hff exclusive investment opportunity

Ira Virden and Carrie Kahn are licensed real estate

brokers in the state of Oregon, along with Holliday

Fenoglio Fowler, L.P. (collectively “HFF”).

HFF Exclusive Investment Opportunity

Rare, Fully-Entitled Transit-Oriented Development Site Offering in the Urban Core

1500 SW Taylor Street Portland, OR 97205


1500 TAYLOR • Executive Summary

EXECUTIVE SUMMARYRare, fully–entitled transit-oriented development site offering in the urban core

The 1500 Taylor development site, 0.35 acres (15,168 square feet), provides a rare fully–entitled opportunity for a developer to build a transit–oriented apartment within the supply–constrained Goose Hollow neighborhood of Southwest Portland. Further enhancing project feasibility, the 151–unit development was approved in February 2017 by the City Design Review Commission prior to the Inclusionary Housing mandate.

Only 258 units of the existing market rate inventory (50+ units) were built after 1972 in the Goose Hollow neighborhood. However, the area is primed for future development, as evidenced by the $50 million stadium expansion of Providence Park and the planned development of an additional 130,000 square feet of office space and 8,500 square feet of retail space in the former Oregonian Press Blocks. Security Properties and Urban Renaissance Group's $225 million Press Blocks project is expected to break ground in early February and will generate approximately 650 new jobs directly across the street when the office project is completed in 2019.

The project has a walk score of 98 and is surrounded by 2.5 million square feet of retail within a half–mile radius, including the popular NW 21st and 23rd street retail corridors and Portland’s West End. The development site provides future residents numerous entertainment, dining, recreation, and commuting options all within a five minute walk, including the nationally renowned Multnomah Athletic Club, Providence Park, a MAX light rail station and the new Press Blocks office development.

SITE SUMMARYAddress1500 SW Taylor Street Portland, OR 97205

Site Size15,168 SF / 0.35 acres

№ of units151

Allowed usesMulti-Housing, Retail, Commercial

Tax IDR246767, R246768

ZoningRXd Central Residential with a design overlay

Grandfathered from new IH mandate

Maximum FAR 6:1 Base 3:1 Bonus See FAR transfer documents

Maximum height250' (125' proposed/12 stories)

*Prospective investor should perform own due diligence regarding full development requirements and uses.

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1500 TAYLOR

STREETCAR

STREETCAR

MAX LIGHT RAIL

MAX LIGHT RAIL

TILIKUM CROSSING

W BURNSIDE ST

SW ALDER ST

SW TAYLOR ST

SW JEFFERSON ST

HAWTHORNEBRIDGE

MORRISONBRIDGE

MARQUAMBRIDGE

ROSS ISLANDBRIDGE

34,000 STUDENTS & FACULTY< 0.5 MILES

PORTLAND CBD 110,000 EMPLOYEES

104,002 DAILY TRAFFIC

19,000 EMPLOYEESLLOYD DISTRICT

19,000 EMPLOYEES

17,000 EMPLOYEESCENTRAL EASTSIDE DISTRICT

17,000 EMPLOYEESCENTRAL EASTSIDE OFFICE INVENTORY

1500 TAYLOR

500 EMPLOYEES1.8 MILES500 EMPLOYEES1.8 MILES

410 ACRESWASHINGTON PARK410 ACRES

0.8 MILES0.8 MILES

175,000 OFFICE SF133,000 HOTEL SF

BROADWAY TOWER175,000 OFFICE SF133,000 HOTEL SF

$50M EXPANSION$50M EXPANSION

11,000 EMPLOYEESPEARL DISTRICT11,000 EMPLOYEES

550K SF RETAIL< 0.7 MILES

NW 21st & 23rd AVENUES550K SF RETAIL< 0.7 MILES

0.7 MILES0.7 MILES

0.7 MILES0.7 MILES

< 0.5 MILES< 0.5 MILES

< 0.5 MILES< 0.5 MILES

LINCOLN HIGH SCHOOL

2.5 M SF EXISTING OFFICE424K SF UNDER CONSTRUCTION40% PRELEASED

2.5 M SF EXISTING OFFICE424K SF UNDER CONSTRUCTION40% PRELEASED

PROPOSED MIXED USE REDEVELOPMENT

$225 MILLION PROJECTBREAKING GROUND

EARLY FEBRUARY

PRESS BLOCKSPROPOSED MIXED USE

REDEVELOPMENT$225 MILLION PROJECT

BREAKING GROUND EARLY FEBRUARY

15,642 EMPLOYEES< 2.5 MILES15,642 EMPLOYEES< 2.5 MILES

PROVIDENCE PARKMAX STATION2 BLOCKS

KINGS HILLMAX STATION2 BLOCKS

N

5

405

PHENOMENAL NEIGHBORHOOD DYNAMICS3


Q1 3 1 3 1 3 1 3 1 3 1 3 1 3 1 3 1 3 1 3

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

FAVORABLE DEVELOPMENT AT TRIBUTESThere has been a drastic reduction of multi-housing construction starts since the fourth quarter of 2015 and virtually no new land use review applications filed for projects with buildings consisting of 20 or more units. The project’s estimated completion date in mid-2020 will coincide with a supply-constrained market caused by the slowdown in multi-housing construction starts.

The MULTE Tax Exemption Program provides a ten year property tax exemption on the residential portion of the structural improvements as long as program requirements are met. 20% of residential units are to be provided at a rate set by the City of Portland to qualified tenants who earn under 80% of the Area Median Income (AMI). The tax exemption runs coterminous with the affordability requirement which is a significant benefit to the program when compared to the new IH mandate.

Additionally, the former home of Frederick van Voorhies Holman, which was located on the site, was demolished before design review, removing the requirement from the design commission for reuse/rehabilitation of the old building in the new development.

Approved for FAR transfer,

and currently has a total

proposed FAR of 8.42:1.

The fully–entitled site

qualifies for the

MULTE Tax Exemption Program

and is not subject to

the new inclusionary

housing (IH) mandate,

which requires future

multi–housing (20+ units)

developments to have

an af fordable housing

component for 99 years,

with limited proper ty tax

exemptions. 0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2008

Q1

2008

Q3

2009

Q1

2009

Q3

2010

Q1

2010

Q3

2011

Q1

2011

Q3

2012

Q1

2012

Q3

2013

Q1

2013

Q3

2014

Q1

2014

Q3

2015

Q1

2015

Q3

2016

Q1

2016

Q3

2017

Q1

2017

Q3

Rolling Average Annual Multi - Housing Construction Starts (50+ units)

Portland adopts a�ordable housing IH requirementPortland adopts a�ordable housing IH requirement

8,000

7,000

6,000

6,000

5,000

4,000

3,000

2,000

1,000

0

Portland adopts Inclusionary Housing requirement

Rolling Average Annual Multi-Housing Construction Starts (50+ units)

4

1500 TAYLOR

PORTLAND CBD

16,000EMPLOYEES

400EMPLOYEES

1,700EMPLOYEES

34,000STAFF/STUDENTS

12,000EMPLOYEES

19,300

500

110,000

EMPLOYEES

EMPLOYEES

EMPLOYEES

10 minutesBY CAR

25 minutesBY LIGHT RAIL


15 minutesBY CAR

20 minutes

8 minutes

BY CAR

BY CAR


10 minutesBY CAR

5 minutesBY CAR

10 minutesBY FOOT

PHENOMENAL NEIGHBORHOOD DYNAMICSThe historic Goose Hollow neighborhood is best known for its charming century-old estates and tree-lined streets. The coveted neighborhood sits at the base of Portland’s West Hills, between the Portland CBD and the historic Northwest District and is walkable to the Pearl District. The area is bisected by two MAX light rail lines, and two major thoroughfares, all of which allow for convenient commutes to surrounding employment centers, including the Portland CBD, Beaverton, Hillsboro, and Wilsonville.

Select Neighborhood Statistics

✓ Percentage of home ownership: 14% (lowest of all 122 Portland

neighborhoods)

✓ 2nd highest population density

✓ 5th most walkable neighborhood

✓ Total households: 2,354

✓ Average household income within a 1-mile radius: $82,975

Notable Employment Drivers

MAX Light Rail, 2.0 blocksLocated two blocks west of the property is the Providence Park MAX light rail station. The Blue and Red MAX light rail lines run east to west, connecting downtown Portland to Beaverton, Hillsboro, and the Portland International Airport. The two lines are the most traveled in the entire MAX system, with average combined weekday ridership of over 100,000.

Interstate 405, 2.0 blocksInterstate 405 bisects downtown Portland at the eastern edge of Goose Hollow. The nearest on-ramp is located two blocks from the subject site, providing instant freeway access to future residents commuting to the Pearl District, Central Eastside, Lloyd District, or OHSU, which combine to account for approximately 61,000 jobs.

Highway 26, 0.2 milesHighway 26 is the main commuting route from Beaverton and Hillsboro into downtown Portland. The nearest on-ramp is located less than five minutes from the site, providing instant freeway access to residents commuting to Nike, Intel, and other major employers in the employment heavy Beaverton and Hillsboro area.

5


ENDLESS RECREATION & ENTERTAINMENT DESTINATIONSPortland CBDFuture residents are three blocks from the Portland CBD, featuring 1.9 million square feet of retail, which includes numerous dining, recreation, shopping, and entertainment options. The Portland CBD features multiple theaters, art museums, and one of the hottest food scenes in the country.

Washington ParkThe 410-acre park is located a few blocks from the subject site. The park boasts impressive views of downtown Portland and includes the Portland Zoo, a forestry museum, arboretum, children’s museum, rose garden, Japanese garden, amphitheater, memorials, archery range, tennis courts, soccer field, picnic areas, playgrounds, and miles of trails through wild forest.

Providence ParkHome of the 2015 Major League Soccer Champions, the Portland Timbers and the Portland Thorns. The stadium is undergoing a $50 million expansion which will add four new levels and approximately 4,000 new seats to the existing capacity of 22,000. The expansion has been underway for quite some time, as the team currently has over 13,000 fans on its season ticket waiting list. Completion of the project is expected before the kick off of the 2020 season.

NW 21st & 23rd StreetThe subject site is located within walking distance to the popular NW 21st and 23rd Avenues, which serve as the Northwest District retail corridor. The wide variety of unique local brands and national retailers has collectively helped the area earn the recognition of “One of America’s Best Shopping Streets” by US News & World Report. With over 100 restaurants, bars, art galleries, and boutique shops totaling over 550,000 square feet of retail space, the corridor draws over 13,000 pedestrians per day. (CoStar)

Pearl DistrictCommonly referred to as “The Pearl”, the Pearl District is only a short walk from the site. This is one of Portland’s most acclaimed neighborhoods, known for its high–rise condominiums, upscale boutique retail shops, art galleries, fine dining and award–winning modern urban parks.

GrocersThere are multiple grocery stores within a fifteen minute walk from the property, offering future residents with convenient access to daily essentials without the need for a car.

POR T L AND CBD

0.5 MILES 0.7 MILES 0.8 MILES

0.5 MILES 0.5 MILES

6

1500 TAYLOR

PROVIDENCE PARK

JAPANE SE GARDEN IN WA SHING T ON PARK

FRED ME Y ER


7

Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, “HFF”), HFF Securities L.P. and HFF Securities Limited (collectively, “HFFS”) are owned by HFF, Inc.

(NYSE: HF). HFF and its affiliates operate out of 25 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real

estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment sales, equity placement, funds

marketing, M&A and corporate advisory, loan sales and loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.

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Investment Advisory

Ira Virden Senior Managing Director (503) 417–5587 [email protected]

Carrie Kahn Director (503) 417–5584 [email protected]

Dean Ferris Analyst (503) 224–7788 [email protected]

Frank Solorzano Analyst (503) 265–5093 [email protected]

Capital Markets Advisory

Casey Davidson Managing Director (503) 224–5566 [email protected]

Charlie Watson Associate (503) 265–5090 [email protected]

hff exclusive investment opportunity

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