GlobeSt.com UPDATE: UPS Acquires 52 Acres, Land Swap Talks Continue

PORTLAND-United Parcel Service has exercised an option to acquire 52 acres at Southshore Corporate Park from park developer Catellus Development Corp. for $4.05 per sf, according to local brokers familiar with the transaction. The acquisition sets the stage for a possible land swap with the US Military that has been under negotiation for several months.

UPS has controlled the property at the city’s northeast boundary since January 2000, when it signed a 40-year lease that included a limited option to buy. At the time, UPS was planning to relocate and expand its main sorting facility from Swan Island to Southshore Corporate Park, which is much closer to the airport. In late 2001 or early 2002, however, UPS apparently changed its mind and decided to try to expand at Swan Island by gaining control of the neighboring US Navy & Marine Corps Reserve Center.

GlobeSt.com reported in June that to accomplish that task, UPS proposed swapping 18 acres at Southshore Corporate Park for the 13.3 acres adjacent its Swan Island property where the Reserve Center is currently located. As part of the deal, according to local brokers, UPS has agreed to pay for development of the new Reserve Center and all moving costs.