808 SE Alder St — Portland, OR
Life sciences office building acquired out of receivership. Prior group invested ~$20M pre-COVID. Purchased at deep discount. Anchor tenant PDT set to move in October 2027. Refinance target shifted to EOY 2027 (was July 2027). SPV1 investor detail is on a separate page.
Purchase price
$6,000,000
Appraised value
$13,700,000
Stabilized NOI
$705,632/yr
SPV1 stake
29.38%
Property overview
| Address | 808 SE Alder St, Portland, OR |
| Type | Life sciences office — prior $20M infrastructure build-out |
| Anchor tenant | Pacific Diabetes Technology (PDT) — move-in October 2027 |
| Entity | 808 SE Alder LLC (wholly owned sub under the deal stack) |
| SPV1 stake in building | 29.38% (HTC-SPV1 LLC owns this via Tranche 2) |
| Operator | Chris Marsh (also PDT Chairman — conflict noted) |
| Legal | Dunn Carney LLP, Portland (MElken@dunncarney.com) |
| QOZ | Qualified Opportunity Zone — Form 8996 annual cert required. 30-month substantial improvement clock is live. |
Building financials
| Item | Amount | Note |
|---|---|---|
| Purchase price | $6,000,000 | ~50% of appraised value |
| Bank loan | $4,000,000 | Non-recourse · 6.5% · matures 7/7/2031 (IQCU) |
| Total capital stack | $8,425,000 | $4M loan + $4.425M cash equity |
| TI construction reserve | $880,000 | Held at bank · GMP agreement Nov 14, 2025 |
| Appraised value (4/28/25) | $13,700,000 | As-is |
| Stabilized value (proj.) | $20,400,000 | Post-PDT occupancy |
| Stabilized NOI | $705,632/yr | Per investment memo |
| Current cash flow (est.) | ($46,000)/yr | At stabilized occ. with current debt |
| Pre-revenue burn | ~$72,000/6 mo | Before tenant occupancy |
Refinance scenario — EOY 2027 (updated)
Timeline change: Refinance target moved from July 2027 to end of year 2027. PDT move-in now expected October 2027. Stabilization window compressed — NOI must be demonstrated before refi appraisal.
| Scenario | $7M refi | $9M refi | $11M refi |
|---|---|---|---|
| New loan | $7,000,000 | $9,000,000 | $11,000,000 |
| Pay off existing | ($4,000,000) | ($4,000,000) | ($4,000,000) |
| Net cash available | $3,000,000 | $5,000,000 | $7,000,000 |
| Less Krinsky priority (~$875K) | ($875,000) | ($875,000) | ($875,000) |
| Available for distribution | $2,125,000 | $4,125,000 | $6,125,000 |
| HTC share (81.6% of SPV1) | ~$1,734,000 | ~$3,366,000 | ~$4,998,000 |
Krinsky $875K is first-priority distribution per SPV1 OA Section 5.2. Actual waterfall depends on Tranche 2 recovery first, then pro-rata by units. See SPV1 investor page.
Investment thesis
- Entry discount: $6M purchase vs $13.7M appraised = 56% discount
- Embedded infrastructure: $20M+ prior build-out for life sciences — prohibitively expensive to replicate
- Anchor tenant: PDT lease in place; move-in Oct 2027; TI construction underway
- Refinance upside: Target $9M refi EOY 2027 → ~$4.1M distributable after Krinsky priority
- QOZ benefit: Capital gains deferral + potential exclusion on appreciation if held 10+ years
Key risks: (1) Building is cash-flow negative until PDT occupancy. (2) Chris Marsh conflict — PDT Chairman + building operator. (3) QOZ 90% asset test + substantial improvement deadline. (4) If PDT relocates post-acquisition, building loses anchor tenant.
Timeline
| Pre-2020 | Prior group invests ~$20M; COVID kills the project; goes into receivership |
| Dec 2024 | Aaron + Robert commit; described as "$1M in the building" + additional PDT capital |
| Mar 4, 2025 | Aaron confirms $2M equity commitment |
| Apr 28, 2025 | Appraisal completed — $13.7M as-is |
| Jun 2025 | 808 Alder purchase closes; PDT lease negotiated via Dunn Carney |
| Jun 12, 2025 | Aaron updates Chad Ottenbreit: buying as distressed asset |
| Jun 25, 2025 | $300K wire from Aaron's Morgan Stanley + Hani loan signed |
| Jun 27, 2025 | $640K + $50K wires out from Selco to 808 Alder |
| Nov 14, 2025 | TI construction commences; $880K reserve held; ~5 month build |
| Oct 2027 (est.) | PDT move-in |
| EOY 2027 (est.) | Refinance target — was July 2027, pushed due to later stabilization |
Open issues
| Priority | Issue | Action |
|---|---|---|
| HIGH | QOZ Form 8996 — may never have been filed for 808 SE Alder LLC | Pull entity tax returns. If unfiled, QOZ framing was aspirational only. |
| HIGH | PDT lease change-of-control terms unknown | Get lease from Peter Eckenberg or Chris Marsh. |
| MED | Chris Marsh conflict — PDT Chairman + 808 operator | Independent counsel before any PDT/building transaction. |
| MED | Vacancy risk if PDT acquired and relocates | Model downside scenario. Building + PDT investments move together. |
| MED | 30-month substantial improvement test | Verify timeline from initial QOZ investment date. Clock is running. |
Drive document links
| Document | Link |
|---|---|
| 808 Alder folder | HTC SPV1 / 808 Alder |
| 808 Alder appraisal | 808_Alder_Appraisal_042825.pdf |
| 808 Alder equity financing closing | 808_Alder_Equity_Financing_Closing_2025.pdf |
| SPV1 investor detail | HTC-SPV1 Investor Summary |
| Deal summary PDF | 808_Alder_Portland_Deal_Summary.pdf |
Updates
Sep 7, 2026 · Warren 🏦
Complete rewrite. Separated building-only financials from SPV1 investor detail (now on its own page). Removed Sinocare references per Robert. Updated refi to EOY 2027, PDT move-in to Oct 2027. Added three refi scenarios ($7M/$9M/$11M).
May 13, 2026 · Warren 🏦
Initial deal profile from Gmail sweep and SPV1 OA review.