Can There Be New Chapters?

May. 17, 2024
By: Fred Leeson

Loyalty and Hamilton Buildings

The recent auction of two historic Portland office buildings offers further evidence of the economic trauma affecting a downtown now lacking the employees and shoppers that used to dominate the central city.

Bargain hunters had chances to bid on the 12-story Loyalty Building at 317 SW Alder St. and the adjacent Hamilton Building at 529 SW Third Ave. Both are designated Portland landmarks and are listed on the National Register of Historic Places.

The Loyalty Building was erected in 1928, under the direction of Claussen & Claussen architects, a firm tht is now largely forgotten. The six-story Hamilton Building dates to 1893 and was designed by Whidden & Lewis, the city’s best-known firm at the turn of the century.

A California investor bought both buildings late in 2013 for $12.45 million. Today they stand vacant. Results of the auction, which presumably ended on May 15, are not yet known.

A closer look at the stylish Hamilton

Given frontages on both Alder and Third Avenue, one has to wonder whether the Loyalty Building could be converted to apartments. Conventional wisdom says “no,” the work would be far too expensive.

But wait! An article in the May 6 New Yorker magazine, “Design for Living,” discusses in detail how a New York developer, Nathan Berman, has found success transferring obsolete office towers “into warrens of one- and two-bedroom apartments.” Since 1917, Berman has converted eight former office towers into some 5,000 apartments. The tallest is 30 stories.

Berman targets his developments for young tenants who likely are renting for the first time, and who likely will stay no more than a few years. The apartments are small, eccentrically shaped, and offer minimal kitchens, based on the premise that most young tenants won’t be doing extensive cooking.

But Berman also knows his tenants want some shared spaces in the building – places where they can meet with others for exercising or socializing. He also doesn’t scrimp on lobbies, recognizing that tenants and their guest will appreciate an attractive, welcoming space.

Of course, Portland isn’t New York. Is downtown Portland a place where young tenants hope to begin and advance their careers? One also wonders: Would the same formula – small apartments, minimal kitchens, elevator access and social spaces – be an attractive environment for seniors?

The Loyalty Building seems to offer an attraction lacking in newer office towers. It has operable windows on both frontages, which should be a bonus for residents liking fresh air that isn’t blown in by machinery.

Coming months should tell us what the new owner (if there is one) of these two buildings has in mind for their future. From the preservation perspective, three buildings on the western side of Third Avenue – the Loyalty, Hamilton and Dekum – offer one of downtown’s best examples of an interesting urban streetscape dating to the late stagecoach and early automobile era.

One can hope that these charming structures can find useful new lives.

Fred Leeson is a former president of the Bosco-Milligan Foundation and a member of the foundation's Board of Advisors.