Three Large Transactions in Portland Metro Area Announced This Week

Some good news on the Portland metro area investment front this week, just as sunny summer weather finally hit.

Retail Opportunity Investments Corp, a New York real estate investor, is buying five Portland metro area shopping centers for about $90 million. It closed on Vancouver Market Center for $11.19 million, and is under contract for Cascade Summit Shopping Center, Heritage Market Center, Happy Valley Town Center, and Oregon City Point.

Phillips Edison & Co. also purchased Johnson Creek Shopping Center, a 106,709 sf center in Clackamas, for an undisclosed price.

And Behringer Harvard Holdings purchased the 188-unit Tupelo Alley Apartments on N. Mississippi in Portland for $38.75 million in the largest multifamily transaction so far this year.

NAI NBS Brokers Two Tigard Office Leases Totaling 40K SF

NAI Norris, Beggs & Simpson brokers represented the landlords in two recent Tigard office leases totaling more than 40,000 sf.

State Farm Mutual Automobile Insurance leased 23,712 sf at the Fanno Creek Building B on Upper Boones Ferry Road. NAI NBS' Chris Johnson, John Medak and MaryKay West represented the landlord.

State Farm will relocate its administration and a small claims department from a nearby building in January. It leased the first and second floors, and was especially attracted to Fanno Creek because it was able to accommodate special needs, including a roll-up door on the ground floor.

Fanno Creek delivered in 2008 and has been vacant until this lease, which takes the building to 50 percent occupancy.

“Getting a quality tenant such as State Farm to relocate to this project, in this business environment, is sure to promote strong momentum for the remainder of the lease-up,” Johnson said.

CNA Insurance leased 17,443 sf at Pacific Parkway Center on SW 68th Parkway. NAI NBS' Jennifer Medak, John Medak and Andrew Rosengarten represented the landlord, PacTrust.

CNA’s lease was complex, as the brokers had to restructure four other leases within the building to accomodate CNA’s size needs. CNA also leases from PacTrust in Dallas, and the company was attracted to Pacific Parkway Center because of the building’s quality, aggressive rental structure, and attentive ownership and management.

The NAI NBS team has taken Pacific Parkway Center from about 58 percent leased a year ago to 82 percent leased today.

Investors Pays $1.7M for Box & One in SE Portland

An investor has purchased the Box & One, two mixed-use buildings at SE 28th and Ankeny, for $1.7 million. NAI Norris, Beggs & Simpson's Robert Black represented the seller.

The transaction had a 7.2 percent cap rate and was a market-rate deal, Black said.

The 7,318 sf project has ground-floor retail and five loft-style apartments above. It is home to Crema Bakery & Cafe, on the corner of SE 28th and Ankeny, whose space features roll-up garage doors. The other ground-floor retail tenant is Coalition Brewing, which is expected to open this year.

The retail and residential spaces have been fully occupied since the buildings were constructed in 2002, and the apartments garner market-leading rental rates, Black said. Just a block off of Burnside in a neighborhood with lots of pedestrians, the project’s location promotes bicycle and bus use, and the buildings are energy efficient and sustainable.

The buyer was familiar with the Box & One because he had often visited Crema on trips to Portland, Black said, and the building’s strong occupancy, unique design and excellent location were appealing.

“Mixed-use, neighborhood-scale projects are popular investments today, especially in Portland,” Black said. “The Box & One has such strong fundamentals that it was a great opportunity for the buyer.”