NAI NBS Brokers $7.1M Sale of Tanasbourne Retail Property

StanCorp Real Estate LLC has sold Tanasbourne Lot 19 – Retail, a 7-acre property in Hillsboro with three retail buildings totaling 21,154 sf, to Atlas Investments for $7.1 million. Tenants are Stanford’s Restaurant & Bar, Red Robin and US Bank. NAI Norris, Beggs & Simpson Executive Vice President Chris Johnson and Vice President MaryKay West represented the seller.

The buyer, a local investment company, immediately recognized the quality of the property and its investment potential, leading the property to be under contract in just two weeks, and to close in a relatively short period of time.

“It’s nice to see strong interest in triple-net leased investments,” Johnson said. “This is a good indicator that investment activity will be improving in 2011.”

The property’s location, at 2550-2770 NW 188th Ave., was key. It has outstanding visibility and lies in the heart of Tanasbourne, which has seen considerable commercial and residential growth in recent years. It is close to sites of significant economic development, including the Intel campus, the new Kaiser Westside Medical Center, and the campuses of companies like Genentech and SolarWorld.

The tenants, all well-established and solid performers, were also draws. Though the recession was challenging for restaurants, both Stanford’s and Red Robin saw significantly better sales in 2010 than in 2009.

Portland Investment Market Seeing Signs of Life

MaryKay West, who specializes in investment sales in NAI NBS' Capital Asset Group (CAG), has a column in today's Daily Journal of Commerce. West says that though the investment market certainly hasn't completely recovered yet, 2010 was a big improvement over 2009, and momentum is building in the Portland metro area.

Here's a brief excerpt:

In 2010 we saw a total of $754.1 million in transactions ($500,000 and larger) in the tri-county area. This number, although only 24 percent of the total volume of 2007, is still encouraging because it represents a 19 percent increase over 2009. Last year also saw a rise in the number of transactions greater than $10 million, and all product types were represented in this category - another promising sign.

Rent trends seem to have reversed course - rates are leveling off and perhaps even rising. Vacancy rates are dropping slightly and absorption is rising slowly - however, this is as much a function of no new construction as it is of few new companies leasing up more space. Cap rates are dropping again, but not precipitously, and most of the movement is for trophy properties. Interest rates are still very attractive.

All in all, it appears the market correction has started, but it will take a while to turn the ship - which is actually a good thing. Significant volatility tends to breed uncertainty and uncertainty tamps down real estate investment activity.

The whole article can be accessed here.

Investment Broker West is Number Five Top Producer of 2010

Investment broker MaryKay West, CCIM, was NAI NBS' Number Five Top Producer of 2010. She and partner Chris Johnson completed a number of significant deals last year, including leasing the entire 340,000 sf office portion of downtown’s First & Main. She also helped represent Alpha Broadcasting in its 31,000 sf lease at Pacwest Center. She is an accomplished writer and serves as Chair of the Independent Publishing Resource Center Board of Directors.

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 Earns CoStar Power Broker Awards for Performance in 2009

NAI Norris, Beggs & Simpson made a strong showing in the 2009 CoStar Power Broker Awards.

For the fifth consecutive year, NAI NBS was named a top leasing and sales firm in the Portland metropolitan market.

CoStar said in an article about the awards:

"Given the extreme economic conditions in 2009, last year was one that many in the commercial real estate would just as soon like to forget. Every commercial real estate broker who managed to secure a lease or arrange a building sale during the year probably deserves an award.

The ones who excelled under those conditions and achieved the highest transaction volume in commercial property sales and leases last year in their respective markets are especially deserving of industry-wide recognition. Which is why CoStar is especially pleased to present the 2009 CoStar Power Broker Awards, singling out those who persevered and earned the right to be called one of the 'best of the best' in commercial real estate brokerage."

A number of NAI NBS brokers earned individual awards:

• Top Office Leasing Brokers: Jennifer Medak and John Medak
• Top Retail Leasing Brokers: Gina Barendrick and J.J. Unger
• Top Industrial Leasing Brokers: Michael Merino and Scott MacLean
• Top Sales Brokers: Chris Johnson, MaryKay West and Robert Black

Visit the Power Broker website for the entire list.

NAI NBS Takes Home Three CAR Awards

NAI Norris, Beggs & Simpson had a strong showing at the 2010 Commercial Association of Realtors (CAR) Awards Dinner last night at the Governor Hotel. The theme of the evening was “Building a Healthier Future,” and NAI NBS' Jeff Borlaug, the 2010 CAR President, emceed. NAI NBS' winners were:

-President Clayton Hering was named Co-Humanitarian of the Year. He is active in a number of charitable organizations, including the Oregon Symphony and Business for Culture and the Arts.
-Executive Vice President Chris Johnson was named Investment Broker of the Year.
-Associate Vice President Garret Harper (also NAI NBS' Top Producer of 2009) was named Industrial Broker of the Year.

We also had several runners up: Pam Lindloff for Retail Broker of the Year, Gina Barendrick for Rookie of the Year, and Jennifer Medak and John Medak for Office Broker of the Year. An insert in today's Portland Business Journal featured all of the winners and runners up.

CAR offers education, provides government advocacy and creates opportunities for commercial real estate professionals to connect and grow their business.

NAI Global's Global Market Report Details Challenging 2009

Commercial real estate markets around the world experienced the full impact of the global economic recession in 2009, according to the 24th annual Global Market Report released by NAI Global. Rising vacancy rates and declining rental rates were evident in virtually every market sector and geography, with weak demand and a growing supply of sublease space further eroding market fundamentals.

After a turbulent 18-24 months since the market peaked, 2009 marked a year where transaction volume nearly came to a standstill as corporate tenants waited for clear signs of recovery and investors remained on the sidelines waiting for signs the bottom has been reached. As the year progressed, government intervention in the form of stimulus packages in the U.S., Europe and parts of Asia took hold and by year’s end many markets had begun to stabilize. However, with U.S. unemployment topping 10%, consumer demand and spending power at their lowest levels in decades and international manufacturing and trade proceeding at a crawl, the global recovery will take some time to truly stimulate economic growth.

“The past year was extremely challenging for commercial real estate, and we don’t anticipate much new demand in 2010,” said Jeffrey M. Finn, President & CEO of NAI Global. “We’re working with our corporate clients to help them take advantage of the current tenants’ market to reduce their long-term occupancy costs. Many tenants are able to negotiate more favorable lease terms today in exchange for a longer commitment. This ‘extend and blend’ practice is a trend we see continuing well into the next 18-24 months.”

Investors who have been sidelined by economic uncertainty will see tremendous acquisition opportunities in the coming year as banks and financial institutions clean up their balance sheets and move more aggressively to dispose of commercial real estate loans and financially distressed real estate assets, said Finn.

“The recession has been over for six months and job growth is just months away, but the fact remains it will be impossible to predict what will happen next,” added Dr. Peter Linneman, NAI Global Chief Economist and Principal at Linneman Associates. “With significant tax, healthcare and regulatory proposals still in the offing, there is little clarity as to the ultimate outcomes or costs. We’re concerned with commercial mortgage delinquency rates as they have been on the rise and could keep the commercial real estate industry in neutral for several more months.”

NAI Global is one of the largest real estate services providers worldwide. Headquartered in Princeton, New Jersey, NAI Global manages a network of 5,000 professionals and 325 offices in 55 countries. Now in its 24th year, NAI’s Global Market Report offers insider insight and perspective on market conditions reported by NAI experts on the ground in over 200 property markets worldwide. To obtain a copy of the full report, contact psetaro@naiglobal.com.

NAI NBS Represents Buyer in $8.275M Purchase of Quad 205

NAI Norris, Beggs & Simpson Vice President Denis O’Neill and Vice President Steve Dodds represented Spears Real Estate, LLC in the $8.275 million purchase of Quad 205 Business Park, a 108,625 square foot landscaped business park in Vancouver, Wash. NAI NBS also took over building leasing and management in the trade.

The buyers are local private investors and were attracted to the property because of the mix of local and regional companies, according to Dodds. They feel the property has great long-term potential, which they can facilitate through personal attention and quick decision-making.

Built in 1983, Quad 205 comprises four buildings near the intersection of NE 112th and NE 39th Streets in the Orchards area, with easy access to I-205.

“Quad 205 is in a great location on the 112th Avenue corridor and offers high-quality light industrial space with nice office build-outs,” said NAI NBS Senior Salesperson Garret Harper, the leasing agent.

Spaces range from about 1,000 to 10,000 square feet, and some major tenants are Johnstone Supply, Thermal Supply and Automotive Electrical Distribution. Large industrial neighbors include companies like SEH America. Quad 205 has tilt concrete construction, dock and drive-in doors, and plentiful parking.

Investment Market May Be Down, But It's Not Out, Brokers Say

NAI NBS' MaryKay West and Chris Johnson had a column in Portland's Daily Journal of Commerce yesterday about the investment market. They chronicle how the investment market reached the state it's in today, where it is headed and when we can expect a recovery. Though it is a challenging time to be a broker, they say that those who are patient, professional and persistent can still get deals done. You can find the article here.