It would have been hard to imagine a decade ago that the defunct Burlington Northern rail yards in Portland's River District would one day give rise to some of the Rose City's hottest properties.

"It's a totally different place now, but it took a lot of figuring out the right things to do in order to get there," said Tiffany Sweitzer, executive director of Hoyt Street Properties, the River District's largest landowner.

Hoyt Street Properties owns one of the most prosperous parcels of land in Portland. Its urban mixed-use projects command some of the highest rents in the city, and vacancies in both its retail and residential spaces are virtually nonexistent.

The firm's 34-acre River District parcel spans from Northwest Naito Parkway to 12th Avenue and Northwest Hoyt Street to the Fremont Bridge. It has developed approximately 1,000 new residential units and about 39,000 sq. ft. of retail space in its corner of the trendy Pearl District.

By the time the $600 million urban renewal effort is completed, it will provide more than 2,500 new housing units and 150,000 sq. ft. of retail and commercial space.

"The Pearl District is a national model of success in utilizing underused property and bringing people in who can contribute to the city," said Kevin Montgomery Smith, housing development manager for the Association for Portland Progress. "The development Hoyt Street Properties is doing is balanced in that it includes a mix of projects and diversity of people. It has been really thoughtful and well done."

The Hoyt Street Properties redevelopment has been an evolutionary process, both in design and in the creative minds who made it happen.

The earliest residential buildings on the property - Pearl Lofts, Pearl Townhomes and Hoyt Commons - have a much different look than more recent additions. Likewise, a changing roster of partners has included innovators such as John Carroll, Pat Prendergast and Homer Williams. Today, Hoyt Street Properties consists of 12 employees and is headed by Sweitzer, Clay Fowler, Keith Vernon and Joe Weston.

Development agreements between the firm and the city of Portland also look markedly different from the original master plan, which took more than two years to craft. Not only was the mixed-use, urban renewal plan an unknown for the city, but plans to realign the Broadway Bridge ramp and implement the Portland Streetcar had to be integrated into the proposed development.

"Ridership on the Portland Streetcar has exceeded expectations, and interest in the retail and residential space here is strong," Sweitzer said. "Now that this is starting to be a proven project, it's getting easier."

In addition, Hoyt Street Properties was engaged in a lengthy legal battle with Burlington Northern over who should foot the bill for cleaning up environmental contamination in the rail yards. The two eventually settled the matter and split the cost.

There are an additional 12 blocks left to be developed within the parcel. Three projects worth about $100 million in new construction - the most Hoyt Street Properties has done simultaneously - are now under way.

"When this first started, there was so little urban housing being done and we started out slowly because we weren't really sure of the market," Sweitzer said. "It's a little scary to have so much going on at the same time, but you just kind of keep your fingers crossed."

In addition to a shaky economy, Hoyt Street Properties is also facing some serious competition. Trammell Crow Residential and CE John Co. Inc. have partnered to develop a $31.5 million mixed-use project at Northwest Hoyt Street and 10th Avenue that will feature 14,000 sq. ft. of retail space and 178 apartments.

John Carroll and Recreational Equipment Inc. have teamed to build The Edge, an 11-story building at Northwest Johnson and Kearney streets and 14th and 15th avenues. The $28.5-million project will include 346,000 sq. ft. of mixed-use space.

Also underway is Gerding/Edlen's multiphased Brewery Blocks project, which is expected to add another 1.7 million sq. ft. of mixed-use space between Northwest 10th and 13th avenues and Burnside and Davis streets.

Sweitzer said her firm is confident its housing will continue to attract new residents and its retail will draw shoppers to the Pearl.

"We have a really strong neighborhood feel," she said. "On the weekends there are people walking around enjoying the shops and parks, there are kids and families, and it's quieter and has a slower pace compared to, say, the Brewery Blocks, which has more hustle and bustle and feels like a faster pace."

Liveability is an essential component of the company's development philosophy. It has donated land for a trio of full-block urban parks within the development and spends $50,000 per block on public art. Control over the quality of retail in the area also is a priority.

"By the time this project is built out we will own all of the retail because we want to make sure it's what residents want," Sweitzer said. "In the last eight months I've had people come from all over the world, primarily from the United States but also from Japan and Europe, who are involved in urban renewal and want to see what we've done. It's really a process all the way through of figuring out what we did right and what we did wrong and how to improve upon it."

Current Hoyt Street Properties Projects

The Bridgeport Condominiums, bordered by Northwest Marshall and Northrup streets and 11th and 12th avenues, will be completed in phases this spring and summer. Rendering courtesy of Hoyt Street Properties

Construction is underway on this 250,736-sq.-ft. building, which will feature 123 condos and 7,780 sq. ft. of retail space on the ground floor.

Portland's Ankrom Moisan Associated Architects designed the seven-story structure, and Andersen Construction Co., also of Portland, is the general contractor. Andersen broke ground in January 2002.

Bordered by Northwest Marshall and Northrup streets and 11th and 12th avenues, occupancy in the west building is expected in May and in the east building in August. The project cost is $35.2 million.

Construction began in July on Park Place, the first high-rise project Hoyt Street Properties is developing in the neighborhood.

Park Place will house 124 luxury units in a variety of housing types, including traditional flats, townhomes, lofts and penthouses. The 15,000 sq. ft. of ground-floor retail space will feature two restaurant locations.

The block is bordered by Northwest Kearney and Lovejoy streets and 10th and 11th avenues. Park Place will be divided on the block, with a 13-story tower to the west and a three-story building along a boardwalk to the east.

Carrier Johnson (San Diego, Calif.) designed Park Place Condominiums, and Hoffman Construction Co. (Portland) is the general contractor.

San Francisco landscape architect Peter Walker, who designed the adjacent Jamison Square - one of three parks within the development - recommended the boardwalk on the building's east side. The boardwalk will be the first such residential grand promenade in the city.

"In order to make a boardwalk or any promenade successful you have to have activity, so we're working to develop things that will draw people to that area," Sweitzer said.

The 284,730-sq.-ft., $47.2 million Park Place is Hoyt Street Properties' largest project to date. Occupancy is expected in February 2004.
Park XIII The five-story, 139-unit luxury apartment building, situated across from a future park block, lies between Northwest Marshall and Northrup streets and Ninth and 10th avenues. The 207,975-sq.-ft. building will offer 8,900 sq. ft. of retail space on the ground floor.

Construction started last fall and is expected to be completed in December. Mithun Architects (Seattle) designed the building, and R&H Construction (Portland) is the general contractor. The project cost is $22.7 million.

Sweitzer said Hoyt Street Properties is hopeful Park XIII will share the same positive response as Kearney Plaza.

"Kearney Plaza, which is also apartments, is very successful," she said. "We've got the highest rents in Portland and it's full, mostly with people from out of state who heard about the place and were attracted to it."

The structure will feature a seven-story building and a 14-story tower.

Past Hoyt Street Properties Projects

Washington Top Developer-Schnitzer Northwest