[tworivers]

High expectations greet loft project

Portland Business Journal - by Wendy Culverwell
PDC officials are closely watching the success of the Graham Street Lofts project.

Architect Hilary Mackenzie isn't losing any sleep over the slowing housing market.

That's impressive for an untested developer with a $4.3 million condominium project in construction on an untested stretch of Northeast Portland.

Mackenzie broke ground earlier this year on Graham Street Lofts, a 12-unit complex being constructed on a former parking lot that fronts Martin Luther King Jr. Boulevard at Northeast Graham Street. Mackenzie bought the property in 1991 and has operated her practice there ever since.

The Graham Street effort is a bold project that has the attention of the development community, said Sara King, manager of the Portland Development Commission's Convention Center urban renewal district. The district runs along MLK in front of the project.

King said Mackenzie is providing a useful demonstration of the market potential for development on the boulevard, which is in an area devoid of new developments -- especially for high-density residential projects.

Portland Development Commission officials are interested in developing a live-work project on property it owns in the neighborhood.

The four-story building contains traditional one-floor units and four two-story penthouses. But at ground level, Mackenzie is connecting her building with busy MLK by creating units with space for offices or small shops in the front and living quarters in the back.

Mackenzie believes the time is right to bring something new to Martin Luther King Jr. Boulevard, where she has had her practice for more than a decade.

"It seemed like the right time and stuff is starting to change on the avenue," Mackenzie said.

The loft project is two blocks north of the Nike Factory Store along a stretch of MLK. The stately American State Bank building is one block to the south. Once one of the largest minority-owned banks in the region, it closed several years ago. The building itself is under contract to a buyer who plans to remake it into a retail center, said a Melvin Mark broker involved in the transaction.

Joanne Stone, a broker with Wright Commercial Real Estate services, is representing Graham Street Lofts and several other properties, including vacant lots, along MLK.

The southernmost 10 blocks of Martin Luther King Jr. Boulevard are gaining more attention, she said. Newcomers are installing pizza restaurants, a hot dog eatery and, in the coming weeks, a new wine bar.

Mackenzie said she understands her project is viewed as a test case for Martin Luther King. While others wait to see how it does before committing to their projects, she's already designing her next undertaking, Ruby's Tower.

Ruby's Tower will contain 14 small condominiums and will be built on the lot adjacent the Graham Street Lofts.

If all goes according to plan, Ruby's Tower will represent a major local debut for Apex Construction Systems Inc., a local startup attempting to commercialize construction blocks made from cement dust, recycled polystyrene and binders.

"We'll start as soon as Graham is sold," she said.