An urban retail investment opportunity has hit the market in Portland’s Brewery Block 3, on the the edge of the city’s Pearl District. The property is offered for sale as a condominium interest and encompasses five retail suites for a total of 13,081 square feet, according to marketing information from Newmark. The retail space is located at 1001-1039 NW Couch St., at the base of the Henry Condominiums within the Brewery Blocks development. The listing price was not disclosed at the time of writing.
The marketing of the property is led by the Newmark Retail Capital Markets team that includes Nicholas Bicardo, Nick Kucha, James Childress, Cheyne Bloch, Kellen Kollmorgen and Jakob Nicholls.
The retail investment offering comprises five suites with a variety of sizes, from a currently vacant suite of just over 1,500 square feet to the largest one leased to Athleta of just under 4,800 square feet. The other tenants include Starbucks, Bluemercury and Reformation. Overall, the suites currently have an 84 percent occupancy rate. The marketing materials show that most of the current tenants have had leases at the property since 2015, showing long-term commitment to the retail space. According to Newmark, the current weighted average lease term is just under 4.5 years with potential to increase the net operating income once the remaining vacant suite is leased to a tenant.
The retail asset’s neighborhood also includes Powell’s City Books, a landmark in Portland. Renowned as one of the most expansive independent bookstores offering both new and used books, it attracts over one million visitors annually. The property’s location places the retail asset within Brewery Blocks, a five-block urban neighborhood project at the edge of the Pearl District. Brewery Blocks is home to more than 1.7 million square feet of upscale retail, office and housing space as well as a 1,300-stall parking garage spanning over two city blocks.
The property is situated at the crossroads of several modes of transportation giving access to anyone traveling along US Interstate Highway 405, across downtown Portland, NW 23rd Street and the waterfront. A mix of public transportation services is available, with the asset also located on the streetcar routes of the A Loop and NS line, which attract over 6,500 riders per day.
Looking at the wider neighborhood, Newmark’s flier states that the Pearl District is characterized by a demographic of young professionals and singles, who are attracted by its modern apartments and lofts as well as its proximity to employment opportunities in downtown Portland and the city’s tech sector. Regarded as one of Portland’s premier neighborhoods, it boasts a considerable portion of residents earning incomes surpassing the local average. Within a 15-minute stroll, the district accommodates over 12,000 residents with an average personal income of $82,000. Moreover, the daytime population within a one-mile radius surges to over 108,000 employees.
