First came the micro-restaurants. Then came the marijuana dispensaries. Next came the boutiques.

Soon, part of the stretch of Northeast Sandy Boulevard known to Portlanders as "The Green Mile" will house apartments and offices.

On Thursday, developers announced the sale of the PepsiCo distribution center, which sits on 5 acres north of Sandy, largely between Northeast 25th and 27th avenues. Terms were not disclosed.

Seattle-based Security Properties and Beijing Jade Investment Group plan to redevelop the superblock with market-rate and affordable housing, offices, retail shops and possibly senior living in the next several years.

"We see Sandy becoming Portland's next great boulevard," said Gus Baum, director of development at Security Properties, in a statement. "The area is ripe for more density, particularly workforce and affordable housing, as well as new commercial space for people to work and shop."

It's unclear whether the existing Pepsi facility, built in 1962 and considered an example of "'50s modern" architecture, will be demolished or refurbished. Developers have not yet selected an architect for the project.

They have some time – the sale agreement will allow Pepsi to lease the space for up to 30 months until it finds a new location, meaning construction is probably years away.

The stretch of Sandy has seen a spate of development in recent years, largely thanks to Guerrilla Development's Kevin Cavenaugh.

In 2012, his firm transformed a car dealership into The Ocean, a mini-restaurant hub on Northeast 24th and Glisan. Three years later, the triangular plot to the east of the Pepsi facility became The Zipper, also offering micro-eateries. (Trendy bar Church opened in the interim.)

And last spring, the building immediately north of The Ocean opened as Providore Fine Foods, a market for artisan and specialty fare. Nearby, colorful boutiques popped up, offering surf boards, swimsuits, jewelry and whimsical pipes for the plentiful cannabis nearby.

Cavenaugh said his Atomic Orchard project, which will sit across from the Pepsi plant and is slated for completion next summer, will be his last on Sandy.

He's priced himself out of the neighborhood, he said in an email to The Oregonian/OregonLive. He hopes to mitigate the effects of gentrification by renting the Atomic Orchard lofts for as little as $582 per month.

But Cavenaugh doesn't see Sandy becoming Portland's next hip street.

"Sandy is simply too fast and wide to be pedestrian or bike friendly," he said. "It thus is not conducive to cafes and smaller, local shops" like those on Northwest 23rd or North Mississippi avenues.

He likened Sandy to Southeast Powell Boulevard: "Efficient, but not pretty."

He expects the Pepsi development to follow suit, he said.

Kaie Wellman, one of Providore's co-owners, said the large amount of traffic on Sandy was appealing when they were looking for a space.

"It was a rare opportunity on this side of the river to be between north and south, and on a thoroughfare," she said.

Sandy, she said, is a main artery that connects many of the neighborhoods on the east side. And the parking lot was a big perk, she said.

Wellman knew it would only be a matter of time before a developer pounced on the Pepsi plant. She hopes they keep some of the building's '50s architecture, with its curved roofs.

"Hopefully they can retain the character," she said.

-- Anna Marum

amarum@oregonian.com

503-294-5911

@annamarum