WILSONVILLE, OR—A recent acquisition aligns with where investors surmise commercial real estate is headed in a post-COVID-19 world. The property, Parkway Woods Business Park, was purchased by Reinsurance Group of America.
Parkway Woods Business Park is a 378,300-square-foot suburban campus on 70-plus acres at 26600 SW Pkwy. The mixed-use property, which was formerly a campus for Tektronix and then Xerox, has since undergone significant common area renovations and is currently leased to two tenants–3D Systems, a printing and scanning company, and Dealer Spike, an online RV and marine dealership.
The seller was Parkway Woods Business Center LLC, a joint venture between ScanlanKemperBard and Oaktree Capital. SKB recently completed the recapitalization of the property and will stay on as a partner in the investment to help execute its strategic repositioning.
Comprised of three interconnected single-story buildings, SKB and RGA plan to reposition the property's large floorplates and leverage the amenities to meet the needs and size requirements of a wide range of light industrial, manufacturing and R&D tenants. Additionally, the site includes more than 4.5 acres of developable land that could accommodate approximately 85,000 square feet of new industrial space.
SKB and RGA created the business plan to convert current back office space pre-COVID. The fundamentals of the Wilsonville submarket have always accommodated that type of space, so COVID was not the cause of the business plan, but the types of businesses targeted upon completion will likely be the least impacted, GlobeSt.com learns.
"This investment aligns with where we believe commercial real estate is headed in a post-COVID-19 world. Companies all across America are re-evaluating risks to their manufacturing and supply chains, which we expect will benefit domestic manufacturing in a structural manner for the foreseeable future," said Brian Hughes-Cromwick, SKB vice president of acquisitions.
Parkway Woods features on-site public transportation, a lounge and fitness facility, a newly renovated lobby, an on-site snack shop, rotating food trucks, a disc golf course, a basketball court and outdoor space.
The seller was represented by Newmark Knight Frank's vice chairman Nick Kucha, managing director James Childress and director Jeff Hodson in cooperation with co-head of US capital markets Kevin Shannon and senior financial analyst James Ikeguchi. The buyer was self-represented.
"I would like to acknowledge and congratulate all parties involved including SKB, Oaktree Capital, RGA and Bridge for their professionalism and deal-making skills in order to transact during these unprecedented times," Kucha says. "Industrial assets are generally a more resilient property type during times of volatility, and we are looking forward to SKB and RGA's redevelopment plan. Once complete, Parkway Woods will capture the most active segment of the Wilsonville leasing market."
The property's location along Interstate 5 provides access to the greater Portland area. The campus is served by the city of Wilsonville's SMART bus system, which accesses the greater south metro area. There are also several dining and shopping amenities available at Argyle Square shopping center.
Portland and its real estate market have changed dramatically in the past few years. A wave of development in all sectors and new institutional players are behind Portland's advancement from a tertiary market to a regional hub, according to Cushman & Wakefield.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
