Koin Center is a mixed-use building with 23,000 sf of street-level retail, 324,000 sf of office space on floors four through 19 and 44 condominiums on the top 11 floors. Below grade are the studios and broadcast facilities (68,000 sf) of KOIN-TV, the local CBS affiliate and parking for 300 vehicles. Building vacancy is approximately 13.5%, according to local sources.
Also included in the deal is 140 SW Columbia St., a full-block immediately east of the office tower that is slated for a high-rise office tower that has been marketed as 100 Columbia, and 202-218 SW Jefferson St., a half-block parcel immediately north of the office tower that currently holds the former headquarters of Pendleton Woolen Mills but is envisioned as a residential high rise.
The only piece of the deal that has been recorded with Multnomah County is the Jefferson Street property, which changed hands on June 21 for $3 million or $147 per sf. One of the sellers, Louis Dreyfus, confirmed the sale of all three parcels but not the price; the listing brokerage firm, Eastdil Secured, could not be reached for comment. Commonwealth Partners also could not be reached for comment. Local investment brokers provided confirmation of the approximate price for GlobeSt.com. The local daily paper also is reporting the same price.
Local brokers tell GlobeSt.com that asking rents at KOIN Center--$24 per sf, full service--have been below that of comparable buildings in town, but can be expected to rise with the new ownership. The average full-service asking rate for all class A CBD properties as of the end of June was $24.76, up nearly 8% from one year ago; the newest building in town is asking $30 per sf.
As San Francisco-based Shorenstein is doing with the Downtown Waterfront development parcel it acquired from Equity Office Properties earlier this year, Commonwealth Partners is said to be considering whether to move ahead with the 100 Columbia project without any signed tenants. A third potential competitor is TMT Development, which is planning a high rise at the corner of Park Avenue and Yamhill Street.
Their impetus is a CBD class A vacancy rate that stands at 5.6%, according to a second quarter market report from the local office of Grubb & Ellis. The rate is down from 6.5% at the end of March. One year ago the class A CBD vacancy rate was 6.7%.
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