George Smith Partners secures £367m loan for Block 216 mixed-use development in US
July 11, 2019 – Commercial real estate capital markets advisor George Smith Partners has secured a $460m (£367.3m) loan on behalf of BPM Real Estate Group (BPM) to fund the construction of Block 216 mixed-use development in Portland, Oregon in the US.
The 1.1 million ft² ground-up development, Block 216, will be anchored by a Ritz-Carlton, the first five-star hotel in the state of Oregon.
The 35-storey, luxury high-rise project has received the four-year senior construction loan from an affiliate of Mosaic Real Estate Investors.
The Block 216 project will comprise a full city block, located at the intersection of the Central Business and Pearl districts in the heart of downtown Portland, in addition to the 251-room five-star Ritz-Carlton hotel.
Additionally, the Block 216 tower will feature 138 branded Ritz-Carlton Residences, 140,000ft² of Class A office space, and 7,800ft² of ground-floor retail.
George Smith Partners principal/managing director Malcolm Davies said: “This was one of the most challenging and rewarding financings to close due to the complexity of the loan because it is the first of its kind in Portland — there is simply nothing else like this.
“BPM brought a vision that will make this one of the most exceptional developments in the Western United States and truly transforming the Portland skyline in many ways.”
BPM plans to commence construction of Block 216 this summer following a ceremonial ground breaking scheduled on 12 July 2019. The project is planned to be completed in 2023.
George Smith Partner senior vice-president Zachary Streit said: “We undertook an exhaustive vetting process for this iconic development that started over four months ago.
“It was fast-paced and thorough. We reached out to more than 150 capital partners, held over 50 in-person meetings and conducted 15 site visits with various groups. Our client ultimately selected Mosaic, a partner that shared the same vision and philosophy as BPM.”