"We would look for any opportunity to assist them in expanding this property," says Parr. "That's why we involved Thompson Vaivoda & Associates; getting a look at what could and could not happen was a very important part of the deal."
Earlier this year, there was talk of the company expanding into the building across Park Avenue, but the rumblings waned when the company's earnings began to tumble. Out of respect for Nordstrom's, Parr says he won't get into the specifics of what TVA said could be done with the building. "It has a large number of options," says Parr.
Regardless, assuming Nordstrom's doesn't go under, Parr appears to be sitting on a sound investment. Parr tells GlobeSt.com the capitalization rate on the $13.3 million he spent acquiring the building is "a little under 9%," which means it should take a little more than 11 years for him to recoup 100% of his outlay. At that point, Nordstrom's would still have five or six years left on its initial lease term.
Indeed, with Nordstrom's high credit rating, the acquisition isn't unlike Parr's traditional investment, which are buildings leased by the government. He currently owns a building leased by the state Departments of Environmental Quality in Hillsboro, a state Department of Motor Vehicles building in Sherwood and Oregon Health Sciences University medical facilities in Westmoreland and Tigard.
"Nordstrom's in the next best thing," says Parr.
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