Category: Property Sale

New Residence, Property Sale, View of Montavilla

Securing the NE 102nd and Pacific Development

On November 13th, Prosper Portland’s Board of Commissioners voted unanimously to purchase a 5.18-acre vacant property at the southwest corner of NE 102nd Avenue and Pacific Street. This $10.6 million investment from the Gateway Tax Increment Financing District funds will hold the property while the developer restructures financing for a planned middle-income complex that will bring at least 216 housing units in an expansive mixed-use project that could become a catalyst for other area development.

The conglomeration of large open land started around the formation of the Gateway Urban Renewal District by one of its advisory committee members, Ted Gilbert. “I assembled it over a period of years, starting in 1998. There were numerous parcels. There were some apartments and individual rental houses there that had reached the point of obsolescence,” remembered Gilbert. As his group of investors neared the purchase of another adjacent parcel that would have given them a combined ten acres, their crews cleared the site, leaving just one brick building standing. “I had visions for it in 2005,” explained Gilbert. He and his partners planned to construct a sizeable 40,000-square-foot Class A office building on the site and had pre-lease commitments for nearly 50 percent of the offices. However, the group paused the project, not wanting to be the first builder in the area to set the scale and direction of the district without seeing what other builders envisioned.

Early version of development proposal from 2022

Not long after slowing the office building project, the 2008 financial crisis halted plans for the foreseeable future. They gave up the property purchase west of the site, and the David Douglas School District bought the adjacent 5.5 acres for a future multi-story elementary school. After the economy stabilized, the project for the site changed focus to become a multi-generational community. The new partners wanted to use their experience creating senior living centers to construct a place for workforce housing near their planned retirement community. “And then the pandemic hit. It was particularly challenging for the senior housing business, literally a life and death issue,” recalled Gilbert. Uncertain about the future, the investors wanted out of the project, and the group opted to sell the land to Tom Cody, who had a concept for creating a prototype development. “He has a vision to deliver workforce housing that is both highly attractive, highly desirable, and more affordable than the way it’s being developed right now,” said Gilbert.

Tom Cody addressing Prosper Portland’s Board of Commissioners meeting November 13, 2024

Tom Cody’s modular housing company, Modomi Gateway Development, currently owns the NE 102nd Avenue and Pacific Street property. Cody is also the president of a development company called Project^ that plans to construct the workforce housing at this site. Prosper Portland will soon purchase the property after a 90-day due diligence period and a 30-day closing term. The negotiated price for the 5.18 acres is less than the $11.1 million initially invested by Cody and partners. The property sellers have three years to repurchase the parcels at the same sale price adjusted upward against the Consumer Price Index for Urban Consumers. If the development team does not progress toward building the housing at this site after two years, Prosper Portland can begin canceling the repurchase option after giving notice. Prosper Portland could also retain the property and let the housing project proceed with a ground lease.

Prosper Portland staff and Cody expressed confidence that this housing project would proceed, partly thanks to this short-term sale. The development company is almost done with its first implementation of this modular production process, which has created 87 housing units in Bend, OR. The Port of Portland approved a lease to Modomi, a subsidiary of Project^, at Terminal 2 along the Willamette River. The company intends to convert an existing warehouse into its local modular housing manufacturing facility. In multi-story modular housing production, crews build nearly move-in-ready units in a factory setting. Trucks transport segments to the site, and cranes assemble them like bricks to form the final multi-story structure. Cody explained to the Prosper Portland Board at its November 13th meeting that he has the State of Oregon’s permit approval to start building these units and needs to refinance this project to move forward. “We’ve invested $8 million in a factory at Terminal 2 in the Port of Portland, so I’m currently also working to restructure that arrangement and work with new partners on getting that factory up and running to produce modules to serve Gateway,” said Cody as part of his invited testimony.

Presentation slide from Prosper Portland’s Board of Commissioners meeting November 13, 2024

Prosper Portland’s commitment to buying the Modomi site will ensure that this prominent property near the Fred Meyer store and the Gateway Transit Center becomes housing and can act as a catalyst for other developments. Staff presenting to the Prosper Portland Board acknowledged that this Tax Increment Financed (TIF) District fell short of its mixed-income housing goals. Of the desired 3,900 new units of multifamily transit-oriented housing, developers have only delivered 707 units since 2010. Additionally, 89% of those units are deed-restricted affordable housing. The presenters explained that thriving business districts depend on people living around them with a mix of income levels to support diverse store options. Up to this point, many property owners in the area have waited to build their workforce and market-rate housing. Receiving development financing from banks or investors often depends on showing comparable examples of successful projects. Joel Devalcourt, with Prosper Portland, explained that many surrounding property owners are looking to see if this project can succeed. “For the last two and a half years, we have talked to numerous land owners, those who are land banked to a degree, and then those who are very much interested in redevelopment, and everyone has been looking for the right dominoes to fall,” said Devalcourt to the Prosper Portland Board.

Development at the NE 102nd Avenue and Pacific Street site is likely years from breaking ground. However, if Cody can make this project work, it could have substantially positive effects for Portland. Workforce housing at the site will fulfill a decades-long vision for a multi-income community centered in Gateway and potentially lead to the redevelopment of more vacant property in the district. Additionally, Cody’s pursuit of modular construction may prove to be more significant for housing creation than just building 216 homes in Gateway. If modular housing production succeeds as a cheaper and faster building method, other projects could use the Modomi facility at Terminal 2 to produce housing units throughout the metro area. Until crews begin work within the next decade, Prosper Portland is investigating ways to temporarily activate the future housing site and the David Douglas School District property to better meet the surrounding community’s needs.

By

Jacob Loeb

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New Residence, Property Sale

NE 91st Ave Townhomes on the Hill

This Fall, Trinity Construction & Design completed work on a five-unit townhouse development at 716 NE 91st Avenue. Each home offers three bedrooms, two full bathrooms, and one main-floor powder room. The property owners have these nearly 1,100-square-foot two-story homes listed as condos on individual lots. However, an additional listing offers all five homes as a single purchase for a buyer looking for a unique rental complex.

In March, J&I Properties, a Limited Liability Company, took ownership of the property from the project’s developer, Provision Investments. Ivan Didyk’s company, Trinity Construction & Design, began building the townhouses based on the pre-approved plans that Provision had sold to Didyk. “[Provision] buys the land, they do the planning, and they get you up through permits. Then I bought the project from them, permit ready,” explained Didyk. His company recently worked with Provision in a similar deal on NE Hoyt Street. Didyk built two apartment buildings east of these new townhouses last year and retained ownership of one at 9050 NE Hoyt Street.

Ivan Didyk has worked in the construction industry for 13 years, starting Trinity Construction & Design three years ago during the pandemic. He explained that he brings his own experience as a parent into his projects, creating a space suitable for adult tastes but room for multi-member families. “Whatever I build, I would be happy to live in,” said Didyk. Crews finished the homes with high-quality features that respect the durability requirements of young children and pets. Crews installed luxury vinyl planks throughout the house, providing the look of hardwood but with the strength to resist dents and scratches. The second level full-sized stacked laundry closet also reflects the family-oriented design consideration. Didyk explained that some other builders only build space for smaller two-foot-wide washing units. “We build for full size because if you have a family with kids, you do a lot of laundry. The little tiny two-foot washers and dryers are brutal for families.”

Didyk clarified that family-designed housing does not equate to bland or cheap finishes. He installed full-height tile backsplash in the kitchen with quartz countertops, stainless steel appliances, and custom-fitted cabinetry. An island with eating bar seating provides separation from the entryway and kitchen with needed counter real estate and an activated spot at the front of the house. Wider trim throughout the homes, coupled with tall ceilings, set a scale for the interior that expands its perceived space. Modern steel railings provide stable support and keep the stairway visually open across the levels. Bathrooms feature custom vanities, while a ducted mini-split system offers heating and cooling that’s hidden away from sight. The floor plans for these homes utilize creative space-saving techniques to make the most of limited space.

Based on his previous successes building in the area, Didyk decided to step up his finishes to meet the future prosperity he sees coming to the community. “I put my heart and soul into this one. I made it nicer than I normally do, just to stand out,” remarked Didyk. “I think in 20 years, the Montavilla neighborhood is going to be one of the best neighborhoods in Portland.”

The significant change in elevation across the property called for several design choices that add character to the homes. “Sloped lots require a little more in engineering and design. It’s more expensive to build because you either have to dig into the ground or build above ground,” explained Didyk. He said that sellers often factor engineering costs into the purchase price of sloped lots. Additionally, Didyk enjoys the creative architecture that comes from building with the unique grading of a lot. For instance, in this project, building up from the low point on the northwest corner of the property allowed the front three units to gain roughed-in storage space below the homes. The back patio would often consist of a concrete pad in a small fenced enclosure with other townhomes, but each unit in the NE 91st Avenue townhouses has protruding decks. The front retaining walls create a tiered separation from the street without needing a fence, and the tall foundation provides the homes with a clear northward view over the neighbor’s roof.

Other design elements were unrelated to the topography. These homes have similar floor plans, but they vary in width. This gives some units a few more feet of floor area and alternates the shape of the building, making an obvious separation between each unit. The front and back units have more windows and the froward most home has a covered porch. The rear unit has a small private yard with a bonus concrete pad for an outdoor grill or bike storage.

As with many new housing projects, future residents will want to rely on street parking or transit options. Didyk explained that home buyers looking in this area are not overly car-dependent. “A lot of people in Portland use public transportation, and I think Portland probably has one of the best public transportation systems on the West Coast. People in this neighborhood will like the public transportation options with the MAX line so close. There is [also] quite a bit of street parking. I’ve never had issues parking on this street,” said Didyk. A single bike rack at the front of the building will let visitors secure their bikes, and Trinity Construction & Design will provide interior storage options if requested. “We have bike racks, so if somebody buys a unit and they want [an indoor] bike rack installed, we’ll do it for free,” explained Didyk.

Ivan Didyk is pleased with how these townhomes turned out and looks forward to seeing people’s lives enhanced by moving in. “I’m a big believer in making Portland a better place, a lot of people are complaining that Portland is getting worse. Instead of complaining, my goal is to find neighborhoods that are up and coming, investing my money and my time into them as a place for families. A place for people to live and raise their kids,” said Didyk. That is one main reason he wanted to create three-bedroom units. Admittedly, the rooms are smaller to fit the footprint available. However, he felt it is critical that people with children can find quality homes that are still affordable at the median income range. The units are available now. Buyers will pay a small sub $100 HOA fee in addition to their mortgage. People interested in seeing the homes can contact Darryl Bodle of Keller Williams Realty at 503-709-4632.

Article and phots by

Jacob Loeb

Correction: Updated the address to the preferred address of 716 NE 91st Avenue from 760 NE 91st Avenue.

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History, Property Sale

Former Fueling Site for Sale Again

The owners of a 0.8-acre industrial site at 9270 NE Glisan Street listed the property for sale after almost four years of use as a freight transportation yard. This former Associated Petroleum Products distribution facility spans residential and commercial zoning, and any substantial redevelopment would need to conform to new city-designated uses. However, new owners could request conditional use approval for similar logistics operations as allowed today.

Pioneer Oil Company built the facility in 1988, and the family that owned that company still has a stake in the property. In 2020, they entered a real estate transaction directly with a buyer to sell the property. Now, the 350 by 100 foot multi-parcel property is available again. The front 10,000 square foot lot is on NE Glisan Street in a Commercial Mixed Use 1 (CM1) zone, allowing small-scale buildings generally three stories tall. It could support apartments, offices, and retail storefronts. The Residential 2,500 (R2.5) parcels are single-dwelling zones, but newer building codes allow for housing density in these areas, including cottage clusters and fourplexes.

Overhead image from Portland Maps Red lines indicates CM1 Zoning and blue marks a residential R2.5 designation

The mixed-use parcel on NE Glisan Street blocks the residentially zoned properties from access to a city street. However, an overgrown alley extends from E Burnside Street to NE Glisan Street along the property’s eastern edge. That skinny single-lane road was the original East 94th Street North before later development, and Portland City street renumbering shifted that street 150 feet east. During that early time in Portland’s history, people called NE 92nd Place Mabel Street, and these properties were located just outside city limits in Russellville. 9270 NE Glisan Street was addressed as 2264 E. Glisan Street when Russellville Water Company first owned the land. It housed an above-ground steel water tank elevated into the air by a steel support tower. This distribution tank stored 50,000 gallons of water. Russellville Water Company’s board dissolved the organization on December 30th, 1950, and sold its assets to the Russellville Water District.

Sanborn Maps from 1924 showing Russellville Water Co. tower at 9270 NE Glisan St

Current zoning and past uses for petroleum storage may complicate future redevelopment of this site. However, its walkable access to transit on bus or MAX light rail and quick connections to services in the Gateway District make 9270 NE Glisan Street an appealing place for housing construction with varying degrees of density. Interested groups can contact Jordan Fezler with Apex Real Estate Partners.

By

Jacob Loeb

Infrastructure, Property Sale, View of Montavilla

Gateway Blocks for Sale or Development

The owner of 27 individual developable parcels in the Hazelwood neighborhood is seeking a buyer or development partner for what could become a dense, affordable housing project. The land sits at the Gateway Regional Center’s core, just north of E Burnside Street in what officials planned to be a second downtown on the Eastside of Portland. City agencies have made significant zoning changes in the last two decades and have built infrastructure projects designed to increase density and create economic opportunity. In nearly 25 years since planning for this area began, much of the market-rate housing and commercial storefronts expected in this area have not broken ground. However, these city blocks still offer walkable access to transit and resources, making it an ideal location for urban density.

Portland Maps image with MV News illustrations showing listed parcels in red

Joe Westerman began collecting properties in this area over a decade ago, having successfully created multi-family housing in Oregon and Washington, including housing in this area. The properties surround a new segment of NE Davis Street that PBOT will construct later this year. These properties are part of a Local Improvement District (LID) that will extend the city street grid to these parcels, creating smaller blocks with consistent pedestrian and vehicle access in what had once been long unconnected streets. Calling this area the Gateway Blocks, Westerman commissioned conceptual designs imagining what development could look like and waited for the infrastructure improvements.

Conceptional rendering of development including listed lots and properties not for sale (Courtesy NAI Elliott)

All lots in this area are Central Residential (RX) zoned with a Design overlay. RX offers the highest density of dwelling units for any residential zone. Buildings are generally Six to ten stories tall and have limited ground-floor retail uses. Design overlays only apply to the Central City, town centers, and the Gateway Regional Center. The minimum housing density for new structures built here is 87 units per acre. Portland planners envisioned downtown-level redevelopment at this site, but developers have not yet been able to secure the funding to build at that scale in this space, at least not for market-rate housing. Surrounding affordable housing projects are underway or recently completed with financial support from various government and nonprofit sources. That observation lead Westerman to explore affordable housing options for his properties.

Google Earth view of site area and surrounding properties

Despite having over 30 years of experience as a builder, Joe Westerman’s focus on market-rate development left him without the needed connections to create an affordable housing project on his own. Consequentially, he will consider offers to build these developments to suit a potential buyer or participate in a joint venture with a nonprofit looking to create affordable housing. Westerman will also consider land leasing or the sale of parcels individually or as packages. “It’s not exactly an easy market to get stuff done in right now,” explained the listing agent for these properties, Nick Ostroff of NAI Elliott. High interest rates and other market forces have kept these lots underutilized for too long. Still, Ostroff sees the support for affordable housing as a way to jump-start this area’s transformation.

Joe Westerman is not the only land owner in this area waiting for building opportunities. Andrew Baltz’s limited liability company, Baltz Family Holdings, possesses most of the land south of Westerman up to E Burnside Street. The concept drawings for the site show both owner’s properties along NE 97th Avenue, 99th Avenue, and 100th Avenue fully built out. This illustrated vision matches the city’s aspiration for the Gateway District but represents projects that are not currently feasible. Development at this scale is slow, and many people are waiting for others to make the first step. If one property redevelops in the LID area, it could be enough to start other developments, and Westerman is willing to see if his lots could contribute to that catalyst.

The Westerman properties will soon have several advantages for future builders. Through the LID, Phase II of the Gateway Street plan will continue work started on NE 97th Avenue in Phase I, with new streets, curbs, sidewalks, and green-strip landscaping. The city will vacate the vestigial sections of NE Davis and Couch Streets west of 97th Avenue, which no longer align with the new grid pattern. This returned right-of-way will free up that space for additional building amenities, as seen in the 2019 Portland Design Commission approved plans for a dormant project at this site. Buildings in this space are within walking distance from the Gateway Fred Meyer grocery store, medical services, and transit options. The lots are adjacent to the I-205 Multi-use Path with easy connectors to the Mall 205 retail area and Montavilla shops.

NE 97th Ave looking north from E Burnside St (Jacob Loeb)

Future builders will have to overcome some ongoing project headwinds. Zoning for these blocks will hamper modest uses, dissuading some development options. Additionally, these lots are committed to the NE 97th Avenue and Couch/Davis Street LID, whose member property owners will provide a portion of the $15 million project cost. City staff calculates the amount of money contributed based on the street frontage of each lot, but Ostroff said that would be part of any sale negotiation. This underutilized area has also attracted many urban campers, leaving trash and damaged fencing. Street grid construction will clear roadside debris and reset the area with clean pavement. According to Nick Ostroff, to keep the area activated while waiting for construction to begin, it could host community garden space. Westerman is an avid organic farmer and often includes community gardens in his developments that can support it. He also made vacant land available for urban farming when crews were waiting to break ground. Those plans depend on who partners with Westerman or buys the property. “Everybody’s trying to get together and make something positive,” remarked Ostroff. At this point, the Real Estate team is looking to cast a wide net and see how to start the desired transformation in these blocks. Organizations interested in learning about options and pricing should contact the sales team at NAI Elliott.

By

Jacob Loeb

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Business Relocating, Construction, Property Sale, Renovation

Sizzle Pie Co-Founder Invests on NE Glisan

Matthew Jacobson, co-founder of Sizzle Pie, purchased a multi-building property at 7323 NE Glisan Street in August 2022. Months later, Jacobson purchased a second property on the block at the corner of NE 74th Avenue and Glisan, currently serving as the construction office for a neighboring affordable housing project. Over the last few months, a new anchor tenant in the Glisan Street frontage has reshaped the prominent space to serve as their architecture firm’s regional office, while other trades-related businesses occupy the building spaces located between NE 74th Avenue and NE 73rd Avenue.

Jacobson purchased the properties with other investors through his whimsically named companies Jackie Glisan LLC and Buford T Justice LLC. In a December 2022 interview with Montavilla News, Jacobson explained that it was a general investment in the property outside his other restaurant ventures. The popular local chain Sizzle Pie sold to Sortis Holdings several years ago, and Jacobson now only works as an employee of the organization. He remains active in other investments, including Wayfinder brewery. However, outside of possible storage space for those businesses, he had no active plans to extend those businesses to this site. Instead, Jacobson has recently focused on supporting other growing businesses by dividing the space into smaller units, including a personal office for himself.

The site’s most visible transformations will support a new tenant moving into one of the NE Glisan Street storefronts. Evident Architecture Office (EAO) has offices in Portland and Cleveland, Ohio. Owner Bill Neburka spent many years as one of the principal Architects at Works Progress Architecture, where that firm designed several distinctive buildings, including the Blackbird building on E Burnside Street. Crews are slowly removing the industrial cladding on the NE Glisan Street building to reveal the classic painted brick facade.

Google Earth image with real estate listing illustrations

Jacobson said he has around 11 tenants in the “T” shaped building, including EAO. There are plumbers, contractors, and people who create props for film and television, all of whom share the commercial building. He is happy with the mix of creative people working from the space. Jacobson hopes the upgrades to the building will add to the transformation at this intersection driven by the affordable housing buildings under construction. “I’m really interested to see how the development across the street is going to impact things. I think generally it’s probably gonna be good,” said Jacobson.

Crews will continue working on the building through the summer as they customize tenants’ spaces. Jacobson indicated that he plans to keep this investment for a while with an eye on enhanced future uses. For now, it will serve as another commercial complex suitable for a variety of businesses looking for flexible space.

Article and photos by

Jacob Loeb

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.

Construction, New Residence, Property Sale

Workforce Family Apartments on SE 89th

Sometime this spring, the joint venture between APANO and Gorman & Company will finalize a purchase of a 1.1-acre property at 2905 SE 89th Avenue. The group will create affordable family apartments in a dual courtyard configuration. Construction of the 40-unit complex will begin in fall 2024, with an anticipated opening date in early 2026. The developers intend to create a healthy and sustainable community with solar panels providing the bulk of residential power and families having ample access to green space.

Fifteen units in the new apartment building will offer family-sized accommodations with three bedrooms and two bathrooms. The developers will also create 14 one-bedroom and 11 two-bedroom flats, each with a single bathroom. Residents can access various site amenities, including a bike room, package lockers, and resident services offices. People can also use a community room, two courtyards, and outdoor areas with a garden and play area for children. Larger apartments have in-unit washer and dryer appliances. The building offers laundry rooms on each floor for the rest of the residents.

Renderings courtesy Gorman & Co

The developers will reserve all units in the three-story building for people earning 80% or below the median family income (MFI) for Portland. That commitment keeps rents from exceeding levels set annually based on the Department of Housing and Urban Development’s (HUD) calculations but does not fit what people consider low-income housing. Based on 2023 numbers, one of the development’s three-bedroom apartments would cost up to $2,347 monthly. At those rates, these homes support the working families often priced out of modern apartments west of Interstate 205.

A 2018 U.S. Environmental Protection Agency (EPA) funded study of the Jade District identified the unimproved segment of SE 89th Avenue north of SE Brooklyn Street as a prime redevelopment opportunity for sustainable housing and a new public park. APANO is the fiscal sponsor of the Jade District Neighborhood Prosperity Network (NPN) and used the 2018 data with community input to pursue development opportunities in this area. The land identified for a park is not currently on the market. However, APANO’s vision for family housing across the street from the future park could occur with the purchase of three lots owned by the Argonaut Group. With the help of Gorman & Company’s nearly 40 years of experience creating housing, APANO will begin work on what was envisioned for this part of the Jade District six years ago.

Image from Portland Maps

This area contains a multitude of housing with buildings around the site ranging from farmhouses to multifamily buildings. The architect worked to create a design matching its environment while still providing the desired housing density. “The building will have a residential character, and we’ve subdivided the masses to be consistent with the other buildings in the neighborhood,” explained Kevin Kellogg, Gorman & Company’s Market President for the Pacific Northwest. People will access the apartment’s upper floors through a central stairway, and a courtyard facing an open-air walkway connects the units. “Each of the courtyards has a unique character. One of them, we call the living room courtyard, and the other one is the family room courtyard,” said Kellogg. The ground floor will house the site’s accessible units and its 32 on-site parking stalls partially covered by solar panels.

The developers are targeting a Net Zero certification for the building, making it environmentally friendly and resilient to changing weather conditions. “Our goal is for it to be as low maintenance and energy efficient as possible,” said Kellogg. The environmental goals also align with APANO’s goals for the Jade District. “We’re working to build the most climate-friendly, transit-rich, and affordable neighborhood we can. We feel this complements our work at PCC, Canton Grill, and the Orchards,” explained Duncan Hwang, Community Development Director at APANO.

Renderings courtesy Gorman & Co

This apartment complex will become the fourth housing project in the Jade District for APANO. The organization is interested in having a mixed-income neighborhood, and this project fits the need for workforce-priced housing. Other projects built by the organization or in development support lower-income renters. APANO often partners with other organizations in creating and managing developments. In this case, Gorman & Company will provide asset management and compliance, with APANO providing resident services.

In addition to improving housing availability in the area, this project will create public right-of-way improvements. Towards the end of the project, crews will construct new sidewalks along the frontage and build a portion of the paved street. These infrastructure upgrades will move the area closer to completing a disconnected street and sidewalk network that inhibits travel along SE 89th Avenue. Walkable access is a primary feature of this building, which is blocks away from the Fubonn grocery store and frequent public transit. Look for construction to begin later this year, with more housing availability in 2026.

By

Jacob Loeb

Promotion: Help keep independent news accessible to the community. Montavilla News has a Patreon account or you can pay for a full year directly online. We invite those who can contribute to this local news source to consider becoming paid subscriber or sponsor. We will always remain free to read regardless of subscription.

Construction, New Residence, Property Sale

Three Home Infill on NE 73rd

This week, NW Development Inc. began the Middle Housing Land Division process to create four distinct properties at 26 NE 73rd Avenue. Each of the three new two-story homes will receive a house number from 92 NE 73rd to 96 NE 73rd Avenues, with the existing 1940s-era house renumbered to 98 NE 73rd Avenue. The new homes are mostly hidden in the back of the property and only visible from certain angles. This development is an example of maximum detached single-family housing on a standard lot. Further housing density would require a larger multifamily building and rezoning. Look for realtors to list these units later this year.

Site map from Middle Housing Land Division Proposal LU 23-110265 MLDS
  • 92 NE 73rd Ave – Lot 4
  • 94 NE 73rd Ave – Lot 3
  • 96 NE 73rd Ave – Lot 2
  • 98 NE 73rd Ave – Lot 1

Article originally published on May 9, 2023

On April 28th, NW Development Inc. purchased the 1,500-square-foot single-family residence at 26 NE 73rd Avenue, and the new owner plans to construct three additional homes behind the existing 1940s-era house. Each new detached residence will stand two stories tall and contain just under 950 square feet of living space. Demolition crews will remove the freestanding single-car garage to the east of the home, allowing access to the back structures.

Owner of NW Development, Brett Barton, explained why this property was an ideal location to bring affordable middle housing to the neighborhood. “The house is in pretty good shape. It needs some updating but is overall a solid house. The prior owners took great care of it, the hardwoods are in phenomenal shape, and it hasn’t been chopped up a whole bunch of times.” The home’s placement at the front of the lot also added to this project’s viability, leaving over half the property open to development. The first new home will sit ten feet behind the original structure, facing south, and the other two houses will sit side by side at the back of the lot facing west.

Image from Portland Maps

Each new building will offer a similar floor plan with a great room, kitchen, and half-bath on the main floor. Upstairs, two bedrooms share a full bathroom and a side-by-side laundry. Each freestanding property will have its own lot without a Home Owners Association (HOA) fee, as many other similar developments previously required. “[They’ll be] sold as fee-simple ownership. There will not be condos or HOA or anything like that, and they’ll be on their own tax lots,” said Barton. He explained that Portland’s Residential Infill Project and House Bill 2001 paved the way for a more reasonable approach to this type of infill development. Before those changes, developers had to create an HOA system to manage shared access to units not adjacent to a city street. That adds monthly costs and can turn away buyers during the financing process. The new Middle Housing Land Division rules allow certain middle housing types to exist on an individual lot with separate ownership, but the lots do not require direct street access. Instead, an easement for utilities and a walkway ensure residents have the access they need to their property, even when it is behind several others.

Brett Barton explained that the driveway would remain during construction to provide equipment access to the site. However, after crews complete construction, they will rebuild the pathway to support pedestrian access to the other homes, and the driveway will not accommodate vehicle storage. “The City of Portland changed their attitude towards parking as we’ve had this housing crunch. The parking requirements have actually gone the opposite way. They’re not allowing garages on skinnier lots anymore,” said Barton. He feels that losing onsite parking and the utility of a garage can detract from a home’s functionality. Still, he accepts the tradeoff when creating homes accessible to first-time buyers. Each new home will sell below the affordable housing cap currently set at $455,000 or less. Although that Portland set cap could seem unaffordable, the program helps keep prices from spiking during high demand and can be the only way certain buyers are not priced out of good neighborhoods.

Barton said permit applications are taking over six months for approval. However, he may demolish the garage and begin upgrade work on the existing home before then. The 1948-built house will receive new paint, heating and cooling system upgrades, and full kitchen and bath modernization. Expect to see crews start that work in the coming months and construction of the new homes towards the end of 2023.

By

Jacob Loeb

Promotion: Help keep independent news accessible to the community. Montavilla News has a Patreon account or you can pay for a full year directly online. We invite those who can contribute to this local news source to consider becoming paid subscriber or sponsor. We will always remain free to read regardless of subscription.

New Business, Property Sale

Hong Phat Opening new Supercenter on SE 82nd

Update: Hong Phat Supercenter will open to the public on July 26th, 2024.

Hong Phat Food Center will open a new location on SE 82nd Avenue in the former Eastport Plaza Walmart location, according to the Portland Business Journal. The 154,000-square-foot building will become the fourth grocery for the local chain. They have two other Portland locations, including one in Montavilla at 101 SE 82nd Avenue.

Walmart closed the Eastport Plaza store at 4200 SE 82nd Avenue on March 24th, 2023. The new Hong Phat Supercenter taking its place could open as soon as June, but more conservative estimates place the timeline into 2025. It will take at least 100 employees to run the store, with the potential to expand to 200. People living near Eastport Plaza expressed concern over losing access to Walmart’s grocery selection. Bringing food options to that neighborhood should help fill a gap in services for area residents. KGW has more information from the Portland Business Journal article.

Image from opening day of the 101 SE 82nd Avenue Hong Phat location in 2013

Article and photo by

Jacob Loeb

Construction, New Residence, Property Sale

SE Washington Duplex

This summer, Ernie Jette Construction purchased the standard-width lot previously attached to 8605 SE Washington Street. Now, the housing developer intends to construct a duplex on the property. These two-story homes join other modern housing projects on this block on several undeveloped parcels.

Image from Portland Maps with MV News labeling

The proposed homes at 8627 SE Washington Street and 8631 SE Washington Street will replace a somewhat overgrown side yard for the 1914-era corner house. Although used by the adjacent home, the vacant lot remained an independent parcel with its own property tax number. That allowed for a separate sale without requiring a land division. An alleyway offers vehicle access to the back of the property. However, the building permit application does not feature attached onsite vehicle storage.

2129 E. Washington later renumbered 8605 SE Washington from Sand born Maps 1924

City staff are reviewing the permit applications, and construction is unlikely to begin until 2024. This builder recently completed four townhomes on SE Yamhill Street and has worked on other projects in the neighborhood. Look for work to start next year after plan inspectors approve the project.

By

Jacob Loeb

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History, Property Sale

Historic Drive-in Lot for Sale

The owners of a used auto sales lot along SE 82nd Avenue listed the property for sale. Although unrecognizable from its original use, the site once housed a renowned restaurant that played a role in Portland’s hot-rod culture. In the 1950s, the 30,980 Square foot parcel was home to Rutherford’s Triple XXX Drive-In, serving as a frequent destination for families and car enthusiasts.

Charlie Rutherford operated the two Portland-based Triple XXX Drive-In locations situated relatively close to one another. The Montavilla drive-in sat on the corner lot at 1164 SE 82nd Avenue, and the other location at 6120 NE Sandy Boulevard occupies an entire triangle-shaped block. That building still hosts a restaurant but reflects the indoor seating design added to the Triple XXX eateries in the late 1950s.

The Rutherfords Triple XXX Drive-In chain began in Renton, Washington. It opened in 1930 and was the first drive-in restaurant in the Pacific Northwest. Archie H. Rutherford started the business with his sons Joel and Jerry. The family grew the drive-in chain serving burgers and Triple XXX Root Beer to many locations nationwide, including Portland. Two unaffiliated restaurants are in operation today. One is in Issaquah, Washington, and the other is in West Lafayette, Indiana.

Albert Drake captured the importance of these drive-ins to Portland’s hot-rod culture in his Fifties Flashback: A Nostalgia Trip! collection of articles:

“…Most Saturday nights were balmy, at least in the tricky circuitry of memory, and after we’d finished, I started the engine, turned on the lights, and waited for the carhop. Then I pulled out slowly, being cool, hoping the clutch wouldn’t chatter, rapping the pipes as we headed down the road. Many nights, we made the rounds of other drive-ins. On 82nd, I could hit Merhar’s, where many of the cycle guys hung out, then cruise through Rutherford’s Triple XXX and back through Flanagan’s again, just in case someone hadn’t seen me. On Sandy, there was Jim Dandy’s, a real hot-rod hangout, another Rutherford’s Triple XXX, then Yaw’s, a place where the rich kids from Grant hung out, then on up to the Tik-Tok, a favorite gathering place for rodders since the ‘Thirties.”

Nothing remains of the Triple XXX Drive-In on the SE Taylor Court and 82nd Avenue property. Past owners transformed the 3,678-square-foot structure into a traditional office building, and future owners may redevelop the land for a new use altogether. However, the site’s history built the car culture that took over the country, and its next use can indicate the further trend for American cities.

Update November 30th, 2023: According to the Seattle Times, the Issaquah Triple XXX Rootbeer Drive-in closed permanently on November 29th, leaving only one remaining location in West Lafayette, Indiana.

Article and photos by

Jacob Loeb

Promotion: Help keep independent news accessible to the community. Montavilla News has a Patreon account. 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.