The new owners of 8358 NE Holladay Street recently submitted a request to replat their double lot, making way for a new four-home development and Accessory Dwelling Unit (ADU) while preserving the original 1940-era home. Rees Bettinger purchased the corner property through a Limited Liability Company in September 2023 as he was in the process of building a new cottage cluster across the street. The housing density he created with his first project on Holladay Street was an effort to repurpose the lot’s vast yard. However, the density planned for this second property is mandated by City zoning rules for redevelopment.
Although both corner lots sit across NE 84th Avenue from each other, 8358 NE Holladay Street is in a pocket of Residential Multi-Dwelling 2 (RM2) zoned properties instead of Residential 2,500 (R2.5). RM2 zoning allows large buildings up to three or four floors. However, it has a base size requirement triggered by redevelopment to encourage efficient land use in the zone. The minimum density for an RM2 zoned property per Portland City Code 33.120.213 is 1 unit per 1,450 square feet. For this 10,000-square-foot site, the City requires at least seven housing units. That was more housing than the development team felt would fit the existing scale of the area, so they got creative. “If the existing house is retained, then that house will count as two units,” explained Bettinger. Now only needing to create five more homes, he plans to achieve the required density by building four townhouse units on the new lot where the garages once stood and adding an ADU to the original home’s yard facing NE 84th Avenue.
In preparation for the replat, crews demolished the attached garage that would have extended over the property line. The original home will sit on a 5,438 square-foot parcel, and the smaller 4,562 square-foot property will contain an older accessory structure. Demolition workers will return to remove that detached garage ahead of the townhouse construction. Those two-story units will offer residents around 1,200 square feet of living space, three bedrooms, and two-and-a-half bathrooms. The northmost home will face onto NE Holladay Street, and a walkway will provide access to the back three units with doors facing east. “We’ll have ten feet between the building and the western lot line to have some outdoor areas for a patio with a place to put a little outdoor picnic table and a barbecue,” said Bettinger. The two-bedroom, one-and-a-half bathroom, detached ADU will remain with the original house, with its door opening onto NE 84th Avenue.
Similar to the project across the street, Bettinger will need to reconstruct the sidewalk corner ramps to comply with current Americans with Disabilities Act (ADA) standards. He also expects to re-pour the sidewalk concrete and rebuild curb segments around the property, particularly where crews removed the driveway. This site will not offer onsite vehicle storage. Instead, it will rely on curbside parking for residents and guests. “I think [parking] is probably the biggest deal in terms of where people are negative on these types of projects. There are a lot of projects that the City of Portland won’t allow off-street parking on. As a realtor, I know most people want a garage, and now the codes [require] quite a bit of [building] width to even have a garage approved. I understand the City’s perspective on it; by the time you get a [driveway] approach and then the wings of that approach, oftentimes you’re taking two [on-street parking spaces] away to create one onsite,” said Bettinger.
Bettinger and his family live in the area, and this development work grew out of seeing many infill opportunities in Montavilla yards. Early in his life, he worked in construction as a framer and a remodeler before going into real estate. In 2020, Bettinger bought his first lot and paid a builder to develop a new home intended for sale. By 2021, he obtained an Oregon Construction Contractors Board license and started taking on subcontractor management work on his projects. However, Bettinger continued working as a realtor, sometimes working more than reasonable hours. Development work came at the right time, as a hot housing market meant many of his clients could not close on a property in a bidding war, and he was not making regular commissions on the sales. For Bettinger, becoming a full-time builder is not an easy solution to weathering a challenging housing market. It has its own problems and frustrations, including nearly a dozen instances of break-ins and vandalism at his last project site. On top of building delays, that damage cuts into project feasibility, creating a sense of dread during some parts of the work cycle.
Bettinger’s knowledge of the selling side of the market helps shape the projects he takes on, but his consideration for the community also plays a factor. “My wife’s been a wonderful partner in every way. She’s great at asking me questions. ‘What are we doing to these neighborhoods? Can we run a business that’s profitable but also something you can be proud of at the end of the day?'” recalled Bettinger. That consultation helps the business adjust project scope to factor in the neighboring properties, which is why Bettinger does not always build to the highest density allowed. As he moves forward, projects will trend to smaller-sized units as that is what people can afford at an entry level.
Bettinger expects this project to take a few more months before he can submit building permits, likely pushing construction back to the end of this year. Details of the project could change based on the City of Portland’s feedback, and the total number of units for sale will depend on further land division allowances. Residents in this area should expect more construction at this site towards the end of the year. Additionally, people can anticipate greater density in the RM2-zoned blocks as properties redevelop with the City’s higher minimum unit requirements.
Promotion: Help keep independent news accessible to the community. Montavilla News has a Patreon account or you can pay directly online. We invite those who can contribute to this local news source to consider becoming paid subscribers or sponsors. We will always remain free to read regardless of subscription.