Located east of Interstate 205 and north of I-84 on Northeast 158th Avenue, the property comes with two buildings totaling 147,000 sf and 11 acres of excess land. IBC's Denver-based partner Brian Mott tells GlobeSt.com that IBC will rehab the two existing buildings for sale or for lease and divide the excess land into eight developable parcels.
"I think the likely scenario is a series of small buildings for sale or for lease," says Mott of the excess land. "We'll probably wait to have a couple of buildings pre-sold."
The buildings are currently planned to range in size from 8,000 sf to 25,000 sf. Construction of the first buildings is tentatively scheduled to begin by the end of 2004. Fund manager Farallon Capital Management of San Francisco is providing some of the equity for the project. Locally based group Mackenzie is handling the subdivisions and permitting, and broker Tony Reser of GVA Kidder Mathews has the marketing assignment.
"We expect to see the need for state-of-the-art warehouse and distribution space to begin trending up this year, particularly within the Portland city limits," says Mott. "Acquiring these two buildings and adding to the existing inventory is part of the IBC Holdings business plan to develop needed general purpose industrial buildings and to reposition existing facilities that remain viable in specific marketplaces."
The two existing buildings comprise 81,487 sf of warehouse space, including 20,000 sf built out for office use, and 65,233 sf of manufacturing space. Mott says the buildings are of tilt-wall construction and will only need cosmetic improvements before they can be put back in use.
"This is pretty typical of what we do," says Mott. "Our strategy is to avoid the larger industrial developers and focus on the repositioning of older assets."
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