STAG Industrial acquires multi-tenant distribution asset in strong submarket near Portland
BEAVERTON, Ore. – August 7, 2023 –Cushman & Wakefield announced the firm has advised the sale of Beaverton Industrial Center, a recently renovated 121,426-square-foot multi-tenant industrial/distribution project on approximately ±6.4 acres in Beaverton (Portland), Oregon. Originally constructed in the 1960s and extensively upgraded in 2021, the property consists of two freestanding distribution buildings located at 5805 and 5807 SW 107th Ave, that were fully leased to four tenants at the time of sale.
The asset was acquired by STAG Industrial, a real estate investment trust focused on the acquisition and operation of industrial properties throughout the U.S., for $20.6 million (approximately $169 per square foot).
Cushman & Wakefield’s Bryce Aberg, Jeff Chiate, Jeff Cole, Rick Ellison, Mike Adey, Zach Harman, and Brad Brandenburg of the firm’s National Industrial Investment Advisory Group in Southern California represented the seller, BKM Capital Partners, in the transaction. Aaron Watt and Keegan Clay with Cushman & Wakefield and Greg Nesting of Norris & Stevens, Inc. also provided local market advisory.
“This is a prime industrial/distribution asset located in the 217 Corridor/Beaverton submarket, a preferred location for industrial tenants within the surrounding Portland markets,” said Vice Chair Bryce Aberg. “Beaverton Industrial Center is 100% leased to a strong, highly diversified tenant mix, and offers institutional quality, stable cash flow, and attractive lease terms with staggered expirations. Beaverton’s strong industrial market fundamentals, together with the project’s exceptional quality and financial profile, created a rare investment opportunity in one of Portland’s most sought-after submarkets.”
The location provides a highly desirable location just off Highway 217 and in close proximity to Highway 26, Oregon Route 8, and Interstate 5, several airports, and the Portland city center, providing exceptional regional, national and international access.
According to Cushman & Wakefield’s latest mid-year market report, the Portland Industrial market closed Q2-2023 with a tight direct vacancy rate of 2.6%, with the Beaverton/Highway 217 submarket even tighter at just 2.0%. Portland also recorded more than 500,000 square feet of positive net absorption (occupancy growth) in the second quarter, some of which stemmed from modest growth in the Beaverton/Highway 217 submarket.
