For Sale- $xxx,xxx

2346 SE Division Street, Portland, Oregon, 97202

….was recently re-zoned RM2 to allow for greater residential density and mixed retail/commercial/residential use. New zoning allows the property to have 7500 sq ft of residential space, including up to 1000 sq ft of ground-floor retail/commercial space. Setbacks can be reduced and site coverage increased. For example, if a 600 sqft retail space was added to the front of the current structure, the new addition could extend out to the sidewalk.

Use it as a single family home or rental property, as is. However, the potential for redevelopment due to its location makes it ideal for an investor or speculative contractor.*

2346 SE Division is a property in the heart of SE Portland- less than 3 blocks from both New Seasons market and the Clinton Neighborhood crossroads. The property is ready for development under the newly minted Better Housing by Design zoning changes. This area of SE Division Street is rich with all the amenities that people expect in the city of Portland. Restaurants, pubs, boutiques and shops line both sides of SE Division for 40 blocks, from SE 12th to SE 52nd….

Better Housing by Design

In 2019, in order to increase residential and retail density in the inner city, the Portland City Council passed sweeping zoning changes under the Residential Infill Project (RIP) and the Better Housing by Design (BHD) programs.

Under the BHD program, zoning changes for the properties that front SE Division allow for increased residential density mixed with ground-floor retail/commercial. In the City Council’s words:

Expand housing options by providing more flexibility for numbers of units, with new incentives for affordable housing. City Council added a new bonus option for ownership housing and expanded affordable housing parking exemptions in both the multi-dwelling and mixed-use zones.
Address needs for residential outdoor space with new requirements for outdoor areas in higher density zones and common areas for large sites. Council exempted indoor common areas from building floor area limits, which means no net loss of space for residential units.
Ensure new development contributes to pedestrian-friendly streets and relates to the context of the neighborhood.
Provide development standards specific to East Portland and help create needed street connections, in partnership with the Portland Bureau of Transportation’s Connected Centers Street Plan.
Change the Zoning Map and higher density zoning in historic districts to balance historic preservations goals with incentives for affordable housing. Amendments allow for development bonuses, primarily for affordable housing, to be used in historic districts in both the multi-dwelling and mixed-use zones. To discourage demolition of older buildings, Council added limitations to bonuses on sites where historic buildings have been demolished.

Together, these code amendments will provide more and better housing options for more Portlanders to live close to services, with design that supports active living and connected communities.

Investment opportunities for

2346 SE Division

1) Renovate the existing structure to allow for 4 residential units and a retail/commercial storefront down to the sidewalk.

2) Build a new structure up to 45 feet in height with 7500 square feet of new residential space and ground-floor commercial/retail.

3) Rent, as is:

Renovation, utilizing the existing structure

By removing the front porch and constructing a small retail space (out to the sidewalk), a new addition could be engineered to satisfy the required seismic upgrade. The potential benefits are enormous:

-a savings of $75,000 in seismic retrofitting

-a gain of 800 sq ft of commercial/retail rental (potential rent of $2.50/sq ft)

-a physical/acoustic buffering for the residential units from the street.

Replacing the existing garage could allow for:

-a new 2-car garage or shop for an owner/occupant with a second-floor Accessory Dwelling Unit, or….

-both a new ground floor unit and an upper unit

Building from the ground up

Portland’s recent building renaissance has seen dozens of single family home lots (generally 50’x100′) re-purposed as multiplexes. The RM2 zoning of 2346 SE Division will allow for a new building with 7500 square feet of residential space and 1000 sqft of ground floor retail with a height up to 45 feet. Here are nearby examples:

*Please note that although all statements regarding the zoning of 2346 SE Division on this website are believed to be accurate, due diligence to confirm is the duty of the buyer. Also, all examples of investment cap-rates and returns on investment are estimates that may not reflect actual true costs and returns.