By Jon Peterson
Two family offices based in the Portland area that are part of Rosan Inc. and Anderson Construction have decided to put up for sale the 84,595 square foot The New York maker space property in Portland located at 2250 Northwest 22nd Avenue. The property is offered with no pricing guidance.
The seller has selected CBRE to be the listing agent on the sale. Those working on the sale include Charles Safely, senior vice president, Paige Morgan and Tom Pehl, both executive vice presidents. CBRE declined to comment when contacted for this story.
The property was first developed in 2015 as a six-story building. The asset has a strong record of occupancy, which hovered above 95 percent from the first quarter of 2017 to the first quarter of this year. The occupancy of the building now is at 53 percent. The reason for this vacancy comes from a single tenant, which is no longer in the building. That tenant was Amazon.
There is a value-add component to the property, which may be realized in two ways. One is to lease up the vacant space. The other is to mark-to-market the current in-place leases, which on average are at around ten percent below market rates and have a weighted average remaining lease term of 2.3 years. The expectation is that the sale of the property would come in at well below the replacement cost, which is currently at roughly $500 per square foot.
There could be a lot of future potential uses for the property. This could include production, laboratory space, light manufacturing, creative office and last-mile delivery for industrial. The New York property also features an additional 40,000 square feet of land. This parcel is called The Roosevelt land site, separately parceled and available for sale. This asset would be well suited for a build-to-suit industrial development, flex industrial or a last mile delivery station.
The property has a total of 134 parking stalls with 114 for cars and 20 for motorcycles.
The New York and The Roosevelt are both located 2.5 miles from downtown Portland. These assets are zoned for general industrial usage. The area is considered part of Northwest Portland within close proximity to some of the city’s most popular neighborhoods. These include The Pearl, Slabtown, and the Northwest District. These areas draw both tenants and employees to work/live in an amenity-rich environment.