Combining Two Lots Zoned R2.5 For Possible Development

[Jessica S.]

We recently acquired a dilapidated 5-Plex in a hot Portland neighborhood. Our original plan was to rehab it and hold. However, it turns out that the SFR next door is also going on the market soon. Both properties are on standard 50x100 lots , zoned R2.5. I'm wondering if a developer would be interested in combining the two lots and demo-ing the structures for new construction of a larger plex.

Is this a feasible scenario?  I don't know much about zoning, how does that come into play here?  

@Jay Hinrichs, and anyone else who know about developing apartment complexes, particularly in Portland, can you please weigh in?

Thanks!