7000 SE Milwaukie Ave
Portland, OR 97202
Redevelopment Site with Lease Income · Land For Sale · 20,000.00 AC

DESCRIPTION: This 20,000 square foot redevelopment site, zoned for apartments, with triple net lease income of $17,500 per month. It has strategic corner location at SE Milwaukie Avenue and SE Bybee Blvd, in the heart of Portland’s Sellwood-Moreland neighborhood, near Reed College. It is within walking distance to nearby shopping, library, schools, and parks. Tri-Met bus stop is by the property, and SE Bybee Blvd MAX station is a ten minute walk. It has become one of the most popular areas in Southeast Portland for its livability and proximity to Downtown Portland, Lake Oswego, and Sunset Corridor. The auction property may be one of the few infill apartment sites in the Portland market, with two years of triple net monthly income to cover holding and entitlement costs until rents increase due to projected demand for apartment living by 2028. The site is improved with a 4,821 square foot U.S. Bank branch with drive-through window and provides triple net lease monthly income of $17,500, and is in its final renewal option term (five years) that expires December 31, 2027. Total yearly income for 2026 and 2027 is $420,000. The property has two zoning classifications which permit multi-family - Commercial Mixed Use 2 (CM2) on the western half and Commercial Mixed Use 1 (CM1) on the eastern half. . The CM2 zone permits a 45 foot building height with maximum permitted Floor Area Ratio (FAR) of 2.5:1 (up to 4:1 with bonus) and the CM1 zone permits up to 35 foot building height and maximum permitted Floor Area Ratio (FAR) of 1.5:1 (up to 2.5:1 with bonus). Due to market conditions, City of Portland no longer requires ground floors be entirely dedicated to retail or commercial uses, which provides option to utilize some of the ground floor for common amenities to serve the residences. The site, which is 200 feet by 100 feet, has a slight elevation change from SE Milwaukie Avenue to SE 17th Avenue, providing option for onsite parking, although not required under the zoning. Redevelopment of the site under the zoning could accommodate an estimated 60 to 70 units, with combination of a four and three story building. The four story section would be on the corner of SE Milwaukie and SE Bybee, with some ground floor commercial that could include a small bank branch. The three story portion of the building would have rooftop common space with views east to Mt. Hood. The Sellwood-Moreland neighborhood has been a destination for new infill multi-family development over the last fifteen years due to its location and amenities. The nearby 223-unit Meetinghouse Apartments opened in 2019 with studio, one bedroom, and two bedroom units. Monthly rent starts at $1,464 for 462-466 square foot studios. The Supplemental Information Package with Bid Documents is available by signing a Confidentiality Agreement. It includes: U.S. Bank lease, concept plan, zoning, preliminary title report, bid instructions and form, and purchase and sale agreement. Acquisition of this auction property provides a rare investment opportunity to start development in 2028 of a mixed-use multi-family site in a premier neighborhood of the Portland market, with significant net income from U.S. Bank lease for holding and pre-development costs during 2026-2027.