Canyon Partners Real Estate LLC has provided a $63.5 million senior loan to PHK Development Inc. The capital will be used to fund the construction of a Portland, Oregon-based condominium project. Holliday Fenoglio Fowler LP arranged the financing.
Los Angeles – November 28, 2017 – Canyon Partners Real Estate LLC® (“Canyon”) has provided a $63.5 million senior loan to an affiliate of PHK Development, Inc. (“PHK”) to finance the ground-up construction of a seven-story, 162-unit condominium project located off NE Multnomah in Portland, Oregon.
Canyon’s experience as a capital provider across asset classes includes a long history in residential condominium investing. The firm has committed over $1.4 billion since inception to condominium projects nationwide through senior loans, mezzanine loans, preferred equity and equity, facilitating over $3.9 billion of total project capitalizations. This is Canyon’s first condominium investment in the Portland metro area.
“Portland continues to be one of the fastest-growing metropolitan areas in the United States. However, the supply of new, for-sale homes has not kept pace with this growth,” said Patrick H. Kessi, President of PHK. “With Canyon’s extensive experience financing and investing in condominium and other commercial real estate developments across the country, we are gratified that they understand our vision of meeting the needs of this evolving community.”
This new construction development is centrally located at the convergence of the Lloyd District and Sullivan’s Gulch and will offer residents views of downtown Portland and the Cascade mountain range. When complete, the architecturally-distinctive project will comprise a mix of one-bedroom, two-bedroom, and penthouse units featuring up to 11’ ceilings, high-end finishes, and an assortment of amenities, including 24-hour concierge service, fitness center, guest suite, bicycle lounge, pet wash, club lounge and outdoor amenity deck.
Unit finishes will be top of the line and feature high end appliances, solid surface quartz countertops, in-unit washer/dryers, and central air conditioning. Additionally, about a third of the units will have outdoor patios or balconies.
Holliday Fenoglio Fowler, L.P. (“HFF”) arranged the financing with a team led by Tom Wilson, Senior Managing Director and Bryan Clark, Managing Director.
“This project was conceived to address the supply-demand imbalance in Portland’s for-sale housing market,” said HFF’s Wilson. “With PHK’s excellent track record, local presence and extensive experience, we are confident this project will be a great success and bring much-needed for-sale housing units to the market.”
This will be one of the first new construction condominium offerings to be built in Portland this cycle. The project is currently under construction and scheduled to deliver in late 2019.
About Canyon Partners Real Estate LLC
Canyon Partners Real Estate LLC® (“Canyon”) is the real estate direct investing arm of Canyon Partners, LLC. Canyon focuses on providing debt and equity capital for commercial real estate in primary and secondary markets across the U.S., primarily to facilitate asset acquisition, value-add repositioning, development or recapitalization. Since inception, Canyon has invested over $6.6 billion of capital in over 260 commercial real estate and mortgage transactions with a total capitalization of $17.7 billion through its distinct real estate investment platforms.
Founded in 1990, Canyon Partners, LLC is an investment management firm headquartered in Los Angeles which, together with its affiliates, manages approximately $23 billion of assets. For more information visit: www.canyonpartners.com.
About PHK Development
PHK Development specializes in development and sale of new mixed-use housing, while solely focusing on the Portland metropolitan area. The firm was recently recognized by Daily Journal of Commerce as the Best Private Developer in Portland metro for 2017 and is listed as the 16th largest developer in the Portland metro area by the Portland Business Journal. PHK Development is led by its founder Patrick H. Kessi who has an established track record of conceptualizing, developing and delivering high-quality award winning developments within the local market.
HFF and its affiliates operate out of 24 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 advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. HFF, HFF Real Estate Limited, HFF Securities L.P. and HFF Securities Limited are owned by HFF, Inc. (NYSE: HF). For more information, please visit hfflp.com or follow HFF on Twitter @HFF.