Urban Development Partners-NW, LP is planning to redevelop a 9,831-square-foot, 1970s industrial building at 3103 SE Division St. that the firm bought in early February.
Kava Massih, of Bay Area-based Kava Massih Architects, is the principal architect on renovation of what was formerly the Reliable Parts Building in the heart of an up-and-coming commercial corridor.
UDP is in the planning/design phase of refurbishing the property by updating the design, flexing the space to accommodate a handful of boutiques or creative office tenants, and possibly allow for greater density.
"We will retain as much of the existing structure as possible to maintain a sense of history — plus, it's the green thing to do," said Eric Cress, a partner in the development group. "We will also enhance the exterior so that it's more attractive, and we may add a story or two on top, though there are many structural issues to work through first." UDP expects to start redevelopment of the building in late 2008 and finish in mid-2009.
"At UDP, urban 'adaptive reuse' projects are our bread and butter," Cress said. "Urban infill is our only property type. We prefer to build rentals; they mesh with our philosophy of long-term ownership. For us, there's better alignment with the community if we know we'll own the building for five to 10 years, or more."
UDP has no tenants for the retail/creative spaces yet, but the mixed-use building is sparking interest from local boutiques and other independent small businesses.
Clay Newton, principal and broker at commercial real estate firm CV Newton Co. LLC, represented UDP in its purchase of the building, which went for $1.5 million, or $153 per square foot. He also represented the seller, DFox Inc., a Portland-based company.
"This was an ideal transaction — a great investment opportunity for UDP, and a boon to the Division/Clinton neighborhood," said Newton. "UDP has a proven track record of renovating properties in ways that reinforce the community. For a while now I've recommended this stretch of Division Street to clients. It's primed to become a major commercial hub in Portland, and UDP's involvement will help make sure that the transformation is a positive one."