A nonprofit’s latest affordable housing project in an area of Portland affected by gentrification is advancing.

The three-building Avenue Plaza apartment complex, at 5025 N.E. Eighth Ave., is being deconstructed to accommodate construction of the new five-story, 78-unit Nicole Sandoval Building. Its address will be 5015 N.E. Eighth Ave., near the intersection with Northeast Alberta Street.

There will be 35 two-bedroom units, 39 one-bedroom units and four studios in the 79,442-square-foot building. Twelve of the units will have accessibility features.

Of the 78 apartments, 22 (via U.S. Department of Housing and Urban Development assistance) will be for individuals earning up to 50 percent of area median income, according to owner/developer Sabin CDC, and the other 56 will be for people earning up to 60 percent of AMI.

The project team also includes development consultant Edlen & Co., architect Scott Edwards Architecture, civil engineer Janet Turner Engineering of Lake Oswego, structural engineer VALAR Consulting Engineering of Clackamas, landscape architect DELA STUDIO, and construction manager/general contractor LMC Construction.

The building is named for Nicole Sandoval, a former resident in one of Sabin CDC’s properties and former chair of its board of directors. She also is an artist and children’s entertainer known as Nikki Brown Clown.

“She was instrumental in a key transition period for Sabin when I came on as executive director,” Sabin CDC’s Mary Schoen-Clark said. “Her support was really important during those days.”

The long-term, primarily Black residents of Avenue Plaza provided the motivation for Sabin CDC to tackle the project, Schoen-Clark said. Due to the rising cost of living in the Alberta Arts District, residents started to move out.

Sabin CDC’s long-term strategy is to ensure Northeast Portland residents can continue living in the community. Previously, the nonprofit delivered the Harvey Rice Heritage affordable housing development featuring the Isaka Shamsud-Din complex (on Northeast Killingsworth Street) and Charlotte Lewis complex (on Northeast 72nd Avenue). Two other projects are in the works.

One of the tasks for the design team was to ensure the Nicole Sandoval Building will fit within the Alberta Arts District, Scott Edwards Architecture project architect Sander Kohler said. The building will have a brick façade on the front and fiber cement siding with a board and batten pattern on the back.

Sabin CDC also charged the design team with the task of designing an energy efficient building able to spare residents from the burden of utility costs, Scott Edwards Architecture principal Hayley Purdy said. In fact, tenants won’t pay for any utilities.

In work with the Energy Trust of Oregon through its Path to Net Zero program, the design team identified many sustainable items for the building. These will include a ground source heat pump (the HVAC system), a 114-kilowatt solar array on the roof, a hot water heat pump system with storage tanks, a battery backup system, an efficient building envelope with increased insulation, triple-pane windows, all Energy Star appliances, full on-site stormwater retention including native plants, LED lighting, and more.

A monitoring system will be used to collect data from solar and geothermal systems in a format easily accessible by staffers, according to JT McElrath, cultural events and communications coordinator for Sabin CDC. That will allow system adjustments to ensure efficient energy use.

In addition, peak shaving will go one step further by accounting for when demand for electricity is high and companies’ rates are highest.

“By lowering our demand on the grid at these peak usage times, we lower our utility bill and provide less strain on the electrical grid,” explained Nathalie Hansen, assistant to Schoen-Clark.

The building won’t be net zero due to site constraints, according to Purdy. However, it is expected to receive certification in the Path to Net Zero high-performance tier. The project team is also targeting NGBS (National Green Building Standard) Green certification at the emerald level.

For seismic resiliency, the building will have a post-tensioned slab between the first and second floors. Several areas on the first floor will connect to the battery backup system and be shelter-ready.

Also, there will be 78 bicycle parking stalls, and the site is one-quarter mile from mass transit.

Construction is expected to cost $36 million. Sabin CDC declined to disclose the full project cost.

Funding is from Heritage Bank, Beneficial State Bank, Network for Oregon Affordable Housing, Enterprise Community Partners, Fairview Trust, Oregon Housing and Community Services, Portland Clean Energy Fund, the U.S. Department of Housing and Urban Development, and Metro.

Deconstruction of the three Avenue Plaza buildings began early last month. Sabin CDC is working with the Portland Bureau of Planning and Sustainability on a commercial deconstruction pilot project, Hansen said. Portland YouthBuilders, OregonServes and Meticulous Deconstruction are participating in the effort.

The team has salvaged ovens, fridges and doors from the Avenue Plaza buildings, Hansen said. Windows have been removed and repurposed at a nursery. Studs and ceiling joists have also been salvaged. Some two-by-fours will be used for an accessory dwelling unit Sabin CDC is building in partnership with the city. Some materials are going to the ReBuilding Center in North Portland.

“We’ve also reinvested a lot of material that was on-site into our existing properties,” Schoen-Clark said. “That’s been a nice legacy moment for the existing buildings.”

Construction of the Nicole Sandoval Building is expected to be completed before it receives residents in January 2028.

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Each year, the 91��Ƶ editorial staff compiles a list of the contractors, engineers and architects that are shaping skylines and redefining the industry through their outstanding work. This year’s Power Lists features 20 companies that are leading the AEC industry into 2023 (in no particular order).

GBD Architects

GBD Architects is behind some of Portland’s most recent mega-projects. Highlights include Block 216, a 35-story giant rising out of the city’s downtown; the eight-acre RiverPlace master plan development near the South Waterfront District; and the 30-story RiverPlace tower. The firm’s most recent large-scale work is a proposed 22-story tower in the Pearl District.

Andersen Construction

Andersen Construction has served as the contractor for several of Portland’s recent tall multifamily developments. Projects include Alta Art Tower, a 21-story, 314-unit mixed-use tower; the Sutton (previously “Fremont Place”), a 17-story apartment building; and the Alamo Manhattan Blocks that include a 23-story mixed-use tower and a six-story mixed-use building.

LEVER Architecture

LEVER Architecture is one of Portland’s leading architecture firms in mass timber with projects such as Albina Yard and Redfox Commons. Now it is turning this early innovation into a maturing excellence. The firm hit a significant milestone in 2022 when Portland’s Design Commission approved Sandy Pine, a planned 12-story mass-timber tower. If built, Sandy Pine will be the city’s tallest timber development.

ZGF Architects

As the largest architecture firm in Portland, ZGF Architects has taken on some of the city’s most high-profile projects. Recent highlights include the ongoing $1.95 billion Portland International Airport Main Terminal Core project that features a nine-acre timber roof as well as the PAE Living Building – poised to be the world’s largest commercial living building.

Carleton Hart Architecture

Carleton Hart Architecture is one of Portland’s most prominent firms for designing affordable housing developments. It is a cornerstone of the firm’s mission-driven focus. Projects in recent years have included Nesika Illahee, Mamook Tokatee and Red Rock Creek Commons. One of the firm’s most recent endeavors consists of the complete renovation of the Joyce Hotel in downtown Portland into permanent supportive housing.

PAE Engineers

PAE Engineers is the “brain” behind the recently completed PAE Living Building, which is slated to be the world’s largest living commercial building. Sustainable systems designed by PAE allow the four-story building in Portland to be primarily independent of any city systems. PAE also provided mechanical, electrical, fire protection and technology system design and engineering for the University of Oregon’s modernized Hayward Field, which recently hosted the World Track and Field Championships.

KPFF

KPFF is the engineering firm behind some of Oregon’s largest commercial projects – and more. Work includes Block 216, Oregon State University’s Gladys Valley Marine Studies Building (91��Ƶ Project of the Year 2021), Portland International Airport’s (PDX) Concourse E extension, and the PAE Living Building.

Howard S. Wright

Howard S. Wright is the general contractor behind the largest building in Portland since the U.S. Bancorp Tower – Block 216. At 844,117 square feet, the project will likely become the largest Portland building of its era. It will house 158,000 square feet of office space, a five-star Ritz-Carlton hotel with 215 rooms, and 138 residences.

Walsh ��DzԲ��ٰ��ܳ��پ��Dz���

Walsh Construction is the general contractor for many sustainable and complex projects and myriad affordable housing developments. The contractor recently constructed the four-story PAE Living Building, which required that every item be thoroughly researched and approved against a list containing the “worst in class” materials, chemicals and elements concerning human health and the ecosystem. More than 2,700 materials were vetted for the project.

LMC Construction��

Affordable housing has become a cornerstone of the Portland-metro development market. Many general contractors tackle such projects, but LMC Construction is behind most. More than two-thirds of the contractors’ work is building affordable homes. Projects include Red Rock Creek Commons, Nesika Illahee and Cathedral Village Apartments.

Hoffman Skanska JV

Hoffman-Skanska is the joint venture contractor formed to partly undertake the $2 billion modernization of Portland International Airport. At the heart of this endeavor is the $1.95 billion main terminal project that involves a new nine-acre, mostly cross-laminated-timber roof structure. The entire roof will weigh about 18 million pounds. A self-propelled modular transporter capable of carrying a submarine is being used to move each section into position. Officials anticipate the roof being fully installed soon and the entire terminal updated in 2025.

Kiewit

Kiewit Corp. is known for tackling projects that would be described as large, massive, and complex. All three terms represent the general contractor’s current undertaking with the Abernethy Bridge project that spans the Willamette River. The venture involves drilling more than 200 feet into the earth below the water to place new bridge foundations capable of withstanding a significant seismic event. It is the first major interstate freeway construction project in Oregon in nearly 45 years.

TVA Architects

TVA Architects is one of Oregon’s most high-profile firms, and few others have placed as large a stamp on the state. Projects include Park Avenue West, Fox Tower, and the University of Oregon’s basketball palace – Matthew Knight Arena. Most recently, the firm designed the Sutton (previously called “Fremont Tower”) – a 17-story residential tower under construction on the banks of the Willamette River.

R&H Construction

R&H Construction is building some of Portland’s largest multifamily developments. Projects include Freewell, Saltwood South and Tiller Terrace – a six-story, a 214-unit development in the Goose Hollow neighborhood. Recently, R&H broke ground on Splash Apartments – the first phase of the five-acre Pop Blocks development.

David Evans Enterprises

Oregon’s largest engineering firm, David Evans and Associates, has worked on a wide range of notable projects in the state. Recent highlights include the Newberg-Dundee Bypass, in which the firm designed two new bridges and seven support structures. DEA’s work on the Oneonta Tunnel rehabilitation project also earned . The 2017 Eagle Creek Fire severely damaged the tunnel and rendered it unusable until DEA’s work allowed it to reopen in spring 2021.

Harper Houf Peterson Righellis

Regarding transportation infrastructure improvements in Oregon, Harper Houf Peterson Righellis is one of the key players. The firm is behind the Clackamas Regional Center improvements, which involved widening a bridge that spans Interstate 205 at Sunnyside Road, as well as the Willamette Falls Drive streetscape improvements project that topped the transportation category for the 2022 ACEC Oregon Engineering Excellence Awards.

��Mortenson��

Mortenson is a general contractor with a long reputation in Oregon for building challenging and unique projects. Recently, the contractor has undertaken a significant renovation of the Multnomah County Behavioral Health Resource Center – a 116-year-old building in downtown Portland.

SERA Architects

SERA Architects has worked on some of Portland’s largest multifamily developments in recent years. Projects include Freewell, the Saltwoods, Tiller Terrace and more. Most recently, SERA drew up Slabtown Savier, a two-building multifamily project under construction in Northwest Portland.

BORA Architects

BORA Architects is behind several notable projects in Oregon, including the Cosmopolitan – a 28-story residential tower in Portland’s Pearl District and the Phil and Penny Knight Campus for Accelerating Scientific Impact on the University of Oregon’s Eugene campus. One of the firm’s most recent undertakings is the modernization of Lincoln High School in Portland; It is one of the first high-rise schools west of the Mississippi River.

Swinerton��

Swinerton is a leading general contractor for mass-timber innovation in Oregon. Recent projects include the Wingspan Event and Conference Center in Hillsboro, Steeplejack Brewing in Portland, and Oregon State University-Cascades’ Edward J. Ray Hall in Bend.

Clarification: An earlier version of this story implied an incorrect association for Swinerton to the Beaverton Public Safety Center project. Swinerton was the mass-timber subcontractor for the project.

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A new, 150-unit affordable housing community is coming to the heart of Hillsboro.

Nueva Esperanza will feature 12 residential buildings and a community building on a six-acre lot near the intersection of Northeast 53rd Avenue and Hidden Creek Drive.

The co-developers of the $37 million project are Hillsboro-based Bienestar and Portland-based Housing Development Center. Scott | Edwards Architecture is the designer, and LMC Construction is the general contractor.

Most of the apartments will have two or three bedrooms, though others will have one or four bedrooms. Sixty of the units are intended for households earning 30 percent of the area median income or less. The remainder will be for households earning 20 to 60 percent of the AMI.

The complex will have 169 parking spots, exceeding the requirement of one spot per unit.

The intent of the design, architect Eugenia Fama-Higgins of Scott | Edwards Architecture said, was to create small neighborhoods within the larger one. Residential buildings will be grouped into three distinct clusters – each with its own character and an outdoor plaza in the middle. Walking paths and vehicular streets will circulate through the site and connect the plazas.

Nueva Esperanza, according to Bienestar’s website, is its first project designed to meet two culturally different communities: Latinx families and Somali immigrant families. To ensure the needs of both would be met, focus groups were engaged at different stages of development. This made the project unique for Fama-Higgins, she said. From those conversations, she added, importance was placed on picnic areas, a piñata pole and a large meadow to accommodate soccer games and outdoor movies during summertime.

Both communities requested a separate vanity in the two-bedroom apartments where there’s only one bathroom. In units with two bathrooms, one has a shower and the other has a tub. For the three-bedroom and four-bedroom apartments, future residents asked for the kitchen to be separated from the living area by a partition wall or a door.

One point of contention between the communities was whether dogs would be allowed. To find middle ground, Fama-Higgins said, the team added a fence around the area for dogs. Also, signage will indicate whether dogs are allowed in certain areas.

All residential buildings will be three stories. The walk-up apartments will be stacked and identical, with entryways on the plaza and street side. The other configuration will be a two-story townhome unit over a flat.

The buildings will have a traditional wood siding, but Fama-Higgins said it would be a vertical board-and-batten pattern to add a bit of playfulness. The bluish color is still being finalized, she added, but so far feedback from the city of Hillsboro, clients and community members has been positive.

Earth Advantage gold certification will be sought for the project. Residential buildings at the site’s south end will be made solar-ready for a maximum 26-kilowatt load. The solar power will serve the community’s side lighting and some common spaces.

Construction crews will use an advanced framing method for the residential buildings. Instead of 16 inches of separation between studs, there will be 24 inches. This will allow use of less material and reduce the labor cost, Fama-Higgins said, but also create more space for insulation and thus improve the building’s energy performance.

The project team already has exceeded its goal of 20 percent participation by minority-owned, woman-owned, or emerging small businesses. So far, it is at 30 percent, according to a Scott | Edwards Architecture representative.

Currently, permits are being sought for the project. Crews expect to break ground this month and finish in fall 2023.

On the Boards is a 91��Ƶ feature offering a look at the projects in Oregon being tackled by local architecture firms. To have your firm’s projects considered, contact the 91��Ƶ at 503-802-7221 or newsroom@djcOregon.com.

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When developers Wylie Gibbins and Taylor Kaplan were searching for an underserved multifamily market, they looked to Gresham.

The east Portland suburb had several factors in its favor. Rents were rising to the point that new development could be supported, and job growth was surging – in part because of the arrival of an Amazon warehouse in Troutdale and Vista Logistics Park in Gresham.

Gibbins and Kaplan, who met while working at Williams & Dame Development, formed Gibbins Kaplan Development in 2017. The business partners found they had complementary skill sets, with Gibbins focusing on finance and investor relations, and Kaplan working with architects, contractors and city officials to launch multifamily projects.

Having found a suitable market, the developers next needed access to capital, so they turned to some bigger fish in the business.

Like many industries, real estate development faces a generational gap. Older, established developers enjoy many advantages – typically a long record of successful projects, deep relationships with investors, architects and contractors, and more resources to marshal bigger and more profitable projects.

Younger developers like Gibbins, 42, and Kaplan, 34, sometimes must become a bit scrappy to find opportunities. Enter the older, more established developers.

Gibbins Kaplan Development partnered with Urban Asset Advisors on two multifamily projects in Gresham: The Archibald and Douglas Grove.

“We basically rode shotgun with them on the project,” said Tim O’Brien, president of Urban Asset Advisors. “We helped them where we could, and otherwise stayed out of the way.”

O’Brien introduced Gibbins and Kaplan to one of UAA’s longtime lenders, helping the newer developers access debt.

“We helped raise the equity for the project from local, private investors. Then we went and signed on the bank loan with them,” O’Brien said.

Gibbins Kaplan Development this past summer completed Twelve Mile Crossing, an 82-unit complex in Gresham, in partnership with McKenzie River Company. The complex has 10 three-bedroom units in addition to one- and two-bedroom units. All are occupied.

“There’s a big demand for that (unit size) and a lack of that in Gresham,” Gibbins said.

Now, Gibbins Kaplan Development has forged a partnership with another Portland developer, Capstone Partners. They plan to break ground in June on Arts Plaza Apartments, a 97-unit project in the heart of downtown Gresham expected to be completed in summer 2023. Then construction of West Powell Apartments, a 48-unit complex, is slated to begin in late summer, with completion scheduled for fall 2023.

“Part of my interest is to help promote a good project, but also to help smaller developers,” said Chris Nelson, president of Capstone Partners.

For Gibbins and Kaplan, the partnerships have enabled them to get rolling on projects and establish their firm as a player in the workforce multifamily market.

“We’ve been very fortunate with both Tim and Chris that they’ve provided a lot of mentorship in addition to partnership,” Kaplan said.

Gibbins Kaplan Development does not plan to rely on other developers for long, however. The firm recently closed on another property at 405 N. Third St., that they envision holding their first solo development. The Gresham Arts Plaza property will have approximately 20 units.

The firm has also kept projects moving by using a small roster of industry firms. MWA Architects has designed every Gibbins Kaplan Development project to date, which helps the design process run smoothly, Kaplan said.

“We know we’re not going to have a big surprise,” she said. “Everybody’s done this a few times.”

Douglas Grove and The Archibald were built by LMC Construction. Team Construction, based in Vancouver, Washington, built Twelve Mile Crossing and is performing preconstruction for the projects with Capstone Partners.

Rents in Gresham do not yet support podium construction, Kaplan said, unlike in Beaverton and Hillsboro. To make the Gresham projects financially feasible, the buildings are designed with a minimal amount of steel on the first floor.

“Not only are steel costs going up, but the lead times are going up as well,” Kaplan said. “Designing projects that are responsive to materials’ (cost) increases is increasingly important for controlling your (total) costs.”

Douglas Grove and The Archibald were envisioned as short-term holds. They were put on the market on Jan. 27 by JLL.

All of Gibbins Kaplan Development’s subsequent projects are in an Opportunity Zone and are part of Opportunity Zone funds. As such, they are expected to be 10-year holds to reach the threshold that allows investors to forego paying tax on the capital gains.

Gresham has five contiguous Opportunity Zones. The tax break has helped get Gibbins Kaplan Development’s multifamily projects off the ground, Gibbins said.

“Out here, I think it’s spurring development as the program is intended to do and producing workforce housing,” he said.

Opportunity Zones have attracted criticism for encouraging investment in areas that already had attracted developers’ interest, including Portland’s West End, where a 35-story Ritz-Carlton tower is under construction, and fast-gentrifying areas of West Oakland, California, and San Francisco.

Other developers, including Palindrome Communities and Wood Partners, have targeted Gresham for multifamily development.

“There continues to be a lot of interest in Gresham as a whole, but certainly multifamily,” said Eric Schmidt, assistant city manager for the city of Gresham.

Gibbins and Kaplan have learned how to smoothly navigate the city’s approval processes, Schmidt said.

“They’ve been a great partner with the city,” he said.

The multifamily projects align with the city’s need for more housing, Schmidt said.

“They do great work,” he said. “Each project is just getting continually more dialed in.”

Gibbins and Kaplan said Gresham had been supportive.

“She’s able to key decision makers in Gresham on the phone on the weekend,” Gibbins said of Kaplan, “which doesn’t happen in every jurisdiction.”

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Guardian Real Estate Services is on the verge of breaking ground on a 234-unit apartment project in Milwaukie, making it the Portland developer’s second multifamily project in the southeast metro suburb.

The project follows Axletree Apartments, a five-story, 110-unit building that was delivered in downtown Milwaukie in November 2019. Axletree is now 95 percent occupied, Guardian President Tom Brenneke said.

Guardian is eager to double down on Milwaukie, he said.

“People are fleeing the city, and they’re finding Milwaukie, they’re finding Vancouver (Washington), they’re finding these other areas,” he said.

Milwaukie is 20 minutes from Portland’s central business district and easily accessible via TriMet’s MAX Orange light-rail line, Brenneke said. The area has its own strong employment base, including Oregon Tool, Bob’s Red Mill, Precision Castparts and Dave’s Killer Bread.

“You know, there’s real employment there,” Brenneke said.

Guardian found itself with essentially a turnkey project after another developer, Johnson Development Associates, based in Spartanburg, S.C., backed out. Guardian approached the land seller to secure a deal. Guardian was able to buy the plans from Johnson and keep the project team together.

“They got all the way to the altar with permits and walked away,” Brenneke said. “It dropped right in our lap.”

The project team includes LMC Construction, BC Group, Arris Studio Architects, DOWL and Tello Interiors. Guardian Management will manage the property.

Milwaukie, unlike Portland, has no inclusionary housing requirements, making it easier for a multifamily project to pencil out despite commanding lower rents. The city of Milwaukie encourages development, Brenneke said.

“We get red carpet treatment in that city,” he said.

In a news release, Ann Ober, Milwaukie’s city manager, stated: “For the past five years, the Milwaukie City Council has been dedicated to the development of housing through their housing affordability goal. We are excited about these units coming online as well as the construction of a portion of the Monroe Street Neighborhood Greenway, another critical city project.”

The Guardian project at 10999 S.E. 37th Ave. is more spread out than Axletree. The forthcoming development comprises five residential buildings on 7.2 acres. The property will also have a clubhouse with a kitchen, a lounge, a conference room, a fitness center and a yoga studio. An outdoor plaza will feature a barbecue and picnic area, a pool and spa, a dog park and a playground.

Apartments will range in size from 495 square feet to 1,198 square feet in studio, one-bedroom, two-bedroom and three-bedroom configurations. A washer and a dryer will be included in each unit.

“I’m just so confident in this project,” Brenneke said. “There’s such a need and demand.”

Completion is expected in April 2023.

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While construction remains a bright spot for the U.S. economy during the pandemic, soaring costs and shortages of materials are creating havoc for companies across the country. This is especially true of lumber.

LMC Construction Vice President Kyle Anderson said he’d seen a 40 percent increase in material prices over the past couple of months. For one recent $2 million project in North Portland, he said, from the time the contract was awarded to the time of procurement, the cost of materials jumped to $430,000.

“We’ve dealt with material inflation and supply shortages before, but nothing like this – this drastic in a short period of time,” he said. “I’m hearing that message pretty consistently with subcontractors and with wood suppliers.”

Idaho Pacific Lumber Company, a leading supplier for multifamily construction, routinely releases market reports. In the Pacific Northwest, the cost of 4-by-8 sheets of 15/32 Oriented Strand Board (OSB) has risen from $395 per 1,000 board feet (MBF) last year to $1,550, said Scott Sunday, vice president of purchasing and sales for Idaho Pacific Lumber.

“Lumber has more than doubled in price, panels quadrupled, and OSB quadrupled,” he said.

Project teams across the country are stopping work, Sunday said, because they can’t find the materials they need. Items ranging from metal fasteners to dishwashers are becoming scarce. But nothing is causing more concern than lumber.

Just before talking with the 91��Ƶ, Walsh Construction senior project manager Ed Sloop had spoken with someone about how to deal with lumber – it was his fourth call of the week on the subject.

Sloop, Walsh Construction’s chief estimator, has been watching the market particularly close for the past several months trying to determine the best time to buy materials or, more frequently, how to account for a project’s cost with escalating prices.

“It’s just gone crazy,” he said of lumber. “That is the single biggest impact to us.”

How did we get here?

The Associated General Contractors of America last month released a survey on the impacts of COVID-19 on the construction industry. Results showed that backlogs and shutdowns at factories, mills and fabrication facilities – both domestically and internationally – are causing the majority of the supply issues.

While many manufacturing facilities and mills responded to the pandemic like a recession was imminent, Sunday said, builders for the most part did not. There was a slight pause early on, but then construction was deemed an essential business and work picked up again. This led to pent-up demand for materials such as lumber, Sunday said.

Even after factories and mills resumed operations, COVID-19 case counts led to some pausing again. Suppliers couldn’t catch up.

At the same time, the single-family market started booming – and the home improvement market ramped up. Even greater pressure was placed on supply.

Historically, single-housing construction has significantly impacted supply of lumber. But in 2006, the market fell off a cliff. According to Trading Economics, housing starts dropped from a little over 2.1 million in 2006 to under 750,000 in 2008 – an approximately 65 percent drop.

But single-family construction has since recovered slowly, and that trend became even more apparent entering 2020, Sunday said.

Then COVID-19 arrived. The pandemic shocked producers, but not builders. Demand for lumber failed to wane.

It wasn’t always that way, said Steve “Tiny” Morlock, a counter crew leader for Milwaukie Lumber Co. who has been in the industry 30 years. In 2007-08, he said, there was a glut of lumber and not enough demand, which led to a number of mills closing down.

Now those mills that remain can’t produce enough.

“The single-housing market combined with certain factories or mills being affected by COVID shutdowns … Those two items together combined then created a perfect storm,” Anderson said.

Then in late summer 2020, the lumber supply caught fire … literally.

Disastrous consequences

In a letter to Idaho Pacific Lumber customers in mid-March, Sunday wrote: “In regard to lumber, the results of the 2020 forest fires last September in the western United States had a (devastating) effect on the industry. It was reported the Oregon alone lost 15 billion board feet of timber, enough to build a million homes. The amount of logging equipment lost in these fires is in the hundreds of millions of dollars.”

The loss of that amount of lumber – as well as equipment – due to the fires has been “catastrophic to the lumber market,” Sunday said. It “all added to this terrible situation that we’re in and being so undersupplied.”

While the coronavirus has disrupted job sites, the volatility of the lumber market could have a more devastating effect, Sunday said.

“(It’s as) bad as it could possibly get,” he said. “If we get another fire season, it’ll truly cripple the industry.”

LMC Construction in the past could procure lumber for projects in two to three weeks, Anderson said. Now it’s closer to six to eight weeks, he said, adding that he’s definitely worried about the schedule for any project getting out of the ground and heading toward framing.

Walsh’s Sloop has similar concerns.

“When you’ve been told, ‘Hey you can’t have doors until after you’re supposed to have occupancy,’ that’s a problem,” he said.

Project start and end times are all daisy-chained, Sloop added, and at some point, subcontractors will have to send their people to the next job. Unfortunately, delayed deliveries of materials could lead some contractors to turn to weekends to get work done on time, he said.

Where are we headed?

Both Sunday, who has 36 years in the industry, and Anderson, who has 24, said they’ve never seen lumber market volatility like what is happening now. And change might not come for some time.

“We’re expecting the remainder of 2021 to be turbulent on that front (lumber),” Anderson said. “Having any kind of shutdown on already … a strained market is going to make things worse.”

For the lumber market to normalize, it needs either a substantial infusion of supply (unlikely anytime soon, according to Sunday) or a decrease in demand – perhaps because of projects being put on hold.

Delaying projects would be a dangerous game to play, especially amid market volatility, Anderson said. He would prefer to see project teams simply account for cost increases.

Meanwhile, as COVID-19 vaccinations take place and mill shutdowns cease, supply might be able to catch up.

Morlock, of Milwaukie Lumber Co., said he’s seen logs at mills waiting to be processed. However, he added that even if operators were to work 24 hours a day, only so many logs can be processed at a time.

“I think we’re going to be in this kind of pricing into 2022 and maybe well into 2022 before seeing any type of release,” Sunday said.

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Mamook Tokatee may seem like an odd name for a new affordable housing structure rising in Northeast Portland. But its meaning – “make beautiful” in Chinook Wawa – will surely be important to its future residents.

Community Development Partners and the Native American Youth and Family Center (NAYA) have joined forces for their second housing project in the Cully neighborhood. Carleton Hart Architecture designed the project, and it’s being built by LMC Construction.

The four-story, 56-unit building is being constructed at 4636 N.E. 42nd Avenue, at the intersection with Northeast Going Street. By the end of this week, the long shoring pillars supporting the recently poured concrete deck will be removed, marking completion of the four-month concrete phase.

Currently, rods upon rods are laid out, waiting for construction crews to come by to posttension the concrete. Forty truckloads of concrete were used to fill the deck, LMC Construction Senior Project Manager Ken Bello said.

The structure will be three stories of stick framing over concrete. Timeframe Inc. is doing the wood framing. Crews plan to begin in early March, and finish in three months – one month per floor.

The building will feature studio, one-bedroom, two-bedroom and three-bedroom units as well as a community room and an art studio.

LMC Construction is using an old bakery storefront as its on-site office. Afterward, the plan is to turn the space into an art gallery for the residents to display their artwork.

Mamook Tokatee is one of three affordable housing projects that Community Development Partners and NAYA are bringing to the neighborhood. The first was Nesika Illahee, at 6370 N.E. 42nd Ave. Work on a third building, Hayu Tilixam, is expected to begin in mid-March near the intersection of Northeast Prescott Street and Cully Boulevard.

The team’s focus is to house the urban Native American population in Portland, “which has been an underserved community for years,” Bello said.

The goal, Community Development Partners Development Manager Lucy Corbett said, was to locate the buildings near each other and the NAYA campus so residents can easily access services there.

The new housing will provide affordable options in Cully, where home prices have risen to around $400,000.

“I think Cully used to be one of the more affordable neighborhoods close to the core of Portland,” NAYA Director of Community Development Oscar Arana said. “(It’s) no longer affordable to the average Native American … just because the prices are so high.”

Creation of affordable housing has become really important to NAYA, Arana added, so Native Americans aren’t pushed out of the city.

Bello has witnessed a demographic change in Cully. He moved to the neighborhood in 1994, when it was inhabited mostly by working-class people, but has since seen it become more gentrified. He has focused his career on affordable housing projects, he said, and by chance was selected to work on these three projects near his home.

“(I) consider it a privilege and absolute joy to be part of the neighborhood,” Bello said.

LMC Construction is working with Zavala Corporation (concrete), Solid Form (structural steel), Union Drywall, MSI (plumbing), Andersen (HVAC systems) and Cox Electrical. The site was excavated by Lauzon Contracting.

The project team broke ground in August 2020 and is expected to finish in December.

Financing was provided from the sale of Low-Income Housing Tax Credits, and $2.36 million from Oregon Housing and Community Services. The Siletz Tribe contributed a $1 million Indian Housing Block Grant, which will secure 20 of the building’s units for Native households. Also, Metro provided a $300,000 Transit-Oriented Development grant.

“(It’s) really important for the Native American community to have housing that’s designed and created by and for them because that’s how we will effectively reach the population that we’re trying to serve and that’s tailored for their needs,” Arana said.

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Construction crews have broken ground in Portland’s St. Johns neighborhood on a 110-unit affordable housing development. Cathedral Village will house low and very low-income families as well as people either chronically homeless or at risk of homelessness.

The four-story building is being erected on a 1.2-acre lot at 8614 N. Crawford St. The site is within walking distance of Cathedral Park, grocery stores and retail outlets.

Related Northwest and Catholic Charities of Oregon are co-owners of the project. MWA Architects is the architect, and LMC Construction is the contractor.

The building will hold one-, two-, and three-bedroom units ranging from 384 square feet to 1,051 square feet. It will also feature a community room with a kitchen, a shared laundry, a teen room, a courtyard with a barbecue area, a “tot lot” with a garden for children, and bicycle parking.

The building’s exterior will be a brick skin with metal cladding; an art installation will be added to the panels facing Crawford Street. The building’s other side will have views of the St. Johns Bridge.

“I think it’ll be a handsome building when done,” said Stef Kondor, vice president of development at Related Northwest.

The location was selected as part of an effort to ensure there are affordable housing opportunities throughout the city, said Travis Phillips, director of community development and housing at Catholic Charities.

The COVID-19 pandemic hit midway through the design phase, Phillips said, and main elements had already been established. The design team then looked at how to make sure residents would be able to both live and work in their units.

“I think that (need for individual space) elevated this year with the pandemic – the fact that more people are spending more time in their individual spaces,” he said.

Many meetings took place, Phillips said, concerning whether a cabinet would be installed in one place, or shelving units would go in another.

Affordable housing units often have limited storage space in individual rooms, Kondor said. A big initiative, she added, was to make sure each unit would have enough pantry and linen storage.

Team members also spent a long time configuring the community spaces, Kondor said. Wi-Fi was included in all of those spaces to make them more inviting and able to facilitate children’s schoolwork.

Catholic Charities will provide residential services and support within the building. It was important for those spaces to be placed near the community ones, Phillips said, in order to encourage face-to-face interactions between staffers and tenants.

A point of emphasis for Kondor, she said, was location of building entry and exit points allowing high visibility to ensure security. The design team used a crime-prevention-through-environmental-design model to make sure residents would feel safe. Landscape and lighting were given special attention. There will be no hidden corners, and security cameras will be placed in all common areas, Kondor said.

The aim of the support services within the building is to help people adjust to living inside if they’ve been homeless. Staffers also will help tenants understand the health care coverage system and how to navigate it.

With Cathedral Park hosting one of the longest-running jazz festivals west of the Mississippi River, music is an integral part of the St. Johns neighborhood, Kondor said. The project team wanted that to be reflected in Cathedral Village with a music room. It’s also working with a local high school to provide an after-school music program for children.

The development’s estimated cost is $37.7 million. Funding is coming from Umpqua Bank, Red Stone Equity Partners, the 2016 Portland affordable housing bond, Oregon Housing and Community Services, The Collins Foundation and the Hedco Foundation.

The project team is adhering to PHB (Portland Housing Bureau) green building standards and aiming for Earth Advantage gold certification.

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The first new development to be completed in the Tigard Triangle Urban Renewal Area has its first tenants.

Even while cleanup was taking place and finishes were being applied, the first two residents of the 48-unit Red Rock Creek Commons affordable housing complex were moving in. The new building is at 11090 S.W. 68th Parkway, slightly south of the intersection with Oregon Route 99W. The project was built by general contractor LMC Construction and designed by Carleton Hart Architecture for Community Partners for Affordable Housing (CPAH).

Ground was broken in summer 2019, but this year LMC Construction faced last-minute design changes, COVID-19 and wildfire smoke. Recently, the team attained a temporary certificate of occupancy.

“These guys worked very hard to bring this in pretty much ahead of schedule despite the COVID challenges that hit, the wildfires that shut us down for a couple of days and the smoke,” LMC Construction Vice President Kyle Anderson said. “It went surprisingly well, considering it was 2020.”

Each apartment has one bedroom. A large community room with a kitchen and other community spaces allow residents to gather for events. Also, access was created to the natural area around Red Rock Creek.

A lounge on the ground floor is designed as a doorless extension of the corridor, but exists as a separate space. It hosts mailboxes, bicycle storage and a lending library as well as provides access to an outdoor deck that overlooks the natural area.

The exterior is marked by cedar siding at ground level, along with composite siding for the upper three floors. Metal-panel accents feature under each window, while architectural metal sunshades are affixed to the edges of south-facing windows to prevent interior heat buildup.

Construction did not take place without difficulty, according to LMC project manager Aaron McGuire.

“Originally, with the design of the building, we were going to have a crawl space, not a slab on grade,” he said. “Right before we started construction we changed that and did a slab on grade. But the topography of the site meant that we had to bring so much rock back in to get us to that point. We ran into some grading issues along the way because of it. It was a very challenging grade, but it was a fun challenge to get through that process.”

That was true, McGuire added, not only from a design and engineering standpoint, but from a management one as well.

“With challenges obviously comes the financial piece that plays into it, and the project schedule and budget,” he said. “Again, with the climate, the fire and smoke delays and COVID, we were able to get it done on time and get these residents in relatively quickly.”

Anderson and McGuire both noted that the fact LMC has worked with both Carleton Hart and CPAH in the past made these things easier to surmount.

“We lost six days alone to the wildfires and smoke, but we were able to recoup that time,” McGuire said. “We were in the finishes stage working the exterior of the building, trying to get the rest of the cladding up, working the irrigation and starting site work, so a lot of the outdoor activities could not be achieved because of that.”

Some subcontractors couldn’t even get their crews on site during that time, Anderson added. But perseverance prevailed.

“It was a great team out here,” McGuire said. “Everyone came together and realized if we have obstacles we need to address them quickly and then figure out another avenue or a design change that they’re willing to accept within a good time frame to achieve that schedule.”

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, a three-story, 59-unit affordable housing building in Northeast Portland, recently received a high honor from the Urban Land Institute‘s Terwilliger Center for Housing.

The project won the Chairman’s Award as part of the Jack Kemp Excellence in Affordable and Workforce Housing Awards for 2020. The award recognizes particularly creative projects designed to address a unique affordable housing challenge, according to a press release.

Nesika Illahee opened earlier this year at 6370 N.E. 42nd Ave. It was produced via a combined effort of Community Development Partners, the Native American Youth and Family Center, the Confederated Tribes of Siletz and the Native American Rehabilitation Association of the Northwest.

The development was designed by Carleton Hart Architecture and built by LMC Construction.

“ULI has long been recognized as one of the world’s most respected and widely quoted sources of objective information on urban planning, growth, and development so this award is an amazing honor,” Community Development Partners CEO Eric Paine stated. “We undertook this innovative project with our partners to address barriers to affordable housing for Native Americans, especially homeless and low-income families. This is the first time a Tribe has allocated its Indian Housing Block Grant Funds through a sub-recipient agreement in partnership with a Native organization, and established tribal preference on what would have been a traditional low-income housing tax credit project. Nesika Illahee is a project of which all the involved partners and the greater community can be extremely proud.”

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