San Francisco – March 10, 2016 – CBRE Capital Markets’ Debt & Structured Finance team has secured $10,855,000 in non-recourse financing for three multi-tenant office properties; the office building referred to as the Merchant Hotel, the Captain Couch office building and the Norton House office building. All of the assets are clustered approximately two blocks from each other in the burgeoning Old Town/China Town submarket in downtown Portland, Oregon.
Michael Walker, Senior Vice President and Brad Zampa, Executive Vice President, of CBRE’s San Francisco, California, office arranged the financing on behalf of Swift Real Estate Partners in connection with their acquisition of the properties. CBRE secured flexible, low cost, floating-rate financing from a national bank.
The Portfolio consists of two and four story buildings with a broad tenant base including the technology sector, government, professional services, arts and fashion. Swift’s strategy is to improve the assets by modernizing the buildings through select capital improvements and stabilize the cash flows by leasing the vacant space and bringing the in-place rents to current market levels. The Portfolio is centered in the resurging Old Town submarket coveted by occupiers desiring creative office space and hip retail space.
“These properties are central to Portland and on the cusp of a total renaissance. The Old Town submarket is poised for continued growth and reinvestment. Swift is the perfect sponsor to shepherd these properties into the next chapter of Portland’s bright future,” said Michael Walker.
Nicknamed “The Silicon Forest,” the Portland Metro area is home to notable tech companies including Intel, Airbnb, Puppet Labs, Smarsh, Jama Software and eBay. Portland is also a major hub for sportswear and apparel companies including Nike, Adidas and Columbia Sportswear.
More than ever before, both institutional and private capital are in a race to invest in Portland’s growing economy. The primary attractions are larger yield spread, lower price per square foot, strong absorption trends and significant rent increases.
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 (in terms of 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.