Return of Conventional Financing - Pettygrove Apartments
Pavilion Construction Press Release 2.18.2011 – For immediate release
After much anticipation and continuous collaboration between developer and contractor, Pavilion Construction announces that in mid March it will break ground on the Pettygrove Apartments.
The Pettygrove Apartments represents Pavilion’s first conventionally financed new construction project in 24 months. After prolonged delays in the HUD 221d4 approval process, the project developer,
Phase 2 Development, elected to withdraw from HUD and commit to sensible terms with Umpqua Bank. Phase 2 Development and Umpqua Bank are expecting to close the construction loan in the coming weeks.
This is good news for Pavilion and the multi-family industry as a whole. Brian Gerritz, President and Co-Founder of Pavilion, shares his excitement and believes it a good sign for the industry, “because it signals that banks are coming back to our market.”
Developers have been targeting financing through government entities such as the U.S. Department of Housing and Urban Development (HUD) as conventional financing evaporate from the market. But, in some cases, satisfying HUD requirements can be difficult and lead to prolonged underwriting delays. HUD projects are often faced with regulatory labor wage requirements, modification limitations, and space restrictions. If a developer is unfamiliar with HUD processes, these challenges often raise costs and increase delays.
With two additional backlogged projects in Portland’s urban core, Pavilion is hopeful conventional financing will reach out to more pending projects. The promise of Pettygrove’s conventional construction financing seems to verify that the banks are showing renewed interest in the local multi-family housing market.
Pettygrove Apartment Facts:
The Pettygrove Apartment complex, located at 20th and Pettygrove Street in NW Portland, is designed by Portland’s William Wilson Architects PC, known for their expertise in multi-family/ high-density structures. The exterior of the building, a classic brick and stucco facade, encompasses Portland’s philosophy of harmonious high density residential space within its urban districts.
The six-story, 90 unit apartment building will provide 64,663 sq. ft. of living space. Pettygrove will consist of a mix of one to two bedroom studios and apartments on floors two through six. It will include common and commercial space, leasing office, lobby, retail space, and a 9,491 sq. ft. ground level parking garage.
Web link for this story: http://www.pavilionconstruction.com/news/return-of-conventional-financing/
For more information related to this story contact:
Kevin Abbott, kabbott@pavilionconstruction.com
Pavilion Construction
6720 SW Macadam Avenue, Suite 310 Portland, Oregon 97219
P: 503-290-5005 F: 503-244-1810 www.pavilionconstruction.com