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About The Sunday Oregonian. (Portland, Ore.) 1881-current | View Entire Issue (Jan. 26, 1908)
THE SUNDAY. OREGOXI A JT, PORTLAND, JAXTTART 26, 1903. REM OF REAL ESTATE MARKET McGinn Lease Puts Back- bone in Prices and Recent Sales Show Strength. HOUSES IN GREAT DEMAND Dealers TScport Good Inquiry for Business Sites, From Both Local and Ont&lde Buyers, With Several Deals in Sight. -The most Important feature in the real estate market last week was the leaee of the McGinn quarter block, at tiie southeast corner of Seventh and Washington streets for 25 years at a yearly rental of $40,000. As announced in The Oregonlan Tuesday morning, thjs lease was closed by Jennings & Co., who are under agreement to erect on the site a modern office building Qf not less than six stories in height, but which they say will more likely be of eight stories. The closing of this lease places a new mark on lower Washington street realty, as figured on the Income at 5 per cent, after the new building is com pleted, the valuation on the site will be 1800.000. The effect on the market when the terms of this lease were announced was Immediate. Owners of good sites and realty dealers hailed the deal as evi dence of restored confidence In Port land property, and inquiries for sites for Investment began to come in from various sources. Dealers who have had orders on their books for several months almost all advised their clients against further delay in securing in vestment sites, as the trend of values is unquestionably upward. The report of a sale of Sixteenth street property, referred to elsewhere, is another evidence of the rapidly ad vancing market. When a Jump of $2000 is made in a single day, the proof is, undeniable that prices on Portland real estate have not been too high. Building Permits Increase. Another feature of the week was the gradual increase in permits. Nearly a quarter of a million Is represented in the week's building permits and the month's totals will come near doubling those of December. By far the ma jority have been for dwellings, the de mand for residences showing no slgne of being met, despite the efforts of builders to catch up. Every firm In the house-renting branch of the business-has the same report to make that everything on their books is snapped up almost as soon as listed and most of them have waiting orders, especially for reasonably held houses. The larger amount of building of res idences Is going on the East Side, and more particularly In the newly platted tracts. There Is also quite a brisk build ing movement In the streets skirting the hills to the west of the old part of town. In the vicinity of Thirteenth and Columbia and for blocks contiguous to that locality, an excellent class of buildings are going, up, and in the northwest district preparations are be ing made for numbers of high-class residence to be started within the next few weeks. There is no diminuation in the Inflow of newcomers to Portland, and with new houses being occupied as soon as they are finished, and demand for stores and offices keeping pace, the casual observer even cannot help noticing a .rapid gain In population. . Agents for the big office buildings neartng completion have closed leases for space to be taken whenever the buildings are ready for occupancy. The renting by the Portland & Seattle Railroad Company of offices In the Commercial Club building Insures suc cess of that building from the start, and many signs appearing on the win dows of the Corbett big building in dicate Its early occupancy. The banking-room to be the future home of the Security Savings Bank in the Cor bett block Is having the fixtures put in. and the stores In the Masonic Tem ple on Yamhill street are being made ready for tenants. New Hotel Nearly Ready. The Cornelius Hotel, at Alder and Park, Is nearly ready to turn over to the lessee. Furnace, elevators and electric lights are In commission and decorators are busily engaged In put ting on the finishing touches. The ho tel office and first-floor hallways are done in bright red. making a rich, warm color scheme that is most at tractive. The grt.. In - the basement is ready for the Installation of the ranges and servtng-room appliances, and when ready for opening will be one of the most attractive dining places In the city. Some rumors were current during the week that Mr. Har rison, the lessee of the hotel, had changed his mind regarding the lease, but he said last night that no such Idea had entered his head and he could not understand how such a rumor gained circulation. He Intimated that he might buy the property at the ex piration of the bonded term. It is known that at least three oien are ready to take up the matter of the lease in ease the present lessee de cides to give it up. Farm lands are In good demand by Eastern buyers as well as investors nearer home. The early opening of the North Bank road has attracted atten tion from purchasers who keep an eye open for good bargains. All along the line there are "nibbles' reported and values are taking quite a spurt, es pecially for locations between Van couver and, say, Collins Springs. There are some spots where apple orchards thrive, and these lands are being taken up in small tracts at a great rate. Lots in the new plats of the East Side are moving at an unexpectedly rapid rate. . considering the time of year. All the agencies express surprise that such a large sale should be recorded foi Win ter, when real estate is generally dull. Within the next few days there Is every probability that two or three deals will be consummated of business , property In the heart of the city. Cor ners are becoming scarce, there being but few In desirable locations that can be moved at any price whatever, as the lota are tied up In estates or are held by the present owners as a permanent Investment. Two Important corners, however, have been secured by one of the leading firms In the real estate business upon which the option will terminate In a few days, and the deals will be closed without much doubt be fore that takes place, as -the price ts below what - could be signed up for now. Brisk Movement at Albina. Albina realty has taken on quite a . brisk movement. In the district bound ed by Knott, Commercial and the river transfers were reported even oar of ist li'ft?t'r'SS '?r: "th,. v!?? .11 irT iPi W fe- feij ,; lu4V f i ru-ir.i;:ll I 'sa4Jg J 1k:?1.?h ;:x k l)-:41 I Lgy U:x ipA the past week, at figures considerably above, those quoted at this time last year. These lots are "bought mostly bv men whose work is in that nart of the city and who will bufld their homes ' near where they are employed. Taken as a whole, the real estate market is In excellent shape and nearly every man in the busineis expresses the opinion that the outlook could scarcely be Improved upon. Many of the more optimistic are already pre dicting that the present year will be one of the best ever known in the hand ling of Portland realty, and that out side lands will be favorably affected by the movement in the city. OUT-OF-TOWN BUTTERS AKE OF FEKEp $2000 FOR BARGAIN. North End Lot, 80 by 100, Sells for $16,000 and $18,000 Re- fused Next Day. "Portland realty was never in better shape for Investment than right now," said D. Bi Mackie yesterday, "and to prove that money la to be made by buyers, a transaction I have Just closed carries' conviction. . "Two of my clients from Douglas Coun ty. W. W. Kent and B. R. Applegate, bought the property belonging to A. Wurtenburger. 80x100, on Sixteenth street, near Lovejoy- paying $16,000 for the piece. The improvements consist of a two-story business house, a two-story dwelling and a barn. The feature of this deal is that before these two men owned the property a full day they were offered $18,000 for it, which they declined to ac cept." This sale, coming at a time when or dinarily real estate is dull, emphasizes the contention of most men In the busi ness that property values are below standards set in other lines ef business. The sale referred to is one of several that will probably be closed for out-of-town buyers within the next few days, several local firms reporting orders on their books for Portland sites running up into big figures. Most of these are for income-producing property, though va cant lots are also Included In Bome In stances by buyers who Intend to Im prove. - CITY HALL TO BE COMPLETED Mllwaukle Council Calls for Plans for Interior Work. The Milwaukie Council has called for plans for the completion of the City Hall. The interior of the building Is now to be finished: only the council chamber was completed when the contractor turned over the building. Completed, there will be a hall on the first floor, which will be used by the Volunteer Fire Depart ment, and on the second floor there will be a large hall for public purposes, there being a stage In this room. It will cost about $1200 to finish the building. It is expected that the contract will be let some time next month. The Council has selected a site for the proposed freight and passenger depot of the electric rail way, and the building will probably be built this Spring. At Milwaukie the people are waiting the decision of the Railroad Commission as to whether they are to have 6-cent fare to and from Port land It is the sentiment in Milwaukie that the future progress of the place depends on the uniform 5-cent rate. The Rock Island Club grounds, at Mil waukie, recently passed into the hands of a new company, which Is preparing to make extensive improvements. Including a pontoon bridge for automobiles to the Island from the East side or the river. Several prominent Portland men are In terested in this river resort. Some Transactions at St. John. The St. John Gas Light & Heat Com pany has filed Its bonds with the St. John Council for the performance of the terms of Its franchise, and work will be started on the plant at once. The com pany purchased during the week a lot 60x100 from Ben Wise for turn. M. L. Holbrook sold to N. F. Norens a new house on a fractional lot for $2600. At Point View, In St. John, Mrs. Matilda Edwards purchased four unimproved lots from Jacob Halvorson for $1150. Another considerable sale was that of Patrick Skelly to Rudolph Markwart of lota 18, 18 and 20. and northwest half of lot 21, block S, for $3700. . Dally Abstract Adopts New Policy. The Dally Abstract, devoted to the pub lication of legal, financial and building notices, and which is the official news paper of Portland, has begun a new method in the circulation of its paper, whereby all persons interested in any proposed street improvement or similar action of the Council and city depart ments will receive a copy of the paper. The publishers announce that a copy containing these notices is sent to every one Interested without request, thus in suring them due notification. Snes for Machinery Bill. The Fairbanks-Morse Company brought a suit against the J. C. Lee Company in the State Circuit Court yesterday to col lect $1136.22. The amount is alleged to be due on mining machinery Installed athe company a, aroearu is Caiilunus, QUICK ADVaHGE W BBLTI A. :-r B miM 1 EXPECTED SLUMP FAILS -"TO : APPEAR East Side Values Keep Up, Despite Predictions of Weak-Kneed Dealers. TRANSFERS SHOW A GAIN Permits for Residences Indicate Growth of Big District Which Clamors for Better Streets and Many Other Improvements. . i W. H. Mall, in speaking of real estate and financial conditions, said yesterday: "We were told that immediately follow ing Christmas the big stores would have to close up. but such has not been the case at all, but there has continued to be brisk sales In all lines. In the matter of money, we find It getting more abun dant. We loaned during the week, $13,000, $5000 and smaller sums at reason able rates of interest, 6 and 7 per cent. There will be plenty of money for In vestment from now on and for general Improvements. We have an almost con stant call for small houses. A great many people thought there would be a slump after the first -of the "year and that bargains could be picked up all around, but there has been no decrease In East Side values as far as I can dis cover. We have had some rainy weather, and little can be done then, but through It all we have had constant inquiry. We are looking for a good Spring demand for East Side property. Our people need to push things along. We want the East Twenty-eighth street bridge contract let at once and work started. I cannot see anv necessity for delay In this needed bridge. This is an Important improve ment for the East Side. Then, we should get the new bridge over Sullivan 8 Gulch, on Union avenue, this year." Otto Kleeman, a Portland architect and secretary of the Architects' Association, keeps in close touch with building op erations all over the city, and especially on the East Side of the river. He says that for 3ome time since October there was some abatement of new work, but that old work kept them engaged. "But now there has come a change,' says Mr. Kleeman. "and new work Is being projected In all directions." There hu been a considerable reduction In the cost of building material, so that the builder who did not let his contract a month or six weeks ago Is a gainer by at least 15 per cent, and in some In stances much more. From the present Indications, and I keep In pretty close touch with building operations, I am con fident Portland will have a good year, especially in the Homebuilding line. Architects are beginning to get busy on much new work," The building permit records for the past week indicate that Mr. Kleeman is right so far as new residences are con cerned, but the number, take It from day to day, was at least 10 per cent over the former week. On Wednesday the build ing permits ran up to $126,730. but $100,000 was for a Weet Side building and the others were for East Side homes, costing from $1609 to $3000. W Ik Dial baa started three bouses on Conoord street, near Willamette Boule vard, at a cost of $4500. W. B. Wiggins has let the contract for a $4750 dwelling on Clackamas street, between Twenty second and Twenty-fourth street. Ar chitect Hefty has awarded the contract for this building, which will be a Swiss chalet, to George West St Son. It Is one of the best buildings projected for some time. C. T. Bates will put a two-story frame store bulldlng'and dwelling costing $23,000, in Albina avenue, between Blan dena and Prescott streets. J. J. Rich ardson will put up a two-story dwelling, costing $4500, on East Flanders, between East Twenty-ninth and Thirtieth streets. James A. Gray has taken out permits for five' dwellings, each costing $2000, all to be built at Sunnyslde. James E. Tate will build on East Main, between Six teenth and Seventeenth, at a cost of $3000. Architect E. Kroner is preparing plans for a new apartment-house for Mrs. Drews, to be erected on the corner of Borthwick and Stanton streets. It will be of frame construction. 42x63, and will contain four apartments of from four to five rooms each. The cost will be about $7000. On Friday last 29 building permits were Issued, 18 of which were for the East Side, and the average cost of the resi dences is $2000 In the residence line the day was a record breaker of several weeks. Want Better Sewer System. The people of the suburb of Sell wood, with their usual enterprise, are now push ing the matter of sewerage for that dis trict. The local Board of Trade has em ployed Engineer Gilbert to prepare plans for a sanitary system embracing the ter ritory between East Ninteentb street and the Willamette River, and be will have his report ready by Monday night. The engineer also was asked to estimate the cost of Increasing the size ' of the pipes so they would carry off the storm water as well as the house sewerage. The engineer estimated that the sanitary system would cost each lot $60, which would make the entire cost about $50,000. The combined system for storm water and sanitation would run up the cost to about $60 or $70 a lot. which Includes the laterals. Some time ago the City Engineer prepared plans for a sewer system for Sellwood which would cost above $100 per lot, or a total of about $125,000, but the Board of 'rade was apprehensive that If that system were adopted . It might retard the growth of that suburb, and the Board employed a private engineer to prepare plans on a more economical scale. If the plans when completed are acceptable- to the people and the city authorities, petitions will follow and the sewer system be built. Sellwood is considered one of the most attractive suburbs of the city, but lacks sewerage faculties. Property-owners on the East Side are Interested In the proposition that the city own and operate rockcrushers and furnish material for Davlntt streets. Miles of streets are held up for want of paving material, m Multnomah Ad dition, Ken 11 worth and In Sellwood property -owners want to Improve all the streets with crushed rock, but fear they cannot get paving material. There Is also a growing sentiment favorable to hard pavement instead of any sort or macadam. The North East Side Im provement Association has declared in favor of hard-surface pavement, and figures are given to show that the cost of such improvement Is little mora than crushed rock, but for back streets crushed rock and gravel will be used tor some time to come. Would Improve Streets. Councilman R, E. Menefee, supported by the North East Side Improvement As sociation, is looking into the matter of opening all the streets' through the Montgomery tract between Larrabee street and Vancouver avenue. Most of this territory is cut up by gulches. but pas become very valuable throua-a the improvements that liave been made on all sides of the tract. It is really In a wild state, being covered with brush, and it is felt that the time has come when the tract should not be al lowed to remain in Its present condi tion. C A. Blgelow. president of the East Side Business Men's Club, announces that at the next meeting the club will take up the matter of preparing East Port land tor the Rose Festival. A commit tee will be appointed at that time to con fer with the managers of the festival as to what should be done. It will be in sisted that Grand avenue be improved to Sullivan's gulch before the festival Is held. If It is. not paved the procession cannot come to the East Side. The Busi ness Men's Club also has the matter of electric illuminations at the east end of the bridges In hand. Work on the building which will be oc cupied by the East Portland Branch Li brary, on East Eleventh and Alder streets, is progressing rapidly, and it will be ready to be occup. within a month. The structure will not be expensive, but will be neat and artistic It will be pro vided with plenty of light and ventila tion. This branch library will be one of the most Important Institutions of the East Side. East Side transfers during the week show a slight increase over the former week, and wpre widely scattered. A DISTANCE (I Tetily dwdknv it a laid, - ninuttt count tot more than nilea. Admitnat tktt tha it true, ' ko imct dial the leu milet a man sMUt trod to to reach hit banc, the Icsibbb. otet it features to tntvel tbote oik, A careful euannabon of the accompanywig map ahowa ROSE OTY PARK audita favorable ccmpahaos is distance with the ether leading reaidence portions si the city. There are very few destable residence section to any city that lie at dote to the activities ef down tews - ROSE CITY PARK. At the same time there are Terr few such locations that are so absolutely free from the annoyances and Bcoovea. saicea of city He. ROSE CITY PARK begins just two and s quarter mica from the Bmside Bridge, k extends two miles eastward. From the center of ROSE OTY PARK to down town is a ride of 25 minuses. Upon the cample boa i the street railway down Sandy Road from East Twenty-eighth street, the ride to down tows w31 bo tJsaeusea, ROSE HARTMAN 8 THOMPSON house and lot on Broadway and East Water street was sold to William Webber by Edward J. Grahs'for $4300. A two story frame residence on Rodney avenue, near Cook avenue, was sold by M. Rltter to Samuel Mclllrane for $3500. A house and lot In Vernon was sold by Olaf Kiola to Ole J. Hatfield for $3000. H. W. Hogue sold a residence site. 75x100, on Cook ave nue, near Williams avenue, for $1450. In John Irvine's first addition, Mary F. Failing sold to O. O. Hall lots 15 and 16, block 16, for $3500. In Hawthorne's first addition, Mary J. Graham sold to Charles W. Stubbs lot 9. block 8, for $2500. The most Important sale of city prop erty was that of 12 acres at Midway, near Sellwood, which was purchased by Frank A. Sweeney from the Moore brothers. The tract will be sub-divided. W. H. Ross' and W. B. Roberts sold 14V4 acres on Milwaukie Heights Tor $7250. A considerable acreage transaction was the purchase of 12 acres by the Dammeier Investment Company near Gresham from Mrs. EL A. Wldener for $3000. It is pro posed to Improve the land secured and cultivate walnuts on a large scale.- Mr. Dammeier Is having plans drawn for a 10-room residence. The distance to the land Is 12 miles. Five acres east of Mount Tabor were sold the past week to Theodore Praunn by Loyal P. Elliott for t4500. George W. CITY arsiiNCn. CREST I WOODtAWN Nllf PMMONT ' 1 VtBWN. ' ALBMA d. V ' IROSE CITYJ, - I PARK 1 . , ' r 1ra l l' f'lj 'I r ' .f&VgJaseatVM. 1 VVOOOSTOC . tENTS SOUTH . li'f. '" ' ' PORTLAND J(fl -m seuwooo " " if Henkle sold five acres to Andrew Murphy In the donation land claim of Robert Gray for $6000. Works for a Free Ferry. The St. John Commercial Club has a committee out circulating a petition to the Council asking that the ques tion of Issuing bonds for the pur-, chase of the St. John ferry be sub mitted to the voters April 7. This peti tion will be. presented to the Council for action next Tuesday night, Janu ary 28. The petition is being gen erally signed. The club desires the city to purchase the boat and have the county operate, it free, as it does the Albina ferries. Takes Option on Warehouse Site. - The St. John Council has secured an option on four lots at the foot of Philadelphia street, held at $23,500. Holbrook & Bingham are the owners. The property is wanted for a city wharf. It Is proposed to vote on issu ing $75,000 bonds for building this wharf and for buying ground for a park at the April election. The dock will cost $50,000. A suitable park would probably cost $10,000. Tourist, the Winner, section 4, page 7. PA CHAMBER OF COMMERCE Eli v.