Waterfront Property in Portland Bags $38.9M in Financing

Salpare Bay LLC has obtained $38.9 million in construction financing for the development of the first phase of the Residences at Yacht Harbor. When complete, the property will be a 373-unit waterfront apartment community in Portland.

Portland, Ore.—Salpare Bay LLC has obtained $38.9 million in construction financing for the development of the first phase of the Residences at Yacht Harbor. When complete, the property will be a 373-unit waterfront apartment community in Portland.

The property is in a prime location, at least as far as boating enthusiasts are concerned. It will be located near the yacht harborage of Salpare Bay Marina. Salpare Bay is a 95-percent occupied marina that features 204 yacht slips.

Commercial real estate investment banking firm George Smith Partners arranged the financing on behalf of Salpare Bay. George Smith principal Malcolm Davies was assisted in the deal by assistant vice president Peter Kleinberg and analyst Drew Sandler.

Unlike many developments seeking construction financing, the property was shovel-ready, with no entitlement risks to the lenders, noted Davies. That’s especially rare for the riverfront area of Portland, where there are a number of barriers to entry during the entitlement process, he added.

Waterfront or not, the Portland apartment market is particularly strong. At 2.2 percent, vacancy rates are the lowest in the country, according to Davies.  Portland is also a supply-constrained market, with fewer than 100 rental units brought to the market last year.