University Plaza, a 22,500 sf office property in Vancouver, Washington, has sold for $5,150,000. NAI Norris, Beggs & Simpson’s Associate Vice President Doug Bartocci represented the seller, FFLP MTH, LLC. Brian Petro of Horizon Real Estate Group represented the buyer, Sea Mar Community Health Centers.
Over the past year, office sales have increased significantly in response to Vancouver’s tightening market. With low interest rates and low inventory, lenders are hungry to provide owner-occupant loans. It’s an advantageous climate for buyers, especially ideal for growing business sectors like medical office.
“With quality, existing medical space available, and the ability to move-in quickly, University Plaza was an obvious choice for Sea Mar Community Health Centers,” explained Doug Bartocci.
Located at 14508 NE 20th Avenue, University Plaza is part of the developing Salmon Creek community next to Kaiser Permanente and Washington State University. Sea Mar Community Health Centers, founded in 1978, is a community-based organization committed to providing quality, comprehensive health and human services in Washington state.
Padden Industrial Park, a 40,870 sf, 5-building fully leased property in Vancouver, Washington, has sold for $3,250,000. NAI Norris, Beggs & Simpson’s Vice President Garret Harper represented the buyer, Herschell Management, LLC. Jim Lewis of Cushman & Wakefield represented the seller, Heuvel Enterprises, LLC.
Since January 2014, Vancouver has had the lowest industrial vacancy rate in the Portland-metro area. The submarket benchmarked a robust 2.83% vacancy for Fourth Quarter 2014 and is expected to continue this trend for First Quarter 2015. These conditions have since created advantageous investment opportunities for existing properties, including Padden Industrial Park.
“Padden Industrial Park is a well-positioned and fully-leased property with local companies as stable tenants,” explained Garret Harper. “It was an excellent investment opportunity for that particular price range, which is becoming harder to achieve in that submarket.”
Located at 7613 NE St. Johns and 4601 NE 78th Street, Padden Industrial Park features industrial/flex spaces from 1,200 to 3,500 sf and has undergone recent upgrades including parking lot repair, T-8 lighting fixtures, electrical and roof.
GBD Architects renewed and expanded its lease to 16,489 sf at the Brewery Blocks II, a five-block shopping and professional destination in the heart of Portland’s Pearl District. NAI Norris, Beggs & Simpson’s President Chris Johnson, Senior Vice President MaryKay West and Real Estate Broker Carter Beyl represented the lessee. Senior Vice President Eric Haskins of Jones Lang LaSalle represented the lessor, MEPT Brewery Block 2, LLC.
Established in 1969 in Portland, Oregon, GBD has throughout its history played a significant design role in transforming Portland’s central city to become what it is today. Every GBD project is guided by a mission to build beautiful, responsible spaces that move and elevate people. A prime example of their work is the Brewery Blocks, a sustainable, mixed-use, multi-block project that has garnered international attention for its urban design qualities. Partnering with esteemed developer Gerding Edlen, the former site of the Blitz-Weinhard Brewery was repurposed into today’s thriving urban epicenter. NAI Norris, Beggs & Simpson later represented the property in its sale. Naturally, GBD planned to share in the space they created and relocated offices to the Brewery Blocks II in 2002.
“GBD Architects renewed and expanded their lease because they want to maintain a presence in an area they helped shape from the ground up,” explained Carter Beyl. “It’s a reflection of their confidence and commitment to their work.”
As a testament to the quality of GBD’s work with Gerding Edlen, the Brewery Blocks recently won the prestigious 2014 Urban Land Institute’s Global Award for Excellence. Their expansion included 1,647 sf on the third floor in addition to their fourth floor offices.
Portland-based retailer Columbia Sportswear has leased 27,379 sf at the 1385 Building as part of AmberGlen Business Center campus managed by Unico Properties. NAI Norris, Beggs & Simpson’s President Chris Johnson, Senior Vice President MaryKay West and Vice President Brandon Frank represented the lessor, AmberGlen Office Corporation. Vice President Tim Parker of Melvin Mark Brokerage Company represented the lessee.
Despite general unease in the market due to Intel’s recent contraction, Columbia Sportswear wanted to maintain and grow their presence in the Sunset Corridor. Not only did the 1385 Building at AmberGlen Business Center have enough space, but it was an ideal location with strong ownership.
“Columbia Sportswear’s commitment to the Sunset Corridor is part of a growing trend with other existing tenants expected to sign new expansion deals this year,” said Brandon Frank.
AmberGlen is a 217-acre business campus just 20 minutes from downtown Portland.
Analog Device, Inc. (ADI), an American multinational semiconductor company, has renewed their lease of 8,815 sf at the 1100 Building as part of the AmberGlen Corporate Center campus. NAI Norris, Beggs & Simpson’s Vice President Brandon Frank and Real Estate Broker Robert Greenfield represented the lessor, 1100 Compton, LLC.
Catron Apartments, an 18-unit, 29,759 sf residential property in Monmouth, Oregon has sold for $2,425,000. NAI Norris, Beggs & Simpson’s Principal, Director of Vancouver Production Charlie Kleier and Vice President Garret Harper represented the buyer, Talents Enterprises, LLC. Minutes from downtown Monmouth, the apartment homes are also conveniently close to Western Oregon University.
Real Estate Broker R. Tom Smith, ABR, GRI, EMS, RECS has joined NAI Norris, Beggs & Simpson’s Vancouver office to specialize in retail and investment sales. He was most recently the Designated Broker at Columbia Pacific Commercial and has 14 years’ experience in brokerage of commercial property. In addition, R. Tom has 18 years’ experience of commercial property and asset management for residential, office and retail properties. He is a licensed managing broker in the state of Washington.
Eight Norris, Beggs & Simpson Companies employees were awarded advanced titles at the company’s annual Awards Banquet on January 24.
In the administrative division, Birgit Layne was named Associate Vice President and Adele Copp was promoted to Assistant Manager of Loan Administration. Kelly Sullivan was named Senior Brokerage Assistant, Christa Herr was awarded Senior Property Management Assistant and Victoria Petkau received the new title of Senior Property Management Accounting Assistant.
Alexandra Ionescu Henderson specializes in the leasing and sales of suburban and Central City office properties, with an emphasis on conventional and medical office properties. She was nominated for the Portland Business Journal’s 40 under 40 for 2015.
Josh Rutter has been with NAI Norris, Beggs & Simpson since 2008. He earned his Certified Property Manager (CPM) designation in 2014. Currently based in Bend, Oregon, Josh is a licensed real estate broker in both Oregon and Washington as well as a Certified Green Broker.
Maija Mueller joined NAI Norris, Beggs & Simpson in 2014 with over 25 years in commercial real estate industry. She is a Certified Property Manager (CPM) and her impressive career includes property management, development, acquisition and disposition, leasing and financing.
Birgit Layne joined NAI Norris, Beggs & Simpson in 2006. She currently provides support and direction on the Property Management team as well as Norris, Beggs & Simpson’s Multifamily Management division.
Adele Copp joined NBS Financial Services in 2010. She is responsible for closing loans originated by the loan origination staff, and facilitates communication between lenders and borrowers to ensure that all documentation, titles and contracts are in order and satisfy both the lender’s and borrower’s expectations.
Kelly Sullivan joined the Brokerage team in 2007. As Senior Brokerage Assistant, she supports several brokers and assists with departmental operations, research and administrative responsibilities.
Christa Herr started her career with Norris, Beggs & Simpson in 2011 and she assists in the day-to-day operations of retail, office and industrial commercial properties. She most notably assists with the 262,975 sf office property, the Lincoln Building, located in downtown Portland.
Victoria Petkau joined the Property Management Accounting team in 2013. She currently provides support to multiple property managers by assisting in the accounting needs of several office, retail and industrial properties.
Berkshire Hathaway HomeServices Northwest, a residential real estate firm, signed a 4,873 sf lease at the end of December and will now be operating its regional hub for the east side at Mt. Scott Center. Located at 9201 SE 92nd Ave. in Portland, OR, Mt. Scott Center is a mixed use building featuring ground floor retail and office space with excellent exposure and accessibility. NAI Norris, Beggs & Simpson Real Estate Broker Alexandra Ionescu represented the lessor, Mt. Scott Center, LLC. Tom Hanacek of Berkshire Hathaway represented the lessee.
- Among the world’s major economies, the United States had the strongest growth in 2014. The government announced that the U.S. economy grew at a rapid annual rate of 5% in the Third Quarter, which was the fastest pace in more than a decade. Such widespread growth precipitated Wall Street’s record highs for both the Dow Jones Industrial and S&P 500 at year end. The labor market also greatly benefited. Employers hired nearly 3 million workers in 2014, which was the most since 1999. Fourth Quarter’s unemployment rate steadied at 5.8%, a full percentage point lower than at 2014’s start. Yet, for all the actual tightening in the job market, wage growth barely improved. The yearly trend in nominal hourly wage growth remained at about 2%, where it has been since 2010.
- Starting in 2015, the Federal Reserve is expected to gradually raise interest rates to curb excessive borrowing; however, there is concern that this could stifle the economic momentum gained in 2014. Fed officials project the domestic economy to grow at a rate between 2.6% and 3% in 2015 and the unemployment rate to benchmark 5.2% or 5.3%.
- For the past six years, inflation has been stabilized well below 2%. Yet, with labor market gains and current tumbling oil prices, inflation may actually decline in 2015. Lower oil prices also acted as a temporary financial stimulus during Fourth Quarter, leaving more immediate money in consumers’ pockets. As a result, holiday shopping consumer optimism rose to an 8-year high.
- Oregon’s minimum hourly wage is second highest in the nation at $9.10 and will increase to $9.25 on January 1 due to the state’s laws requiring an annual adjustment tied to inflation.
- Oregonians can also expect another change in 2015 as voters passed Measure 91, which authorized the personal use and possession of marijuana starting on July 1, 2015.
- The booming Portland housing market is forecasted to remain robust in 2015, despite the expected seasonal slump during the winter months. 685 homes sold in November, which was 6.4% higher than the year previous. Motivated by the onslaught of millennial first-time buyers, builders are anxious to respond to the impending housing demand. Millennials are projected to become the largest demographic of home buyers within the next 5 years.
- Portland’s Central City vacancy rate tumbled from 10.58% Third Quarter to 9.01% Fourth Quarter with 260,146 sf absorption.
- An additional 381,380 sf is currently under construction in the Central Business District and Northwest submarkets; however, such sharp increases in demand can risk outpacing the city’s limited supply.
- Suburban’s vacancy rate decreased to 13.52% with 79,468 sf absorption. Nike filed expansion plans to add 1.3 million sf to its existing 2.2 million sf campus.
- Benchmarking another historical low, Portland’s industrial vacancy fell to 6.8% during Fourth Quarter with 1,012,124 sf absorbed.
- The quarter’s major activity proved that demand for smaller “industrial lite” space has surpassed demand for large boxes of space.
- During Fourth Quarter, the retail vacancy rate dipped to 6.06% with 153,007 sf of absorption.
- The 257,399 sf of current construction throughout the metro-area includes the highly anticipated Kruse Village in Lake Oswego, which is slated to deliver by January 2015.
- Portland’s multifamily market steadied its momentum Fourth Quarter, increasing its vacancy rate to 2.79%. The average rent for a 2-bedroom, 1-bathroom apartment bumped up to $1,030. Rental rates, permits and construction also increased.
- Now at the end of 2014, institutional developers continue to flood the market, motivated by Portland’s high rent, high occupancy and low cap rates driven by enormous capital. With the bulk of today’s land sales concentrated in Multnomah County, Portland has approximately 26,000 new units in the current pipeline.