Construction has officially commenced on a new 276-unit market-rate apartment complex named The Hub Hermiston, located on Diagonal Boulevard. The project, developed by I&E Construction from Wilsonville, was celebrated by Hermiston officials on March 9, 2025, marking a significant step in addressing local housing needs.
With an investment of $50 million, The Hub Hermiston is expected to be completed by the end of next year. The complex will feature multiple buildings that include one-, two-, and three-bedroom apartments, as well as studio options. The management team plans to begin preleasing units in July 2025, with hopes of welcoming the first tenants by December.
Community Impact and Amenities
Assistant City Manager Mark Morgan emphasized the importance of this development, stating that the new market-rate units will provide an opportunity for working professionals to settle in Hermiston. “We hope they will eventually set down roots and buy homes in Hermiston, rather than exporting their salaries to the Tri-Cities,” he noted. The complex aims to retain over $20 million annually in household wages, which can be invested back into local businesses.
The Hub Hermiston is designed to offer a variety of amenities, including a full gym, pool, spa, and a pickleball court. Additionally, a community room will be available for residents. Tom Ivanov, asset manager for I&E Construction, highlighted the project’s appeal, stating that it caters to a significant gap in the local housing market.
Tax Incentives and Economic Considerations
The development follows a tax incentive agreement signed between the city and the developer last summer. Under this agreement, Hermiston will reimburse I&E Construction for a substantial portion of the property taxes over the next several years. The city will cover 100% of the taxes paid in 2026 and 2027, 75% in 2028, 50% in 2029 and 2030, and 25% in 2031.
By the end of this agreement, the city will have paid approximately 66%, or just over $1.3 million, of the developer’s property taxes during the five-year period. Morgan described the incentive as “incredibly affordable,” noting that it amounts to less than $4,000 per unit.
The city anticipates that this project will not only fill a critical housing void but also stimulate local economic growth. “This type of market-rate apartment complex is what we really need,” Morgan said, adding that the expected occupancy could surpass the population of nearby Echo.
Tom Bivens, director of development for I&E Construction, expressed enthusiasm for the project, stating, “We’re excited to be working with people who want to make this a better place to live.” The Hub Hermiston represents a meaningful investment in the community’s future, aiming to enhance the quality of life for residents while contributing to the local economy.
