TMT Development's president struggles to revive Park Avenue West

| Print |  Email
Articles - June 2011
Wednesday, May 18, 2011
0611_HoldingTheLine_02It’s in times like these that the company — through Moyer or Sturgeon — has been known to buck its own policy and seek the media spotlight.

In 1997, Moyer broke ground without any financing on the Fox Tower project; two years in, with $90 million of his own money already committed, he had no more than a fifth of the future space rented. Development competitors expected him to fold, but Moyer had a card left to play: his life story. Inviting The Oregonian’s R. Gregory Nokes into his Vancouver, Wash., home, Moyer laid out a drama worthy of Alger, about his rise from hard-scrabble Depression baby beginnings in Sellwood, his abandonment of school to pursue an amateur boxing career that put him in the ring with legendary Sugar Ray Robinson, through the growth of his theater conglomerate that led to a falling out with his siblings but eventually earned him $192 million upon sale in 1989, and finally, tossing out some anecdotes of the stinginess and forgetfulness that friends and family said defined him.

Nokes was even offered a view from the top of the skeletal concrete elevator shaft Hoffman had put in first at the Fox Tower, and here was the trade-off: Moyer, whom Sturgeon describes as “excruciatingly private,” was willing to expose himself in exchange for some free publicity. “He felt he had to,” says Sturgeon.

The outreach effort, combined with an aggressive sales pitch from Moyer’s team of high-powered brokers, worked. In late 1999, timber magnate Louisiana Pacific committed to leaving the choicest office address in Portland — the top two floors at U.S. Bancorp Tower — for the Fox Tower. That led to a construction loan from Bank of America, and by the time the building was finished it was over 90% leased. Moyer moved into his own apartment on the upper floors of Fox Tower, the new “it” spot in town.

A mini-charm offensive from Sturgeon last spring, however, couldn’t rescue TMT’s $50 million investment already sunk into Park Avenue West. The Portland Development Commission was weighing a move from its Old Town offices into Park Avenue West that — with commitments from Stoel Rives to half the office space and Nike to a retail store — would have secured a construction loan from Pacific Life to finish the tower. Sturgeon and Co. hired a public affairs consultant to navigate the PDC’s public bid process and Sturgeon sat for an interview with the Portland Business Journal.

But that restart fell through when PDC officials couldn’t justify paying an estimated $10-a-square-foot premium to move commission offices to Park Avenue West. It was a prime example of the persistence of low rents around the city that have been a drag on new office projects.

That brings us to TMT’s latest predicament: It’s without a loan and without Stoel Rives, which renewed its lease at the Standard Insurance Tower last August. The company needs to show its face again.

 



 

Comments   

 
Jeffrey
0 #1 Signature Downtown TowerJeffrey 2011-06-13 19:03:15
The proposed Park Avenue West tower is located on a prime block in downtown Portland and will be a positive addition to the skyline. Office and retail tenants will add vibrancy to the immediate streetscape. The office tower should become a "signature address" for corporate firms to relocate into - one of only a few recent proposed projects in Portland that has some dynamic potential...
Quote | Report to administrator
 

More Articles

Fueling Up for the Climb

July/August 2015
Friday, July 10, 2015
BY GREGG MORRIS

Rita Hansen aims to scale natural gas vehicle innovation.


Read more...

Brain Storm

July/August 2015
Monday, July 13, 2015
BY CAMILLE GRIGSBY-ROCCA

Can the brave new world of neurotechnology help an OHSU surgeon find a cure for obesity?


Read more...

Photo log: Murray's Pharmacy

The Latest
Friday, July 17, 2015
OBM-Heppner-Kaplan thumbBY JASON KAPLAN

Photographer Jason Kaplan takes a look at Murray's Pharmacy in Heppner.  The family owned business is run by John and Ann Murray, who were featured in our July/August cover story: 10 Innovators in Rural Health Care.


Read more...

Reader Input: Road Work

March 2015
Wednesday, July 15, 2015

Oregon's roads are crumbling, and revenues from state and local gas taxes are not sufficient to pay for improvements. We asked readers if the private sector should help fund transportation maintenance and repairs. Research partner CFM Strategic Communications conducted the poll of 366 readers in February.

0315 input01 620px

 

Reader comments:

"I feel private enterprises are capable of operating at a higher efficiency than state government."

"This has been used in Oregon since the mid-1800s. It is not a new financing method. This form of financing may help Oregon close its infrastructure deficit by leveraging funds."


Read more...

5 things to know about veterans in the workforce

The Latest
Wednesday, July 01, 2015
070215-vetsthumbBY JACOB PALMER | DIGITAL NEWS EDITOR

There are more than 10 million former military members working in the United States.


Read more...

House of Clarity

July/August 2015
Monday, July 13, 2015
BY JACOB PALMER

Holding a Power Lunch at Veritable Quandary in downtown Portland.


Read more...

The Private 150: From Strength to Strength

July/August 2015
Monday, July 13, 2015
BY KIM MOORE

Revenues in Oregon's private, for profit sector maintained solid growth as the economy continued to rebound.


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS