August 14, 2014
On August 13 the Portland Development Commission board of directors authorized a purchase and sale agreement between PDC and Grove Hotel Partners LLC for the Grove Hotel property on West Burnside between NW Fourth and NW Fifth Avenue. The development partners plan to renovate the hotel as a 52-room, 107-bed hotel/hostel, with a restaurant and retail spaces on the ground floor.
It’s a potentially transformative and nontraditional approach to a lifestyle hotel concept, designed to appeal to a multi-generational customer base drawn to the emerging amenities of Old Town/Chinatown.
The building has been vacant since March 2011. As a gateway property into the neighborhood, its renovation will mark a significant and crucial step in implementing the Old Town/Chinatown Action Plan recently approved by City Council.
Eagle Point Hotel Partners and Naito Development formed Grove Hotel Partners LLC for the purposes of acquiring and renovating the property. The purchase price of $630,000 represents a fair market value transaction.
The property will be renovated without direct financial assistance from PDC with a hotel use that will create 24/7 activity. The project will eliminate PDC’s ongoing expenses for management and maintenance and will result in a renovated, privately-owned building that is estimated to generate about $86,000 per year in property tax revenues and in excess of $200,000 per year in transient lodging taxes. The developer will implement and comply with PDC’s Equity Policy and Green Building Policy.