Go-To Center Grabs Attention for Value-Add

GRESHAM, OR—Since 2000, the trade area surrounding the 296,952-square-foot open-air retail center located at 649 NW 12th St., Gresham Station, has experienced population growth of nearly 30% and continues to be one of the fastest-growing pockets in the Portland MSA, GlobeSt.com learns. Gresham Station’s size, visibility and connectivity has positioned it as the go-to shopping center in the Portland trade area and nearly 1,000 apartment units are located within one block of the retail center.

In a rare trade of a property of this size, Gresham Station recently sold for an undisclosed price to a local investor which has an appreciation of the future value and potential of the asset. The property is 86% leased to tenants including Best Buy, Bed, Bath & Beyond, Old Navy, ULTA and Craft Warehouse.

NKF Capital Markets vice chairmen Nicholas Bicardo and Nick Kucha, and managing director Brandon Rogoff represented the seller, Retail Value Inc., to the buyer Harsch Investment Properties.

“Gresham Station is one of the larger retail shopping center transactions to occur in the Portland metro area this cycle,” said Bicardo. “Assets of this size and scale rarely trade, and it drew investor interest from across the nation. The depth of the buyer pool demonstrates that well-located retail assets can still command high levels of interest. Ultimately, the buyer who beat out the competition was a prodigious local investor who understood the advantages.”

In addition to the core property, the transaction includes a freestanding 45,000-square-foot LA Fitness on a long-term lease that is located north on a separate parcel.

“Gresham Station garnered more than 10 offers, which is a testament to the properties’ size and location,” Rogoff tells GlobeSt.com. “Also aiding the interest was the ability to be creative and move pieces around to drive future value. Any asset where investors can roll up their sleeves and create future value will typically produce a strong investor turnout.”