PORTLAND, ORE. — Starwood Capital Group has purchased the 40-story Wells Fargo Center in downtown Portland. The transaction includes an adjacent five-story former data processing building. The price was not disclosed, though county tax records put the value of the tower at $163 million and the adjacent property at $33 million, according to The Oregonian.
In June, Wells Fargo announced plans to sell the buildings and relocate some of the 900 employees working there to other local offices, added The Oregonian.
The two structures total 725,000 square feet. The asset is located at 1300 SW 5th Ave. The Class A creative office space is the tallest building in Oregon. It offers views of Mt. Hood, the Willamette River, Mount St. Helens, downtown Portland and the West Hills.
Starwood plans to reposition the property into a premier Class A asset. The lobbies and entries will undergo major renovations. The investment firm will also add new tenant amenities, including conference facilities, a tenant lounge, reimagined retail areas, fitness center and bike hub.
“We are confident that our ambitious renovation plans will restore this building to its former status as one of the most iconic Class A office towers not just in Portland, but also in the dynamic West Coast office markets,” says Andrew Wong, vice president at Starwood Capital Group.
The new acquisition will allow Starwood to expand its Portland portfolio to 2 million square feet. Lincoln Property Co. will serve as the property management firm and oversee all capital improvement-related activities. CBRE’s Trevor Kafoury and Michelle Franceschi will head up the tower’s leasing efforts, while Josh Schweitz, Brandon O’Leary and Travis Parrott of Kidder Mathews will lease the five-story adaptive reuse structure.
Starwood Capital Group is a private alternative investment firm with a focus on global real estate, energy infrastructure, and oil and gas. The firm currently manages about $55 billion in assets.
— Nellie Day