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Cover Feature - January 2006

Oregon Developer of the Year, Gerding Edlen

At Gerding Edlen sustainable buildings make a sustainable business

By Melody Finnemore

Mark Edlen, managing principal of Portland's Gerding/Edlen Development Co., attributes the firm's success to four principles: collaborating with the right partners, earning a profit, focusing on sustainability and pushing the design bar.

"More interesting design will make for more interesting places to live, work and play," Edlen said. "We have a responsibility to design buildings with a 100- or 150-year imprint and leave behind projects that benefit the community."

Recognized for signature projects such as the Pearl District's Wieden + Kennedy Building and the Brewery Blocks, Gerding/Edlen has earned a reputation as a risk-taker whose innovative projects serve as national models of sustainable urban development.

"The great thing about Gerding/Edlen is that they come at it from their values," said Glen Gilbert, president and chief executive officer of the U.S. Green Building Council's Cascadia chapter. "They truly believe in doing the right thing for sustainability, for the environment and for Portland. As it turns out, it's great business."

Edlen said the company's expertise creates an "exportable opportunity."

Gerding/Edlen is developing a pair of 42-story condo towers in Bellevue Wash., and, through a joint venture with Williams & Dame Development of Portland , a mixed-use project called South Park in L.A.

"Portland has a lot of expertise and experience that a lot of other cities don't have in terms of sustainable urban design," Elden added.

Kelly Saito
Mark Edlen

Gerding/Edlen's managing partners Mark Edlen and Kelly Saito said they are a bit surprised by the degree of the firm's success.

"We never had a business plan - we still don't have a business plan" Elden added. "We didn't even have an organizational chart until recently, and we had to do that because the growth has been so crazy."

He said the key to their success is "extremely high trust" in each other.

"When I describe us I say we're really just a bunch of deal junkies, and I think what gets us excited is when people say, 'You can't do that,'" Edlen said. "Bob (Gerding) is probably one of the best big-picture thinkers I've ever seen in my life."

Edlen, Saito and Gerding, all former real estate brokers who grew up in Portland, have watched their company's portfolio evolve from primarily build-to-suit corporate offices to sustainable urban development. The firm's growth is guided by a shared commitment to environmentally responsible projects, unique structures that complement their surroundings and collaborative partnerships that strengthen a city's attributes.

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"Our biggest concern is how we all add to the community rather than how we can win a project," Elden said. "If XYZ company does a great project, it benefits all of us."

Saito added: "It all goes back to our desire to raise the design bar. If it was about competition, it would go to the lowest common denominator."

Edlen and Saito acknowledge the company's development strategy often makes already complex ventures even more difficult. For example, when Gerding/Edlen decided to create the Brewery Blocks, the firm had to cobble together financing because the project was considered such a risk.

"We had a lot of Wall Street people come through and say, 'Why don't you just level all of the buildings, even the historic ones?'" Elden said. "We had other people tell us they wanted 10-story, above-ground parking there. There were a lot of people who said we were nuts and they were probably right. You almost have to have blind faith in your team."

As Gerding/Edlen moves ahead, two distinct development trends lie on the horizon.

"I think there's going to be much more of a sense of design and place-making and the inclusion of cultural opportunities that attract more people," Edlen said. "And the issue of how we're using our resources is only going to get bigger and bigger."

Though sustainable design is gaining prominence, the industry must do much more to promote it, he added.

"We are fairly frustrated because we believe we need to be reaching farther faster," Elden said. "A lot of times we feel like we're out here on our own."

Saito said notes that foresight is essential as future development occurs.

"So much of what we do is reacting to the demands of the baby boomers, but so much of that transcends to the echo boomers and beyond," he added.

Click on the links below for project profile details...

The Meriwether
The Armory
The Casey
John Ross Condominiums



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