Portland city officials have approved building codes that allow for the construction of single-staircase multifamily buildings up to four stories, but a requirement inserted at the insistence of fire authorities may make the code unworkable, according to interviews with multifamily experts.

Housing advocates have long championed the potential for single-staircase buildings to provide apartment and condo units in dense urban areas such as Portland.

“It lets you put multifamily buildings on smaller lots,” said Michael Andersen, director of cities and towns for the Sightline Institute, a Seattle-based nonprofit.

On Nov. 4, Portland Permitting & Development issued new code guidance allowing for single-staircase buildings as tall as four stories, in consistency with the updated 2025 Oregon Structural Specialty Code, which took effect Oct. 1.

The prior code allowed single-staircase buildings as tall as three stories, but a fourth story adds more density and, potentially, revenue-generating units, making more projects financially feasible.

The new rules allow for up to 4,000 square feet of total building footprint, with up to four units per floor, for a total of 16 units.

But some outside experts and designers are concerned that a condition meant to provide firefighters with a second point of access to an engulfed building will render plans impossible to construct.

The requirement calls for an unobstructed street width of 26 feet, not including shoulders or parking, and no overhead utility or power lines that would be within 10 feet of an aerial fire ladder extended from the street to a building’s roof.

That could prove a challenge on Portland’s narrow streets, according to interviewees.

“If they enforce this as written and don’t provide alternatives, it makes it almost impossible to find a site to build four-story, single-staircase buildings,” said Iain MacKenzie, a multifamily designer at TVA Architects and a noted local commentator on design and public policy.

Portland’s streets typically have little more than 20 feet of clear width after parked cars and shoulders are taken into account, MacKenzie said.

“All the other conditions (code officials) put on there are totally reasonable and workable,” he said. “But this one thing is a deal-breaker, and it’s not something you can solve by design — it just makes most sites unbuildable.”

A fire official defended the requirement, saying it’s necessary to preserve two access points for firefighters.

“The fact of the matter is a single stair is already a concession to the construction and development industry to maximize livable space on maybe a constrained lot,” said Tom Walsh, assistant fire marshal for Portland Fire & Rescue. “This is already a concession. This is us working with the industry to come up with innovative solutions, but we’ve got to maintain firefighter and occupant safety for fire code.”

The requirement is an “an extrapolation of the existing code language,” Walsh said.

The fire concerns are real — no one wants to go back to the days when entire cities burned down. But housing advocates argue buildings are much more fire resistant than they used to be.

“We required sprinklers, which have been extremely effective at fire prevention, along with modern cladding, fire separation and all the rest,” Andersen said.

The single-staircase discussion filtered down from the International Code Council after several cities approved taller single-staircase buildings. Cities such as New York City, Seattle and Honolulu allow six-story single-staircase buildings, something Andersen said he’d like to see in Oregon.

“We don’t want the only way to add apartments to a block to be to completely transform it,” Andersen said. “We want there to be attractive, family-sized housing sprinkled through neighborhoods.”

A double-staircase design tends to force architects into a design with a long corridor, with a staircase on each side, resulting in units that have windows facing only one direction, MacKenzie said. Think of a hotel.

Housing advocates say single-staircase buildings result in more corner units, and more multiple-bedroom units.

“The single stair is the international standard,” said MacKenzie, who hails from Scotland.

Designers of some smaller projects have found solutions to fire access. Two projects designed by QUAD Architects on Southeast Division Street have no aerial access because of power lines and other obstructions, but they were allowed to build with a large roof hatch and a ship ladder. However, both of those projects are only three stories.

The hatch-and-ladder design requires a fairly flat roof, so firefighters can walk atop it, said Armin Quilici, co-founder and partner of QUAD Architects. The hatch-and-ladder solution, he said, was “pretty simple to do.”

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SAN FRANCISCO — San Francisco Mayor Daniel Lurie is trying to get more homes built for people like Liam Murphy: a fifth-generation city kid who found himself repeatedly outbid for tiny, two-bedroom houses that wound up selling for around $1.6 million.

Murphy, 39, now lives about an hour’s drive away from San Francisco, which he serves as a firefighter. He says it’s too late for his family to move back, but he hopes others can stay in a city where the average monthly rent for a one-bedroom apartment is $3,500.

“That would just make for a better city overall,” said Murphy, “and the reason is because city kids just grow up being exposed to more. They’re exposed to all the cultures of San Francisco, which makes a more well-rounded person.”

Tiny, colorful San Francisco — just seven miles squared — embraces its image as a city that welcomes all. But its inability to add housing has put its diversity at risk.

Lurie hopes to change that with a plan to allow for denser and taller buildings throughout much of the city, including the westside Sunset neighborhood of single-family homes and the tourist friendly Haight-Ashbury, which is studded with classic Victorian and Edwardian homes.

The issue has roiled the city, and threats of recall loom over San Francisco supervisors who go along with Lurie. At a recent housing rally, the mayor who won a rare reprieve from President Donald Trump’s threats to send in federal forces struggled to be heard over angry chants of “shame” and “liar.”

Protesters demanded the city invest in 100 percent below-market-rate housing and accused Lurie of being a gentrifier and a Republican.

“I truly believe that this has San Franciscans’ best interests at heart,” said Lurie, who is a centrist Democrat. “Are some people going to be fearful? Absolutely. I get it. Change is scary. But the status quo is not working. There’s an affordability crisis right now.”

The city’s estimated 830,000 residents are passionate about both land use and equity. Housing projects have died as pressure to create more affordable units made potential developments unprofitable. Residents also want their stunning views.

But San Francisco is under pressure from the state to adopt a new zoning plan allowing for 36,000 more homes by 2031 — or else the state will decide what gets built where — and the mayor likely has the votes to pass his “Family Zoning Plan.”

Supporters say it’s a matter of supply and demand, and that more homes will bring down the overall cost of housing.

Critics say such trickle-down economics will not work in a city like San Francisco, which is in such global demand that some foreign investors buy properties sight unseen. They say developers will only build luxury housing that’s too costly for most workers, while displacing tenants and destroying entire neighborhoods’ character.

“There’s a herd of elephants in the room that no one will address,” said Eric Jaye, a Democrat and a political consultant who opposes the plan.

Much of the housing push has come from Democrats, including a former city mayor, Gov. Gavin Newsom, who signed into law a proposal by San Francisco state Sen. Scott Wiener to build more homes near transit.

The city has made enormous strides in recent years, with whole districts of tall condo buildings cropping up around downtown, said Rafael Mandelman, president of the Board of Supervisors. But he acknowledges that people come to San Francisco for its more intimate neighborhoods and access to green space.

“San Francisco, historically, was the city for people who didn’t love cities,” Mandelman said.

Katherine Roberts, 72, initially welcomed construction of an affordable housing complex near the three-story Edwardian home she labored to buy in the Haight-Ashbury neighborhood two decades ago. But at eight stories, the 160-unit building has shattered her peace of mind, dominating her view.

“I’m looking out and it’s like I’m living in East Germany,” she said. “How can you build something this inappropriate in a historic neighborhood like the Haight-Ashbury? What about all the people who already live here? What are we supposed to do?”

For the most part, the new zoning plan allows for more housing to be packed into the space of a single-family home — say a duplex with a studio — without exceeding the city’s height limit of roughly four stories for such properties. At least 15 percent of new housing must be below market rate.

Buildings in neighborhood commercial corridors could be up to eight stories. Busier thoroughfares could see high-rises of 10 stories or taller, and in a few spots, on Van Ness Avenue, heights could hit 650 feet, rivaling some downtown skyscrapers.

Passage of Lurie’s proposal won’t necessarily lead to more homes in a city with high labor and construction costs and “notoriously complex and cumbersome” approval processes, as the state indicated in a scathing 2023 review.

And so city dwellers make do with overcrowded — and sometimes awkward — living situations.

Laura Foote, executive director of YIMBY Action, wound up living with the man who is now her husband — and the woman he was divorcing — in a one-bedroom apartment for about six months, until his ex could find another rental.

“We didn’t kill each other,” Foote said, “but it went on longer than it would have in a well-functioning housing market.”

Supervisors are still negotiating amendments to the zoning plan, which is still under review by the board’s Land Use and Transportation Committee. Some supervisors want to exempt historic properties, or all buildings currently used for housing. The mayor agreed to exempt buildings with at least three rent-controlled units.

The compromise was a major relief for Phyllis Nabhan, 78, who lives in the Richmond neighborhood, between the Golden Gate Bridge and Golden Gate Park. She fears becoming homeless if a developer scoops up the property she’s called home for 47 years.

But Nabhan still objects to the proposal because she says it would ruin her neighborhood’s “cozy and wonderful” feel. She blames the state for forcing the city to change.

“I think that this mayor is trying,” she said. “It’s a horrible job; I wouldn’t want to be mayor.”

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Two middle housing buildings are being constructed two blocks apart on Division Street in Portland. The projects, E and Hutch, are designed by a small firm made up of two experts in multifamily housing.

The two architects, founder Armin Quilici and partner Keith Fugate, partnered last year on Quilici’s firm, Quilici Architecture, which is now QUAD Architects. Both architects have a combined 50 years of experience in multifamily housing.

QUAD Architects is a small firm that specializes in multi-family development and provides a range of services, from initial feasibility studies to comprehensive architectural and planning services. The firm is mainly focused on projects in the Portland area.

Quilici and Fugate first worked at Bora Architecture & Interiors in the late 1990s and moved on to different firms in the early 2000s.

Quilici started his firm, Quilici Architecture, in 2016 when Portland developer Jim Winkler, of Winkler Development Group, asked for help on a Southwest Portland project, The Gabe. Quilici said he always liked the idea of starting his own firm and liked smaller firms.

“It’s just a little bit more exciting to do all aspects of a project rather than specializing on part of a project,” Quilici said.

The project was put on hold but came back online around 2020 and was twice as big as originally proposed, with 121 residential units. Quilici was looking for some help and Fugate started doing contract work for the firm when construction began.

“We found that we both fill out each other’s weaker spots,” Fugate said. “He’s more the designer; I’m more the project manager.”

The two became official partners and transitioned the firm to QUAD Architects in the fall of last year.

Fugate said multifamily housing is the firm’s “bread and butter.” The firm also works on smaller tenant improvements, some single-family housing and education projects, such as student housing.

“The way things are in Portland, (with the economic downturn), we’re really focused on smaller TIs and things like that, which are kind of backfilling what was multifamily housing over the past 10 years,” Fugate said.

Fugate said the firm is always in contact with developers they have worked with historically and continues to check in with them about work, which lately has been improvement projects. Because of its smaller size, the architects can work directly with clients at each step of a project.

On the boards, the firm has a couple of warehouse tenant improvements, potentially a wine bar project in Dayton and some food cart studies.

Quilici said the firm has seen a demand for middle housing lately. The firm’s middle housing projects, E and Hutch, are currently under construction. The E and Hutch are two separate buildings located two blocks apart, with the same floor plans. The E is at 2515 SE 30th Ave. and the Hutch (also known as 32D) is at 2508 SE 32nd Ave.

These buildings fulfill the need for middle-housing, which is defined as more denser development than duplex housing, but smaller than the more typical four- to five-story double loaded corridor style housing, according to the firm’s website.

The three-story buildings are 12,500 square feet each with 11 residential units, plus 3,000 square feet of ground floor retail space that could be a café or similar use. The buildings include a single staircase. Quilici said the design could be replicated on other lots, with different exteriors.

“The idea of this design is that you can repeat the basic layout in different lots,” Quilici said.

Quilici said it is a simple and efficient smaller-scale apartment building and that the basic layout makes sense for the 5,000-square-foot lots.

The project team includes civil engineer Humber Design Group Inc., structural engineer Aman Structural Engineering and owners/developers and general contractors Don Mutal and Aaron Jones. QUAD Architects led landscape design.

The total project cost is $7.12 million. Construction began in the fall of 2024 and is on track for a Dec. 31 completion.

“We know coming out of this housing and construction recession we’re going to be building more middle housing, small-scale apartments,” Quilici said. “We can help out.”

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Project name: The Springs at The WaterfrontLocation: Vancouver, Washington

Completion: July 2024

Size: 465,000 square feet

Owner/Developer: The Springs Living

Architect: GBD Architects

Interior Designer: GBD Architects

Engineers: KPFF, Ocean Park Mechanical, Prairie Electric

General Contractor: Howard S. Wright, a Balfour Beatty company

Submitting Company: Howard S. Wright, a Balfour Beatty company

Other Key Participants: Pacific Medical Buildings (development partner), Harrison Street Real Estate Capital (equity partner), City of Vancouver, Interface Engineering, Lango Hansen

Subcontractors: Alliance Laundry Systems, Anderson Poolworks, Bargreen Ellingson of Oregon, Building Material Specialties, Building Specialties Northwest, Cash’s Drapery, Center Pointe Signs, Chown Portland, Dallas Glass, DeaMor Associates, DE-EL Enterprises, Dero, Don Frank Floors, Eagle Striping Services, ES&A Sign & Awning, F.D. Thomas, Fireside Contracting Services, Floor Solutions, Flynn BEC, Foster Bray, Fought & Co., Conco Concrete, Greenhaven Landscapes, Hospitality Services, Infinity Images, Interior Technology, J&S Masonry, J.S. Perrott & Co., Knife River Corp.-Northwest, Kraft Screens & Window Washington, Lanz Cabinet Shop, Legend Custom Woodworking, Mincey Marble Manufacturing, Ocean Park Mechanical, Otis Elevator, Overhead Door Co. of Portland, Pacific Stair, Performance Contracting, Prairie Electric, Precision Rail of Oregon, Pro-Bel Enterprises, Proclean, Safemark Systems, Schonert & Associates, Sign Wizards, Standard TV & Appliance, Starline Windows USA, Superior Fence, Tapani, Teufel Nursery, Viking Automatic Sprinkler, Washington Commercial Painters, Wessco Equipment, Williamsen & Bleid

The Springs at The Waterfront rises 12 stories along the Columbia River, representing a bold reimagining of senior living in an urban setting.

The 250-residence community seamlessly integrates Independent Living, Assisted Living and Memory Care across approximately 465,000 square feet, with two levels of underground parking. The project achieved LEED Gold and Fitwel 3-star certifications.

The project has attracted the youngest demographic The Springs Living has seen.

The community faced unique challenges during development. Located less than a mile from Pearson Field airport, builders encountered strict FAA height limitations, ultimately setting the building just 6 inches below regulatory restrictions. During excavation, crews uncovered contaminated soils and unexpected buried structures from the site’s industrial past. Workers removed 2,029 tons of concrete foundations, 187 wooden piles and 267 tons of steel. An 1889 brick foundation from the DuBois Brothers Sawmill was cataloged by the State Department of Archaeology before removal.

The building’s innovative design places Memory Care residents on upper floors, providing equitable access to Columbia River views. A dedicated wellness suite on the second floor houses fitness classes, physical therapy services and an elevated pool with distinctive privacy screens that maintain river views while blocking visibility from neighboring buildings.

Departing from traditional senior dining models, The Springs features “Fancho’s Public House,” a bistro-heavy concept creating a casual atmosphere where residents can “come as they are.”

The exterior facade combines masonry, dark bronze, and wood tones in patterns inspired by sunset reflections on the Columbia River. Interior spaces feature subtle whites, grays and beiges complemented by natural Oregon oak and stone textures.

Thoughtfully selected materials like Knotwood, an aluminum cladding system that replicates wood while offering superior durability, allow the building to withstand challenging waterfront conditions.

Residents enjoy a ninth-floor wine bar, outdoor roof deck with garden plots, putting green and dog run. Ground-floor spaces connect to waterfront paths, playgrounds and outdoor dining areas.

Two natural gas-fueled rooftop generators augment emergency power systems, allowing residents to shelter in place during emergencies while maintaining essential services.

While the project did not include specific MWESB participation requirements, Howard S. Wright and the project team remained committed to providing opportunities for diverse firms. Team members participated in various outreach efforts at local tradeshows and association events including PBDG, OAME and MCIP. As a result of these efforts, more than $5.4 million in work was awarded to 18 MWESB subcontractors and vendors.

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The Prosper Portland Board of Commissioners on Wednesday authorized a $750,000 loan to the developer of an approximately 230-unit, net-zero, middle-income housing project in the Broadway Corridor. The loan will pay for a share of predevelopment expenses associated with the development of Parcel 6 on the 14-acre former United States Postal Service property.

The site is at the northeast corner of the intersection of Northwest Ninth Avenue and Johnson Steet. Prosper Portland acquired the USPS property in 2016 and has since secured approval of a master plan, completed site preparation activities, and coordinated with city bureau partners on the construction of public infrastructure and utilities to serve the district.

Related Northwest is developing the project. The team includes ZGF, Mithun, PAE and Walsh Construction.

Apartments will range from studios to three-bedroom units and be for people earning 60-120 percent of area median income, Prosper Portland spokesperson Shawn Uhlman stated in an email. Plans call for inclusion of structured parking and a commercial component.

Prosper Portland was awarded $33.5 million from the Portland Clean Energy Fund (PCEF) for the redevelopment of Parcel 6. Once funding is received, Prosper Portland will add $250,000 to the loan under the same terms and conditions, for a total of $1 million.

The Parcel 6 project is one of the first net-zero developments of its kind via PCEF, Prosper Portland senior project manager Sarah Harpole said.

Wednesday’s action allows Related Northwest to advance predevelopment activities that are necessary for determining project feasibility, a Prosper Portland staff report states.

“The scope of work will move Related and their team through conceptual design and schematic design, some early environmental assessment work, geotechnical work, some market analysis, and most importantly, some updated construction pricing,” Harpole said.

The project is estimated to cost approximately $130 million, but the predevelopment process will help the team refine the numbers and create greater certainty, Uhlman stated.

Another Broadway Corridor project, led by the Portland Bureau of Transportation, is under construction to extend Northwest Johnson and Kearney streets. Johnson Street will serve as the heart of the district and include wide sidewalks. Construction of the street extensions is scheduled to finish in late 2026, Harpole said.

Meanwhile, a 14-story, approximately 230-unit affordable housing proposal is still in predevelopment. Home Forward and the Urban League of Portland are developing that project for Parcel 4A, directly south of Parcel 6. Apartments are expected to range from studios to three-bedroom units.

The Parcel 6 project is on a similar timeline as for Parcel 4A; both buildings are projected to open to residents in late 2028.

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Prosper Portland‘s board of directors on Friday appointed longtime agency manager Lisa Abuaf as interim executive director.

Abuaf takes the agency’s reins following the resignation of former interim Executive Director Shea Flaherty Betin, who clashed with Mayor Keith Wilson and members of the City Council as the group considered a proposal to strip the agency of general funds amid a budget crunch.

Abuaf has served in various roles since joining Prosper Portland (then called the Portland Development Commission) in March 2006. She was most recently director of development and investment.

“Many thanks and much gratitude to Lisa for stepping into this role,” board Chairman Gustavo Cruz said Friday.

Much of Friday’s unusual board meeting was given over to expressions of support for Betin, who led the agency for eight months.

The board unanimously approved a resolution stating, in part: “In a time of critical transition for the agency, Shea Flaherty Betin led with both compassion and practicality, providing a steady hand during the hiring of a new executive director, and maintaining the agency’s mission and work.”

Former Executive Director Kimberly Branam called Betin “an absolutely ideal colleague.”

“Shea, we are all better, and the community is better, and Portland is better for having had the privilege of working with you,” Branam said.

Prosper Portland officials have defended the agency as a newly enlarged and empowered City Council has raised questions about what works and what doesn’t in city government while trying to cut the budget.

Board Commissioner Felisa Hagins alluded to Betin resigning under pressure from city leaders.

“I’m embarrassed, and I’m very embarrassed for our city,” she said. “I think that there are the right ways and the wrong ways to do things, and I think this was not the right way.”

Betin will receive 12 months’ salary, totaling $212,992, as severance. He said he would take some time off before finding a new role.

“I’ve given everything of myself to this place and this city, and I’m looking forward to taking a break and finding out how I fit into this tapestry that is this city and this place,” he said. “But I love you all. Thank you.”

Prosper Portland’s board is in the final stages of hiring a permanent executive director. The agency has extended an offer to a candidate with the expectation that this person will assume the executive director position in August, subject to the board’s approval, spokesman Shawn Uhlman stated in an email.

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Founded in 2020, Adre is a leader in socially responsible real estate development. Anyeley Hallova, CEO and founder, was inspired to start the company after leading the development of the Meyer Memorial Trust Headquarters as a former partner at project^.

The project allowed her to deeply engage with themes of social equity and environmental sustainability, compelling her to move away from conventional market-rate developments. It also drove her to embed equity-focused values into her work.

Hallova’s passion for social equity extends beyond real estate to a rethink of the entire built environment. Through her roles on various boards and commissions, she is committed to addressing historic injustices by policy alongside development work.

Adre has $139 million in real estate projects under pre-development or construction, totaling more than 145,000 square feet. It has raised $36 million in grants and construction debt for clients, with an 87 percent success rate for grants.

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Three business partners who came together during the pandemic seek to transform the site of a shuttered Rite Aid store in Southeast Portland into a two-building multifamily development with at least 200 apartments.

The project at 2440 S.E. Cesar E. Chavez Blvd. comes from Seneca Development Co., which was founded in 2020 by industry veterans Michael Hamilton, Bryant Jaksic and Andy Schreck.

An early assistance request for the project’s first phase landed last week. Plans for the initial phase call for 120 apartments and ground-floor retail space.

A second phase would place 80-90 residential units in a building on an adjacent lot, also with ground-floor retail space.

The Seneca Development trio initially joined forces to build The Robert Apartments, a 55-unit building that was completed in Albina in 2022. After shepherding the project through construction and securing tenants, the developers began considering their next move. They turned their attention to the Richmond neighborhood, where a drug store had closed in 2023 at the highly trafficked corner of Southeast Division Street and Cesar E. Chavez Boulevard.

Seneca plans to close in August on the property, which is owned by a limited liability company linked to Tim Small of Portland.

The Division Street corridor has seen increased investment stretching from the Willamette River east to 52nd Avenue, a trend the Seneca partners noticed.

“We love the area,” said Hamilton, Seneca’s president. “All three of us are born-and-raised Portland natives. We like seeing the neighborhood improve. Housing is a huge need, so if we can develop quality housing that’s affordable for everyday Portlanders and contribute to the vitality of our city, that’s our goal.”

Seneca plans to construct the buildings in two phases. The first would be located at the Rite Aid site. The second would replace a surface parking lot north of Southeast Caruthers Street.

In compliance with the city’s inclusionary housing program, 10 percent of the units will be affordable for tenants making up to 60 percent of the area median income.

Both phases are being designed by Josef West of West Architects in Beaverton. Seneca will use its own in-house general contractor, Hamilton said. Lakeside Investment Group, based in Dallas, Oregon, is a partner in the project.

Seneca plans to break ground on the first phase in spring 2026, with completion expected in late 2027. The two phases will cost an estimated $50 million.

The project comes on the heels of another significant multifamily proposal in Southeast Portland. High Street Residential in March engaged in an initial design advice hearing for a 243-unit proposal in the Sellwood-Moreland neighborhood.

Portland has gained little multifamily housing in recent years, and Hamilton said the light pipeline provides an opening for new projects. Permit review times are growing swifter, interest rates have declined, and subcontractors are looking for work, Hamilton said.

“Frankly, the last two and a half years, it has been very difficult to get a market-rate project off the ground,” he said. “There is a massive shortfall with projects being submitted to the city for permit. Review times are speeding up because the city isn’t looking at a bunch of stuff. We’re already seeing softening when it comes to labor pricing. Our hope is we can time it right when it comes to permits.”

Data paints a picture of a stable multifamily market. Vacancy rates in the Portland-metro area grew to 8.9 percent in the first quarter of 2025, up from 8.1 percent a year earlier, according to Kidder Mathews. Properties’ rent prices were essentially unchanged, declining less than 1 percent to $1,872.

Average sale prices hovered near $180,000 per unit, at a 6 percent capitalization rate.

Seneca owns several other developable properties around Portland that it plans to build on when market conditions improve, Hamilton said.

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Oregon Gov. Tina Kotek and Portland Mayor Keith Wilson have announced a city initiative to usher in the development of 5,000 new housing units as an early action of their Multifamily Housing Development Workgroup that was launched earlier this year.

A proposed Portland ordinance will go before the Revenue Committee in early June and then the City Council, according to city spokesman Cody Bowman. If passed by the City Council, the ordinance would waive System Development Charges (SDCs) in Portland until either 5,000 housing units are built or three years pass.

The city of Portland has applications for projects totaling over 6,000 housing units in the queue; however, many projects don’t move forward because their costs are slightly too high for developers to attain financing, according to a press release.

The Oregon System Development Charges Study, the press release states, found that the average total SDC charges for projects in Oregon is roughly $15,000, and can be as high as $50,000. These charges can be the equivalent of 3 percent to 6 percent of the total development cost.

On March 6, Kotek and Wilson formed the Multifamily Housing Development Workgroup, which was convened to recommend potential actions to facilitate more multifamily projects in Portland. The proposed ordinance originated from one of the draft recommendations.

The initiative is intended to be an expedient action that lowers developers’ costs during the crisis.

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Prosper Portland‘s board of directors on Wednesday approved a low-interest $7 million loan to facilitate the sale of two buildings in Old Town Chinatown to a trio of footwear and apparel entrepreneurs.

The loan will aid the purchase of the Mason Ehrman Building and its annex. The property transaction will facilitate a much larger project: Backers envision a campus of nine to 10 buildings totaling 300,000 square feet, said Jonathan Cohen, one of the partners leading the effort.

Prosper Portland’s loan, made at a below-market 3 percent interest rate with a 15-year term, is a bet on a project with the potential to transform Old Town Chinatown into an economic hub.

“Every brand is going to want to be here, and every supplier is going to want to be here, near all the brands,” Cohen told Prosper Portland’s board.

The agency agreed to the loan despite a remaining $4.4 million funding gap for the project. Oscar Novelo, Prosper Portland’s senior business finance officer, acknowledged that the lack of full project funding brings “heightened risk” to the loan. But Novelo said the impending closure of escrow, and the project’s value, made it worthwhile.

“We do believe that the recommended conditions and the resolution term sheet will allow Prosper Portland to support the Made in Old Town initiative while also keeping the project accountable,” he said.

An agency staff report stated that eight letters of intent from prospective tenants, and the presence of an existing tenant, would provide stability for the project.

The project team is pursuing additional state funds and private funds to close the gap, backers said.

The project comes from Cohen, Elias Stahl and Matthew Claudel, who combine shoe-industry know-how with Old Town Chinatown business experience. The purchase will be made by Future Stack, a limited liability company that is wholly owned by the Old Town Perpetual Purpose Trust. The trust grew out of discussions by the Old Town Chinatown Community Association to preserve and revitalize the neighborhood’s historic buildings, the entrepreneurs said.

The group is advised by Jordan Ramis. Turner Construction will perform building renovations.

The project’s first phase is envisioned as two major spaces. At 234 N.W. Fifth Ave., the building dubbed “The Tower” will host suppliers, vendors, labs and office and makerspaces. A gallery of dozens of suppliers will offer something like an ongoing trade show, Cohen said. Meanwhile, “The Hub,” at 208 N.W. Fifth Ave., will include storage, studio space and brand suites.

Some tenants will function as long-term anchor tenants, while other emerging businesses will participate as pop-ups or kiosks.

Among the aims is to reduce production time domestically for footwear and apparel that is typically manufactured in Asia. A new shoe design can take 18 months to begin production, Cohen said.

“We’re looking to shorten that to days and weeks and months, instead of months and years,” he said.

The buildings recently were seismically retrofitted. Also, they feature large floor plates, brick walls, large windows and lengthy timber trusses.

“That already makes it a nice canvas,” Cohen said.

A third building, known as the “Engine” building, on an adjacent block, has been purchased.

The seven-story Mason Ehrman Building dates to 1908, and the two-story annex was added in 1940. The buildings are currently owned by Bayspring Real Estate Partners, a California firm that paid $14.25 million for the properties in February 2023. Bayspring considered an office-to-residential conversion before reaching agreement with Future Stack.

Board members also questioned the sale price. The property was appraised at $3.8 million, well below the $7.4 million purchase price. The appraiser’s opinion was that proposed asking rents were too high for the neighborhood, an agency document states.

Cohen said the appraisal was low, equating to only $38 per square foot.

“Pretty much no building in Portland has transacted at that value, at least in the last 50 years that I’m aware of, other than Montgomery Park, which was sold on the auction block, essentially,” he said.

Cohen noted that the Mason Ehrman Building was appraised at more than $300 per square foot as recently as 2019.

“Our aim is to reinvigorate with all of the purposes described here and get back to that valuation,” he said. “We are under contract to purchase the building for $75 a square foot, which we think is an excellent value because it’s fully seismically retrofitted … and well below the average in downtown commercial transactions.”

Prosper Portland’s board approved the loan in a unanimous vote. The Future Stack entrepreneurs said construction will begin presently, with the goal to open as soon as this summer.

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