$79M Barbur Apartments groundbreaking in SW Portland, with $27M from the city, illustrates plottage as parcel assemblage enables 150-unit affordable housing in a market area averaging $691,000 for ownership.
The Barbur Apartments site sits at the prominent intersection of SW Barbur Blvd and SW Capitol Hill Rd. Photo: Portland Appraisal Blog
Barbur Apartments Groundbreaking
Groundbreaking began in mid-December 2025 on the Barbur Apartments, a 150-unit affordable family housing project at the corner of SW Barbur Blvd and SW Capitol Hill Rd in Portland’s Hillsdale/Multnomah Village area.
Developed by Innovative Housing, Inc., the complex will have one three-story building and two four-story buildings, bringing the total unit count to 150. With one unit reserved for an onsite manager, 149 units will be income-restricted, with many configured as larger two- to four-bedroom layouts for immigrant and refugee families—alongside amenities such as a courtyard and community spaces. Completion is anticipated in Fall 2027.
The project has an estimated total development cost of approximately $79.4 million, with the Portland Housing Bureau contributing about $27.3 million alongside regional Metro Housing Bond funds, federal sources, and Portland Clean Energy Community Benefits Fund dollars for energy efficiency.
The project emphasizes transit access along the Barbur corridor. Approved plans include approximately 45 on-site parking spaces—a low ratio of roughly 0.3 spaces per unit that reflects the transit-oriented design.
Appraisal Implications: Plottage and Highest-and-Best-Use Shift
The site’s redevelopment offers a clear illustration of plottage—the added value created when contiguous parcels are assembled into a larger, more viable development parcel.
Four separate tax lots totaling approximately 2.19 acres were acquired together in February 2025 for just under $6 million. Individually, the parcels supported lower-intensity uses limited by size, zoning, and existing improvements.
Aerial view of the Barbur Apartments site from Portland Maps, showing the four assembled tax lots (outlined in red, totaling approximately 2.19 acres). Labels highlight the demolished single-family home parcel, the former Barbur Blvd Rentals commercial building, and the Safeway shopping center across the street. Image: Portland Maps
One parcel previously contained a 1927-built single-family home of approximately 2,336 square feet. Never listed on the open market, the house exhibited functional obsolescence relative to the corridor’s evolving highest and best use and was rapidly demolished.
View of one of the assembled parcels in December 2025. The 1927-built single-family home that once stood here has been fully demolished, illustrating its functional obsolescence as the site shifts to higher-density residential use. Photo: Portland Appraisal Blog
An adjacent commercial strip—formerly Barbur Blvd Rentals—remains standing but is now fenced within the secured construction zone.
The former Barbur Blvd Rentals commercial building, still standing as of December 2025, forms part of the assemblage. Photo: Portland Appraisal Blog
Combined, these parcels unlock a scale and density that individual lots could not support, demonstrating classic plottage principles in a transit-oriented location.
Directly across Barbur Blvd, there is a large Safeway complex.
The Safeway shopping center opposite the Barbur Apartments site—a major convenience for future residents. Photo: Portland Appraisal Blog
This Safeway has an impressive open-access parking garage underneath the store. The center’s covered and surface parking serves as a major existing amenity. Given the Barbur Apartments’ family-oriented unit mix and limited on-site stalls, residents and guests may increasingly rely on this convenient private lot for overflow. A recent visit to the garage mid-morning showed a nearly full garage. It’s possible daytime use of the garage may skyrocket once the apartment complex is built—a dynamic worth monitoring as occupancy begins in 2027.
Ground-level covered parking beneath the Safeway store, photographed on a Friday morning in December 2025. With only about 45 on-site stalls planned for the 150-unit project, this existing private amenity may see increased use by residents and guests for overflow parking. Photo: Portland Appraisal Blog
Market Context
In the immediate Hillsdale and Multnomah Village neighborhoods, closed sales from 2024–2025 reflect sustained demand amid limited affordability.
Type
# of Sales
Avg Close Price
Avg PPSF
Avg Total SF
Avg CDOM
Detached
351
$750k
$342
2,313
50 days
Condo
78
$445k
$321
1,382
68 days
Attached
13
$581k
$328
1,846
49 days
Total
442
$691k
$338
2,135
53 days
Source: RMLS closed sales data for Hillsdale and Multnomah Village neighborhoods, 2024–2025. Figures rounded for readability.
Detached homes dominated activity with 351 sales at an average of $750,000 and brisk 50-day market times. Condominiums—the most accessible ownership segment by volume—averaged $445,000 across 78 sales, though with noticeably longer absorption (68 days CDOM). While attached homes (such as townhomes) represent a small segment of the market with only 13 transactions, they averaged $581,000—likely reflecting more recent construction (average year built 2010) and associated premiums.
These figures across all segments highlight significant ownership barriers in the submarket, reinforcing the role of regulated rental projects like Barbur Apartments for lower-income and larger families.
This assemblage aligns with broader efforts to expand housing supply through density and public investment, including recent regulatory reforms aimed at reviving Portland development.
Thanks for reading—I hope you found a useful insight or an unexpected nugget along the way. If you enjoyed the post, please consider subscribing for future updates.
CODA
Are you an agent in Portland who wonders why appraisers always do “x”?
A homeowner with questions about appraiser methodology?
If so, feel free to reach out—I enjoy connecting with market participants across Portland and the surrounding counties, and am always happy to help where I can.
And if you’re in need of appraisal services in Portland or anywhere in the Portland Region, we’d be glad to assist.
Portland closed out the year with stories that captured the city’s ongoing effort to expand housing thoughtfully—balancing historic preservation against current demand, adaptive reuse of industrial landmarks, and incremental regulatory changes to enable more homes. From supportive towers built with sustainable mass timber to statewide zoning tools re-legalizing neighborhood apartments, and creative transformations of obsolete sites, the week reflected a market navigating caution while pursuing infill and affordability in established areas.
Sunday, December 14: Julia West House Supportive Housing Tower Opens
The Julia West House, a modern multistory building in downtown Portland, stands tall with its grid of windows and light brick facade—captured from a low angle that emphasizes its architectural presence. 580 SW 13th Ave, Portland, Oregon – December 2025 Photo: Portland Appraisal Blog (CC BY-SA 4.0)
Downtown Portland marked a milestone with the opening of Julia West House, a 12-story mass timber tower providing permanent supportive housing for seniors who had experienced homelessness. Built on a former parking lot at 580 SW 13th Avenue, the project delivers 90 units—60 studios and 30 one-bedrooms, with 89 deeply affordable at 30% or less of area median income, plus one unrestricted manager unit. On-site services from partners like Northwest Pilot Project focus on aging in place, addressing the reality that nearly a quarter of the city’s unhoused population is age 55 or older.
As Oregon’s tallest mass timber residential building at 145 feet, it employs cross-laminated timber floors and glulam beams above a concrete podium, shortening the construction schedule by about 14 weeks and incorporating biophilic elements like exposed wood ceilings. Adjacent to another supportive building, it forms a concentrated hub in the West End.
Developments like this expand deeply affordable rental supply in central locations with strong transit access. They provide market evidence of efforts to address affordability and homelessness, informing highest and best use considerations for nearby properties and enhancing neighborhood marketability.
In multifamily assignments, mass timber construction sets emerging precedents for sustainable practices, potentially affecting future replacement costs, capitalization rates, and development feasibility in urban zones. Restricted units supported by tax credits require careful isolation of encumbered interests from hypothetical fee simple value.
Monday, December 15: Fannie Mae Expands ADU and Renovation Eligibility
Detached guest house on a residential property, illustrating expanded ADU eligibility Via Canva Pro
Fannie Mae updated its guidelines with significant expansions to renovation lending and accessory dwelling unit eligibility, offering more options for homeowners in the Portland region. HomeStyle Renovation loans now allow upfront disbursements of up to 50% of renovation costs at closing, while removing prior caps on manufactured home improvements—now up to 50% of as-completed value.
Effective in 2026, single-unit properties can include up to three ADUs if zoning permits, with total units capped at four even on two- to three-unit homes. These changes align manufactured housing more closely with site-built and build on local incentives like temporary system development charge waivers.
The updates heighten reliance on as-completed valuations for loan-to-value ratios and eligibility. Appraisers may see increased demand for projected-value analyses on properties with multiple ADUs or extensive renovations, requiring solid review of local zoning and market acceptance to support highest and best use conclusions.
These provisions complement Portland metro efforts to encourage middle housing, providing alternatives to jumbo financing alongside rising FHA limits.
Tuesday, December 16: Oregon Model Code Enables Neighborhood-Scale Apartments
Three-story, 16-unit apartment building on a standard Portland residential lot, illustrating potential density under middle housing reforms 11 NE 55th Ave, Portland, Oregon – December 2025 Photo: Portland Appraisal Blog
Oregon adopted a statewide model zoning code under the Oregon Housing Needs Analysis framework, shifting from unit caps to form-based standards that re-legalize small apartment buildings in residential zones. The rules permit duplexes through fourplexes, townhouses, and cottage clusters outright, with bonuses for accessibility or affordability, while slashing parking mandates.
Affected cities—primarily Oregon’s larger municipalities, including Portland, Beaverton, Gresham, Hillsboro, and others in the metro area—must align zoning with the model code if they fail to meet production targets, though implementation timelines vary by jurisdiction and can extend several years. Form-based limits keep development neighborhood-scale, typically supporting 6–12 units on a standard lot.
These rules expand as-of-right development options on residential lots, particularly corner or larger parcels in single-family zones. Highest-and-best-use analyses may now reflect stronger redevelopment potential for small multifamily or middle housing types in cities subject to the model code.
Although the model code removes unit-count caps, form-based limits on height, coverage, and floor area ratio maintain neighborhood character. While larger projects, such as a 16-unit building, are now more feasible, they remain a different undertaking involving complex regulatory review, commercial-grade construction, specialized financing, and contractor expertise.
Market activity will likely continue to favor rehabilitation of existing homes alongside gradual small-scale infill—many builders focus on single-family with ADUs. Appraisers need to be mindful of what is possible under the new zoning allowances while analyzing what the market is actually doing.
Form-based standards and reduced parking mandates lower barriers to small apartment or townhouse projects, with affordability bonuses providing quantifiable incentives. Over time, this may broaden comparable selection for emerging middle housing.
Wednesday, December 17: Reviving Portland Development: Design Review Reforms, Bureau Cuts, and the Push for More Housing
Low-angle view of the 1900 Building in downtown Portland, home to the Bureau of Development Services. Photo: Portland Appraisal Blog (CC BY-SA 4.0)
New construction slowed markedly in the Portland region, with Q3 2025 single-family sales dropping 25% year-over-year and comprising just 9% of transactions—steeper in Multnomah County at roughly 48%. Reduced activity contributed to monthly shortfalls at the Bureau of Development Services, leading to 72 staff cuts.
City Council advanced studies on design review exemptions and moratoriums for housing, alongside the Unified Housing Strategy’s focus on streamlining, consolidated processes, and incentives like extended state tax exemptions for mixed-use.
Short-term staffing reductions may prolong timelines, impacting feasibility in proposed construction assignments.
Longer-term reforms could boost multifamily supply, expanding comparables for vertical mixed-use or conversions—though gains may lag into 2026–2027 amid ongoing caution.
Thursday, December 18: Portland’s Historic Homes and the PSU Demolition Debate
Close-up of Blackstone Residence Egyptian corner sculptures. Blackstone was designed by Elmer Feig and the sculptures reflected national interest following the discover of King Tutankhamun’s tomb. Photographed in 2025. Photo: Portland Appraisal Blog
Portland State University’s plan to demolish two early-20th-century residence halls on the Historic Resources Inventory for new student housing spotlighted preservation challenges. The buildings lack full landmark status, limiting delays, yet advocates highlight rehabilitation benefits for carbon and culture.
In the private market, only 15 verified registered historic single-family sales occurred in Portland from 2023 through Q3 2025, averaging $1,256,588 in premier neighborhoods like Irvington. These reflect premiums for authenticity offset by maintenance and review burdens, with incentives available.
Due diligence via Portland Maps or title reports is essential to confirm designation—many older homes lack it.
Designations influence marketability through higher costs and restrictions, balanced by tax benefits for qualifying owners.
Friday, December 19: 1803 Fund Unveils Adaptive Reuse Plans for Portland’s Historic Grain
Portland’s iconic grain silos along the Willamette River, as seen today from the east bank. Built in 1914 and long a symbol of the city’s industrial past, these structures are set for creative adaptive reuse while preserving their monumental presence. Photo: Portland Appraisal Blog (CC BY-SA 4.0)
The 1803 Fund detailed plans to preserve Portland’s 1914 grain silos on the Willamette east bank as a cultural waterfront hub with galleries, event spaces, and mixed-use additions. The $70 million acquisition covers the three-acre silo site plus about 20 tax lots in The Low End (seven acres), totaling roughly 10 acres.
The silo site’s history illustrates functional obsolescence: after $21.5 million modernization in 2013, it sold for $164,000 in 2019 post-rail loss, then $2.9 million in 2021, with a recent $6.5 million listing. Assembly unlocked plottage for master-planned redevelopment, including multi-million remediation of brownfield contamination and a projected $700 million economic impact.
This demonstrates highest and best use shifts in industrial zones—from obsolete terminal to cultural anchor—with rezoning needed for proposed hospitality elements.
Plottage and stigma removal can lift land values in obsolescent corridors, creating uplift via public amenities.
Saturday, December 20: Alberta Alive Townhomes Rise Opposite Historic Alberta Abbey
Early site preparation underway for the Alberta Alive Townhomes in Northeast Portland, with the historic Alberta Abbey visible in the background. Photo: Portland Appraisal Blog (CC BY-SA 4.0)
Construction began on Alberta Alive Townhomes in Northeast Portland’s Alberta Arts District, delivering eight permanently affordable three-bedroom units via Proud Ground’s community land trust. Opposite the historic Alberta Abbey, these all-electric, Earth Advantage-targeted homes prioritize families with local ties.
Nearby market-rate three-bedroom attached homes averaged $574,900 over four years (1,650 square feet, $355 per square foot), highlighting the premium these restricted units address through public funding. Local families will be able to enjoy quality townhome units that would otherwise be unaffordable.
Community land trust units—with resale caps—are not directly comparable to unrestricted sales. Appraisers generally omit affordable housing units from analyses involving unrestricted properties.
High-quality infill can stabilize neighborhoods and anchor upward pressure on conventional properties nearby.
This week’s posts revealed Portland’s pragmatic approach to growth—reusing landmarks like grain silos, easing rules for modest density, and targeting affordability without overhauling single-family zones overnight. Preservation and adaptation stood out as practical paths forward in a market still feeling permitting and production headwinds.
Thanks for reading—I hope you found a useful insight or an unexpected nugget along the way. If you enjoyed the post, please consider subscribing for future updates.
Question: Which story from the week—mass timber supportive housing, statewide middle housing tools, or waterfront silo reuse—do you see having the biggest long-term ripple on Portland metro valuations?
CODA
Are you an agent in Portland who wonders why appraisers always do “x”?
A homeowner with questions about appraiser methodology?
If so, feel free to reach out—I enjoy connecting with market participants across Portland and the surrounding counties, and am always happy to help where I can.
And if you’re in need of appraisal services in Portland or anywhere in the Portland Region, we’d be glad to assist.
Early look at the Alberta Alive Townhomes rising opposite the historic Alberta Abbey in Northeast Portland—eight new permanently affordable homes in the King neighborhood.
Historic Alberta Abbey building at 126 NE Alberta Street in Northeast Portland’s King neighborhood, viewed across the street in December 2025. Photo: Portland Appraisal Blog (CC BY-SA 4.0)
Site work is underway on a corner parking lot in Northeast Portland’s vibrant Alberta Arts District, where eight new townhomes are rising directly opposite the historic Alberta Abbey.
The Alberta Alive Townhomes project, located at the northwest corner of NE Alberta Street and NE Mallory Avenue in the King neighborhood, will deliver permanently affordable three-bedroom homes through the Proud Ground community land trust model.
Satellite view of the Alberta Alive Townhomes construction site at NE Alberta and Mallory in Northeast Portland, opposite the historic Alberta Abbey. Image: Google Maps
Lead developer Community Development Partners (CDP), in partnership with Self Enhancement Inc. (SEI) and Proud Ground, has begun early site preparation. The project architect is Scott Edwards Architecture, with Owen Gabbert, LLC serving as general contractor. The three-story units will each offer 3 bedrooms, 2.5 baths, private porches, fenced yards, and dedicated parking—approximately 1,275 square feet of living space—in an all-electric design with sloped roofs to accommodate future solar panels, targeting Earth Advantage Platinum certification. Completion is anticipated in fall 2026, with home sales expected in spring 2027.
Early site preparation underway for the Alberta Alive Townhomes in Northeast Portland, with the historic Alberta Abbey visible in the background. Photo: Portland Appraisal Blog (CC BY-SA 4.0)
During a recent site visit, the blog author had the opportunity to speak briefly with John, site supervisor for general contractor Owen Gabbert, LLC. With experience on numerous affordable housing initiatives, including Habitat for Humanity builds, John’s passion for creating homes for families in need was readily apparent. He expressed optimism about the City of Portland’s current commitment to affordable housing and highlighted the role of recent system development charge (SDC) waivers in helping accelerate much-needed projects. John also pointed out an environmental benefit specific to this site: the former parking lot generated higher sewer fees due to impervious-surface runoff, and the new townhomes—with permeable features and reduced hardscape—will lessen the impact on the sewer system, delivering a double win for housing supply and infrastructure.
Site supervisor John of Owen Gabbert, LLC coordinating early work on the Alberta Alive Townhomes project (photo taken with permission). Photo: Portland Appraisal Blog
Market Context in King and Humboldt Neighborhoods
From an appraisal perspective, the King and Humboldt neighborhoods surrounding the Alberta Alive site continue to show robust demand for family-sized attached homes. Over the past four years, three-bedroom fee-simple units have averaged $574,900 in closed sales, with an average of approximately 1,650 square feet and $355 per square foot (24 sales, RMLS data). Notably, new-construction sales in this attached segment remain rare, with only four recorded over the same period.
For broader perspective, the 2024 Portland Region Attached Housing Market in Review reported an average sale price of $445,867 for non-condo attached homes across all of Multnomah County. The higher average in King and Humboldt illustrates the location premium associated with the Alberta Arts District and surrounding high-opportunity areas.
The eight new Alberta Alive Townhomes, at 1,275 square feet, are more compact than existing townhomes in the neighborhoods surveyed, indicating a tradeoff between size and quality. These townhomes—offering comparable three-bedroom layouts with modern amenities—deliver Earth Advantage-certified construction at prices restricted to households earning no more than 80% of area median income. This is made possible through the Proud Ground community land trust model and an approximate $217,000 per-unit contribution from the Portland Housing Bureau ($1.73 million toward the $6.03 million total development cost).
Appraisal Considerations for Community Land Trust Properties
The Alberta Alive Townhomes operate under a community land trust (CLT) structure in which buyers own the improvements (the townhome building) in fee-simple, but the underlying land remains owned by Proud Ground and is subject to a long-term ground lease. This legal arrangement imposes resale price restrictions and income qualifications to preserve affordability for future buyers.
As a result, these units do not serve as direct comparables for unrestricted fee-simple attached housing in the open market. Appraisers valuing nearby conventional townhomes must distinguish the hypothetical unrestricted market value of similar improvements from the encumbered resale price dictated by the ground lease.
That said, the introduction of high-quality new construction in a historically disinvested corridor can still provide positive externalities. Such projects often contribute to neighborhood stabilization and may exert an upward anchoring influence on surrounding market-rate properties.
For prioritized families—particularly those with historic ties to North/Northeast Portland or displaced descendants under the N/NE Preference Policy—Alberta Alive creates access to high-quality homeownership on terms that would otherwise be unattainable at market rates.
While the CLT structure enables meaningful wealth-building through mortgage principal reduction, limited appreciation, and potential intergenerational transfer, it intentionally caps resale prices to preserve permanent affordability—meaning owners forgo the full market upside available in unrestricted sales nearby.
Portland Appraisal Blog will keep an eye on this project’s progress and eventual absorption by the market.
Portland’s Temporary SDC Exemption for New Housing Units (2025–2028): Portland Appraisal Blog
Thanks for reading—I hope you found a useful insight or an unexpected nugget along the way. If you enjoyed the post, please consider subscribing for future updates.
CODA
Are you an agent in Portland who wonders why appraisers always do “x”?
A homeowner with questions about appraiser methodology?
If so, feel free to reach out—I enjoy connecting with market participants across Portland and the surrounding counties, and am always happy to help where I can.
And if you’re in need of appraisal services in Portland or anywhere in the Portland Region, we’d be glad to assist.
The 1803 Fund reveals plans to preserve and adaptively reuse Portland’s historic grain silos into a public waterfront cultural hub while adding mixed-use development in lower Albina.
Portland’s iconic grain silos along the Willamette River, as seen today from the east bank. Built in 1914 and long a symbol of the city’s industrial past, these structures are set for creative adaptive reuse while preserving their monumental presence. Photo: Portland Appraisal Blog (CC BY-SA 4.0)
The 1803 Fund, backed by a generous $400 million pledge from Phil and Penny Knight and launched in 2023, has unveiled detailed plans for the adaptive reuse of Portland’s historic grain silos on the Willamette River’s east bank.
Located immediately east of the Moda Center in the Rose Quarter, the former Louis Dreyfus grain terminal forms the centerpiece of the three-acre Albina Riverside site. Renderings released December 2, 2025, show the iconic concrete silos fully retained and integrated into a new public waterfront cultural hub featuring galleries, event spaces, mass-timber pavilions, basketball courts, and terraced steps to the river.
Adjacent parcels along North Russell Street, known as The Low End, will introduce mixed-use development including affordable housing and commercial spaces, emphasizing pathways to community ownership.
The project area spans the industrial waterfront between the Fremont and Steel Bridges. Satellite view highlights the silos at Albina Riverside, The Low End mixed-use district along Russell Street, and—for contrast—the vibrant McCormick Pier condominiums across the river. (Custom Bing Map: December 2025)
Project Details and Restorative Goals
Architects AD—WO, MALL, and Wayside Studio have designed the silo conversion to preserve the structures’ industrial character while creating usable public spaces. Clusters of silos will be consolidated to form larger interior volumes for exhibitions and events, wrapped by outdoor terraces and overlooks.
The broader initiative addresses historic displacement in the lower Albina district through place-based economic strategies. Given the sites’ current industrial/mixed-use and absence of existing residents, beneficiary targeting employs legally compliant models—such as community-owned REIT shares prioritized for residents of the historic Albina area and descendants of displaced families—similar to Portland’s established N/NE Housing Preference Policy.
Market History & Appraisal Perspective
The valuation history of the former Louis Dreyfus grain terminal (now Albina Riverside) at 900 N. Thunderbird Way is a stark illustration of how industrial obsolescence can collide with urban redevelopment potential.
The Silo Valuation Saga
In 2013, the Louis Dreyfus Co. reportedly invested $21.5 million to modernize the facility for state-of-the-art grain loading. Yet, only six years later in 2019, the site sold for a mere $164,000—a figure that was lower than the median price of a two-bedroom home in Gresham at the time.
From an appraisal standpoint, this plummet was a textbook case of functional obsolescence. The terminal’s utility was crippled when Union Pacific ceased rail service to the facility, concluding that the tracks on the property no longer met modern engineering and safety guidelines. Without functioning rail, a grain elevator’s ability to move commodities evaporates, leaving behind a massive, specialized liability.
However, the site’s location at the east end of the Steel Bridge provided a unique baseline of value. Even when its industrial utility stalled, the property remained fully leased, generating approximately $325,000 in annual revenue. A significant portion of this income came from Lamar Advertising, which operates the city’s largest billboard on the silos’ exterior. This signage is a local icon, once famously proclaiming “Amazon.com wouldn’t fit here” before shifting to its current Portland Timbers branding.
View of the historic concrete grain silos along the Willamette River in North Portland, Oregon, from 99W & N Interstate Ave. The billboard, Portland’s largest, is a familiar site to commuters. Photo: Portland Appraisal Blog (CC BY-SA 4.0)
The property’s rebound began in 2021 when it sold for $2.9 million, and it was most recently listed for $6.5 million. This trajectory represents a total shift in Highest and Best Use. The market value is no longer tied to its “broken” industrial infrastructure, but rather to its potential as a 3-acre cultural anchor. With the 1803 Fund’s recent $70 million regional acquisition, the silos are being reclassified from an obsolete terminal to a cornerstone of “impact infrastructure.”
The Low End and the Power of Plottage
The 1803 Fund’s acquisition extends beyond the silos to include approximately 20 tax lots in an area historically known as The Low End, along the western edge of Russell Street. This area makes up about 7 acres. In appraisal, this is a masterclass in plottage—the increase in value realized by assembling smaller, disparate parcels into one cohesive master plan. By creating a 7-acre “blank canvas,” the fund has enabled a scale of development that the individual lots could never support on their own.
One factor currently suppressing the unimproved value of The Low End parcels is the presence of documented soil contamination. In industrial appraisal, these are often treated as “brownfields.” The 1803 Fund’s ability to absorb these remediation costs—estimated to be a multi-million dollar undertaking—is a key part of their $700 million economic impact projection. By cleaning these 20 tax lots, they aren’t just improving their own land; they are removing a significant environmental stigma that has capped property values in lower Albina for a generation.
In total, the fund now controls roughly 10 acres of land, split between the two sites.
The RMLS Data and Zoning Hurdles
From a residential appraisal perspective, this project is a “market starter” rather than a displacement. A review of RMLS data confirms zero closed residential sales within this core footprint for years, reinforcing its long-standing non-residential character.
The Russell Street parcels in The Low End benefit from flexible EX (Central Employment) zoning, which already permits a variety of mixed-use developments. The centerpiece of the project—the 16-story hotel—is planned for the grain silo site itself. This site is currently zoned General Industrial 1 (IG1), an “Industrial Sanctuary” designation. The 1803 Fund’s plan to place a high-density hospitality and arts complex here will require a significant rezone, making this a major test case for Portland’s willingness to pivot its waterfront from industrial heritage to civic future.
Current marine loading docks and conveyors extend over the Willamette, barring public access. Future plans will replace these barriers with public terraces and riverfront steps. Photo: Portland Appraisal Blog (CC BY-SA 4.0)
Takeaway
New public amenities and mixed-use housing will introduce net-new ownership opportunities in a transit-rich, close-in location currently lacking for-sale residential product. This transformation may support amenity-driven value uplift in adjacent neighborhoods such as Eliot and Boise.
Across the river, McCormick Pier condominiums demonstrate activated waterfront living. Photo: Portland Appraisal Blog (CC BY-SA 4.0)
Planning and permitting continue, with construction anticipated in coming years. Portland Appraisal Blog will continue to monitor progress of the project.
Sources & Further Reading
1803 Fund Albina Riverside project overview and renderings: OPB article
Thanks for reading—I hope you found a useful insight or an unexpected nugget along the way. If you enjoyed the post, please consider subscribing for future updates.
CODA
Are you an agent in Portland who wonders why appraisers always do “x”?
A homeowner with questions about appraiser methodology?
If so, feel free to reach out—I enjoy connecting with market participants across Portland and the surrounding counties, and am always happy to help where I can.
And if you’re in need of appraisal services in Portland or anywhere in the Portland Region, we’d be glad to assist.
Portland State University plans to demolish two early-20th-century buildings on the Historic Resources Inventory for new student housing, highlighting preservation tensions mirrored in rare registered historic home sales.
Montgomery Court, a 1916 residence hall originally built as the Martha Washington Hotel for working women. The historic building is now slated for demolition. Photo: Portland Appraisal Blog (CC BY-SA 4.0)
Portland State University continues to advance plans to demolish two early-20th-century buildings—Montgomery Court and Blackstone Hall—to make way for a new 550-bed student housing complex on the South Park Blocks. Both structures, acquired by the university in 1969, are included on Portland’s Historic Resources Inventory but lack stronger local landmark or National Register designation, offering limited protection against demolition. Deconstruction remains scheduled for fall 2026, despite ongoing advocacy from preservation groups emphasizing the buildings’ architectural and cultural significance, lower carbon impact of rehabilitation, and potential eligibility for tax incentives.
Dedication plaque on Montgomery Court identifying it as the Montgomery Building, designed by A. E. Doyle and erected in 1916. Photo: Portland Appraisal Blog (CC BY-SA 4.0) Blackstone Hall, a 1931 Egyptian Revival residence hall at Portland State University, showing distinctive corner sculptures and brick detailing, photographed in 2025. Photo: Portland Appraisal BlogClose-up of Blackstone Residence Egyptian corner sculptures. Blackstone was designed by Elmer Feig and the sculptures reflected national interest following the discover of King Tutankhamun’s tomb. Photographed in 2025. Photo: Portland Appraisal Blog
These institutional debates mirror tensions in the residential market, where buyers, sellers, realtors, and lenders frequently navigate historic designations and their implications for property alterations, maintenance, and value.
Understanding Historic Designations in Portland
Portland maintains multiple layers of historic recognition, each with varying implications for private owners:
National Register of Historic Places — A federal honorary listing that qualifies properties for rehabilitation tax credits (20% federal for income-producing; Oregon offers a 10-year special assessment freeze) but imposes no automatic local restrictions on alterations or demolition for private residential use.
Local Historic Landmarks or Conservation Districts — The strictest level; exterior changes, additions, or demolitions require Historic Resource Review, which can result in denial.
Historic Resources Inventory only — Documentation of significance with minimal protections (possible 120-day demolition delay for higher-ranked properties), similar to the PSU buildings.
A common misconception among buyers (and even a few agents) is that any pre-1930 home—or even one from the 1850s—is automatically “historic.” It is not. Only properties formally listed on official registries carry designation. Due diligence early in a transaction—via Portland Maps Historic Resource layer or title report—helps clarify responsibilities.
Rare Sales of Verified Registered Historic Homes in Portland
From 2023 through Q3 2025, only 15 single-family residential properties with confirmed historic designation changed hands in Portland—roughly one every two to three months—after excluding listings that described homes as merely old.
These historic-designated homes command elevated prices—averaging over $1.25 million across the period—reflecting strong demand for authentic early-20th-century architecture in Portland’s most marketable neighborhoods. However, they are not necessarily the most expensive properties in those areas. Many newly constructed or extensively remodeled custom homes (without historic restrictions) routinely sell for significantly more. For buyers specifically seeking a registered historic property, though, the investment is substantial.
Year Sold
# of Sales
Avg Close Price
Avg Yr Blt
Avg Total SF
2023
5
$990,044
1913
3,405
2024
4
$1,226,424
1903
4,701
2025
6
$1,498,817
1923
5,281
Total
15
$1,256,588
1914
4,501
Sales cluster in Portland’s premier historic neighborhoods: Irvington, Mt. Tabor, Hosford-Abernethy, and Southwest Hills.
Map showing locations of the 15 verified registered historic home sales in Portland from 2023 to Q3 2025.
Surprisingly, sales price shows almost no correlation with exact year built—value is driven by historic status and prime neighborhood location.
Owning a designated historic home represents a significant financial commitment, with higher acquisition costs, ongoing maintenance, and regulatory review for major changes. Potential incentives, such as tax credits and special assessments, can offset some burdens for qualifying owners.
Historic properties—whether the institutional buildings at PSU or the late‑19th and early‑20th‑century homes across Portland—connect the present generation to the rich and vibrant history of previous generations and the loss of any of these structures feels like losing a bit of the past. The tension between retention or eventually letting such properties go will probably never go away.
Sources & Further Reading
Preservation debate and building history: OPB Coverage
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CODA
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