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 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.
2
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
1500 TAYLOR • Executive Summary
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
35 minutesBY LIGHT RAIL
15 minutesBY CAR
20 minutes
8 minutes
BY CAR
BY CAR
5 minutesBY LIGHT RAIL
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
1500 TAYLOR • Executive Summary
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
1500 SW Taylor Street Portland, OR 97205
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]