Park Avenue West | 450 feet | 26 floors | On Hold

[Sioux612]

Intersting. Is there any chance they could use the orig. design (515')?

I can't think of a more intriguing area for residential than this plot.

[tworivers]

Much more information in this second O article. Somehow this just doesn't seem like good news to me. And an 8-foot wall around the hole in the ground? Give me back my Dental Arts building.

Park Avenue West Tower to be mothballed for two years; developer sets 2013 restart date
Published: Friday, November 04, 2011, 7:53 PM Updated: Friday, November 04, 2011, 7:53 PM
Elliot Njus, The Oregonian

Construction on the unfinished Park Avenue West Tower, Portland's most prominent bruise left by the economic downturn, won't start up again for at least two more years. But its developers say the long-stalled tower will start to rise at the end of 2013.

A pit and an unfinished elevator shaft in the heart of downtown Portland are all that came of the plan for a 27-story, 556,000-square foot retail-and-office tower that was already underway when financing had dried up. Developer Tom Moyer of TMT Development financed the project himself until, in April 2009, work was suddenly stopped.

On Friday, TMT President Vanessa Sturgeon -- Moyer's granddaughter -- said the company had found a construction loan, but turned it down. But she said they still intend to finish the tower in 2015, to coincide with the expiration of some potential tenants' leases.

"It wouldn't be wise to take a loan out and pay interest on it for two years," Sturgeon said. "We did secure financing to go ahead with the project, but we chose not to because of the tenant cycle."

Within a month, TMT will erect an 8-foot wall around the construction site, and it commissioned a mural to cover the wall from two artists and New Avenues for Youth, a Portland non-profit for homeless and at-risk kids.

The crane that's stood over the would-be construction site for more than two years -- and which, in July, became the target of a lawsuit by Nordstrom landlord Parr Financial Oregon -- will come down.

But the fact that the project could secure financing, along with a firm timeline, is a reason for optimism, Sturgeon said.

"It's certainly a positive in my mind," she said. "Having a definite timeline is exciting."

Sturgeon declined to elaborate on the terms of the financing, except to say that the company would continue to shop for better terms over the next two years.

The timeline leaves plenty of room for uncertainty.

Real estate services firm Grubb & Ellis puts the last quarter's downtown vacancy rate at 6.5 percent, one of the lowest for major central business districts in the nation. Park Avenue West boasts a prime location nestled between two transit lines in the heart of downtown. And TMT has already poured a lot of money into the project.

But in the eyes of a lender, those plusses aren't typically enough to overcome a lack of confirmed tenants, said John Petersen, president of Melvin Mark Capital Group. Pre-leases are typically key to landing a construction loan.

But in two years, the rules could change, he said.

"It's not a black and white formula," he said. "Lenders are as cautious now as they've been in a while, but they tend to get braver as time goes by."

When construction started, the building was more than half leased. When the project stalled, those tenants bailed out.

Stoel Rives, the state's largest law firm, had agreed to been in talks to lease 11 floors. It eventually opted to stay in its Standard Insurance Center office. Nike was to occupy half the retail space, but the company opened its new store in the Southwest Fifth Avenue and Morrison Street this week.

The tower was also passed over last year by the Portland Development Commission, which elected to stay in its current Old Town headquarters, and this year by the city Bureau of Environmental Services.

But potential tenants are out there, said Mark Carnese, senior director at Cushman & Wakefield of Oregon. Carnese, who helped negotiate Stoel Rives' pre-lease in 2008, said TMT is right to wait until 2013, and that there are outstanding leases the building could lure.

"There absolutely would be leases out there they would be able to accommodate," he said.

At the same time, he said, there's no guarantee the market will be able to support a new tower in 2015.

"Who knows?" he said. "I don't think anyone can look forward and predict what's going to happen given the economic climate we're currently in."

Still, it wouldn't be the first time TMT had overcome long odds. Moyer's Fox Tower project launched without tenants or secure financing. By the time it opened in 2000, even in the midst of the dot-com crash, it was 93 percent full.

Sturgeon said TMT is confident interest from potential tenants would pan out.

"The tower has been a vision of my grandfather's for 16 years," she said. "Although he's retired as president of the company, my team and I have every intention of carrying out his vision."

-- Elliot Njus

[downtownpdx]

Originally Posted by 2oh1

I'm still not convinced we won't be looking at that hole for a decade. It's already been there for 3 and a half years. :

Who knows what the next few years will bring ... but I'm optimistic something will happen here. The last 3+ years have been the worst economy since the Great Depression, so of course it's still a hole in the ground. We're not exactly roaring our of this recession -- but the national economy has constistently added jobs every month for about two years now and DT has one of the lowest vacancy rates in the nation at 6.5%, so if the pattern holds (or actually improves) into 2013 then maybe conditions will allow PAW rise.

[2oh1]

TMT President Vanessa Sturgeon: "Having a definite timeline is exciting."

That's bull. There is no reason to believe this project will, in fact, definitely be completed in 2015 - or even begun again in 2013. What is this "definite" she speaks of?

I'm still of the opinion that they should cap the PAW hole and turn the block into a park. Finish the underground parking, cap it, and move on. I won't be surprised if this thing is nothing more than a hole in 2020.

In fact - they should finish the underground parking, cap it and turn it into a temporary park. A decade from now, when they actually do have financing and enough tenants, they could rip out the temporary park and build their tower.

"Having a definite timeline is exciting."

As someone who lives downtown, I find that statement insulting.

[2oh1]

I really do want this tower built. I just think there has to be a better option than an 8 foot wall around an entire city block in the heart of downtown. And I don't believe a word of what TMT has to say. 'Definitely' not.

[WestCoast]

*shrug* as someone who also lives downtown, I have no problem with the stalled construction and the hole in the ground.

Sure, we'd all love a finished tower by now, but reality dictates otherwise.

It sounds like they have financing now, that's the biggest change in the last few years.


I walk and drive by the block somewhat regularly and it doesn't bother me at all, not sure why someone would be offended by it. Business isn't easy.

[llamaorama]

Maybe its somewhat comforting to know they have a definite plan, and it won't sit empty forever.

Contrast with the failed Intel chip design center project in downtown Austin. When the tech bubble popped in 2000, they had to leave an abandoned 5 story mess that eventually got imploded.

[2oh1]

That's the thing... I don't think we have any reason to believe they have a definite plan. The only thing we know is they have a render (a rather nice one) and they supposedly HAD financing but turned it down which means they're back to having none. And we know they're hoping that in 2013 they will have better luck, both in terms of leasing and financing.

I hope I'm wrong, but I don't see any good news here.

[RoseCtyRoks]

BUILD OF DREAMS

If you say you'll build it.....they will come

It looks like TMT is just trying to gain attention to this project again, and wanting to excuse the hole that will be there for a while, with that kind of timeline for resuming work (late 2013).

I hope this gets going again, but I would think they would want to share news of an actual firm backing this, an anchor tenant, & retail prospects before they have to punt the ball...again!

By the way, has anyone heard how M. Mark's 17-story public market project is going? (Class A) Wondered if the demand will be there, and if the race is on with these potential buildings.

[floam]

What a shrewd way to announce they're putting it off for two more years, and there's so little hope they might as well put up some nicer walls and get rid of the crane. This really does seem like an opportunity to work towards ye olde plan of connecting the north and south Park Blocks.

By the way... 2oh1, do you happen to use MetaFilter? I notice on my profile there's a guy of the same alias listed as the second-nearest person to me, "0 miles" away.

[tworivers]

Park Avenue West will move forward in 2013
POSTED: Friday, November 4, 2011 at 02:12 PM PT
BY: Angela Webber, DJC

“It feels like the thawing of a long winter.”

Hoffman Construction Executive Vice President Bart Eberwein and others expressed relief today, when TMT Development announced that in late 2013 work will resume at Park Avenue West, a downtown Portland high-rise project that stalled more than two years ago.

The scheduled restart date for the project, considered by some people to be a symbol of the recession’s impacts, is based purely on an expectation that large tenants will seek space in late 2015 and early 2016, TMT Development President Vanessa Sturgeon said.

Complete construction financing for the project was procured within the last 90 days, Sturgeon said.

Park Avenue West is planned as a 27-story office and retail building in a prominent location, on a block bounded by Eighth and Ninth avenues and Yamhill and Morrison streets. TMT Development halted the project, estimated to cost more than $100 million, in April 2009 because of financing problems. The big “hole in the ground” has since generated no work except for occasional adjustments of a towering crane that occasionally blows over the neighboring Nordstrom store.

“It’s a symbolic hole in our downtown, and getting this tower under way is a positive sign for everyone,” said Scott Andrews, chairman of the Portland Development Commission’s board and president of Melvin Mark Properties. “And alternatives (for leasing) are good for the marketplace.”

Activity is scheduled to take place at the site soon. To make the work-free zone more attractive, crews will soon take down the crane and install an 8-foot-high wall around the site. TMT has partnered with New Avenues for Youth for homeless and at-risk youth, under the direction of an artist, to create a mural.

Meanwhile, the project team will actively seek tenants for the building planned to offer more than 500,000 square feet of Class-A office space. Presently, no lease agreements are signed and no discussions are under way with prospective tenants, according to Sturgeon, but the team believes its opening date is on target because some large corporations and law firms are expected to shop for office space around that time.

“If we target toward that date, we’ll have exactly what they’re looking for,” said Capacity Commercial Group principal Scott Madsen, who is marketing Park Avenue West to potential tenants.

Madsen said the project could move forward earlier if tenant interest was to surge at the right time. The project did generate interest from prospective tenants, including law firms Miller Nash and Davis Wright Tremaine, looking to lease space beginning in 2013 or 2014, but timing for construction didn’t work out for those tenants, and they stayed where they were.

Madsen said he doesn’t expect a big, local tenant to sign before 2015. The team wants to be prepared for that wave, however.

“When we look into our crystal ball … the next wave is happening in the 2015-2016 range. It makes a lot of sense just to prepare for that timeline,” Madsen said.

And in the fourth quarter of 2013, the team will be ready, said TVA Architects founder and principal Robert Thompson, who designed the building.

“There is steel sitting here in Portland, and curtain wall systems in Korea ready to erect,” he said. “The building is ready to go.”

[2oh1]

Originally Posted by floam

By the way... 2oh1, do you happen to use MetaFilter? I notice on my profile there's a guy of the same alias listed as the second-nearest person to me, "0 miles" away.

Indeed, I do, and yup, that's me. I love Metafilter. What a brilliant online community that is.

[MarkDaMan]

Uh Oh! Family feuds are never a good thing. Took down the Naito empire. Hopefully it doesn't permanently stall this tower.

Family of Portland real estate developer Tom Moyer locked in bitter, multimillion dollar feud
Published: Wednesday, November 16, 2011, 7:47 PM
Jeff Manning, The Oregonian

Heirs of Tom Moyer, the most influential Portland real estate developer of the last decade, are locked in a bitter feud over Moyer granddaughter Vanessa Sturgeon's stewardship of the vast Moyer business empire.

In documents filed Monday in Multnomah County Probate Office, 14 of the 19 Moyer family members claim:

Millions of dollars of family assets have been wrongfully diverted.
Loans were improperly closed on the signature of Tom Moyer at a time he suffered from advanced dementia.
That the Moyer dissidents earlier this year ousted Sturgeon as manager of the family's 1000 Broadway Building and forced the return of $14 million in diverted 1000 Broadway proceeds.


Sturgeon, 33, said her family members' claims are false. "The allegations in the documents are inaccurate," she said, declining to elaborate.

Rumors of internal Moyer strife circulated through Portland real estate circles in recent months as the family's stalled downtown office tower has continued to languish even as the economy slowly improved and downtown vacancy rates declined. The clash spilled into public view this week when the dissident Moyers filed their objections to a proposal that First Republic Trust Co. be made trustee of a family trust.

First Republic is too closely allied with Sturgeon, the objecting family members claimed, and an affiliate company, First Republic Bank, extended the questionable loans.

The explosive court documents were filed just 10 days after Sturgeon launched a public relations offensive vowing that Park Avenue West was back on track. The building would be completed in 2015, Sturgeon said, despite the fact it didn't have a single tenant.

The dispute casts new doubt on that schedule. It's hard enough to develop a large office building these days of tight credit, let alone when members of the controlling family are at war.

An Alzheimer's diagnosis

At the heart of the Moyer squabble is the increasing mental frailty of family patriarch Tom Moyer. The 92-year-old former boxer, movie theater mogul and real estate developer was diagnosed with advanced Alzheimer's disease in July 2010, according to court documents.

He built a significant real estate portfolio relatively late in life, stretching from the Seattle area south to Salem. Its crown jewels are the Fox Tower and 1000 Broadway buildings in downtown Portland, valued at about $260 million.

Tom Moyer has four children. But it was Sturgeon, Tom Mover's granddaughter, who emerged in 2002 as the heir apparent. She was named president of TMT and has worked closely with her grandfather since then.

But in the leadership vacuum created by Tom Moyer's dementia, the long-simmering clash between Sturgeon and much of the rest of her family burst into the open.

The dispute began this summer when her aunt and uncle, Colleen Moyer Thrift and Jon Thrift, questioned how the 1000 Broadway Building and Fox Tower were being operated.

Colleen Moyer Thrift alleged that more than $14 million was transferred from 1000 Broadway to other Moyer companies for the land purchase and initial construction of the Park Avenue West building. These transfers violated the 1000 Broadway limited partnership agreement, she argued.

The dispute never went to court. The 1000 Broadway operating agreement called for disputes to be handled in private arbitration.

In the court papers filed Monday, the dissident Moyers claim they settled the arbitration when Sturgeon agreed to give up control of 1000 Broadway and to return the $14 million.

The family stalemate

The more recent controversy centers around who will control the Marilyn Moyer Trust.

Marilyn Moyer was Tom Moyer's wife. She died in 1988. The Marilyn Moyer Trust owns half of another Moyer company, Tom Moyer Theatres, which in turn owns about $77 million worth of real estate.

Kimberly Moyer, another of Tom Moyer's daughters and Sturgeon's mother, in October requested the appointment of First Republic as trustee. First Republic was already overseeing other Moyer assets. To introduce a new player to the mix risked "deadlock or stalemate," Kimberly Moyer wrote.

But Tom Moyer's three other children, Tom, Tim and Colleen, and their children, were no fans of First Republic, which they viewed as too closely allied with Sturgeon,

"Over the least 15 months, First Republic had consistently and repeatedly taken positions aligned with particular beneficiaries of the Marilyn Moyer Trust – especially petitioner Kimberly Moyer and her daughter Vanessa Sturgeon," the dissident family members argued in their objection to First Republic.

The company "ignored evidence that assets had been diverted" from 1000 Broadway and the Fox Tower, they allege. "First Republic not only declined to rectify the transfers, but left (Sturgeon) in control of the 1000 Broadway and Fox Tower, despite the fact that she was implicated in the improper transfers."

The dissident Moyers also question two 2010 loans totaling more than $6.8 million made to Tom Moyer Theatres by First Republic Bank, an affiliate of First Republic Trust Co.

Tom Moyer signed the loan documents on behalf of the borrowers in May and June 2010, weeks before he was diagnosed with advanced Alzheimer's.

Now, the court documents claim, that $6.8 million has also been diverted:

"Presumably, First Republic did not lend $6,825,000 to Tom Moyer Theatres without asking how the loan proceeds would be used. If so, First Republic Bank knew, or should have known, that the loan proceeds were being improperly diverted from the Marilyn Moyer trust."

The family also questioned how First Republic could negotiate the loans with Tom Moyer in light of his deteriorating mental condition. "First Republic Bank should also have known that the person signing for the loans had advanced Alzheimer's, or at least that he was suffering from some form of serious cognitive impairment," the dissident Moyers argued in their objection.

There's no way First Republic can serve as trustee because it would have to investigate itself, the Moyer objectors argued. The trustee "will have a duty to investigate whether the First Republic Bank loans to Tom Moyer Theatres were properly entered into by a person with the requisite capacity," the Moyers argued in their objection. "The trustee will also have a duty to investigate and seek recovery of the $6,825,000 in diverted loan proceeds. First Republic would have an irreconcilable conflict in connection with these matters."

Neither Karin Barber, First Republic senior trust officer, nor Philip Jones, a Portland attorney who works for First Republic, could be reached for comment.

The dissident Moyers have nominated Washington Trust Bank and Christopher Folkestad, a Portland CPA, to serve as co-trustees.

They have asked the court to reject First Republic and appoint their trustees, or to have a hearing.

-- Jeff Manning

http://www.oregonlive.com/business/i...al_estate.html

[MarkDaMan]

TMT pulls crane from Park Avenue site
Portland Business Journal by Wendy Culverwell , Business Journal staff writer
Date: Thursday, November 17, 2011, 2:23pm PST

A construction crane that served as a visual shorthand for the recession is being dismantled.

TMT Development Co. ordered the removal of a 277-foot tower crane from Park Avenue West, two and a half years after the crane was idled when it halted construction of its Class A office-and-retail project. Vanessa Sturgeon, president of TMT, said the decision was driven by cost considerations and is unrelated to litigation over the crane.

In July, Parr Financial Services sued TMT over the crane, saying it allowed the boom to swing over the neighboring Nordstrom store. Parr is Nordstrom’s landlord. The suit is pending in Multnomah County Circuit Court.

Sturgeon said that since TMT has decided not to restart construction until late 2013, it didn’t make sense to keep paying rent on the equipment.

“It’s a monthly charge and it’s not cheap,” she said. The crane, a 277-foot German-made Liebherr Litronic, is being returned to its owner, Salem-based Morrow Equipment.

The crane has been idle since March 2009, when TMT decided to halt construction of the project. This month, the developer said it will restart the project in two years in a bid to win major tenants whose leases expire around 2015 and 2016.

Hoffman Construction Co. , general contractor for Park Avenue West, moved equipment in to dismantle the crane Wednesday night.

A superintendent said the crane will be completely gone by Friday morning.

Wendy Culverwell covers real estate, retail and hospitality.

http://www.bizjournals.com/portland/...u&ana=e_du_pub

[tworivers]

Interesting article on Portland Architecture about PAW with a rendering that will break your heart...

[MarkDaMan]

The PAW rendering is what it is, and until the start construction again, it could probably change again. Maybe more height for office floors as the economy returns?

It's the old pictures of the Portland Hotel that tear open my heart. Imagine if that was never torn down and restored. I love the square, but man oh man...

[downtownpdx]

^^^ Seriously, I feel the same way when I see those pics. Not sure what I'd rather have there, the hotel or the square ...? Can't imagine Portland without Pioneer Square but that was one beautiful building. (Sorry, lil off topic).

[Fez Hammersticks]

Originally Posted by MarkDaMan

The PAW rendering is what it is, and until the start construction again, it could probably change again. Maybe more height for office floors as the economy returns?

It's the old pictures of the Portland Hotel that tear open my heart. Imagine if that was never torn down and restored. I love the square, but man oh man...

That's what I hope. With the vacancy rate in Portland I think it would be myopic to not at least consider adding apartments to this and get it to it's original design/height.

[2oh1]

Originally Posted by downtownpdx

^^^ Seriously, I feel the same way when I see those pics. Not sure what I'd rather have there, the hotel or the square ...?

I'd choose Pioneer Square without a doubt. That hotel was gorgeous. Absolutely gorgeous. But Pioneer Square is a beauty the likes of which few cities have. I'd choose Portland's living room over a hotel any day, no matter how stunning the hotel would be.

[downtownpdx]

Yeah I'd have to go with the square too. Portland wouldn't be Portland without it. I actually enjoy waiting for the MAX there with the beautiful tree and Christmas decorations in the area right now.