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Nyberg Retail Center Trades Hands

TUALATIN, OR-H&S Development sells the 26,000-sf retail center to Mike Kehoe for $5.9 million. The center includes three buildings that are about 77% leased and two ground leases.

By Brian K. Miller | Updated on July 11, 2005

TUALATIN, OR-The Nyberg Retail Center here has changed hands for $5.9 million. The new owner is an entity of Mike Kehoe, according to local sources. The seller was H&S Development Inc. The transaction represented an initial cap rate of about 7.8%.Built in 1990, Nyberg Retail Center sits on 4.18 acres at 6700-7080 SW Nyberg St., which is off Interstate 5 one exit south of the new Bridgeport Village retail center. Nyberg includes three buildings and two ground leases. The buildings hold 25,962 sf of leasable area and are 83% leased. Tenants include a car wash and a Montessori school. McDonalds and BD Lube are on the ground leases.Marcus & Millichap’s Portland office handled both sides of the transaction. Michael Kapnick had the disposition assignment. Kapnick declined to confirm the name of the new owner. Cutting the ground leases out of the deal, Kapnick says the price per sf works out to $185.Kapnick tells GlobeSt.com the sale is indicative of the current low cap rate trend. “I think ultimately the centers selling for the ultra-low cap rates are newer centers with more national credit tenants than this, but even a non-anchored strip center with more local tenants are still selling at very low cap rates,” he says. “In recent years, a deal like (Nyberg Retail Center) would have sold for a cap rate in the mid-to-high 8% range.”

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