VOLUME 27 NUMBER 7APRIL-JUNE 1997

MULTIUSE

ALBINA CORNERPORTLAND, OREGON

PROJECT TYPE

A 48-unit, mixed-use, low-income housing development located in the Albinacommunity in Portland, Oregon, featuring12,000 square feet of commercial space, including an on-site daycare center. Inaddition, two houses that were part of the original acquisition were rehabilitated asduplexes and relocated adjacent to theproject. Albina Corner is one of the first examples of transit-oriented developmentoutside the downtown Portland core. Theproject sets a high standard for future redevelopment in the area and already hasbegun to act as a catalyst for neighborhoodrevitalization.

SPECIAL FEATURES

Transit-oriented developmentShared parkingCentral courtyard featuring fountain and wildlife sculpturesWalking distance to shopping district, banks, and schools

DEVELOPER/PLANNER

Portland Community Design 2014 N.E. Martin Luther King, Jr., Boulevard Portland, Oregon 97212 503-281-8017

ARCHITECTS

Portland Community Design Andrews Architects 205 S.E. Grand Avenue Suite 207 Portland, Oregon 97214 503-239-4387

DEVELOPMENT CONSULTANT

Mielke & Associates 2562 10th Avenue West Seattle, Washington 98119 206-286-0745

GENERAL DESCRIPTION

Albina Corner is a mixed-use, 48-unit low-income housing development incorporatingapproximately 12,000 square feet of commercial space. The project is sited at the highlyvisible entrance to Martin Luther King, Jr., Boulevard and the Albina community neardowntown Portland. Albina Corner sets a high standard for design and construction for futureprojects in the area and already is helping to stimulate redevelopment along the boulevard.The project is one of the first examples of transit-oriented, mixed-use new developmentoutside the downtown Portland core. It serves as an economic, physical, and symbolicgateway to the community it serves.

Albina Corner was primarily the vision of Portland Community Design (PCD), a nonprofitcommunity design and planning firm founded by R. Peter Wilcox in 1991. The projectembodies the firm's dual mission: to respond to requests for design and planning assistancefor financially constrained projects that improve the homes and neighborhoods of thecommunity and, in partnership with neighboring businesses and residents, to initiate suchprojects.

Because of its location in a historic/design district, the project was required to undergo reviewby the city planning department to ensure its compatibility with the neighborhood; theprocess generated substantial public comment. Portland Community Design worked closelywith the local community and businesses to formulate the project, meeting nine times withlocal neighborhood residents and organizing two community-wide meetings as well.

THE SITE

Albina Corner is located at the southern end of N.E. Martin Luther King, Jr. (MLK), Boulevard,the main street of several inner-city neighborhoods known as the Albina community. At thetime of acquisition the site hosted an old car lot then functioning as a car wash and a small,vacant office building built in the 1920s. MLK Boulevard, formerly Union Avenue, wasoriginally a streetcar line that served as a thriving center for community businesses andservices in the first half of the 20th century.

After several boom years following World War II, Union Avenue entered a period of steadydecline. In the 1960s, the automobile began to erode the avenue's storefront businessorientation as car dealerships took over entire blocks of the neighborhood. The construction ofInterstate 5 later robbed the street of much of its traffic, replacing Union Avenue as the majornorth/south thoroughfare to and from the city center. A period of racial tension in the 1970shastened the flight of still more businesses. Finally, the well-intentioned construction of amedian strip and removal of on-street parking in the early 1980s dealt the final blow to manyof the remaining businesses.

In 1993 the Portland Bureau of Planning adopted the Albina Community Plan, marking aturning point in the area's decline. The plan included a comprehensive rezoning of the areathat allowed for development of high-density housing and mixed-use development.

The Albina Corner project meets the goals set by the regional government (Metro) for dense,transit-oriented development and demonstrates the viability of high-density residentialdevelopment in the neighborhood. It is within walking distance of Lloyd Mall and the shoppingdistrict, banks, schools, Emanuel Hospital, and the Oregon Convention Center. It also is on amajor bus line and just a short distance from a principal light-rail station. Support servicesinclude a child care center in the building and others a short bus ride away.

FINANCING

Initial project funding was received from the state of Oregon in the form of a $100,000Housing Trust Fund grant. Portland Development Commission, a city agency, provided anearly loan to aid in site acquisition.

Development of Albina Corner was financed through a complex combination of subsidized and

conventional construction and take-out loans. Subsidized financing included the use oflow-income housing tax credits, Oregon Lenders tax credits, and an Oregon Housing TrustFund grant. Conventional construction financing was provided by U.S. Bank of Oregon, whilethe Network for Affordable Housing, a consortium of local banks, provided take-out loans. TheNational Equity Fund functioned as a limited partner in the project, and the EnterpriseFoundation provided bridge financing. In addition, Portland Community Design contributedhalf of its developer's fee. The total cost of the development was $4.4 million; hardconstruction costs totaled about $3 million.

DESIGN

Albina Corner stands at the head of northeast MLK Boulevard with a tower angled to face thecentral business district, topped by a peaked roof. The building is pulled back two feet towiden the sidewalks at the two streetfronts, providing much-needed pedestrian space. Thestreet facades are clad in brick at the residential levels to insulate against noise and providethe durability and permanence PCD wants to encourage in future development on theboulevard. The walls jog slightly to break down the mass of the building to a scale compatiblewith surrounding buildings. The fourth floor is clad in light-colored stucco to further decreasethe scale.

The residential units are arranged around a central courtyard that is open to the sky. Tocreate a pleasant ambiance, the courtyard features masonry pavers, large trees, built-inseating, cast iron lights, a fountain that is intentionally loud to mask outside noise, and fourbronze wildlife sculptures executed by a local artist. Because apartments have openings toboth the exterior facade and to the internal courtyard, natural ventilation is possible andcommunity-building is enhanced.

A greenspace with seating and a play structure is located at the rear of the building andserves as a play area for residents' children and children at the daycare center. The tworehabilitated duplexes also were relocated to the rear of the building on the north side of theplay area, while the parking lot is located on the play area's south.

A shared-parking model was employed to reduce the number of parking spaces the projectwould have to provide. The parking lot provides space for residents on nights and weekendsand for businesses during weekdays. An analysis of apartment building parking lots in thearea revealed that they were virtually empty during the day, convincing lenders that sharingparking was feasible. There are a total of 42 off-street parking spaces for the 48 units and12,000 square feet of commercial space.

MARKETING/TENANTS

Banners on the building during the latter stages of construction were the only form ofadvertising employed. Lease-up of all the residential units was complete within six weeks, twoweeks ahead of projections. Portland Community Design handled commercial leasinginternally; 90 percent of the ground floor was leased prior to construction.

Market analysis revealed a need for at least 9,000 units of high-quality, low-income familyand individual housing in the project's immediate area. The new building contains 44 units;another four units are provided by the conversion of two houses to duplexes. The projectincludes three three-bedroom, 16 two-bedroom, and 29 one-bedroom units, targeted forlow-income households earning 50 to 60 percent of the local area median income.

Albina Corner's anchor commercial tenant, located at "the corner," is the Albina CommunityBank, a community development bank modeled after the South Shore Bank of Chicago. Anonprofit child care center, operated by the Peninsula Children's School, is located on theground floor at the opposite end of the building. This location allows easy drop-offs whileavoiding auto/child encounters in the parking lot and affords easy access to the bus stop onMLK Boulevard. The San Rafael Café, owned by a trio of minority women, will occupy anothercorner. Portland Community Design occupies the remaining commercial space. The businesseswere chosen as tenants for their value to the community.

The residential units are managed by Guardian Management, an experienced low-incomehousing management firm with more than 8,000 local units in its portfolio. PortlandCommunity Design provides commercial property management services.

EXPERIENCE GAINED

The Albina Corner Project used 11 different financing sources. Coordinating multiplelenders can be difficult, and complex talks among them can create significant delays.

Dedicated low-income lenders are not necessarily easier to work with in financinglow-income housing. For this project, dealings with the conventional lender were themost straightforward. Using low-income housing tax credits proved more challengingthan obtaining financing for a mixed-use project.

This project, located on a major transit street and including rental apartments,eliminated waste with a shared-parking scheme. The permanent lender was convinced ofthe scheme's viability by photos of residential lots that were empty during daytimehours. A parking management plan was written to guide the property manager andcommercial tenants.

Spreading the wealth among minority- and woman-owned enterprises and businesses, akey goal for the project, is achievable. Approximately 33 percent of the subcontractorsand suppliers were minority- or woman-owned and based in the nearby community.More important, at the end of the tax credit period, ownership of Albina Corner will beshared with other community-based, minority-owned or -controlled organizations.

PROJECT DATA

LAND USE INFORMATION

Site Area: .71 acres Floor Area Ratio: 1.37 Gross Leasable Area (GLA): 9,110 Gross Building Area (GBA): 44,375

Use Gross Square Feet

Office 3,189

Retail 6,954

Residential 32,076

Child Care 2,156

Total GBA 44,375

LAND USE PLAN

Acres Percent of Site

Buildings .40 56

Streets/Surface Parking

.17 23

Landscaping/Open Space

.12 17

Walks .02 4

Total .71 100

RESIDENTIAL INFORMATION

Unit TypeFloor Area

(square feet)

NumberRange of Initial

Rents

Two-Bedroom Apartment

758-818 15 $553-555

One-Bedroom Apartment

560-601 29 $404-4671

Three-Bedroom Duplex 824-1,113 3 $633-636

Two-Bedroom Duplex 1,148 1 $540

Note:

1One at $364.

OFFICE INFORMATION

Percent of Net Rentable Area Occupied: 100% Number of Tenants: 1 Tenant Size: 3,189

Annual Rent: $9.81 per square foot Length of Lease: 10 years Typical Terms of Lease: 3 extensions; rent adjusted according to Consumer Price Index.

RETAIL INFORMATION

Tenant Number Total GLA(square feet)

Food Service 1 667

Art Gallery 1 930

Community Bank 1 5,357

Child Care 1 2,156

Total 4 9,110

Percent of GLA Occupied: 100% Annual Rents: Approximately $5.011 to $10.68 per square foot Average Length of Lease: 3 to 10 years, plus 2 extensions

Note:

1Peninsula Children's School operates as a nonprofit.

DEVELOPMENT COST INFORMATION

Site Acquisition Cost $364,384 Construction Costs1

Office/Retail 524,979

Residential 2,391,570

Total $2,916,549

Soft Costs

Architecture/Engineering $211,590

Development Fees 100,103

Insurance and Bonds 30,106

Legal/Accounting 77,306

Capitalized Reserves 186,746

Title Fees 9,762

Construction Interest and Fees 165,969

Permits/Inspections 89,590

System Development Charges 257,5482

Total $1,128,720

Total Development Cost $4,409,653

Notes:

1Includes site improvement costs. 2Geotechnical surveys, environmental reports, development consultant, communicationconsultant, feasibility analysis, market study, soft-cost contingency, inspections, appraisals,and organizational expenses.

DEVELOPMENT SCHEDULE

Site Purchased: December 1994 Planning Started: Fall 1992 Construction Started: October1995 Leasing Started: June 1996 Phase I Completed: May 1996 (first converted duplex) Project Completed: September 1996 (new structure and second duplex)

DIRECTIONS

From Airport: Take I-205 South to I-84 West to I-5 North. Exit at first exit (Broadway).Proceed east to Grand Avenue, then north four blocks to San Rafael. Turn east into parkinglot.

Driving Time: Approximately 20 minutes.

The Project Reference File is intended as a resource tool for use by the subscribers in improving the quality offuture projects. Data contained herein were made available by the Development team and constitute a reporton, not an endorsement of, the project by ULI - The Urban Land Institute.

Copyright 1997, 1997, by ULI - the Urban Land Institute1025 Thomas Jefferson Street, N.W. Ste. 500w, Washington, D. C. 20007-5201

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