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George Smith Partners Secures $460 Million Construction Loan to Fund the First Five-Star Hotel in Portland

Funding of million-square-foot development marks the largest transaction in the firm’s history

July 08, 2019 02:15 PM Eastern Daylight Time

LOS ANGELES--(BUSINESS WIRE)--George Smith Partners, a leading commercial real estate capital markets advisor, announced today that it has secured a $460 million senior construction loan on behalf of BPM Real Estate Group (BPM) for Block 216, a landmark 1.1 million-square-foot ground-up development. The 35-story, luxury high-rise will be anchored by a Ritz-Carlton, the first five-star hotel in the state of Oregon. An affiliate of Mosaic Real Estate Investors funded the four-year loan.

George Smith Partners secures $460 million construction loan to fund the first five-star hotel in Portland.Tweet this

George Smith Partners’ Malcolm Davies, Principal/Managing Director, and Zachary Streit, Senior Vice President, along with other members from the Davies Group in the Los Angeles office sourced the financing on behalf of BPM Founder Walter Bowen.

“This was one of the most challenging and rewarding financings to close due to the complexity of the loan because it is the first of its kind in Portland -- there is simply nothing else like this,” said Davies. “BPM brought a vision that will make this one of the most exceptional developments in the Western United States and truly transforming the Portland skyline in many ways.”

The Block 216 project will encompass a full city block, located at the intersection of the Central Business and Pearl districts in the heart of downtown Portland. In addition to the 251-room five-star Ritz-Carlton hotel, the Block 216 tower also will include other uses, including 138 branded Ritz-Carlton Residences, 140,000 square feet of Class A office space, and 7,800 square feet of ground-floor retail, which will open up to a pedestrian “festival street.”

“We undertook an exhaustive vetting process for this iconic development that started over four months ago,” said Streit. “It was fast-paced and thorough. We reached out to more than 150 capital partners, held over 50 in-person meetings and conducted 15 site visits with various groups. Our client ultimately selected Mosaic, a partner that shared the same vision and philosophy as BPM.”

Portland-based BPM will begin construction of Block 216 this summer and host a ceremonial groundbreaking on Friday, July 12. Construction is expected to be completed in 2023.

About George Smith Partners

Celebrating 25 years in business, George Smith Partners is a leading national provider of capital market advisory services to the commercial real estate industry. The firm specializes in arranging financing for commercial and multifamily properties, including acquisition, construction, bridge and permanent loans, as well as mezzanine loans, highly leveraged participating loans and joint venture equity. The company has arranged more than $55 billion in financing since its inception. Additional information about George Smith Partners is available at www.GSPartners.com.

About Mosaic Real Estate Credit and Mosaic Real Estate Investors

Mosaic Real Estate Investors (http://www.mosaicrei.com) and its debt platform, Mosaic Real Estate Credit was founded by industry veterans Ethan Penner and Vicky Schiff. Mosaic is focused on addressing unmet needs by providing creative bridge and construction debt capital to borrowers aiming to add value to their assets through development, redevelopment and repositioning. Mosaic’s investments include first mortgage loans, as well as mezzanine or preferred equity structures. Mosaic has originated over $1.5B in transaction volume to date.

About BPM Real Estate Group

Walter Bowen founded BPM Real Estate Group in 1977 for the purpose of acquiring, developing, owning and operating Class A real estate throughout the United States. Since that time, BPM has been very successful in the construction and acquisition of more than 4,400 market rate and affordable apartment units, 44 senior communities, 340,000 GSF of office space, 120,000 GSF of hotel space and other real estate related asset classes. Led by an experienced team of executives with over 100 years of combined real estate expertise, BPM has provided above-market returns and significant appreciation by investing in and building top-tier properties.

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