CBD Office Investment Plan Tops $50M

DENVER-Scanlan Kemper Bard of Portland, OR has acquired the 283,553-sf Lincoln Center office complex for $45.55 million and plans $4.7 million in improvements. The Portland-based real estate merchant banking firm acquired the asset for less than half of the estimated replacement cost and also landed an adjacent development parcel as part of the deal.

The Lincoln Center complex, on Lincoln Street near the state Capitol building, comprises 20 floors of office space, eight floors of parking, ground-floor retail space and exterior surface parking. It was built in 1972 and renovated in 2000 and 2005.

The occupancy at the office building stands at about 70% since its largest tenant vacated the 18th and 19th floors last month, but the new owners expect occupancy to rebound soon because of the history of high occupancy at the project. SKB President Todd Gooding points out that the average occupancy of the building over the past 10 years has been above 90% and that the tenant that relocated was paying a rent 60% below market rates.