Pembrook Capital Management has closed on a $6.25 million mezzanine loan to fund development of a 123-unit micro-apartment project in downtown Portland.
Known as Tess O’Brien, the development consists of two six-story buildings containing 40,604 s/f and offers an amenity package including private courtyard with fire pit and built-in barbecue, indoor bike parking, exercise room, dog wash station, storage, laundry and community room.
“We are an active lender to experienced developers building in high-barrier markets across the United States,” said Christopher Simon, Pembrook’s exclusive West Coast correspondent.
“In this transaction, we are working with a builder with an established track record in Portland, developing a multifamily product for which we believe there is significant demand. We look forward to seeing the project come to fruition.”
The Tess O’Brien project is located near the Portland Streetcar loop, a short distance from the Pearl District. All building approvals are in place for the development, with construction anticipated to commence in May 2015 and finish in August 2016.
According to the U.S. Census Bureau, Portland is among the fastest growing cities in the United States and apartment vacancies have been below four percent for the past four years, fueling demand for innovative housing options like micro-apartments.
Pembrook works with real estate developers and investors to deliver financing for new construction, acquisition and repositioning, focusing on primary and secondary markets with high barriers to entry.