Portland’s flagship luxury high-rise, the $600 million Ritz-Carlton tower, may soon change hands as its developers prepare to surrender the property to their lender. Struggling with the economic aftershocks of COVID-19 and years of downtown unrest, the 35-story tower—Block 216—has failed to reach profitability.
The project was funded by a $510 million loan, but the tower is now appraised at only $425 million. Developer BPM Real Estate Group and primary lender Ready Capital are exploring a deed in lieu of foreclosure, a move that would transfer ownership to Ready Capital and avoid a public auction.
The project’s financial woes are at the center of a lawsuit in the New York Supreme Court. Broadway EB-5, a smaller lender that contributed $49 million to the project, alleges that Ready Capital and BPM conspired to undermine its investment. Broadway is seeking an injunction to block the property transfer.
Development of the tower was hampered by COVID-19 lockdowns and widespread Antifa and BLM protests that destabilized downtown Portland. Construction was further delayed by structural damage from water leaks.
Ready Capital Managing Director Alex Ovalle denied allegations of wrongdoing, stating in court filings that the company acted within contractual obligations and has worked to “salvage the Project and preserve value for all parties.”
Ovalle revealed that only 12 of the tower’s 132 luxury condos have sold, and office space occupancy remains at just 23 percent. The financial uncertainty has led to canceled hotel bookings and stalled leasing.
The collapse of what was once Portland’s most ambitious real estate project underscores the lingering economic damage from years of urban instability and political unrest.
The Ritz-Carlton’s troubles mirror broader challenges in Portland’s downtown core, where commercial real estate vacancies have surged and public confidence has declined. Business closures, rising crime, and the aftermath of prolonged street protests have made recovery difficult for developers and city officials alike. Once envisioned as a symbol of urban renewal, Block 216 now stands as a stark reminder of Portland’s struggle to rebound from years of instability and economic disruption.
