[MarkDaMan]

Burnside Burger King site sells for $2.2M
Daily Journal of Commerce
by Kennedy Smith
05/16/2007

It’s been an eyesore along West Burnside Street for more than three years now. It’s been a hangout for transients on the way to or from some of the social programs in Old Town/Chinatown. It’s boarded up and riffled with graffiti.

But the site of downtown’s old Burger King is primed for a facelift.

On April 26, developer Kevin Hepner bought the 4,398-square-foot building for $2.2 million.

Hepner is keeping his plans for the site a mystery. He bought the site under the limited partnership Broadway Burnside.

“The site’s got several different options right now,” Hepner, who will make an official announcement about his plans for the site next week, said. “I do have plans. I think it’s the best site in town.”

The 36-year-old developer has lived in Portland for 10 years. Most recently, he was a real estate representative for Jack in the Box for five years. He’s also broken ground on a 2.2-acre site at Southeast 174th Avenue and Division Street that formerly housed an Albertsons grocery and will be redeveloped as a Save-a-Lot store and drive-through Dutch Bros. coffee shop.

“He’s keeping a very tight lip on what he might do with this site,” Tom McDowell, a broker with Norris & Stevens Inc. who represented Hepner, said. “He’s being secretive.”

But the price Hepner paid for the property suggests he’ll do more than merely open another restaurant franchise.

Hepner has the power to “heal that corner,” Tim Eddy, principal at Hennebery Eddy Architects, said. “There’s no historic building there; there’s opportunity. And at $2.2 million, it’s unlikely that somebody is going to come in building a one- or two-story building.”

The site has been vacant since the Burger King restaurant closed in April 2004. Since September 2005, it’s been in the hands of Katsam LLC, a Seattle company that wanted to transform the former fast-food joint into a payday loan service. That company bought the property for $1.65 million.

However, the owner decided against the quick-cash company after the Oregon Legislature tightened regulations on cash advance companies, McDowell said.

Hepner had been interested in the building back then, so when it went back on the market he contacted Norris & Stevens again to work out a deal, McDowell said.

Prime location

The site, at 707 W. Burnside St., is zoned central commercial with a design overlay, according to the Bureau of Planning. A central commercial zoning designation with a design overlay is usually reserved for the city’s most densely populated, urban areas, according to Title 33 of Portland’s zoning code.

The site has a 6-to-1 floor-area ratio and can be built up to 350 feet. It sits in the Portland Development Commission’s Downtown Waterfront urban renewal area.

“It’s intriguing news,” Peter Englander, a planner with the PDC, said. “We have no idea, no sense of what the plans are, but the site has pretty sufficient zoning entitlements, and we would be very interested in seeing what plans a developer or property owner might have.”

From an urban design standpoint, the worst-case scenario would be to under-develop the site, Eddy said.

“Develop the site to its full potential,” he said. “That would be the ideal.”

The site is at a major crossroads in downtown, essentially marking east from west, and north from south. And, if plans for the Burnside-Couch couplet go through, the new development would have frontage on two major throughways, plus Broadway spanning north-south. The purchase also comes on the heels of Beam Development and Bill Naito Co.’s plans to redevelop up to half a million square feet in Old Town/Chinatown and Venerable Properties’ overhaul of the White Stag block at the foot of the Burnside Bridge.

All of Portland’s best-known developers had plenty of time to snatch up the site, Eddy, said, but they didn’t because “they’ve found other sites that are more desirable from an economic and risk standpoint.”

“The question is what the market will bring to that site, and the market has had a tough time of things,” he said. “What would be great to have there? A prominent landmark hotel, a nice tower on that corner. But will you get that? Is that the neighborhood that you could get that development in? We don’t know.”
http://www.djc-or.com/viewStory.cfm?recid=29432&userID=1

[65MAX]

Even assuming an FAR bonus of 3:1 (9:1 total), it's only a half block site, 20,000sf. You'd need 5,000sf floor plates in a point tower to get up to 350'. Unless they borrow FAR from a neighboring site.

[pdxstreetcar]

sounds very promising, its also good to see the check cashing plan fall apart

[zilfondel]

Cool, so we're going to get a dutch brothers' drive-thru coffee cart downtown. About time!

[alexjon]

I hope whatever fast food joint he drops in there has vegetarian options

[bvpcvm]

Cool, so we're going to get a dutch brothers' drive-thru coffee cart downtown. About time!


the article says the dutch bros will be at 174th... i think you're being a little bit generous there! :P

[PacificNW]

I am not a coffee drinker but they have a Dutch Bros. drive-in here in Florence. For you coffee drinkers how do they compare to Starbucks, etc. The reason I ask is visiting friends always seem to be looking for a good coffee drink...:cheers:

[brandonpdx]

^if one likes sugary coffees with a lot of syrup and crap added in then they will love Dutch Bros.
for us elitist snobs it's not very good, but either is Starbucks.

[zilfondel]

Starbucks is kind of like sand... I always get a lot of gritty grounds at the bottom of my cup, which I can't say the same about any of the independent coffee shops I've been to.

[sopdx]

The intersection where this property is has so much potential. The bend in Broadway south of Burnside coupled with the crazy little block where Ankeny butts into Broadway could be transformed into a great urban gateway. The developer's history gives me pause though. Hopefully it won't end up as some coffee/fast food spot.

[65MAX]

^^^^
What history? You mean lack of history?

Ah, that was your point. I'm a little slow....

[PDX City-State]

I loved Dutch Brothers in college...in Eugene. It doesn't taste as good now after several years of Stumptown. It just isn't in the same league.

[crow]

tough corner - on one hand it is the right place to make a difference, but in another way it is surrounded by some tough edges. it would be great to see the mass of the building play off the shift in the grid and do something with some architectural sizzle! i fear a developer coming from 174th doing big box and drive thru, may be in it for the quick flip and dump for cash.

[mcbaby]

more housing would be great and if they redevelop burnside, it wont seem like such a crazy location.

[CUclimber]

That's fantastic news. Even before Burger King closed that building was an eyesore.

[PacificNW]

⬆ What are you saying? All fast food establishments are "eyesore's" or just this particular Burger King? I have seen much worse fast food structures than this particular Burger King, IMO.

[zilfondel]

^ now, but this particular lone kind of reminds me of a missile command center, since it's very bunker-esque

[MarkDaMan]

“The site’s got several different options right now,” Hepner, who will make an official announcement about his plans for the site next week, said. “I do have plans. I think it’s the best site in town.”

hmmm, it's been over a week and I haven't heard anything yet...

[PDX City-State]

I think this is a much better site than it was several years ago for a variety of reasons. First, the Daisy Kingdom redevelopment on the bordering block really spruced up the site. If someone were to redevelop the surface lot between Burnside and Park and Couch and Davis--and this young developer were to build a tower with an entrance facing Couch, the fact that it's next to Central City Concern would be far less significant. I'm guessing this is what will happen. Plus, renewed interested by Malsin and the Naitos in Old Town means that nicer development is going to happen along Broadway. It's just not the same parcel it was in 2004 when BK closed.

[sopdx]

Yes, I agree that there is alot of new energy in that area and that location could be terrific.

I'm still afraid I'll open the paper to "Developer to build large Burgerville with double drive thru lanes on NW Broadway site"

[urbanlife]

speaking of which, downtown needs a burgerville somewhere.

[CUclimber]

speaking of which, downtown needs a burgerville somewhere.

Ha, I've been saying that for years. The one out on Powell is the closest one to me. :( I generally avoid fast food like the plague but I have this once-a-month-Tillamook-Cheeseburger habit that just won't quit!

[pdxstreetcar]

i agree completely i would love to see a downtown/pearl burgerville

it would be great if it could be showcase flagship location

[Dougall5505]

like that cool mcdonalds in chicago anyone know what i'm talking about

[65MAX]

i agree completely i would love to see a downtown/pearl burgerville

it would be great if it could be showcase flagship location

Aren't they based in Vancouver, WA?

[urbanlife]

like that cool mcdonalds in chicago anyone know what i'm talking about

Get me an address and I will try to take a picture of it in two weeks when I am there.

Yeah, I am usually against fast food, but Burgerville is the only fast food place that I have been to that has turkey burgers and fish burgers that look like real fish when you bite into it.

[sopdx]

You guys are starting to freak me out! I was just joking. Burgerville is great (is it grass fed beef though) however, not there, not there.

[zilfondel]

lol

[sopdx]

Since it is on Burnside, I thought I'd add that Red Light (clothes) is relocating to the former Car Toys spot on 10th and Burn. according to Willamette Week.

[Dougall5505]

giant two story mcdonalds in downtown chicago built to commerate their 50th anniversary located at clark and ontario in the river north neighborhood
http://sallygreene.org/Chicago/Chicago-Images/76.jpg

[Drmyeyes]

Geez I hate the food, but I'll have to admit I really like that supersized retro McDonald's building.

Red Light, a resale shop, gets new digs in a high profile location on W Burnside across from Powell's? The new location has a parking lot. Sounds like expensive rent. I suppose it might be offset by a valet concession over at the club next door. I wish Red Light was making enough money to turn the entire parking lot, or at least half, over to bike parking.

[sopdx]

Weird huh, but according to the article in WW, they are going to have curb side service...I have no idea. I actually think it's pretty cool - it's a pretty vibrant store and will definately be a major improvement.

[PDX City-State]

it's a pretty vibrant store and will definately be a major improvement.

I agree, but it's too bad a redevelopment didn't happen. Then again, that's a pretty small site.

[pdxstreetcar]

if there not making any major improvements to the site, i would guess it could be relatively short term

[MarkDaMan]

nothin new here...damn!

Burnside Burger King finds a buyer
Portland Business Journal - June 8, 2007
by Wendy Culverwell
Business Journal staff writer

A long-closed Burger King on a prominent spot on West Burnside Street has sold.

Broadway Burnside, a limited partnership led by developer Kevin Hepner, paid $2.2 million for the 4,389-square-foot fast food restaurant and half-block site at 707 W. Burnside.

The seller, Seattle-based Katsam LLC, bought the property in September 2005 for $1.65 million. Plans to redevelop it apparently fell through. Katsam put it up for sale earlier this year.

Finding a buyer for the garbage-strewn property was not difficult, said Gary Dent, a broker with Mal and Seitz Real Estate Solutions, who represented Katsam. The site was for sale for just two weeks, he said.

Hepner didn't return repeated phone calls on his plans for the site, which is part of the Portland Development Commission's Downtown Waterfront urban renewal area.

The PDC isn't involved with the property, though spokesman Shawn Uhlman said it naturally is interested in what happens there.

There had been talk of renovating the building, which is boarded up and covered with graffiti. The previous owners met with the city of Portland for preliminary discussions about remodeling the restaurant to accommodate an El Pollo Loco, a Mexican-based chain of restaurants featuring flame-grilled chicken.

There has been no activity on the application since February, two months before the sale closed.

Aside from its prime location fronting West Burnside, the former Burger King has quietly occupied a district in renewal.

It shares a property line with Central City Concern's $18 million housing and clinic facility at 8 N.W. Eighth St. The 12-story building with 180 units of housing for recovering addicts, as well as clinic space, opened in 2004, not long after Burger King shut down. It was constructed in 1978.

More recently, the Union Gospel Mission opened its $6 million-plus, 28,000-square-foot LifeChange building at Southwest Third Avenue and Burnside. The building houses the mission's drug recovery program for about 75 men and women.

wculverwell@bizjournals.com | 503-219-3415
http://portland.bizjournals.com/portland/stories/2007/06/11/story5.html?t=printable

[Inkdaub]

I don't get Portlander's love for Burgerville...it's garbage. Now, as far as burger chains go, a Fatburger would be fine by me. More than fine.

As it is the two things that are hard to get in downtown PDX are comic books and bar-b-cue, so here is what I propose for all our sakes...

A four level development. First level will be your Burgerville with a drive-up entrance on Burnside and exit on Broadway. Fatburger doesn't have drive-up windows and a good bar-b-cue joint won't need one either so these two fill the second and third levels. The top floor will naturally be the comic book shop. I would also like a miniature version of the OHSU tram or a ferris wheel type thing to serve the comic shop.

There it is...maybe the perfect development for that corner. Maybe too perfect...?

[MarkDaMan]

^if you throw in a porn shop and a Starbucks, I'm game!

[PDX City-State]

I don't get Portlander's love for Burgerville...it's garbage. Now, as far as burger chains go, a Fatburger would be fine by me.

It's somewhat ideological. Burgerville serves all-natural organic beef--it's fast food that Oregon folk can live with. I think the Tillamook Cheddar Burger, however, is very good--but that's about all I like there. Fat Burger and In and Out are both much better and would do very well here.

I doubt this site is going to be a fast food restaurant--probably a mixed use tower with rents and TIs that a bbq joint couldn't afford--so sad isn't it? I agree wholeheartedly with Inkdaub, but will take it a step further--we really don't have great bbq in this entire city. There is some good, but nothing great.

[zilfondel]

I thought a BBQ was something you do, not buy! :P

[PDX City-State]

I thought a BBQ was something you do, not buy!

That's what I thought too--until I visited North Carolina.

[tworivers]

Admittedly I am no expert on BBQ, but I think Podnah's is pretty damn great.

[WonderlandPark]

Fatburger, BBQ, or Bugerville -- IT WOULD BE A TOTAL WASTE to build any of those on a highly urban site designated for 350'.

[PDX City-State]

Admittedly I am no expert on BBQ, but I think Podnah's is pretty damn great.

Anyone with taste buds is an expert. I agree--Podnah's has the Texas-style brisket nailed.

And I totally agree--this is not going to be a fast food site. Maybe we can get the Cannons guy to slow cook some meat in front of what will likely be a new tower.

[Inkdaub]

^if you throw in a porn shop and a Starbucks, I'm game!

My initial plan for the site included space relegated to retail pornography. I also hoped for the return of the Church of Elvis.

[Inkdaub]

It's somewhat ideological. Burgerville serves all-natural organic beef--it's fast food that Oregon folk can live with. I think the Tillamook Cheddar Burger, however, is very good--but that's about all I like there. Fat Burger and In and Out are both much better and would do very well here.

I doubt this site is going to be a fast food restaurant--probably a mixed use tower with rents and TIs that a bbq joint couldn't afford--so sad isn't it? I agree wholeheartedly with Inkdaub, but will take it a step further--we really don't have great bbq in this entire city. There is some good, but nothing great.

I like the idea of Burgerville. A local chain to compete with the nationals that uses a bit healthier and more local ingredients...all good. I just don't really like Burgerville. It's true they have a turkeyburger and I am a turkeyburger man, though.

My apartment building recently decided to reinvent itself as a condo building and thus all the tenants were tossed. I moved across the river to the Buckman-Kerns area. So, if I want BBQ I go to Big Daddies on Hawthorne. Not spectacular but it's BBQ.

[360Rich]

As a corporate citizen, Burgerville (Holland Inc.) is much better than most.

From http://www.burgerville.com/html/

At Burgerville, our commitment to Fresh, Local, Sustainable means we:

* Partner with local businesses
* Serve only 100% Country Natural Beef
* Offer affordable health insurance to employees
* Purchase 100% local wind power
* Recycle our trans fat free Canola oil into biodiesel