2016 Lender packet

 2016 LENDER PACKET Orange Splot LLC – Current Projects Photo of Cully Grove by Communitecture Note: All lenders must be friends/family or accredited investors. For more information or to invest with Orange Splot, please contact: Eli Spevak 503.422.2607 | [email protected] Orange Splot LLC 4751 NE Going St Portland OR 97218 Applewood Corner Condominium 2835 SE 71st Ave. Orange Splot LLC is currently building a detached Accessory Dwelling Unit (ADU) on a 7,123 square foot corner lot just south of Mt. Tabor at SE Woodward and 71st Ave. The ADU shares a lot with a beautiful 1904 farmhouse, from the farm that was originally here. They will be sold separately as condominiums. Loan Terms • 5% simple interest; $150K total (mult. loans OK); 6 month term (repaid earlier if homes sell quicker) Unit Mix • (1) 2-­‐Story ADU: 794 square feet, 2BR, 1.5BA • (1) Existing 2-­‐Story farmhouse with finished basement: 2,134 square feet, 4BR, 3BA • (1) Storage structure for each home Features & Amenities • Sizeable covered porches face the shared gardening area; • Large (2,000 square foot), full-­‐sun garden space bordered by mature espalier apple trees; • 500+ square foot shared social gathering area at the back corner of the property; • 400+ square foot private yards for each home; • Detached storage buildings for each home (garage for primary house; storage shed for ADU); • Shaker-­‐style cabinets, quartz kitchen countertops; and • Hardwood flooring on ground floors, tile or marmoleum in bathrooms, wool carpet upstairs. Project Approach As land prices in amenity-­‐rich neighborhoods have escalated, it’s become virtually impossible to build new homes for sale at first time homebuyer prices. By building an ADU, partitioning the lot, as allowed by code, and selling it separately from the primary home, we are creating a home buying opportunity at around $300K in a neighborhood where no other new homes are selling for less than $500K., We’re also preserving a 110-­‐year-­‐old farmhouse that could be at risk for demolition and replacement with two large single family homes(a common practice in Portland right now). Finally, we’re setting the stage for a micro-­‐garden-­‐
community with a carefully crafted mix of shared and private spaces. Project Status & Timeline The ADU is framed and roofed, and rough-­‐in interior work is nearly complete. We are coordinating with subcontractors and in-­‐house staff to finish the ADU and do cosmetic renovation work to the existing farmhouse in parallel, with anticipated completion of both by May, 2016. Mason St. Townhomes 5836-­‐5900 NE Mason St. Orange Splot LLC will soon break ground on a 14-­‐home courtyard community called “Mason St. Townhomes.” This development retains one existing home and adds 13 more on a 0.58 acre lot (25,542 square feet) near NE Mason Street & NE Cully Blvd. Rendering by Mark Lakeman Loan Terms • 6% simple interest; $300K -­‐ $500K total (mult. loans OK); starting May or June 2016; 18 month term (repaid earlier if homes sell quicker) Unit Mix • (6) 2.5-­‐Story Townhomes: 1,532 – 1,579 square feet, 4 BR, 2.5BA • (7) 2-­‐Story Townhomes: 1,078 – 1,112 square feet, (3) 2BR, 2BA; (4) 3BR, 2BA • (1) Existing House: 840 square feet, 2 BR, 1BA • (1) Common house: 578 square feet, 1BA • (1) Guesthouse and bike storage building: 323 square feet, 1BR Features & Amenities Each unit will have a sizeable covered porch, raised garden/planting bed, and small private yard area. Design of the site and its common amenities is intended to facilitate community building and interaction among residents. Shared amenities include: • A common building with small kitchen for social gatherings, food processing projects, movie nights, and more; • A central courtyard where children can play and grown-­‐ups can socialize; • A guesthouse for friends and family who come to visit; • Secure indoor & outdoor areas for bike parking, and gardening/landscaping tools; and • An existing 29” Douglas Fir tree and 1-­‐2 large Norway Maples, with new fruit trees on the way. Project Approach Despite the recently declared “housing state of emergency” due to rapidly increasing rents and home purchase prices, Portland has not added much “middle” housing stock, including once-­‐common townhomes and courtyard apartments. These housing types offer more affordable, resource-­‐efficient, entry-­‐level options for families and first-­‐time homebuyers. Mason St. Townhomes is one attempt to help fill this gap. We hope it will inspire more Portland-­‐area developers to build high-­‐quality, community-­‐oriented, and beautiful townhomes as an alternative to large, expensive, and detached single-­‐family homes. In addition to providing relatively inexpensive market-­‐rate options to buyers, we are working with Proud Ground (a community land trust) and the City of Portland to make 2-­‐3 of these homes permanently affordable to homebuyers at 80% of median family income. Through what we’re calling “voluntary inclusionary zoning,” Orange Splot LLC will be contributing at least $50K per affordable unit. Project Status & Timeline Our architect, civil and structural engineers are working hard towards building permit submittal at the end of April 2016, and we hope to begin construction in June 2016. We have a demolition permit in hand for the house that will be removed, and have been awarded funds from the City of Portland’s new deconstruction grant program to defray deconstruction costs Site Plan Draft 03.02.16 and make salvaged materials available to neighbors.
Rose’s Ice Cream 5011 NE 42nd Ave. After arriving in Portland in 1994 as a Habitat for Humanity volunteer, Eli’s first paid job was with Rose’s Ice Cream at their (prior) Fremont location. When that store closed a couple years later, he bought the old ice cream machine, flavorings, old-­‐fashioned sundae goblets, milkshake and waffle cone machines, and other odds-­‐
and-­‐ends. Over the ensuing years, Eli used this equipment to make big batches of ice cream and host increasingly large community ice cream socials. Needless to say, he was very excited to see Rose’s re-­‐open on NE 42nd Ave. Flash forward “a few” years… and now, Rose’s Ice Cream will be Orange Splot LLC’s foray into mixed-­‐use, commercial development! Property: 10,540 square feet Building: 2,000 square feet Acquisition Price: $650,000 Loan Terms: • 6% simple interest; ~$200K total (mult. loans OK); starting May 2016; 5 or 10 year loan period, with bonus 1% interest at the end of a 5-­‐yr loan or 2% at the end of a 10-­‐yr loan. Orange Splot will hold the property and lease the building to Gina Landtiser. Gina, who is currently managing Rose’s, will buy the business, add a breakfast menu and breath new life into Portland’s oldest craft ice cream business. The lottery will be removed by the end of 2016, and the building will be renovated in early 2017 (since it’s not a good idea to close down an ice cream parlor in the summer). Orange Splot is also interested in opportunities to activate the remainder of the property/ parking lot that surrounds the building, and perhaps bring in additional revenue. The site currently co-­‐hosts the Cully Neighborhood Farmer’s Market, something we are excited to continue. Other ideas may include a farm supply store, seed trading post, or something else desired by local businesses and community members. The ten year plan is, generally, to redevelop the site into some sort of affordable, mixed-­‐use project. NE 42nd Avenue has the potential to follow suit with some of Portland’s other commercial corridors, which are no longer affordable to local businesses or residents (and frequently no longer offer day-­‐to-­‐day services for residents, catering instead to visitors or wealthy shoppers). We are working closely with Our 42nd Ave, a local economic development initiative, to chart a different path for our small business district, and recognize that property owners will have a huge say in how this might end up happening. With this property, Orange Splot will have a stake and a say in future outcomes. Project Status We have a signed purchase agreement for the property and have worked out a term sheet with Gina for the restaurant’s lease. Our acquisition lender’s appraisal is underway, and closing is scheduled for May 2016. Camp Cully 4736-­‐4752 NE Going St. & 4540 NE 47th Ave. Orange Splot LLC is also planning a 22-­‐home community in the Cully Neighborhood. “Camp Cully” will be located on three lots totaling ~1.5 acres (60,944 square feet), across the street from the recently completed 16-­‐home Cully Grove community on NE Going St. near NE 47th Ave. Loan Terms • 6% simple interest; $300K+ total (mult. loans OK); starting Winter 2016; 24 month term (repaid earlier if homes sell quicker) Unit Mix • (3) 1.5 Story Detached Cottages: 650 square feet, 1BR, 1BA • (7) 2 Story Attached Townhomes: 800 square feet, 2BR, 1BA • (4) 2 Story Attached Townhomes: 1,200 square feet, 3BR, 2BA • (7) 2 Story Attached Townhomes: 1,500 square feet, 3BR, 2BA • (1) Existing House: 1,470 square feet, 4BR, 2BA • (1) Common house: 700 square feet, 1BA • (1) Guesthouse: 250 square feet, 1BR Features & Amenities Designed around (and inspired by!) a centrally-­‐located fir tree grove, the site plan is intended to facilitate community building, more efficient resource use, and interaction among residents. Camp Cully will offer residents private homes with shared amenities, including: • Preserved grove of fir trees with campfire area and nearby sauna; • Centrally-­‐located common building with small kitchen for social gatherings and food processing projects, bike repair shop and more; • Guesthouse for friends and family who come to visit; and • Community garden, picnic area, and children’s play areas. Project Approach Camp Cully presents another opportunity to model what we’re calling “voluntary inclusionary zoning.” Now that the State of Oregon (finally!) allows inclusionary zoning, cities can require new residential developments over a certain size to include a small percentage of affordable homes. We’re asking socially-­‐conscious investors to help provide relatively inexpensive financing for this and other new developments in exchange for our voluntary inclusion of permanently affordable homes. To that end, we are working with Proud Ground and Living Cully to include 2-­‐3 permanently affordable homes within this community for first time homebuyers at or below 80% of Median Family Income – which will require a contribution from Orange Splot LLC of at least $50K per affordable unit. Project Status This project has received strong support from the Cully Association of Neighbors, and other advocates in support of increasing affordable homeownership in Cully. We are pursuing a Comprehensive Plan Amendment and Zone Change to obtain R3 zoning for the whole site, and hope to begin construction in winter, 2016.