Portland Mixed-Use Condo Converts to Rentals, Mixed Use Nixed

The Oregonian reports that suburban Hillsboro's first mixed use condominium development is no more. Washington Street Station, was built near the suburb's small but historic downtown (see Note on Hillsboro).

The project was opened in 2009, one block from the Hillsboro Central station on Portland's Max (photo) light rail line. The four floor building, located in a generally low-rise residential area with detached housing, was to have had commercial development on the street floor and owner occupied condominiums on the top three floors. But the market was not there. As 2012 began, none of the 20 units had been sold.

At that point, new owners decided to convert the condominiums to rental units and to convert the first floor commercial space into apartments as well.

Local planning officials indicate no concern about converting the condominium development to rental units, or the loss of the first planned mixed use development in the city. The Oregonian article indicates, however, that a soon to be built development, located just blocks away, will be required to remain mixed use for at least 30 years.


Note on Hillsboro: Hillsboro is typical for a mid-20th century exurb that has been engulfed by the expansion of a growing urban area. In 1950, the Portland urban area had a population of 500,000 (density 4,500 per square mile or 1,750 per square kilometer ), and Hillsboro was a compact exurb with less than 5,000 population, located outside the urban area. Today, the Portland urban area has approximately 1,850,000 residents (density 3,500 per square mile or 1,350 per square kilometer). Hillsboro, which is inside the urban area has more than 90,000 residents, most of whom are beyond walking distance from downtown and have much more convenient access to the big box stores (including the claimed largest "Costco" in the world), shopping centers and strip malls that do most of the retail business. Hillsboro is also the heart of "Silicon Forest" with its information technology manufacturing (such as Intel). As a result, the jobs-housing balance in Hillsboro now exceeds that of Portland according to 2010 American Community Survey data (1.48 jobs per resident worker in Hillsboro compared to 1.45 in the city of Portland).

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