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On an 8,700-square-foot lot in the heart of downtown Portland, there really is nowhere to go but up.

But zoning for 鈥檚 property at the corner of Southwest Fifth Avenue and College Street allows buildings no taller than 100 feet. That presented a challenge for the team developing an $11 million housing complex near Portland State University.

鈥淲e needed to maximize the amount of bedrooms and apartments on a very, very small lot, and this allowed us to go from six to eight stories where otherwise we would just do typical post-tension or steel construction, which is considerably more (expensive),鈥� said Steve Master, president and CEO of Master Capital Management.

The company is using a Canadian company鈥檚 proprietary metal joist system called Hambro. It鈥檚 a lightweight, open-web array that integrates into pre-loaded concrete floors, which are anchored by structural caissons that run 30 to 50 feet below ground.

Not only does the system let more floors be squeezed into a building, but Master said it is also generating as 20 percent savings on construction. Barry Smith, the project鈥檚 architect, said he has received many calls from developers interested in learning how to use the system.

鈥淚t鈥檚 an incredibly efficient building,鈥� he said. 鈥淚t鈥檚 very lightweight and incredibly sustainable because steel is almost 100 percent recoverable.鈥�

The building also will feature light-gauge metal framing and a blue metal cladding and fiberglass window system on the exterior. Portions of the building are slanted like the prow of a ship to defy an optical illusion called diminution that makes tall buildings appear to curve as they rise.

Smith said it took a little while for design commission staffers to sign onto the metal plan, but added that they ultimately warmed to the idea.

鈥淚f you look at a lot of other buildings around town, they鈥檙e monolithic and flat,鈥� Smith said. 鈥淚鈥檓 fighting the optical illusion that happens on the corners of tall buildings, which will make it more friendly. It will give it a more elegant and sophisticated scale than if it were just a big, flat wall.鈥�

Richard Nelson, project engineer for , the project鈥檚 general contractor, said many special inspections, shop drawings and deferred submittals were required.

鈥淚t鈥檚 just sort of a new system and everyone wants to see it done a few times before they do it,鈥� he said. 鈥淭his is kind of a gem of a project to see how fluid we can make it go, and so we鈥檙e pouring a lot of resources into this to make sure it does go smoothly and so there are not any obstacles in our way.鈥�

The building鈥檚 54 units will have 143 bedrooms, in two-, three- and four-room configurations. Bedrooms will be set up so that they share kitchens, living rooms and bathrooms; however, leases will likely be done separately, in dormitory fashion.

From a market perspective, Master is optimistic about future demand for such housing.

鈥淭here鈥檚 just much more demand for our education system here and it鈥檚 really in growth mode,鈥� Master said. 鈥淭here are more students wanting the services that our Oregon schools deliver 鈥� you can just look and see the writing on the wall that there is demand and demand is growing.鈥�

In the past 10 years, enrollment at PSU has grown nearly 50 percent to 29,703 students during the 2011-2012 school year. John Kirkland of PSU鈥檚 communications office said the university has 10 buildings with 2,100 beds and that the occupancy rate tends to hover at about 95 percent at any given time.

Across the street from Master鈥檚 project, a new dormitory called University Point is adding 993 beds to the mix. But Master thinks his building鈥檚 boutique character will appeal to professionals in their 30s who want to be close to PSU and live in stylish quarters.

A Leadership in Energy and Environmental Design gold rating is being sought. Smith said the building was engineered inside and out from a cost-savings perspective; the bonus is that it鈥檚 highly sustainable.

For instance, the building won鈥檛 have a central heating and cooling system, but instead use super-insulated window and wall systems, along with electrically powered ceramic radiant heat strips to control temperatures. It also will have a green roof and a green wall, among other features.

Rent for each unit will run between $1,600 and $2,700 鈥� relatively affordable when split between two and four people, considering that the going rate for downtown housing is $1.66 per square foot.

Smith thinks the project will be a good model for Portland and beyond. He mentioned that New York Mayor Michael Bloomberg recently made a call for proposals of affordable, 300-square-foot apartments for young professionals.

鈥淭his is exactly what he鈥檚 looking for,鈥� Smith said.

Ground was broken this month, and the building is slated to open in summer 2013.