The sale price is more than $2 million below the $21.2 million Multnomah County estimated the land and building was worth last year. Then again, the purchase price still translates to at least $184 per sf -- $191 if you only divide it by the 99,000 sf of rentable space -- which is very close to replacement cost in this market.
Schnitzer also said the design and consulting firm Dave Evans & Assoc. will lease two thirds of the building beginning in January, and that another lease is in the works that will bring the building to 90% occupancy. The Dave Evans lease lets Enron out of the remaining years on its lease, which was for the entire building. Enron Broadband Services was subleasing the building from PG&E, which also is freed from its commitment to the building, which Schnitzer renamed the 2100 River Parkway Building.
The seller of PGT Tower was Bob Gerding, Mark Edlen's partner in Gerding/Edlen Development, the firm now redeveloping the Brewery Blocks on the northwest edge of Downtown. Gerding developed the building in 1996 for PGT, now PG&E. Gerding, who has been on vacation, also has not returned GlobeSt.com phone calls seeking comment.
Both the sale and the lease deal, which closed last week, were reported on GlobeSt.com at the beginning of this week, though initial reports had the firm leasing only 55,000 sf. The lease rate Dave Evans will pay was not included in Schnitzer's release, which arrived after 5 p.m. Thursday evening, and Schnitzer executives have not yet returned GlobeSt.com phone calls seeking more detail.
"Because of our current holdings and our history of involvement in the North Macadam area, this property is an excellent strategic fit for us," states Kenneth M. Novack, President of Schnitzer, in a quote released Thursday evening. "We see this as part of our ongoing interest in the redevelopment of the area."
Portland-based Schnitzer owns nearly nine million sf of buildings -- office and industrial, urban and suburban -- along with multi-family housing and vacant or under-utilized lands it is planning to redevelop, including several dozen acres in North Macadam, south of the Marquam Bridge.
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