The building's anchor tenant is the General Services Administration, which leases space for the National Oceanic and Atmospheric Administration. The building is 100% leased. The list price is $5.5 million and based on current revenues the cap rate is 9.5%, says Roger Qualman of Norris Beggs & Simpson, the court appointed receiver.
Qualman would discuss only generally how the building ended up in receivership, saying that such situations arise when there is "a dispute between lender and borrower." The broker with the disposition assignment, Chris Johnson of Norris Beggs & Simpson, declined comment for this story.
According to property records provided by Oregon Title Insurance Co., the property was transferred in March of 2000 from Robert and John McNutt to Rs Development Services of Grants Pass, Ore., to complete a 10-31 tax deferred exchange. The sale price was listed as $900,000, and there was mention of a related $2.4 million loan by Northfork Financial LLC.
Possibly explaining where some of that debt went, Qualman tells GlobeSt.com the building "recently had quite a bit of money spent on it." Multnomah County lists the market value of property at $5.19 million, or $4.32 million for the building and $871,000 for the land.
"It's not being marketed as a teardown, but anybody that would buy it would clearly have their eye on the future for doing something else with the property," says Qualman, adding that the property is zoned for multiple uses. "You could do residential, office or hotel."
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