provided, as well as a dedicated clinic space. The site will add capacity to Washington County‘s growing shelter program, which currently offers more than 400 beds in the county, according to a press release.

The 12,000-square-foot building, at 11380 SW Beaverton Hillsdale Highway, is in a business area, centrally located near transit and within walking distance to grocery stores and social service agencies. The city owns the building that is being renovated for the shelter, City of Beaverton spokesperson Dianna Ballash stated in an email.

Open Door HousingWorks was selected to operate the shelter through a contract with Washington County. Ink: Built Design designed the project for the city. The project team also includes KPFF for civil engineering, Studio Wild Landscape Architecture for landscape design, PCS Structural Solutions for structural engineering and P&C Construction as the general contractor.

“The shelter will be built with an emphasis on trauma-informed and sustainable design, including natural materials, calming light controls, inclusive furniture and abundant natural light,” Ballash stated.

Trauma-informed design principles implemented through the design include clear wayfinding, a folding area with seating outside of laundry space with windows for visual access of the laundry area, flexible spaces, covered and uncovered private outdoor areas, individual beds (not bunk beds), a calming color palette, amenities and provisions for pets, and more.

The project is on track to achieve Energy Trust of Oregon’s Path to Net Zero. Sustainable features include the reuse of the existing building and concrete flooring, a solar array that will supply 22 percent of the shelter’s energy, EV charging station, no fossil fuels (except emergency generator), all electric appliances, low flow plumbing fixtures, all LED lighting fixtures, additional daylighting with an added skylight and solar tubes, and more.

Amenities include a kitchen, showers, an enclosed landscape backyard with covered structure, individual sleeping pods, a coordinated care space for mental and physical health, and flexible spaces for group or individual support.

The shelter is made possible through availability of new funding sources for shelter acquisition and operations through $5 million from the voter-approved Supportive Housing Services measure. The city of Beaverton is also expecting to receive approximately $9 million in state and federal funding, including American Rescue Plan Act funds.

The total project cost is $11.9 million, including the purchase of the building.

Intake will be by enrollment through Community Connect, the Washington County coordinated entry system. Case managers will be able to help their clients enroll and there will be a central phone number for unhoused community members to call.

The shelter will be an adult shelter for guests 18 and older. Families with children will be referred to other partner agencies in Beaverton/Washington County, according to the project’s website.

The new shelter is expected to open in late summer 2024.

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Washington County is seeking a construction manager/general contractor for its Center for Addictions Triage and Treatment (CATT) project. The firm will assist in the design phase and manage project construction – renovations of two existing buildings.

A request for proposals (RFP) process will be used instead of a traditional design-bid-build approach. The contractor will be selected based on qualifications, experience, and equity.

The CATT project, led by Washington County’s Behavioral Health division, will add critical substance use treatment infrastructure that does not currently exist in the county. CATT will consist of two separate buildings that offer services and support to people struggling with substance use. The Intensive Services Building will be in Beaverton and offer residentially based intensive treatment, sobering, withdrawal management and stabilization/transition. The Community Services Building, planned for Hillsboro, will offer a variety of co-located outpatient support and services, peer/recovery support, crisis services and health services.

Intensive Services will utilize the former Washington County Consolidated Communications Agency 911 building at 17911 N.E. Evergreen Parkway in Beaverton, Washington County project manager Stuart Spafford stated during a board meeting on Tuesday. Community Services will occupy a building at 5250 N.E. Elam Young Parkway in Hillsboro.

CODA Inc. will provide intensive services. LifeWorks NW will continue to provide crisis services and Solutions Group NW will be the outpatient provider for the Community Services Building.

Schematic design has been completed by Holst Architecture and its consultants.

The CM-GC approach brings a general contractor into the project early during design, Spafford added. Benefits of the approach include a shorter construction schedule, a more accurate construction cost, and identification of possible cost savings during the design phase.

In 2022, the CATT leadership team completed an in-depth financial analysis. It showed the county would need approximately $41.3 million to cover the capital costs of purchasing and renovating the two buildings.

Both buildings are expected to open in early 2025.

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The latest Washington County Transit Development Plan was approved by the county on Tuesday. Projects in the plan will be incorporated into TriMet‘s Public Transportation Improvement Plan on Dec. 14 and by the Oregon Transportation Commission in 2023.

The plan identifies and prioritizes public transportation investments for areas outside of TriMet and SMART transit districts, as well as community connector services within these districts. The regional coordination projects within the TriMet district are funded with Statewide Transportation Improvement Fund (STIF) dollars approved by TriMet’s House Bill 2017 Transit Advisory Committee.

The Transit Development Plan prioritizes STIF investments in the next biennium, fiscal years 2024 and 2025, and potential investments for the next five-plus years. The plan was first adopted by the county in 2021. The plan is updated every two years.

The plan’s priorities were shared with the board of commissioners in October. Priorities include: maintaining WestLink service and increasing its frequency; continuing to provide general public access in expanded service areas and seeking improvements to the trip-planning platform; initiating interregional coordination for subsided trips to the coast and other destinations; offering a rural workforce shuttle for rural employment areas; performing capital and infrastructure improvements; marketing; and pursuing planning and administration goals.

The plan reflects priorities recommended by the Transit Advisory Committee, Senior Transportation Planner Dyami Valentine stated during the meeting Tuesday. The committee met four times this year to review and provide input on needs and opportunities. Updates in the 2022 plan include a needs assessment, equity analysis, current and planned transit networks, community connector shuttle analysis and prioritization, new Ride Connection routes and service expansions, and priorities for fiscal years 2023-2025 for allocation of STIF revenues. The bulk of the work was focused on the community connector shuttle analysis and prioritization.

The county is expected to receive $875,000 in STIF dollars generated outside the TriMet and SMART districts to pay for priorities identified in the plan and approximately $5.8 million from TriMet for community connector services in the next biennium.

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Crews have broken ground on a 144-unit affordable housing complex in Washington County.

Related Northwest‘s Terrace Glen Apartments will be in Metzger, a census-designated place near Washington Square. The project – the developer’s first in the suburban county – is being paid for in part with Metro housing bond dollars.

There will be a couple of four-story buildings around an inner courtyard. Apartments will range from studios to four-bedroom units. Rents will be from $483 to $1,408 per month.

Terrace Glen will be the fourth affordable housing project in Washington County to benefit from the Metro bond. The funds are administered by the county’s Housing Authority.

“It’s affordable housing projects like Terrace Glen that alleviate the burden of housing instability and increasing rent costs for our community members,” Washington County Board Chairwoman Kathryn Harrington stated in a news release. “Terrace Glen is going to make a big difference in the lives of 144 families.”

Related Northwest is part of New York-based real estate giant Related Companies. Related Northwest has previously worked with partners such as Central City Concern and the Portland Housing Bureau. Related has previously completed Cedar Commons in outer Southeast Portland. Crescent Court Apartments is on track to wrap up in Southeast Portland in May and Cathedral Village Apartments in St. Johns is set to open in late summer.

“With the lack of supply of affordable housing, we are proud to be able to bring such an integral development to the community of Tigard,” stated Ann Silverberg, CEO of Related Northwest.

Terrace Glen pairs housing with on-site services. The Immigrant and Refugee Community Organization will support self-sufficiency, EngAGE Northwest will provide arts education to the multigenerational population and HomePlate Youth Services will provide services to homeless youth between 18 and 24 years old.

Walsh Construction is serving as general contractor for Terrace Glen. C2K Architecture designed the development. GLI Advisors is managing construction.

In addition to the housing bond, financing is being provided by Citibank, US Bank, Metro (via its Transit Oriented Development Program) and Oregon Housing and Community Services.

Construction is scheduled for completion in June 2023.

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Portland and Tigard are eyeing a series of affordable housing projects along the route of the planned Southwest Corridor light-rail line.

The projects are part of the Southwest Corridor Equitable Housing Strategy. The initiative aims to combat the rapid gentrification that has occurred in neighborhoods along previous MAX line extensions.

The Portland City Council is due to adopt on Thursday an implementation plan for the Equitable Housing Strategy. The council is scheduled to take up the matter at a 2 p.m. meeting.

The plan, posted online ahead of the council’s meeting, reveals a list of likely sites and Portland‘s intention to join a memorandum of understanding with TriMet, Tigard, the Washington County Housing Authority and Metro to set priorities for the sites. Tigard has already adopted the plan.

Among the sites being considered for affordable housing developments are the Ross Island bridgehead, the Barbur Transit Center, Portland Community College’s Sylvania campus and the Tigard Transit Center. All are publicly owned. A few details about each:

• The Oregon Department of Transportation and the city of Portland are considering a major redevelopment of roadways on the west end of the Ross Island Bridge. The tangle of highway ramps and local streets has been identified as a traffic-circulation problem since at least 1978. A previous Metro report said cleanup of the area could yield about 2.8 acres of developable property. ODOT and the city own portions of the land underneath the bridgehead. The land could support 300-450 units of affordable housing, according to the housing strategy document.
• The Barbur Transit Center, owned by TriMet, could be redeveloped to include a light-rail station and a mixed-use building or buildings with housing. In that scenario, the transit center could support 100-200 housing units on a portion of the five-acre site.
• The PCC Board of Directors is weighing whether to support development of affordable housing on the Sylvania campus, within walking distance of a planned light-rail station on 53rd Avenue.
• The current Tigard Transit Center could be redeveloped if transit center functions were to move to a new light-rail station in downtown Tigard. The current center’s 0.8-acre site could hold up to 67 units.

Other privately owned properties could be purchased for the transit project but be deemed surplus after light rail construction is finished, making them available for redevelopment, the strategy document states.

All of the planned projects – the Southwest Corridor MAX line and the related housing strategy – could be tied to a Metro bond measure that would be put before voters in 2020.

The Bureau of Planning and Sustainability led development of the housing strategy. City officials could not be reached for comment Tuesday.

The report to the City Council concludes, “The opportunity to get ahead of the predictable cycle of gentrification and displacement is now. Our region is well positioned to learn from the past and provide a new model of equitable growth.”

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A City Club of Portland debate on Metro‘s $652.8 million affordable housing ballot measure quickly grew tense Friday with an attendee’s question that confronted two panelists with accusations of privilege and racism.

Andy Duyck, chairman of Washington County‘s board of commissioners, and Gerard Mildner, a Portland State University professor of real estate finance, represented the ‘no’ side of the debate.

After a relatively staid debate, they quickly found themselves on the defensive during a question-and-answer session. Duyck had earlier said voters should “do no harm” to property taxpayers by rejecting the bond. Moderator Karol Collymore, reading aloud written questions from attendees, posed a pointed query.

“Hearing two white men discuss the concept of ‘do no harm’ to those burdened by this bond financially sounds like privilege and supremacy,” Collymore said. “How can we trust your opinion as a ‘no’ vote when it feels so rooted in racism?”

Duyck answered, “If you can play the race card, I guess I can’t win. Sorry, wrong color skin. I’m going to pass on that one.”

That led Collymore to follow up, objecting to Duyck’s use of “race card.”

“As a point of privilege, because I have this microphone, the race card isn’t a thing, and I think you should probably think about stopping saying that because we really don’t have cards to play,” she said.

The barbed exchange illustrated the intersection between race and public policy, and that race is never far from discussions of affordable housing, homelessness and taxation.

Metro’s bond will appear on Nov. 6 ballots alongside a constitutional amendment that would allow public agencies to leverage tax dollars with for-profit and nonprofit developers. Housing advocates have pushed for both measures, saying they would together begin to make a dent in the need for affordable housing.

The ‘yes’ side of the panel debate was represented by Lynn Peterson, president-elect of the Metro Council, and Shannon Singleton, executive director of JOIN – a Portland nonprofit that provides outreach and housing placement to the homeless.

“I think that what we’re hearing today is that there’s actually been no good arguments put forward not to vote for this ballot measure, and in fact, we need to move forward because ‘do nothing’ is not an answer,” Peterson said. “Five dollars a month – we’re hoping folks will make this investment in each other.”

Duyck and Mildner argued the bond would be inefficient and produce too little housing.

“For every person who’s lucky enough to win the lottery of affordable housing, there are nine more who will be hurt by higher taxes and higher rents,” Duyck said.

The ballot measure would raise property tax by 24 cents per $1,000 of assessed value, or approximately $60 a year for an average home. Metro aims to create 3,900 housing units with the money.

City Club’s study committee has recommended a ‘yes’ vote on the measure.

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