University Place Hotel may soon be forced to close its doors. A new market study and development strategy will help Portland State decide how soon that will be.
As enrollment continues to grow every year, PSU is looking to get out of the hotel business and better employ the University Place site. While renting out rooms is not proving to be profitable, that four acres of urban property is an attractive oasis for future development. A pursuit to decide the location’s fate is currently underway.
PSU has hired Johnson Reid, a local real estate development and consulting firm, to conduct a yearlong market study beginning this August, which will help determine a long-term future for the site. The firm was selected through a request for proposals process, and was one of four teams considered for the project.
“Johnson Reid is going to assess market conditions to determine what uses [of University Place] make the most sense,” said Dan Zalkow, the executive director of planning, construction and real estate for Finance and Administration at PSU.
“At this point we’re going to be open to a variety of options, and we’re going to look to them to help us figure out what the most appropriate use and ownership model is for this site,” he added.
Zalkow explained that PSU is avoiding any preconceived notions for the location at this point, and that the school will look at a variety of public-private partnership models. Potential uses could include lodging and conference facilities, like what exists today, but it could also include classroom space, research space and even private commercial or retail space.
“We’ll be looking at best practices from across the country, among other universities, as to the various ways that universities have developed properties with partners,” Zalkow said.
According to Zalkow, Johnson Reid will reach out to neighboring property owners and developers to get a sense of what their thoughts and interests are. TriMet is already an active stakeholder in how University Place is developed, as its Lincoln Station MAX stop is nearby. TriMet will be funding up to $200,000 for the study.
In addition to proving to be a poor investment, the hotel has faced much scrutiny for its operational functions, as initially reported by the Willamette Week in May. Zalkow explained that the timing of this study is purely coincidental, however, and that it was actually a few years ago that PSU began looking into redevelopment strategies for the site.
“At this time, there are no immediate plans to close the hotel,” Zalkow said. “We are currently finalizing the contract with Johnson Reid and there’s no pressure to rush this work.”
University Place’s interim general manager, Jill Aschendorf, was contacted for a statement regarding the future of the hotel. She stated that she was “not the one to talk to,” and declined to comment further.