By Jon Peterson
Daytona Beach, Fla.-based CTO Realty Growth has put up for sale the 211,863 square foot Wells Fargo Center office building in Hillsboro, Oregon. The, property, which the seller brought on the market in the summer of this year is now promoting the property’s asking price at $42.5 million, or just around $200 per square foot. The cap rate on the asset is projected to be 7.5 percent.
The seller has signed a contract with CBRE Capital Markets to be the listing agent on the sale. One person involved in the sale is Charles Safley, a senior vice president with CBRE in the Pacific Northwest region. CBRE declined to comment when contacted for this story.
CTO Realty has been the owner of the property for the past four years. It had purchased the property for $39.75 million, or around $188 per square foot, according to public records.
The office building is located at 10500 Northeast Walker Road. The asset is now 100 percent leased to Wells Fargo Bank, which has been in the building since 1994. The current lease will not expire until the end of December 2025. The rental rate is below market with no contraction or termination options. There will be a chance to add value to the property, since the current lease is under current market rates. This would also allow the new owner to buy the property at below replacement cost. The office building does have a parking ratio of 4.4 surface stalls per 1,000 square feet on the property’s 18.92-acre site.
The property has good access to public transportation. It is within walking distance to the MAX Light Rail Willow Creek/SW 185th Station, and it has a convenient bus service with multiple lines near the entrance of the property.
According to CBRE’s flyer, the Portland technology talent labor pool grew by 31.7 percent over the last five years, making it among the fastest-growing in the nation. The property is located in Oregon’s affably named Silicon Forest, a dense concentration of high-tech companies throughout the greater Portland area. Some of the companies that have offices in the vicinity include Airbnb, Addidas, Apple, Coinbase, Facebook, Google, Salesforce, Squarespace and Zynga.
CTO Realty is a publicly-traded real estate investment trust. It owns and operates a nationwide portfolio that totals 2.7 million square feet of income-producing assets. This includes a mixture of office buildings, retail and hotel assets.
