Court documents show that the owner of Jackson Tower, a famous building that looks out over Pioneer Square, has not paid back a loan from JPMorgan Chase. This is another blow to the downtown Portland real estate market.
Jackson Tower Partners LLC, which owns the 12-story Beaux Arts office building in the 800 block of Southwest Broadway, borrowed $11.5 million from JPMorgan Chase in 2018 and missed its first loan payment on November 1, 2022, according to a lawsuit filed in Multnomah County Circuit Court on April 5.
JPMorgan Chase asked the court to name a receiver, which is a neutral third party that handles an asset during a legal dispute and is often charged with selling an asset to pay back a loan. On April 11, court papers show that the court gave in to JPMorgan Chase’s request for a receiver.
When asked why her client didn’t pay back the Jackson Tower loan, attorney Sherry DuPont from California said it was because “downtown Portland is getting worse.”
More Portland updates, given below-
- Portland Squatters Occupied a Shuttered Tavern, It Ignited Suddenly
- Breaking News: Portland Diamond Project Pursues MLB Dream
Jackson Tower, known for its clock tower with Roman numbers, was built in 1912 to hold the Oregon Journal. Records show that the paper was there until 1948. It was given the name Jackson Tower in 1951 to honor Charles Samuel Jackson, who started the newspaper. In 1996, it was added to the National Register of Historic Places. The Oregon Journal was a daily afternoon paper that stopped coming out in 1982.
Jones Lang LaSalle’s executive vice president, Cayla Wardenburg, says that more defaults like these are possible.
“This is an unfortunate reality for some buildings in downtown Portland in 2023, especially historic properties with high vacancy rates and large loan amounts,” Wardenburg said in an email. “Depending on the building and the lender, it could also lead to “structural vacancy,” which is when a building has space but is temporarily or permanently unable to rent it out.
This year, empty houses have caused a lot of trouble for Portland. Washington Center, an empty shopping and office building at the corner of Southwest 4th Avenue and Washington Street, turned into an open-air fentanyl market last month.
This was before police started patrolling the building around the clock and clearing it of squatters. The owner, Menashe Properties, put up boards over nooks and a covered area where drug dealers and users had been hiding.
Graffiti can be seen for blocks on the top floor of Jackson Tower, which is at 806 SW Broadway. KATU says that the damage happened last year.
In December, KOIN said that the owner of the building and city officials were working on a plan to get rid of the graffiti. In order to do this, they would need a special lift, the MAX train just below to stop running, and special products that wouldn’t damage the building’s surface.
The Oregon Secretary of State’s Office says that Jackson Tower Partners LLC has a mailing address in Torrance, California. PCH Partners LLC, 871 Figueroa Terrace LLC, and Xiao Hui LLC are all listed as owners. All of them have the same address in Torrance as Jackson Tower Partners.
Willamette Week also shared this news via tweet, which is given below-
Jackson Tower Partners bought the building for $13.5 million on September 12, 2008. This was three days before Wall Street investment bank Lehman Brothers filed for bankruptcy, which helped start the Great Recession and one of the worst drops in real estate prices in U.S. history.
In its request for a receiver, JPMorgan said that on March 1, in Multnomah County, it started a nonjudicial foreclosure on the property by filing a notice of default and option to sell.