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Friday, February 13, 2009

End is nigh for Waterfront Pearl deal

The ill-fated Waterfront Pearl condo monstrosity north of the Broadway Bridge is reportedly in foreclosure. Last summer, the builder, Hoffman Construction, slapped construction liens on the two condo towers. Now comes the news that one of the two main construction lenders is in court seeking foreclosure. A reader writes:

Saw this in [yesterday's] Daily Journal of Commerce... thought you might be interested....

MACQUARIE BANK LIMITED vs WATERFRONT PEARL LIMITED PARTNERSHIP and GRANCORP HOLDINGS LLC et al, Judicial foreclosure of deed of trust. Relief sought: $18,434,000.

Plaintiffs attorney: Matthew A. Goldberg. Case No. AO902-01727

To developer Paul Mayer from Vancouver, B.C., we say farewell, and please tell all your condo-building buddies how it went in Portland.

Comments (17)

Anyone know why there is one construction crane in each of the Pearl & SoWhat?


Anyone know why construction has mostly stopped throughout the state? Don't see those huge tracks of suburbs sprawling out much any more, do you? Wonder why Oregon had the 5th highest foreclosure rate in January? It's not just the condos folks. Its also the sprawl where much more has been built.

Those are actually nice. Beats the over grown parking lot it replaced.

But just because it replaced an ugly prking lot doesn't mean there isn't a better use of the land than plastic condos.

And (wishful thinking here) perhaps a use that doesn't have so much public subsidy given to the developers.

Rettig, do you also include in your wishful thinking of not having $31.5 Million in public subsidy to bring the on again/off again $240M dollar Vestas project to Portland? Then it might only create 600 new jobs?

That $31.5 Million subsidy doesn't include other taxpayer subsidies like Transit Oriented Development(TOD), Workforce Housing, Solar/Environmental/Green, Job Training, etc. subsidies. The few businesses and individual taxpayers left can't afford all these subsidies.

Those are actually nice.

I hope there is something medical science can do for your impaired senses of sight and taste.

Not everything needs be a Victorian house. Nothing wrong with these buildings. Since this website tends to view everything new in Portland in the negative, could you post some designs you find more appealing or appropriate for this development site?

Those condos are nice.

In fact, I'm going to talk to my mortgage broker today about putting down some huge money while I can get these things for cheap.

I'm gonna go interest only...check that...negative amortization, with a balloon payment in 1 year.

Then I'll truck in a stainless steel fridge for each unit and sell them a month later for twice the price.

Portland is different than everywhere else on the planet. I'm gonna make millions while chumps like BoJack complain about stuff.

Subsidize me baby.

Beauty is in the eye of the beholder. Variety makes the world go 'round. Your trash is another's treasure...

Did I exceed the limit?

lw: ...do you also include in your wishful thinking of not having $31.5 Million in public subsidy to bring the on again/off again $240M dollar Vestas project to Portland

Pork is pork, even if I agree with the idea of getting alternative energy from wind turbines. And this one certainly sounds like pork to me. But I reserve the majority of my vitrol for high end condo subsidies that would probably have been built anyway with or without the subsidy, and that's what Jack's post is about.

How much public money was invested in this project, and how big is the bill we are stuck with? That's the real story!

I'd be shocked if there wasn't some sort of major tax abatement involved.

could you post some designs you find more appealing or appropriate for this development site?

Waterfront Park North would have been nice.

Alternatively, it would have been nice if the city hadn't thrown away the concept of stepping heights down to the river, which worked well in the downtown core in the '70s and '80s. But Vera threw that out the window for clowns like Paul Mayer and Hoffman Construction. And so this is what you get. Karma is not always fun.

Burning Question:

What happens to the folks who bought a unit there and moved in?

I can imagine several terrible scenarios!
Like upkeep, on and on.

Presuming it is legally set up as a condominium association, it would be governed by ORS 100, which IMHO is tilted in favor of the declarant (often the developer) - e.g. the association fees on unfinished units are required to be paid by the developer from the time the first unit sells, but they are allowed to accrue unpaid until the unit is sold.

Which would I suppose just be another unpaid debt that won't get paid, if foreclosure proceeds - I'm not sure the next owner is required to make good on it.

Should make for a wonderful environment to try to sell the unfinished units to saavy buyers.

nice to see one of my classmates has work in this economy. business must be good in bankruptcy law.

Everything is actually fine over at the Waterfront Pearl. The second lender has bought out the developer and the first lender and paid off the Hoffman lien. It's business as usual over there now.

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