A lender has initiated foreclosure proceedings on an unfinished hotel in Portland. In the filing, Access Point Financial stated that the project, known as Kirkland Place, is associated with more than $15 million in outstanding debt, according to a report from the Portland Business Journal. Access Point filed the complaint against developers Dean and Kristin Kirkland, who are known for their Vancouver-based real estate firm Kirkland Development. Other entities listed in the filing include the Kirklands’ business partners and Timberland Hotel Ventures & Holdings LLC.
The project is listed on Kirkland Development’s website with an estimated start date of February 2020. Located at 11784, 11780 and 11786 NW Cedar Falls Drive, the three-building project is situated on the west end of Portland and in close proximity to the Beaverton area. It consists of a four-story, 90-room hotel with parking below, a single-story 6,000 square foot retail building and a two-story 20,000 square foot retail structure. All together, the entire project would span about 87,015 square feet, according to the website.
Access Point Financial issued a loan exceeding $16.5 million to Timberland Hotel Ventures in early 2020, with the outstanding balance reaching just over $15 million as of October 31, 2023, according to the report. However, the completion date faced multiple delays, with the original deadline of October 2021 pushed back to April 2022, then October 2022, and most recently to May 2023. Access Point asserted that the hotel is currently four-fifths completed, but doubts exist regarding the borrower’s financial capacity to finish construction.
The Kirkland Place project is not the only property in Portland contending with potential foreclosure proceedings.
The Montgomery Park office complex has also recently found itself in the midst of financial turmoil as the lender initiated foreclosure proceedings. The property, owned by Unico Properties and Partners Group, is facing a foreclosure auction scheduled for Feb. 14, 2024. The borrowers of the Montgomery Park property owe $149.7 million, according to previous reporting from The Registry. Partners Group, a global investment management firm, and Unico Properties jointly acquired the 18-acre Montgomery Park in 2019 for $255 million. Located at 2701 NW Vaughn St., Montgomery Park is a 756,055 square foot office complex, making it the third-largest office building in the Portland metropolitan area.