Melvin Mark Secures Long-Term Financing for Fifth Avenue Bldg.

PORTLAND-Melvin Mark Cos. has completed its turnaround of the former state office building at 1400 S.W. Fifth Avenue. Late last month, following a multi-million makeover of the former state office building and its rapid lease up, Mark Group Partnership No. 6 secured $13.7 million in long-term financing from IDS Life Insurance Co. that carries an interest rate of about 7.5%.

Melvin Mark acquired the 175,000-SF building and an associated parking garage from the state in 1992 for $11 million, according to property records provided by Oregon Title Insurance Co. In 2000, after several years of the building being used as transitional office space for companies seismically retrofitting their own buildings, the company invested $9 million to substantially renovate of the building for multi-tenant use, including $1 million for a new building entrance and lobby.

“We originally planned to tear it down and build new,” Melvin Mark Cos. CEO Jim Mark told GlobeSt.com in early 2001. “But the more we looked at the building, we saw a spot for it between the older class C product at $12 per sf to $15 per sf, the class B historic buildings at $22 per sf and the newer product for $25 per sf to $30 per sf.”