PORTLAND, ORE. – The 70-unit Central Eastside Lofts in Portland has sold to an out-of-state private investor participating in a 1031 exchange for $18.9 million. The lofts are located at NE 6th and Couch, near the Burnside Bridgehead. The property also includes 11 retail spaces. The seller was Andrews Management. The transaction was executed by HFO Investment Real Estate.
SALEM, ORE. – The 60-unit Catron Place apartment community near Salem has sold to a private investor for $6.4 million. The community is located at 515 North Catron Street in Monmouth, just west of Salem. It is situated a few blocks from Western Oregon University. The buyer was represented by Scott Logan of Marcus & Millichap’s Portland office. The seller, a developer, was represented by Georgie Christensen of the same office.
PORTLAND, ORE. – MBRE Healthcare has acquired Mt. Scott Professional Center II, a 48,500-square-foot medical office building in the Portland submarket of Happy Valley, for $11 million. The center is located off SE Johnson Creek Boulevard. Notable tenants include Mt. Scott Surgery Center, Metropolitan Pediatrics and Adventist Health. MBRE was represented by Brian Norton of KW Commercial. The seller, Mt. Scott Professional Center II LLC, was represented by Raymond Duchek and Thomas McDowell of Norris & Stevens.
PORTLAND, ORE. – DiNapoli Capital Partners has purchased the 100-unit Honeyman Hardware Lofts in Portland for $37 million. The community is located at 555 NW Park Ave., in the city’s Downtown Pearl District. Honeyman Hardware also features 10,800 square feet of street-level retail space. It was originally built between 1903 and 1920 as three individual buildings. All three buildings were renovated and converted into residential and retail uses between 1989 and 1991. The Cotter Building, the largest of the three structures, was originally home to the Honeyman Hardware Company. It is listed on the National Register of Historic Places. The Cotter Building now houses 66 residential units. The remaining two buildings, the Bindery Building and the Metro Building, both contain 17 additional units. Select Honeyman Hardware apartments feature two-level floor plans, exposed brick walls, vaulted ceilings, private balconies, Jacuzzi baths and built-in window seats. The seller, a joint venture between Lubert-Adler Partners and Security Properties, had invested $4.9 million to upgrade the community. It also converted a portion of the retail space into 11 live-work lofts, in addition to creating a new resident lounge with free Wi-Fi and a gourmet coffee bar. The sale was executed by HFF’s Ira Virden.
MEDFORD, ORE. — An entity sponsored by LBG Real Estate Companies has acquired the Medford Center, a 420,000-square-foot regional shopping center, for an undisclosed sum. The retail center is located off Interestate-5, between the Biddle Road and Crater Lake retail corridors in Medford. The Medford Center was 87 percent leased at the time of sale. Notable tenants include Cinemark, International Fitness, Sears, Safeway, Rite Aid, Red Robin, Coldstone Creamery and Ashley Furniture. LBG plans to redevelop and reposition the center. This will include significant improvements to the center’s configuration, architectural design and the central pedestrian promenade.
PORTLAND, ORE. – CBRE Global Investors has acquired the 348-unit Arbor Heights apartment community in Portland for $54.1 million. The community is located at 15199 SW Royalty Parkway. Arbor Heights was 95 percent occupied at the time of sale. It was built in 1997 in the Portland submarket of Tigard, just 10 miles from the city’s downtown. The seller, Capri Capital Partners LLC, was represented by ARA’s Gail Neuburg. Capri Capital owned the asset on behalf of one of its institutional clients.
PORTLAND, ORE. – A fund sponsored by CBRE Global Investors has acquired Arbor Heights, a 348-unit apartment community south of Portland, for an undisclosed sum. The garden-style community is located at 15199 SW Royalty Parkway in Tigard. The community is currently 96 percent occupied. The team will execute a capital improvement program to address deferred maintenance, enhance curb appeal and upgrade certain interior features, as and well as common-area amenities. Unit upgrades will include updated lighting and plumbing fixtures, blinds, stainless steel appliances, new countertops and flooring. Common-area upgrades include clubhouse modernization, fitness center expansion and pool deck enhancements.
REDMOND, ORE. – Logan’s Market has leased 42,000 square feet at Nolan Town Center in Redmond. The Class A shopping center is located at 2276 SW Highland Ave. It was built in 2005. Logan’s will occupy the space of former anchor Ray’s Food Place, which went bankrupt in 2013. NTC went into foreclosure soon thereafter. Though Logan’s Market will be owned and operated as one store, it will also feature TrueValue Hardware. The new location should open this December. The store will join existing tenants like McDonald’s, Starbucks, Great Clips and Country Financial. Logan’s was represented by the Pennbrook Company. Nolan Town Center was represented by court-appointed receiver H. Roger Qualman of NAI Norris, Beggs & Simpson.
PORTLAND, ORE. — Swagelok has leased 22,500 square feet at a commerce park in Portland. The park is located at 5224 NE 158th Ave. The fluid system seller and manufacturer was represented by Niall Travers of Cresa Partners. The landlord, CWOR Commerce Park 10 LLC, was represented by Steven Klein, Peter Stalick and Zach Francis of Kidder Mathews.
The Portland multifamily market continues to slowly improve in spite of the unemployment rate stalemated at 10.6 percent — now entering its 10th month. When Portland headed into the recession, many believed its multifamily market would experience a similar plight to that seen in the Southern California and Arizona multifamily markets. It certainly dipped, but fortunately didn’t hit their low values estimated to be 50 to 60 percent below the original prices for some properties there. Rents have returned to pre-recession levels, concessions temporarily came into the market and net operation income went down, causing apartment values to decrease between 15 to 20 percent. But through the worse of the recession, and even today, vacancy has held around 5 percent. However, it should be noted that in some pockets of the Portland market, like Gresham, certain areas of Beaverton and outer Hillsboro submarkets, vacancies are somewhat higher. At first glance, when comparing Co-Star year-to-date multifamily sales numbers (August measure for transactions ≥ $1 million) of $196 million with $116 million in 2009, it appears that transaction sales numbers are up by 59 percent. Yet, on closer inspection, a different story emerges. Since the beginning of the year, there have been …
