Logan’s Market has leased approximately 42,000 sf at Nolan Town Center (NTC) with plans to open and operate as one store with TrueValue Hardware. NAI Norris, Beggs & Simpson Chief Operating Officer H. Roger Qualman was the court-appointed receiver representing the property. The Pennbrook Company represented the tenant.
Located at 2276 SW Highland Avenue, NTC is a class-A multi-tenant shopping center. Built in 2005, NTC was the perfect solution to Redmond’s increasing volume of foot traffic from neighboring tourist hotspot, Bend. Yet in 2013, former anchor tenant Ray’s Food Place went bankrupt and vacated its prime space. NTC went into foreclosure and Roger Qualman was tasked to run the property.
“The ideal replacement tenant was another grocer,” explained Qualman. “Logan’s Market was a perfect fit. Not only does it reestablish the center as a destination, but it’s a successful local grocer that will generate new business.”
Owned and operated as one store, Logan’s Market will also feature TrueValue Hardware. Together they join several existing NTC tenants including McDonald’s, Starbucks, Great Clips and Country Financial.
“We’re excited to join the Redmond community,” said Logan Hamilton, proprietor of Logan’s Market. “We believe that our combination of services with TrueValue Hardware will be valuable to our customers.”
With 4 other stores throughout the Northwest, Logan’s Markets is expected to open its new Redmond location in December 2014.
The Fair-Haired Dumbbell, a two six-story structure connected by sky bridges, is slated to be the first speculative office development to launch at the Burnside Bridgehead. The ambitious, trendsetting project is the brainchild of pioneer designer Kevin Cavenaugh of Guerrilla Development Co. NAI Norris, Beggs & Simpson Senior Vice President Robert Black and Real Estate Broker Carter Beyl are leading its leasing efforts.
There has been much discussion concerning the five-blocks between East Burnside and Grand Avenue, also known as the Burnside Bridgehead, for more than a decade. Now five proposed projects are in the pipeline to christen the gateway to Portland’s Eastside, including the Fair-Haired Dumbbell.
In April 2014, the Portland Development Commission (PDC) board voted to enter a purchase and sale agreement for the 13,566 sf site at 11 Martin Luther King Jr. Blvd. with the Fair-Haired Dumbbell, LLC for $1.16M. The proposal made an instant splash with its eye-catching Florentine patterned skin and cutting-edge design. However, that wasn’t the only distinction that set the Fair-Haired Dumbbell apart. The Fair-Haired Dumbbell is also the first real estate project in Oregon to collaborate with Fundrise, a crowdfunding platform focused on expanding access to real estate investment.
“”Fundrise is committed to changing the way commercial real estate investment works by allowing individual investors to access high-quality real estate projects across the country,” said Dan Miller, Co-Founder and President of Fundrise. “It’s been amazing to see such strong interest for Guerilla Development’s Fair-Haired Dumbbell and we look forward to the continued success of the project.”
More than 1,200 accredited and unaccredited individuals have indicated interest representing almost $5M in the development.
“Kevin Cavenaugh is a true market maker,” Robert Black said. “All of his projects have been watershed moments in Portland and the Fair-Haired Dumbbell is no exception.”
The timing of the Fair-Haired Dumbbell also coincides with Portland’s emergence as the nation’s next tech magnet. Companies have targeted Portland as a viable alternative to limited options in traditional tech markets like San Francisco and Seattle. Portland offers a deep talent pool and comparatively low cost of living. Yet, it’s the city’s fundamental appreciation of innovation that is a major draw.
“The Fair-Haired Dumbbell epitomizes the tech pilgrimage to Portland,” explained Carter Beyl. “There’s risk, but it’s countered by the perfect mix of adventure and imagination. Kevin Cavenaugh delivers on that.”
Indeed, the Fair-Haired Dumbbell seems to be ideally matched to Portland’s growing tech scene. The state of the art design includes an on-site robotic stack parking system, open space timber frame construction and expansive wood floors. Each floor plate is approximately 4,000 sf, which so happens to be the size need for most startup tech companies.
The Fair-Haired Dumbbell is projected to break ground Second Quarter 2015 and deliver by that year’s end. It’s expected to be fully leased by that time.
Jerry and Mary Sauer have purchased Tidland Corporate Center, a 64,000 sf industrial building and 6.03-acre campus, for $3.3M. NAI Norris, Beggs & Simpson Vice President Garret Harper represented the buyers as well as the seller, Camas Holdings, LLC.
Located at 2305 SE 8th Street in Camas, Washington, Tidland Corporate Center has been a manufacturing site since the early 1950s. Though the property has evolved over the years, it has always maintained a large presence in the community. This remains true even as it transitions to new ownership under Jerry and Mary Sauer of Excavator Rental Services (ERS).
“The new ownership made a concerted effort to keep its namesake tenant, airshaft and slitting equipment manufacturer Maxcess Tidland,” explained Garret Harper. “ERS will join the 70+ employees already at Maxcess Tidland.”
ERS is a local construction equipment rental, sales and service supplier in Camas and Washougal and employs approximately 24 people. It’s a welcome addition to the established Maxcess Tidland facility.
“There is great synergy between the tenant and new owner, and continuity in the building’s legacy,” remarked Harper. “This property and the jobs it supports have a tremendous local impact.”
Albertsons has purchased the ground lease of its Lake Oswego store, a 40,019 sf retail property with 2.61 acres, for $5.3M. NAI Norris, Beggs & Simpson Vice President Denis O’Neill represented the sellers, Denny Allen and Adele Reget.
Located at 16199 Boones Ferry Road, the Lake Oswego Albertsons has been open for more than 55 years. Frank Allen and Ruth E. Allen were the original lessors of the 1959 ground lease, which was then amended in 1989 when the family house was incorporated and the store expanded. With the lease set to expire in 2019, the owners opted to sell the building and land to Albertsons.
“This was an idyllic situation for everyone,” O’Neill said. “By negotiating an early sale, Albertsons gained long-term control over the land and building and the family monetized a below market lease.”
The 78th Street Building, a 13,694 sf office property located at 7700 NE 26th Ave, has sold for $1,445,000. NAI Norris, Beggs & Simpson Vice President Tamara Fuller represented the seller, Poor Farm Road Properties, Inc. NAI Norris, Beggs & Simpson Associate Vice President Doug Bartocci represented the buyer, Cowlitz Indian Tribe. The property will be repurposed as a medical office for the tribe.
Native to Southwest Washington, the Cowlitz Tribe is a growing tribe throughout Clark, Cowlitz, Lewis and parts of Pierce, Skamania and Wahkiakum counties. Descendants of the tribe manage a large portfolio of public services including health, education, scientific research, housing, transportation, development, elder care, conservation and legal issues.
Needing additional space for their mental health division, a centralized location was critical in servicing their widespread community. Yet, Vancouver’s minimal availability of small stand-alone office buildings left limited options.
“Today’s office market is seeing increased activity,” explained Tamara Fuller. “The 78th Street Building is an exceptional property and location. Its purchase highlights the trend to repurpose existing space to fit user needs.”
Conveniently nearby I-5 and downtown Vancouver, the 78th Street Building was a creative choice as a traditional office property and larger than what the Cowlitz Tribe originally sought, but that was a bonus.
“With the necessary renovations we were able to meet the buyer’s current needs and accommodate future growth,” added Doug Bartocci. “This was the perfect fit.”
Children’s clothing company Hanna Andersson has committed to its new headquarters, The Hanna Andersson Building, leasing approximately 50,000 square feet at 541 NE 20th Avenue.
Tom and Gun Denhart started the Hanna Andersson headquarters in 1983 in their SW Portland garage, having brought cotton clothes to America from Gun’s native Sweden. After three decades of popular success, the established Portland-based retailer is now poised to relocate to the former Jantzen Park Building in the close-in Eastside.
The 110,000 gross square foot property offers a fresh start for the premiere children’s clothing company. The property will now be named ‘The Hanna Andersson Building’. No longer divided between five floors, Hanna Andersson can take advantage of the contiguous large space to achieve creative continuity amongst its employees.
Built in 1930, the Hanna Andersson Building boasts a considerable ‘wow’ factor. The building’s Art Deco exterior, vaulted ceilings and sky lights are reminiscent of its manufacturing plant days, yet there is a presence of culture and retail history having been the former Jantzen headquarters as well as the North American headquarters for Adidas. The repurposed industrial space sparks both gravitas and creativity, which are valuable qualities for the European inspired brand.
“This move represents an important step for our company,” said Adam Stone, CEO of Hanna Andersson, “The newly renovated Hanna Andersson Building will support our needs as the brand continues to grow, while also enabling us to maintain our roots in the Portland community. This is an exciting time for the company and we look forward to moving into our new home next summer.” Upon completion of renovations, Hanna Andersson is expected to move in July 2015.
The Hanna Andersson Building is owned by Portland-based real estate merchant banking firm ScanlanKemperBard Companies (SKB). The property offers tenants a rare combination of amenities in the close-in Portland market that include above market parking ratio, large and efficient floor plates and easy access to downtown and freeways, and multiple sources of public transportation including the MAX light rail system, bus routes and Portland bike paths.
“Hanna Andersson embraced SKB’s vision and plan for the property,” said Todd Gooding, president of SKB. “We are thrilled to partner with them to rebrand the property and complete upgrades highlighting the unique architecture and history.”
SKB is investing $2.3M for capital improvements including cosmetic upgrades to the lobby and common areas, bathrooms and locker/fitness room. The exterior will also be enhanced with a renovated entrance canopy and outdoor lighting.
NAI Norris, Beggs & Simpson Associate Vice President Doug Jones and Real Estate Broker Alexandra Ionescu represented the lessor, SkanlanKemperBard. Cushman & Wakefield Senior Directors Doug Deurwaarder and Tom Usher represented the lessee, Hanna Andersson.
Oregon Metropolitan Elite Gymnastics Academy (OMEGA) has leased 20,014 sf at the Harvest Court Industrial building in Beaverton. NAI Norris, Beggs & Simpson Senior Vice President Scott MacLean represented the lessor, Lynch Properties, LLC and Vice President Ken Boyko represented OMEGA.
OMEGA’s successful program, which recently produced the first Oregonian on the USA Junior National Team, was bursting at the seams. With 300 students split between two locations, OMEGA needed a state-of-the-art facility that could accommodate growth. Whereas a Portland location would require retail space at twice the cost, Beaverton allows the zoning of industrial space for recreational use. Harvest Court Industrial was an obvious choice, offering large contiguous space and creative options.
“Not only were we able to consolidate our program at Harvest Court Industrial, but we can reimagine that space as a state-of-the-art gym” explained Jacob Crabtree, Director of Operations at OMEGA. “We can finally build a much needed foam pit, and with the extra office space, explore possible new programs such as preschool and afterschool care.”
Though Harvest Court Industrial proved to be the perfect location, it was not without its challenges. Located at 9700 SW Harvest Court, the 31,708 sf warehouse building had existing tenants to consider. Scott MacLean and Ken Boyko were tasked to blend the traditionally industrial space with OMEGA.
“Harvest Court Industrial strived to become the best space for OMEGA and ensure a safe environment,” Scott MacLean remarked.
This included working with the city on meeting specific parking requirements since OMEGA would attract heavy traffic. Additionally, with the building’s change in usage, any possible industrial hazards within shared tenant space needed to be addressed. Necessary precautions were taken and an upstairs judging platform, extra restrooms and large windows were built.
Ken Boyko recognized the impact of OMEGA’s new location. “It will undoubtedly secure OMEGA’s competitive edge as the region’s premiere gymnastics academy. It separates them from other local facilities and puts them on the map,” he said.
OMEGA is expected to move in August 1, 2014.
The Arc of Clark County building, a 4,470 sf office property located at 9415 NE Fourth Plain Boulevard, has sold for $550,000. NAI Norris, Beggs & Simpson Principal and Director of Vancouver Production Charlie Kleier and Vice President Tamara Fuller represented both the buyer, Bridger Properties, LLC and the seller, Arc of Clark County. The property will be repurposed as the new headquarters for Tuscany Homes, a home construction company based in Southwest Washington.
During the recession, Vancouver’s suburban office market soared to a staggering 22.9% vacancy rate at its peak during Second Quarter 2010. A few months later in January 2011, the Arc of Clark County building was put on the market. Now, exactly four years later, the city boasts a robust 11.32% vacancy and the Arc of Clark County building has sold.
“It’s no coincidence,” Tamara Fuller remarked. “Its purchase signals a dramatically improved local market, as well as a trend in owner occupied buildings. The Arc of Clark County needed an owner that appreciated its prime location, value and potential.”
With easy access to Washington State Route 500 and Interstate 205, the Arc of Clark County is ideal for Tuscany Homes’ growing business, especially with the booming housing market spurring new development.
Our Second Quarter 2014 Market Reports have just been released. Overall activity was on par with the rebounding local economy, which encourages a healthy forecast for the remaining year.
- Central City office space showed encouraging signs of a tightening market during Second Quarter 2014. Vacancy dropped to 10.5% with positive absorption of 70,398 sf.
- Tech firms were by and large the common denominator of activity this quarter.
- The Suburban market’s vacancy rate saw little change at 14.62% with positive absorption of 17,402 sf.
- The Vancouver office market’s vacancy bumped up a whole basis point from First Quarter to 11.32% with 42,626 sf negative absorption, but the city followed the regional tech trend.
- Industrial vacancy continued its downward trajectory to another record low of 8.33% with positive absorption of 327,916 sf. The industrial market hasn’t reported such numbers since Second Quarter 2001, legitimizing growing concerns for much needed development.
- The 10.88% Flex vacancy rate also benchmarked another record low since 2001.
- Motivated by the signs of another strong development cycle, 8 more speculative industrial projects are in the works with low vacancy and rapid absorption projected to persist the next 36 months. More than 2.5 million sf of additional space are expected to flood the market.
- The retail vacancy rate increased marginally to 6.40% with 97,033 sf of positive absorption during Second Quarter. The concentration of activity was once again in the suburbs.
- In Vancouver and Clark County, vacancy rose to 8.56% with 95,088 sf of positive absorption. Grocery stores continued to be a prime area of growth.
- With consistent low vacancy rates and rising rents, Portland poised itself as a main attraction for out-of-state investors, especially since the metro-area offers more affordable opportunities than other cities.
- Portland’s hot multifamily market cooled ever so slightly during Second Quarter with a 2.62% vacancy rate. However, rents, permits and construction all expectedly increased in preparation for the surge of new space over the next 18 months.
Forging a partnership to ensure lasting preservation of a historic building, the Oregon Historical Society (OHS) has sold the 52,379 sf Sovereign Hotel to the Randall Investment Group. NAI Norris, Beggs & Simpson Senior Vice President Robert Black negotiated the transaction.
The Sovereign Hotel opened to the public in February 1923 as Portland’s first skyscraper. The pricy construction costs of $650,000, which equate to roughly $9 million today, were unprecedented for an extended-stay hotel. Yet, the Sovereign towered at 9 stories and offered the first sweeping views of the city. Unequivocal in both its architecture and scale, the iconic Georgian style peach terra-cotta and brick façade is credited to the brilliance of local Portland architect Carl L. Linde. Linde’s vision earned the Sovereign its recognition as a National Historic Place.
In 1982, the OHS purchased the Sovereign Hotel to expand the Oregon History Center. The natural romance and cultural grandeur of the building proved to be the perfect medium to commission a public mural and renowned artist Richard Haas was tasked to the challenge.
The iconic murals were completed in 1989 with over 14,000 sf in paint. The impressive project covers four sides of the six-sided building and depicts the very heart of Oregon in its spectacular renditions of the Lewis and Clark expedition, the Oregon Trail and the John Jacob Astor Fur Trade.
OHS Executive Director Kerry Tymchuk said, “The OHS Board reached a unanimous decision that the Sovereign deserved an owner who had the expertise and resources to give it the full attention and care it deserves.”
For over two years, the OHS searched for a local philanthropic enthusiast who would serve as a valuable partner in the restoration and active maintenance of the Sovereign Hotel. The new owner needed to have a deep appreciation of the building’s historical and cultural significance, as well as its relationship within the OHS superblock on 1200 SW Park Avenue. The OHS didn’t seek to divorce itself entirely from the Sovereign Hotel, but rather find a new guardian who could assume the building’s great responsibility under their expert advisement. In a highly selective bid, the Randall Investment Group committed to the Oregon Historical Society’s cause.
“The Randall Investment Group respected and understood the cultural value and mission of this deal,” Robert Black said “It was always about doing this the right way and protecting the building’s best interest.”
Today, the Sovereign has 4 stories of office and 44 apartments. NBS Multifamily Management President Susan Stratton will manage the property, while the Randall Investment Group is devoted to its deserved restoration.