Pembrook closes $6.25 million for 123-unit Oregon development

Pembrook Capital Management LLC has closed a $6.25 million mezzanine loan to fund development of a 123-unit micro-apartment project in the downtown area. Known as "Tess O'Brien," the development consists of two six-story buildings containing 40,604 s/f. "We are an active lender to experienced developers building in high-barrier markets across the United States," said Christopher Simon, Pembrook's exclusive West Coast correspondent. "In this transaction we are working with a builder with an established track record in Portland, developing a multifamily product for which we believe there is significant demand. We look forward to seeing the project come to fruition." The Tess O'Brien project is located near the Portland Streetcar loop and a short distance from the Pearl District. Nearby dining and shopping destinations abound, and Portland's major employment centers are easily accessible. All building approvals are in place for the development, with construction anticipated to commence in May 2015 and finish in August 2016. According to the U.S. Census Bureau, Portland is among the fastest growing cities in the United States and apartment vacancies have been below 4.0% for the past four years, fueling demand for innovative housing options like micro-apartments. Pembrook works with real estate developers and investors to deliver financing for new construction, acquisition and repositioning, focusing on primary and secondary markets with high barriers to entry. Since inception, Pembrook has originated or participated in 73 investments totaling $830 million.