Portland, OR – August 9, 2017 – CBRE arranged the joint venture relationship and senior debt financing transaction for the $29.4 million acquisition of Sixth at Yamhill, a creative office property in Portland.
Marina Massari and Sharon Kline of CBRE Capital Markets’ Debt & Structured Finance facilitated a $26.8 million bridge loan for the buyer, KBS Realty Advisors and True North Capital Management. The debt has a three-year term, with two extensions, and full-term interest only provided by Barings Real Estate Advisers, part of Barings LLC. In addition to the property financing, Massari and Kline facilitated the introduction between the buying partnership.
Sixth at Yamhill, an 11-story creative office building totaling 109,725 square feet, was built in 1955 and renovated in 2006 and 2017. The property, located at 811 SW 6th Avenue, benefits from a true main-and-main location. It’s situated in the retail core and adjacent to Portland’s Technology Triangle, which is a clustering of technology companies. The building had 30 percent occupancy at the time of purchase.
“Recent renovations, great building bones, and its central location close to a multitude of amenities, make Sixth at Yamhill a fantastic opportunity,” said Massari. “Once this building is stabilized, it will be even more attractive to investors looking for creative office assets in core markets.”
Portland’s downtown market closed the second quarter with new record-high asking rate of $31.18 per sq. ft., according to CBRE research. After a record-breaking 2016, strong demand for office properties is expected to continue this year.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
Barings Real Estate Advisers is part of Barings LLC, one of the world’s largest diversified real estate investment managers. The group is an active investor in private and public, equity and debt markets, and provides core, value-added, and opportunistic investment and advisory services to institutional and other qualified investors around the globe.Barings is a $288 billion* global financial services firm dedicated to meeting the evolving investment and capital needs of our clients. We build lasting partnerships that leverage our distinctive expertise across traditional and alternative asset classes to deliver innovative solutions and exceptional service. A member of the MassMutual Financial Group, Barings maintains a strong global presence with over 600 investment professionals and offices in 16 countries. Learn more, at www.barings.com.*As at June 30, 2017.
Founded by Peter Bren and Charles J. Schreiber Jr. in 1992, KBS is one of the nation’s preeminent buyers of commercial real estate and structured debt investments. KBS also originates and acquires debt positions collateralized by stabilized and value-added properties. KBS Realty Advisors has created six institutional commingled funds, 14 separate accounts with public and corporate pension funds and five sovereign wealth funds. KBS Capital Advisors was formed in 2006 as the exclusive advisor for KBS’ publicly registered non-traded REITs, which are designed to give individual investors the ability to invest in a similar type of real estate as KBS pension fund and institutional partners.
About True North Management Group
True North Management Group, founded in 2004 by Richard Gunthel and Paul Turovsky, is a privately held real estate investment management firm headquartered in White Plains, New York. Since its inception, the firm has successfully completed more than 75 distinct debt and equity investments with approximately $1.5 billion in transaction value involving office, retail, hospitality, multifamily and other property types throughout the United States. True North focuses on capitalizing on opportunities in a cyclical and dynamic environment. The investment team seeks to use its extensive experience and wide ranging knowledge base to generate both high quality risk-adjusted and absolute returns.