LAKE OSWEGO, ORE. — Multi-Employer Property Trust (MEPT) has entered into a joint venture with PHK Development Inc. to build a $103 million project that will include 200 apartment units, more than 40,000 square feet of commercial space and 430 parking spaces at Block 137 (330 1st St.) in Lake Oswego, Ore.
Block 137 will be the first mixed-use development to be built in downtown Lake Oswego, located about 10 miles south of Portland, Ore., in more than 15 years. The joint venture team will work in collaboration with Lake Oswego community leaders in the development process.
The apartment community will be designed to appeal to a broad base of residents, including Baby Boomers seeking relocation to an amenity-rich community; families attracted to the school system in Lake Oswego; and young affluent individuals and couples that value walkability in a neighborhood setting.
“We are very pleased to partner with PHK, a local firm with expertise in mixed-use developments, for this joint venture project. For MEPT, this investment will contribute to fund performance and give MEPT exposure to one of the most desirable residential locations in the Portland metropolitan area,” says David Antonelli, executive vice president and MEPT portfolio manager at Bentall Kennedy.
“Block 137 is aligned with the fund’s investment strategy since it’s an investment in an attractive, urban center with a strong employer base, many amenities and a scarcity of rental options,” adds Antonelli.
PHK Development founder Patrick Kessi says his company builds for the long term, both economically and environmentally.
“Together, our team looks forward to a long and ongoing partnership not only with each other, but also with the whole community of Lake Oswego,” says Kessi.
Block 137 is seeking to achieve LEED Gold certification. The construction activity is expected to generate over $235 million in total economic impact for the Portland metro area and create a significant number of green jobs for members of the building trades.
MEPT is an open-ended, commingled real estate equity fund that invests in institutional-quality real estate assets in the U.S. Founded in 1982, MEPT has more than $5.9 billion in net assets and has become one of the largest real estate equity funds in the U.S. MEPT is managed by NewTower Co. of Bethesda, Md. NewTower serves as trustee, fiduciary and investment manager.
PHK Development is based in Portland and offers a variety of real estate services. According to the company’s website, PHK seeks projects that complement their surroundings and enrich communities with unique features and benefits, follow sustainable building and operating practices, and provide enduring design quality with construction integrity.
— Haisten Willis