An alternative to Megahouses

Short plats reconsidered

Readers may recall the dustup we covered earlier this year over the permit requests of two Madison Park property owners who each wanted to short plat (subdivide) their properties. The two applications were coincidentally for different properties located on the very same block. Both of the lots already had two existing longtime rental units on them, and this fact effectively grandfathered the real estate as suitable for short platting under City ordinance, assuming certain conditions were met. The City ultimately approved both applications, in spite of the written objections of many neighbors and the opposition of the Madison Park Community Council (whose letter of protest arrived at City Hall a bit after the fact, as it happened).

As a result of the City’s approval, each of the properties can legally be developed and sold as two separate single-family residences. The owner of one of the properties moved swiftly to do just that. What was originally one lot at 2330 42nd Avenue E. is now two legal lots, 2328 and 2330. This is what the property looked like before the short plat was approved:

The two small cottages that sat on the lot were each in pretty bad condition, according to realtor Theresa Truex of Madison House, Ltd. “They were crummy little see-through cabins, not even remodel-able,” she says. “In fact, the inspector’s comment was ‘You’ve got to tear these down.’” The owner, who originally bought the real estate for its development potential, had initially been planning to build one big house on the site and leave it at that, says Truex. However, the subsequent downturn in the local real estate market significantly changed the economics for speculative Megahouses in Madison Park. The developer rethought his options, and subdividing became an attractive alternative. Developing two smaller, less expensive houses suddenly seemed to offer more market potential—and less risk.

The picture at the top shows what the site looks like today from the street side, and this photo shows how the second house is being positioned:

The new house on the street-side of the property was sold before it was completed, and the owners moved into it in late December. The buyers are a couple that did not want a big property to take care of but wanted to be able to live close to the amenities of Madison Park’s Village, says Truex. The house has about 1,100 square feet of living space and sold for $539,000. The second house, currently under construction on the back of the property, will be completed in early this year. It’s a bit bigger, at around 1,300 square feet; and it will be priced at $769,000. According to Truex, the developer was correct in thinking that some buyers who want new construction prefer “cozy” to Megahouse. It’s unusual to find a small new house anywhere in Madison Park, she notes, and the very quick sale of the first house on this property seems to prove there is an audience for this kind of construction.

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“This development, in my opinion, creates a bright spot in the neighborhood,” says Truex. “Where there had been two run-down houses there are now going to be two attractive, nicely built homes rather than one gigantic house.” She says that neighbors have been very supportive of the project, with many of them coming by to give positive feedback to the construction workers. We checked with two of the opponents of the original short-plat permits on that block, and each said they liked what’s being done with this particular property. The small homes have been “designed and executed in a thoughtful manner,“ one of them told us. The other one-time opponent admitted that the new development fits the character of the neighborhood better than the dilapidated structures that originally sat on the property.

So it appears that this two-cottage development, assuming that the second home is successfully marketed and sold, will ultimately be chalked up as a win/win/win: for the developer, the homebuyers, and the neighborhood. Even so, don’t expect the building of cottages to become a trend in Madison Park. There are not that many properties here that can be legally subdivided, so that old economic rule known as “build to the highest and best use” will continue to influence developers. What that almost certainly means for Madison Park is more Megahouses once speculative building makes its comeback.