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Another High Profile Portland Condo Stalls on the Launch Pad
Another 354 apartment units will enter the downtown Portland market next summer, testing the area’s ability to absorb unprecedented numbers of high-end apartments.
The Oregonian and the Portland Business Journal report that the CYAN/PDX will lease its smallish, energy-friendly units instead of selling them in a stagnant condo market.
The CYAN/PDX condo/apartment switch is the sixth project to do so in recent times. The others included the last tower in the downtown Harrison project, Ladd Tower in the Cultural District, SE Portland’s 2121 Belmont, the Pearl’s Wyatt, and the South Waterfront’s 3720.
They join a couple other South Waterfront projects originally designed as apartments, making for a crowded field of new rental living spaces. The Portland Business Journal estimates that 2,500 high-end units will compete for tenants as these projects complete.
Existing high-end renters should feel some security that their leases aren’t going up anytime soon.
Leasing information for CYAN/PDX.
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6 Responses to “Another High Profile Portland Condo Stalls on the Launch Pad”
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I am curious as to when developers are going to start talking about the stagnant RENTAL market. How many high-end apartments can Portland absorb? I think the high number of vacancies at the Wyatt, Ardea, and 2121 Belmont are red flags.
While I am probably considered upper middle class, it would sure be nice to have some normal apartments available downtown. Why does everything have to go high-end? There are a lot of us younger, well-off singles and couples that enjoy living downtown, but I just can’t justify spending >40% of my income on rent, even if I can. Why does that seem to be such a difficult concept for developers?
Sorry, one thing to add. My comment above applies to condos as well. It seems everything is either high-end or low income. Whoever decides first to build a condo tower geared towards us middle income folks is going to do quite well.
Condos whose mortgage payments will be in the range of 800-1500 per month, for sq. ft of 1000-2000 will sell.
The problem is that people had to pay 200K for a 400 square feet apartment. And Portland is not New York.
“There are a lot of us younger, well-off singles and couples that enjoy living downtown, but I just can’t justify spending >40% of my income on rent, even if I can”
I don’t think you can. Most rentals don’t allow rent to be more than 30% of your income; they will reject your rental application. Unlike mortgage companies, landlords never figured out a way to offload their risk to a third party, so they still have an old-fashioned vested interest in making sure their clients can pay them.
Leo, is that why the Wyatt, the Ardea, and soon the ASA/Lovejoy are mostly vacant?!?!