By Portland Housing Bureau
The Portland Housing Bureau (PHB) has invested $6 million to preserve and extend affordability for existing and future tenants at the Belmont Dairy Apartments and Lofts (3340 SE Morrison St.). Funding was sourced from the City’s Construction Excise Tax revenue.
Belmont Dairy Apartments and Lofts is a historic, 85-unit, 148,002-square-foot mixed-use affordable building. The property spans two city blocks and features studios, lofts, one- and two-bedroom residences. Belmont Dairy will utilize clean energy sources to reduce the property’s carbon emissions in support of the City of Portland’s ambitious sustainability goals. Once a functioning dairy facility, the property has been thoughtfully converted to feature contemporary homes offering ample storage and modern upgrades, including stainless steel appliances, hardwood flooring and more. Residents benefit from proximity to major transit lines, a grocery store on the ground floor, a diverse array of dining offerings as well as the expansive Laurelhurst Park.
“The preservation of Portland’s existing affordable housing stock is absolutely essential to ensuring livability in our city,” said Portland Housing Bureau Director Helmi A. Hisserich. “We are grateful to Vital Housing and AOF Pacific for partnering with us to preserve the affordable housing at Belmont Dairy for 99 years, ensuring people of all incomes will continue to live in the beautiful Sunnyside neighborhood of SE Portland.”
With Belmont Dairy’s 30-year affordability terms set to expire in 2026, Vital Housing, in partnership with AOF Pacific, has acquired the property, preventing its conversion to market-rate housing. PHB’s catalytic investment will ensure that 67 regulated units will remain affordable for 99 years. The regulated units will be affordable to those making 60 percent of Area Median Income, or $63,720 for a three-person household, and consist of two studios, 46 one-bedroom and 19 two-bedroom apartments. The project also includes 18 market-rate lofts.
“Vital Housing’s mission is to tackle the growing affordability crisis while making meaningful progress toward decarbonizing the housing sector,” said Robert Sheppard, Founder and Managing Partner of Vital Housing. “The long-term preservation and decarbonization of Belmont Dairy is a testament to our commitment to delivering lasting social impact for the communities we serve.”
Vital Housing will transform Belmont Dairy into a more energy-efficient and energy-independent property through the integration of heat pumps, solar panels, LED lighting, water conservation measures and indoor air quality improvements.
“Affordable housing plus energy efficiency equals a winning equation for southeast Portland,” said Senator Ron Wyden. “This provides a wonderful example of how smart and targeted investments can help make our community an even better place to live while also designing a model that other communities can emulate.”
“This milestone exemplifies our unwavering commitment to addressing the housing crisis while breaking down the financial barriers to energy efficiency,” said Sadie McKeown, President of CPC. “CPC Climate Capital is proud to support Vital Housing and the City of Portland by investing in the extension of housing affordability.”
Equity for the transaction was provided by Freestone Real Estate, an evergreen real estate fund managed by Freestone Capital Management. Freddie Mac provided the senior loan, originated by Berkadia Mortgage and additional subordinate financing was provided by CPC Climate Capital.