7522–7524 SE 52nd Ave, Portland, OR 97206 For Sale

7522–7524 SE 52nd Ave is a 1947-vintage small-bay commercial / flex / service building situated in Southeast Portland’s Brentwood-Darlington neighborhood. At a $1,000,000 basis the asset delivers a compelling two-scenario investment profile: an immediately cash-flowing As-Is case (1.18x DSCR, $34,251 NOI Year 1) and a repositioned Stabilized case (1.65x DSCR, $47,907 NOI Year 1, 17.6% levered IRR) following a $65,000 light-to-moderate renovation program.

The property is currently occupied by White Lightning Electric, which publicly lists the address as its headquarters, confirming active commercial use. No executed lease has been located; current economics are modeled conservatively as a legacy modified-gross tenancy at $14.00/SF with 1.5% annual growth. The repositioning thesis targets a reset to $23.00/SF—the top of the verified ZIP 97206 asking range (5135 SE Foster Rd, $23.50/SF NNN)—after facade, interior, and HVAC refresh.

A critical discovery in this underwriting is the property tax calculation. The property is held by the Oregon Pacific District Church of the Nazarene under a religious exemption, producing $0 in taxes through 2025. Prior versions of this model used $12,000/year in normalized taxes—a figure that was unsupported. Applying Oregon Measure 50 correctly using the Multnomah County Changed Property Ratio (CPR 0.57) and Levy Code Area 002 ($17.182 per $1,000 AV), with a post-sale estimated RMV of $350,000, produces an annual tax burden of approximately $3,500. This correction is the largest single driver of improved returns versus prior model versions.

Buy a functionally occupied CM2-zoned service asset below the owner-user clearing price, spend $65,000 to reposition it, reset the lease to market, and sell in Year 5 to a private investor or owner-user at a 7.5% exit cap for a projected 17.6% levered return.

CM2 zoning is constructive relative to narrower industrial-only designations. It supports contractor offices, service showrooms, light flex, trade service operations, personal services, and certain retail formats. Permitted uses are broader than IG (General Industrial) and allow for a wider range of tenants likely to occupy small-bay service space in a residential-adjacent neighborhood. The CM2 designation does not permit heavy industrial uses, outdoor storage as a primary use, or auto-oriented uses without conditional approval.

The building is a legacy single-story commercial structure consistent with 1940s-era neighborhood service construction: masonry or wood-frame construction, minimal floor-to-floor height, likely 12–14-foot ceiling clearance, and utilitarian finish. The site configuration on two residential-adjacent lots provides functional parking and access. The building is suited for a single tenant occupying the full 1,950 SF or a modest twosuite configuration consistent with the dual street number usage (7522 and 7524).

Entire building, Excellent condition.Two separate properties sold together or separately and also available for lease. One is a newly remodeled with three office spaces, kitchen, bathroom and large conference room. The second is warehouse space that can be used for a storage or manufacturing. This is a corner property with extra parking on the side and front of the building. The warehouse has a drive-in bay that allows for a fleet of cars and trucks. This property is ready for immediate use. It is currently occupied by the seller who can provide a two week close if desired.