News

PSU Real Estate Students Propose $43.4 Million Redevelopment in Central Eastside
Author: School of Business Administration
Posted: September 29, 2015

Last week, a team of eleven Portland State University Master of Real Estate Development students presented their plan to redevelop the Pelett Family Properties in Portland's Central Eastside before an audience of 150 business and community representatives at the Marriott Waterfront Hotel.

The students' project was sponsored by the Oregon chapter of the Building Owners and Managers Association (BOMA), which provided mentors and guidance to the team. The students proposed development of new "industrial office" and retail space that restored the aging warehouses owned by the Pelett family. In total, the student's proposed project would represent a $43.4 million investment in the community, financed by leveraging the family's property holdings and not reliant upon any public subsidy.

The students outlined a phased-development plan that would enhance the Peletts' property on six blocks in the Central Eastside neighborhood that surrounds the City Liquidators business, founded by family patriarch, Walt Pelett, in 1978. The students' plan worked with the preference of the Pelett family to retain ownership of their landholdings, while allowing the next generation of the family to build its development expertise.

Read the proposal.

In the first phase of their plan, the students proposed the refurbishment of the Pelett's Alder Street warehouse at SE 2nd Avenue for industrial office tenants, including software development firms; a new entrance for the Pelett's City Liquidators business at Morrison and 3rd Avenue; "shopping pods" along Morrison Street and Martin Luther King Boulevard; enhanced lighting under the Morrison Street Viaduct for security and neighborhood activation; and a new privately-owned Pelett Park at Alder and Third Avenue.

Future phases include the conversion of the Pelett's Studebaker warehouse at Morrison and Second Avenue into a creative industrial office design center, and restoration of the historic Royal Hotel at Morrison and Third Avenue. And in the distant future, a Royal Tower residential building at Morrison and Martin Luther King Boulevard was planned.

The students on the project were Khalid Alballaa, Kevin Clark, Barbara Fryer, Carly Harrison, Synkai Harrison, Liz Hutchinson, Scott Kueny, Joel Thomas, Erik Pattison, Nate Raynor, and Clancy Terry. Ten of these students are Master of Real Estate Development students. Alballaa is a Master of Business Administration student.

The students were supervised by their instructor, Vern Rifer of Rifer Development and Dr. Gerard Mildner, Academic Director of the PSU Center for Real Estate. Also participating on the panel at last week's event were Brad Malsin, Beam Development; Ann Young, US Bank; Paddy Tillett, ZGF Architects; and Emma Pelett, Pelett Family Properties.

Meet the 2015 PSU/BOMA Workshop Development Team:

Standing: Khalid Alballaa, Scott Kueny, Kevin Clark, Vern Rifer (instructor), Joel Thomas, Paddy Tillett (industry mentor), Ann Young (industry mentor), Gerard Mildner (Center Academic Director), Brad Malsin (industry mentor), Emma Pelett (property owner).

Seated: Barbara Fryer, Erik Pattison, Carly Harrison, Liz Hutchinson, Clancy Terry and Nate Raynor. Not pictured is Synkai Harrison.