Investor · Vancouver, WA · Member since 2014 · 12 posts · 1 vote
Hi all,
I own a triplex in SE Portland and am planning on turning the 2000+ square foot basement into 2 2bd/1ba apartments.
I'm having trouble finding a construction company that is well-versed in this type of permitting and code work. I keep hearing that over 4 units = commercial, so residential contractors are reluctant to touch it. I'm also getting mixed feedback on whether I need to hire an architect or not.
Would love to hear from the Portland BP community on:
- experiences, ideas and warnings about multi-family construction/expansion in this area
- recommendations (or warnings!) about large scale construction companies
- experiences with using construction company vs architect for design / plans
That's one large building (2,000+ sq. ft.) you have there. Sounds like a fun project. Here are some thoughts that come to mind.
1) You already have a commercial building in the eyes of the building code. 3+ units is commercial in the building code. 5+ units is only "commercial" in the lending world.
2) You absolutely do not need a licensed architect, but I agree with @Scott Radetich that you don't necessarily want to leave design in the hands of a contractor. Contractors typically don't think like designers.
3) Be prepared for a fire sprinkler system. This will be a must for the new basement units, and may need to be retrospective for your other 3 units since the new units are inside the same structure.
4) Design build may be a way to go. Architects tend to escalate construction costs due to the design.
5) Get ready for a fun permitting process with Portland. Since you're existing improvements are residential, there is a good chance you will need quite a few "building code appeals" to be approved. For example, basement ceiling height in the commercial code is 7'6", rather than the 6'8" for residential building code.
6) This will not be an easy project, but adding two units in Portland could quite possibly be worth the hassle.
7) If you have any intention to use conventional bank financing, do it now, while it's a 3plex so you're looking at 1-4 unit financing rather than commercial financing.
Investor · Portland, OR · Member since 2016 · 47 posts · 36 votes
10y
Regardless if you "Need" one or not, you'll want to hire an architect. Contractors are a funny bunch. If you leave any small detail up to them, they'll put light switches in the middle of rooms, medicine cabinets not centered, doors opening the wrong way,,,, they are all about the easiest, not what's right. I find it best to give them exact plans. Its well worth the 1-3k you'll end up paying for an architect.
I've had contractors sketch out legit plans for the city for small stuff (like patio's) and I'll use architects on larger projects (whole floor remodels with added bath).
That's one large building (2,000+ sq. ft.) you have there. Sounds like a fun project. Here are some thoughts that come to mind.
1) You already have a commercial building in the eyes of the building code. 3+ units is commercial in the building code. 5+ units is only "commercial" in the lending world.
2) You absolutely do not need a licensed architect, but I agree with @Scott Radetich that you don't necessarily want to leave design in the hands of a contractor. Contractors typically don't think like designers.
3) Be prepared for a fire sprinkler system. This will be a must for the new basement units, and may need to be retrospective for your other 3 units since the new units are inside the same structure.
4) Design build may be a way to go. Architects tend to escalate construction costs due to the design.
5) Get ready for a fun permitting process with Portland. Since you're existing improvements are residential, there is a good chance you will need quite a few "building code appeals" to be approved. For example, basement ceiling height in the commercial code is 7'6", rather than the 6'8" for residential building code.
6) This will not be an easy project, but adding two units in Portland could quite possibly be worth the hassle.
7) If you have any intention to use conventional bank financing, do it now, while it's a 3plex so you're looking at 1-4 unit financing rather than commercial financing.
Rental Property Investor · Portland, OR · Member since 2009 · 81 posts · 30 votes
10y
Are you sure it is within city code to add the units? I have an inner city duplex and it is not "legal" by code standards to add a third unit. City zoning standards may be changing in a big way however and by 2018, due to Portland's need to meet the mass influx of people, even more urban density is going into a review procedure.
Real Estate Professional · Salt Lake City, UT · Member since 2015 · 29 posts · 18 votes
10y
Emma
Your project will fall under commercial building code for sure, so Mike is spot on with his comments. In building code world for the last 10 years or so whenever you have one unit on top of another you fall under the commercial code, even if it is a duplex.
You will need a fire sprinkler system. Almost definitely in the whole building. So you will want to plan on some renovations in your other units and a little bit of lost rent.
You will also need to provide fire walls/ceilings between all of the units. This is not a huge expense, but something to be aware of.
The final thing that has really come bite some project I have been working on in the but is the distance to the nearest fire hydrant. In really old neighborhoods they are sometimes not spaced as tightly as new code requires and it can be expensive to add them if the right conditions are not in place already.
One lesson that I have learned the hard way is keep you tenant until you have a building permit in hand. Anytime you have to deal with a city it can end up taking way longer than anticipated.
Good luck and let me know if you have more questions.