Current Project: Daymark

Upon completion, the Project will consist of 54 high-end residential units and two commercial units comprising 3,400 square feet and 54 parking spaces in the abutting garage. The 0.49-acre development site is located within the heart of the West Bayside neighborhood just blocks from many of downtown Portland’s top amenities including Old Port, Cross Insurance Arena, the Portland Museum of Art, and hundreds of restaurants contributing to the city’s award-winning culinary scene. Furthermore, both Whole Foods and Trader Joe’s are located within walking distance of the Property. The Property’s central location and surrounding amenity base has earned the site an exceptional Walk Score of 94. As a result, the Project is strategically positioned to attract both full-time residents and transit/leisure buyers, providing for an ideal development opportunity.

The Property will consist of a five-story wood-framed building over a two-story steel podium. The 54 units (100% market rate) will feature a mix of 13 one-bed/one-bath units (25% of total units), 33 two-bed/two-bath units (60% of total units), and 8 two-bed/two-bath penthouse units (15% of total units). Residential units will feature state-of-the-art interior finishes, sprawling kitchens, and attached balconies offering views of downtown Portland and Back Cove. The Property will include two commercial suites totaling 3,400 square feet, a resident lounge, and ample storage space available to each resident. The Sponsor sourced the deal off-market and is under contract to acquire the site for $2.5 million ($45k/unit) with an anticipated closing date of March 2020. Construction is expected to commence in April 2020 and continue over a 15-month timeline using a local construction manager under a guaranteed-maximum-price contract. The detailed sources and uses are available upon request and will be provided by Colliers in a separate document.

Total project costs are estimated to be $21.8 million ($389k/unit). The projected gross sellout for the Project equates to $32.1 million ($574k/unit), providing for a net sellout value of $30.7 million ($547k/unit) after associated sales costs. The Sponsor is seeking a $17.4 million construction loan ($311k/unit, 80% LTC). The total loan basis of $311k/unit provides for a conservative position relative to the projected net sellout of $545k/unit (57% loan to net sellout) in one of the northeast’s top emerging markets.