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$285M Deal Recapitalizes 1M-SF US Bancorp Tower

PORTLAND, OR-In a deal that values it only slightly higher than 2006, LaSalle replaces JP Morgan as Unico Properties' partner in Portland's largest office building.

By Brian K. Miller | Updated on September 08, 2008

PORTLAND, OR-US Bancorp Tower, the largest office property in Downtown Portland, has been recapitalized in a deal that values the 1.09-million-sf asset at approximately $285 million, industry sources familiar with the transaction tell GlobeSt.com. LaSalle Income & Growth Fund V, a $728-million (equity) fund of LaSalle Investment Management acquired most but not the entire 95% stake held by an institutional client of JP Morgan Asset Management. Unico Properties LLC, the Seattle-based building owner and manager that dropped its stake in the asset to 5% from 25% when US Bancorp Tower was recapitalized in 2006, has raised its stake back up to 15% in this latest transaction and will continue to be the fee manager of the building.

US Bancorp Tower includes the nameplate 750,000-sf, 43-story high-rise and the adjoining 260,000-sf low-rise office and retail center. The Energy Star property is 96% leased and on track to gain certification early next year from the US Green Building Council. The anchor tenant is Minneapolis-based US Bancorp, which leases 473,000 sf. The lease runs through 2015; about 70,000 sf of the bank’s leasehold is subleased to third parties.

Unico acquired the building from US Bancorp in 2000 in a 50-50 partnership with Chase, which subsequently became JP Morgan Chase. The asset was valued at about $172 million for that transaction. In the third quarter of 2004, Palo Alto, CA-based Broadreach Capital bought out JP Morgan Chase and also acquired half of Unico’s interest in a deal that valued the asset at about $185 million. In the third quarter of 2006, JP Morgan Asset Management bought out Broadreach and all but 5% of Unico’s stake in a deal that valued the building at about $280 million.

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