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Dirt Beneath Lowe's Store Sells for $15M-Plus

PORTLAND-The Klaff Trust out of Chicago sells the 10.66-acre property on SE Johnson Road near Highway 224 and Interstae 205 to the Tansley Trust of England. Lowe's is leasing the site for no less than 25 years.

By Brian K. Miller | Updated on September 05, 2005

PORTLAND-The dirt beneath Lowe’s new Clackamas-area home improvement store has changed hands for $15.4 million. The Tansley Trust of England acquired the property from a partnership of the Chicago-based Klaff Trust and Acadia Realty Trust.

The property is a 10.66-acre property on SE Johnson Road near Highway 224, Interstae 205 and the Southeast 82nd Avenue retail corridor. Lowe’s is leasing the site for no less than 25 years and can extend the ground lease by 20 years in five-year increments.

The broker in the deal, Ted Gibbons of Investment Realty Advisors tells GlobeSt.com that the initial cap rate for the Tansley Trust is about 5.65%. With 10% rental bumps every five years, however, the average cap rate is 7.5%, he says.

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