JLL Capital Markets announced that it has secured a $15.9 million financing for Woodland Flats, a 120-unit hotel-to-multifamily conversion project in Gresham, Oregon.
JLL worked on behalf of the borrower, PH Development LLC, in arranging the two-year, bridge loan through AGP Capital.
Woodland Flats, located at 2752 NE Hogan Dr., is 25 minutes east of downtown Portland. The property will offer convenient access to public transit, major employers and nearby retail amenities. The project includes the conversion of an existing hotel into 120 apartment units and 6,400 square feet of ground-floor retail space.
Woodland Flats is PH Development’s sixth acquisition and second hotel-to-multi-family conversion. The conversion of Woodland Flats will require $6.1M of capital improvements and will take approximately 10 months to complete.
“We only do a select few of these hotel-to-apartment conversions that meet our strict underwriting criterion,” offered Phil Hoban, founder and principal of PH Development, LLC. “This one checks all the boxes.”
“We’ll present renters an essentially brand new product but at rent rates well below nearby competition,” said Hoban. “The City of Gresham has been great to work with. They’re as excited as we are to bring affordability to the market this way.”
Woodland Flats will feature amenities such as a swimming pool, fitness center and inviting exterior courtyard. PH Development plans to leverage its experience with hotel conversions, having successfully completed a similar project in Anacortes, Washington.
Gresham has emerged as a highly sought-after location for businesses seeking industrial space in the Portland MSA, attracting major employers. The city’s pro-business economic incentives and relative affordability have contributed to its strong performance as a submarket.
JLL Capital Market’s Debt Advisory team representing the borrower was led by Senior Managing Director Tom Wilson, Director Steve Petrie and Associate Jake Davidson.
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.
