Buchanan Street Partners Closes $12.76 Million Construction Loan for 110-Unit Cottage Community in Ridgefield, WA
Buchanan Mortgage Holdings, LLC (BMH), an affiliate of Buchanan Street Partners, L.P., has closed a $12.76 million non-recourse senior construction loan for Mill Creek Terrace, a 110-unit cottage community located at 3612 EN 179th Street in Ridgefield, Washington, within the Portland metropolitan statistical area. The commercial real estate financing was announced May 21, 2026.
Loan Structure and Real Estate Development Details
The loan is structured to provide financing for the vertical construction of 22 detached homes in the initial phase of the real estate development, with an option to complete future phases. The collateral consists of 88 finished lots, of which 22 are slated for vertical construction under the current financing. Cottage-style residences at Mill Creek Terrace average 1,490 square feet across three distinct architectural designs.
The project's location offers direct connectivity to Interstate 5, approximately 1.3 miles from an interchange, providing access to employment centers and suburban amenities throughout the Vancouver-Portland metropolitan area.
Sponsor Background and Real Estate Acquisition
The sponsor, HSR Capital, acquired the site in 2023 and completed horizontal development earlier in 2026. In 2025, HSR Capital partnered with Manor Homes, a regional homebuilder with more than two decades of experience in the Washington market, to bring vertical construction in-house. Mill Creek Terrace is described as among the first communities delivered by the combined enterprise.
"We were drawn to this transaction by the sponsor's land development background and the veteran homebuilding expertise of the Manor Homes team," said Chris Cervisi, SVP at Buchanan Mortgage Holdings. "HSR is the type of sponsor that we like to align with, and we are hopeful this transaction is the first of many collaborative successes."
Buchanan Street Partners and Commercial Real Estate Financing Strategy
Buchanan Mortgage Holdings originates non-recourse bridge and construction loans for the acquisition, development, renovation, recapitalization, or refinance of commercial real estate in primary and secondary Western U.S. and Texas markets. The firm uses its own balance sheet and fully discretionary lending capabilities, which it says allows for certainty of execution within short timeframes and flexible loan structures.
Transaction Summary
- Loan Amount: $12,760,000
- Loan Type: Non-recourse senior construction loan
- Sponsor: HSR Capital
- Collateral: 88 finished lots, 22 slated for vertical construction
- Property: Mill Creek Terrace, 3612 EN 179th Street, Ridgefield, WA
- Total Planned Units: 110
- Current Phase: 22 detached homes
- Average Unit Size: 1,490 square feet