Shifting economic factors may slow timeline for Portland apartment building

A proposed apartment building in Portland

RENDERING / COURTESY REDFERN PROPERTIES A 327-unit apartment building planned for Washington Ave. would be one of the largest in Portland.

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By Tina Fischer

Redfern Properties’ recent proposal to build a 327-unit apartment complex on Washington Avenue in Portland won unanimous approval from the planning board in late February.

But the developer now says evolving economic issues are complicating the feasibility of the project.

Managing partner for Redfern, Jonathan Culley, told Mainebiz this week that economic factors — including tariffs, interest rates and "the erratic policy environment" — are posing challenges in going forward, particularly given the city’s workforce housing requirement.

Culley was referring to the requirement that 25% of a workforce rental housing project in Portland must be reserved for tenants earning no more than 80% of the area median income, which equals $68,500.

“Our plan and hope had been to go forward and meet these requirements, but we now need other cost considerations to improve to meet the workforce pricing requirement,” Culley said, adding that the total project cost would be "north of $80 million.”

“We hope that some of these factors will improve in the future, and facilitate more attractive financing options,” Culley said.

Details of the project

The 200,000-square-foot building is targeted for a 1.5-acre lot at 165 Washington Ave., the former home of Northern Burner Supply Co. The seven-story Tavata, as Culley is calling it, would be one of the largest apartment buildings in Portland.

Redfern had proposed the project to meet the growing need for affordable housing, and had envisioned the building could be attractive to incoming students at Northeastern University's Roux Institute in Portland.

“Portland has a housing shortage and Redfern is intensely focused on adding rental housing supply in the city’s urban walkable neighborhoods,” Culley said.

It was approved with just 11 parking spaces, which makes the build more economically feasible and encourages the use of public transit, which Culley feels is important. Some area residents objected to the plan's limited parking and the effect it would have on the densely-built Munjoy Hill area, but the board supported the concept.

Redfern has developed 10 inner-city housing projects on the Portland peninsula, including the Nightingale, which has 260 apartments in the former Northern Light Mercy Hospital building on State Street, the Hiawatha on Longfellow Square with 160 units, and the Casco, an 18-story, 263-unit building on Federal Street.

Reflecting on the Washington Avenue project timeline, Culley said, “While our hope had been to begin construction in 2025, the climate for development is difficult, and we will need to see conditions improve before we can go forward.”