Development of 134-Unit Apartments
Parkview Financial closed a $19 million leasehold construction loan to Ethos Development to build a seven-story, 134-unit multifamily project located at 1835 N Flint Avenue, Portland, OR.
Ethos purchased the 0.36-acre site in December 2020 and entitled it for development. As part of this transaction, Ethos sold the land at fair market value to Montgomery Street Partners (MSP), an institutional ground lease provider with offices in Dallas and New York City. The proceeds from the sale will be allocated to construction costs and account for 38% of the capital stack. This is Parkview’s third execution with MSP and the first of its kind in the Portland market. The financing structure was assembled by Ethos Commercial Advisors (ECA).
The 86,657-sf property is planned for 106 studio units (of which 42 will be 356-sf micro-units), four one-bedroom units (three of which will be live/work design), 19 two-bedroom units (one will be a live/work design), and five three-bedroom units. The units will feature quality finishes including plank flooring, solid surface quartz counters, wood cabinets, and black appliance packages. All units, excluding the micro-units, will feature stacked washers and dryers. The property will offer residents secured access, on-site management, parcel lockers, a fitness room, common access coworking spaces, a community lobby, and an outdoor courtyard with a sauna, and a large bike storage room.
“Parkview saw this as a favorable opportunity to provide construction financing for this high-quality multifamily project,” said Paul Rahimian, CEO of Parkview Financial. “The site is in an infill area with older homes and a high-demand for new product from area renters. We see that demand continuing to strengthen as the greater Portland area has been experiencing rising population numbers over the past several years.”
1835 N Flint Avenue is located in the Elliot neighborhood of the Lloyd District, northeast of downtown Portland. This Portland neighborhood was historically industrial, but has recently transformed into an area characterized in large part by creative office users. The Lloyd District is home to the Oregon Convention Center, Lloyd Center Mall, Memorial Coliseum, the Moda Center, and the Broadway-Weidler shopping corridor. The area has also recently heavily invested in redeveloping its public infrastructure, such as Holladay Park, River Outlook Park, and the Eastbank Esplanade.
Because of its successful reputation and relationships developed over the years, Parkview has built a roster of repeat borrowers and referring brokers. In this case, Parkview Senior Loan Originator, Vishal Hotchandani, secured the loan opportunity from a long-standing broker relationship with Danny Natsch of ECA, who made the introduction to Ethos Development.
Founded in 2014, Ethos Development is a Portland-based real estate development firm active on the West Coast. Since inception, the firm has developed in excess of 500 residential units.