PORTLAND, OR-AWS Real Estate has sold “The MachineWorks Building,” a LEED Gold office building at 1414 NW Northrup St. in Portland’s Pearl District for $40.7 million. The purchase was made by a fund managed by BlackRock.
CB Richard Ellis’ Robert Gilley, Steve Hermann and Tyler Meyerdirk in the San Francisco office, and Kevin Shannon and Ken White in the Torrance, CA office, represented the seller.
“This building has been one of the most watched in the Portland market, in large part because it was constructed in the midst of the recession. Just two years after completing construction, it’s 100% leased and has captured the interest of some of the most prominent institutional investors in the country,” says Gilley. “It’s a tremendous success story.”
The eight-story 114,396-rentable-square-foot building is leased to a number of tenants, including Microsoft and GSA. The first floor and mezzanine level are occupied by an LA Fitness sports club. Directly above the sports club are three levels of parking, with class-A office space on the top four floors of the building.
Shannon points out that the $40.7-million sale price and cap rate were very aggressive for the Portland market. “This deal is reflective of what we’re seeing across the Western US right now,” he said. “Capital is competing for well-leased, CBD core assets in coastal growth markets, which is driving pricing that hasn’t been seen since the start of the recession.”
Shannon cites other recent sales in the Western US as examples of the strong demand for core properties with long-term leases in place. Last month, CBRE’s institutional group-west completed the $118 million sale of 1515 Wynkoop in Denver, as GlobeSt.com reported, which was the second largest office sale in that market ever, and earlier this month, they completed a $320 million sale of the Parsons’ office campus in Pasadena, which was the largest sale in Los Angeles County since 2007.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
