Tag: deep-dive

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.

Portland Real Estate Appraisal Brief – Saturday, December 6, 2025: Portland Eases Code for Single-Exit Four-Story Apartments

Portland’s code now allows single-exit stairwell apartments, raising the maximum unit count on infill lots and posing a compliance challenge for Portland Certified Residential Appraisers.

New three-story, 16-unit multifamily on 5,000 sq ft CM2 lot at 11 NE 55th Ave, Portland, exemplifying H&BU shifts in RM1/RM2 transitional zones post-single-exit stairwell guidelines.
Three-story, 16-unit apartment building on a 5,000 sq ft lot—an early example of the infill density now fully achievable in Portland’s RM1 and RM2 zones under current zoning and the 2025 single-exit stairwell provisions
11 NE 55th Ave, Portland, Oregon – December 2025
Photo: Abdur Abdul-Malik, Certified Residential Appraiser

Easing Regulatory Barriers to Mid-Rise Infill

The City of Portland’s Bureau of Development Services, in coordination with Portland Fire & Rescue, approved a final Building Code Guide (BCG 25–10) on October 22, 2025, that permits single-exit stairwells in certain apartment buildings up to four stories in height. This guide implements a provision already adopted within the 2025 Oregon Structural Specialty Code (OSSC), removing a significant regulatory barrier that often rendered mid-rise infill housing financially and physically impractical on constrained urban lots throughout the Portland metro area.

This code clarification aligns Portland with the practices of progressive code adopters, including Seattle and various international jurisdictions, which have successfully and safely utilized single-stair designs for decades. The change is particularly relevant for infill sites—common in Portland’s established neighborhoods—where lot width or depth previously made the mandatory two-stairwell design economically unfeasible.

The economic advantage is substantial: traditional two-stair designs can consume 13–16% of the total floor area for circulation (stairs and hallways). A single-stair “point access block” can reduce circulation space to as little as 6.5% of the floor area, effectively converting otherwise unusable common space into leasable or saleable residential square footage. The push to allow this type of construction illuminates the entangled intersection between safety, housing affordability, and building codes at a national level. This efficiency boost is key to making medium-density projects feasible in high-cost urban environments. The new allowance is expected to have a greater impact on Multi-Dwelling (RM) zones than on the R2.5–R20 zones, where unit counts are generally capped at six.

Appraisal Implications for Real Estate Valuation

The finalization of single-exit guidelines has direct implications for certified residential appraisers (CRs), lenders, and real estate professionals in the Portland region.

Multifamily Development and the CR 4-Unit Limit

The new guideline creates a direct compliance challenge for CRs. CRs are restricted to appraising residential properties containing four or fewer units.

The 16-unit apartment building at 11 NE 55th Ave provides a perfect case study: it is constructed on a 5,000 sq. ft. lot, which is a standard lot size for Portland. While this specific site is zoned CM2 (Commercial Mixed Use 2), it is a very common setup in transitional zones like RM1 or RM2 and makes for a warning of the complexities residential appraisers will now face on an increasing number of sites throughout the City of Portland. A comprehensive and thorough highest and best use analysis (H&BU) will be even more paramount for CRs going forward.

The Land Sale vs. Home Sale Trap (The H&BU Pitfall):

Here is what existed on the site prior:

Former single-family home at 11 NE 55th Ave in Portland’s CM2 zone, demolished to make way for a four-story, 16-unit apartment building on a 5,000 sq ft lot. Google Street View – circa 2021.
Single-family residence formerly at 11 NE 55th Ave (CM2 zone) prior to demolition and redevelopment into 16-unit multifamily
Portland, Oregon – circa 2019 (Google Street View archive)
Photo: Google Street View (public domain)

Note the home to the right of the subject. That neighboring home has RM2 zoning and still exists to this day. For the sake of illustration, let’s pretend the subject itself was located in the same RM2 zone. (The problem would also exist if it were in the RM1 zone.) I have always been wary of appraising properties in RM1 and RM2 zones due to the potential of unit density exceeding my license scope. However, in some select areas, a careful highest and best use analysis shows four units or less is still the market preference, or perhaps the only options feasible. Constructing an apartment building like the subject in an RM1 or RM2 zone was more difficult prior to the recent zoning change. A residential appraiser viewing the subject’s original home could easily come to the conclusion that the H&BU is still residential, as that conforms to the next door property. However, the financial data proves the site’s H&BU shifted long ago:

  1. Negative Value: The original house effectively had negative value, as the developer purchased the site for $650,000 in early 2024, intending only to demolish the structure and build up.
  2. Land Value: The $650,000 purchase price was solely a land sale based on the potential to build high density—a potential maximized by the single-stair allowance.
  3. The New H&BU: The resulting 16-unit asset, listed at over $3.3 million, confirms the H&BU is a multifamily property that requires a Certified General (CG) Appraiser.
Aerial view of cleared 5,000-square-foot lot at 11 NE 55th Ave, Portland, Oregon, in 2025, after demolition of former single-family home and prior to construction of three-story, 16-unit apartment building enabled by Portland’s 2025 single-exit stairwell guidelines
Vacant 5,000 sq. ft. lot at 11 NE 55th Ave following demolition, awaiting construction of new three-story apartment building
Portland, Oregon – 2025 (Google Earth aerial)
Imagery ©2025 Google, Map data ©2025
  • Pro Forma Income: Because the building is new and actively offering rental concessions (e.g., free rent) to tenants, the listing’s financial figures are projected (pro forma). It has a Projected Gross Annual Income of $256,005 and a Pro Forma Cap Rate of 5.17%—financial metrics based on achieving full market rents and directly tied to the single-stair design’s efficiency. Appraising such a property requires a lease-up analysis and would necessitate a Certified General Appraiser to determine both the As-Is and As-Stabilized values.
  • Risk Area (RM1 & RM2): The greatest risk for CRs lies in Transitional Multi-Dwelling zones (like RM1 or RM2). These zones can get complicated quickly, and the single-stair allowance now pushes the practical development cap far beyond the CR’s 4-unit limit, even on small parcels.
  • Required Due Diligence: CRs must perform careful due diligence when analyzing the H&BU of transitional or infill parcels. If the H&BU conclusion is a multi-unit property exceeding four units, the assignment falls outside the scope of a CR license, and the assignment must be transferred to a Certified General Appraiser.

This apartment building on the street (made possible by the single-stair allowance) has now greatly complicated any future appraisals for the adjacent home. The adjacent home sits on a lot the same size (5,000 sq. ft.).

Single-family home on 5,000 sq ft RM2-zoned lot immediately adjacent to new three-story, 16-unit multifamily building at 11 NE 55th Ave, Portland — illustrating highest-and-best-use risk for Certified Residential appraisers in transitional RM1/RM2 zones, December 2025
Adjacent single-family home on a matching 5,000 sq ft lot zoned RM2—identical in size to the 11 NE 55th Ave site now redeveloped with a three-story, 16-unit apartment building
NE 55th Ave (North Tabor), Portland, Oregon – December 2025
Photo: Abdur Abdul-Malik, Certified Residential Appraiser

An appraisal on this home would now need to take into account the potential to remove the dwelling and place a 16-unit apartment building on the site. The apartment building next door, even though in a different zoning, proved that such a structure is physically possible on a 5,000 sq. ft. lot. Now, with the zoning law change, such a structure is also much more likely to be greenlit following a formal review by the planning department. Even if all the structures on this street were residential homes, a CR can no longer assume four units or less is the H&BU if the zoning is RM1 or RM2.

Density Rules Every Portland Appraiser Needs Tattooed on Their Forearm

In most of Portland’s multi-dwelling zones (RM1–RM4 and RX) there is no maximum density—only minimums. The City’s own table spells it out clearly:

ZoneMaximum DensityMinimum Density (base)
RM1None1 unit per 2,500 sf
RM2None1 unit per 1,450 sf
RM3None1 unit per 1,000 sf
RM4None1 unit per 1,000 sf
RXNone1 unit per 500 sf
RMP1 per 1,500 sf (bonus to 1 per 1,000 sf)1 per 1,875 sf
Source: City of Portland Bureau of Development Services – Density and Lot Dimensions in Multi-Dwelling Zones (09/27/2024)

On a typical 5,000 sq ft lot with no overlays:

  • RM1 → minimum 2 units, no upper limit
  • RM2 → minimum 3–4 units, no upper limit

Highest-and-Best-Use Reality Check for Certified Residential Appraisers

Unless a site in RM1, RM2, RM3, RM4, or RX has obvious, insurmountable physical or regulatory constraints (steep topography, protected trees requiring preservation, environmental overlay zones, landslide hazard, historic designation, or similar), a credible H&BU analysis can no longer conclude that single-family, duplex, triplex, or fourplex development is the concluded use without first testing a multifamily pro forma that likely exceeds four units.

Doing so risks an incomplete analysis and, more critically, completing a valuation that falls outside the Certified Residential license scope.

Appraisers: be careful!

Land Value and Investment Properties

The zoning change also directly affects land value and the as-completed project feasibility by allowing for a more efficient and profitable building design. This local regulatory shift also aligns with supporting federal policy, such as the Federal Housing Finance Agency (FHFA) increasing the combined volume cap for Fannie Mae and Freddie Mac’s multifamily loan purchases to $176 billion for 2026.

Market Context

Portland continues to grapple with a housing shortage, making any code modification that reduces hard construction barriers on infill parcels a necessary and impactful step. The North Tabor neighborhood where this property is located is appealing for investors, characterized by an urban-suburban mix and a high proportion of renters. This demographic composition and investor demand underscores the high asking price for turnkey rental assets like the new construction apartment building in our case study.

For lenders, realtors, estate planners, and attorneys, it is crucial to recognize that the appraisal of these new single-stair buildings will require a deep understanding of the regulatory context. Appraisers must accurately reflect the specific size, unit count, and advanced fire-safety features required by the Building Code Guide 25–10 to ensure a credible valuation and appropriate comparable selection.

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 and wonder why appraisers always do “x”?

A homeowner, lawyer, or estate planner 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.