Tag: adaptive reuse

Portland Real Estate Weekly Appraisal Digest – December 14th – December 20th, 2025: Preservation Debates, Reuse, and Regulatory Shifts

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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.

Table of Contents

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

Suburban single-family home with detached guest house (ADU) in a Portland metro area neighborhood, eligible for expanded Fannie Mae financing under December 2025 guidelines.
Detached guest house on a residential property, illustrating expanded ADU eligibility
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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 exterior view of the 1900 Building in downtown Portland, Oregon, headquarters of the Portland Bureau of Development Services
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

Iconic concrete grain silos along the Willamette River in North Portland, viewed from the east bank with industrial infrastructure and railroad tracks visible – December 2025.
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.

Week’s Blog Posts & Further Reading Links

Closing Remarks

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.

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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.

Portland Real Estate Appraisal Brief – Friday, December 19, 2025: 1803 Fund Unveils Adaptive Reuse Plans for Portland’s Historic Grain Silos

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.

Iconic concrete grain silos along the Willamette River in North Portland, viewed from the east bank with industrial infrastructure and railroad tracks visible – December 2025.
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.

Satellite map of the 1803 Fund project area in North Portland between Fremont and Steel Bridges, labeling Albina Riverside grain silos, The Low End mixed-use district, McCormick Pier condominiums across the Willamette River, and Moda Center/Rose Quarter – December 2025.
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.

The former Louis Dreyfus grain terminal on the east bank of the Willamette River in Portland, Oregon, viewed from 99W & N Interstate Ave. This photograph, taken in December 2025, shows the full silo complex with headhouse and conveyor structures, framed by foreground vegetation, prior to planned adaptive reuse by the 1803 Fund.
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.

Industrial marine conveyor structures and docks at Portland's historic grain silos extending over the Willamette River, viewed from the west bank – December 2025.
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.

McCormick Pier condominiums and residential waterfront along the Willamette River in Portland, viewed from the east bank looking west toward downtown – December 2025.
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

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.