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11/18/21
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The Green Cities Company and American Realty Advisors have secured $100 mil in first mortgage debt to refinance 5 MLK, a recently completed mixed-use development in Portland, OR. The new loan was provided by Mesa West Capital.
The 17-story, LEED Gold building developed by The Green Cities Company consists of 220 multifamily units on top of 118k sf of commercial office space, 14k sf of ground floor retail space, with subterranean parking for 165 automobiles. The glass curtain wall building is located at 5 SE Martin Luther King Jr. Blvd, in the popular Close-In Eastside neighborhood at the foot of Burnside Bridge, providing residents with a direct connection via bicycle or automobile to Old Town and Downtown Portland. In addition to the numerous entertainment, dining and shopping options in the Close-In Eastside neighborhood, residents also can walk to the nearby Pearl District, one of Portland’s more popular shopping destinations.
The residential component, which offers a mix of studio, one- and two-bedroom floorplans, has seen significant leasing velocity since being delivered in late 2020. The residential units have been built with top quality finishes that are complemented with 30k sf of shared tenant amenities that includes a fitness suite with yoga studios and showers, conference center with private work pods, wellness rooms, outdoor deck with swimming pool, outdoor bar area with firepits and grilling stations, dog wash station, and multiple indoor lounges on the 6th and 17th floors. The retail and office components of the property are currently vacant.
“The Close-In Eastside neighborhood has experienced substantial redevelopment activity in the last 10 years spurred in part by the investment in transportation infrastructure by the city of Portland,” said Mesa West Director Joshua Westerberg who led the origination team out of the private lender’s San Francisco office. “This activity has resulted in a significant increase in the residential population along with a migration of commercial tenants to newly constructed and converted creative office buildings. At the base of the Burnside Bridge, 5 MLK sits at the center of this activity and is well poised to capture both residential and commercial demand in greater Portland. The sponsor has an extensive history developing and operating some of the city’s most prominent buildings and we are confident in their ability to successfully capitalize on 5 MLK’s unique potential.”
Ramsey Daya with Newmark arranged the five-year, floating rate non-recourse loan. The money retires the existing construction loan, with a portion of the proceeds to be used for costs associated with stabilizing the commercial and residential space. Gibson, Dunn, and Crutcher LLP represented Mesa West Capital as legal counsel for the transaction, led by a team including Mark Osher, Eric Steiglitz and Adam Hopkins.
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