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1/24/17
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In an institutional office acquisition in Portland, Zeller Realty Group purchased Umpqua Bank Plaza, a 298.2k sf, Class A tower in the city’s downtown area. The high-rise, situated on the western shore of the Willamette River, was sold by Shorenstein Properties in a deal said to worth about $90 mil, or about $6 mil over Shorenstein’s purchase price 10 years earlier.
Serving as the long-time corporate headquarters of Umpqua Bank, which occupies several of the building’s 18 floors, the asset is prominently located along the waterfront at 1 SW Columbia Street, at the immediate west end of the Hawthorne Bridge. The property was originally developed in 1974 but recently underwent renovation in 2015.
Among the alluring attributes of Umpqua Bank Plaza include onsite dining establishments and fitness center plus walkability to downtown’s numerous vibrant amenities, multiple public transportation services and accessibility to the major freeways and arterials providing connectivity throughout the region. In addition, the transit-friendly property promotes remarkable bike accessibility set adjacent to a key transit path that runs along the waterfront as well as immediate access to the Hawthorne Bridge, one of the region’s most popular bicycle routes. There is also a unique bike hub onsite directly accessible from Naito Parkway that features secured bike storage, day lockers and a bike repair station.
The acquisition of Umpqua Bank Plaza marks ZRG’s first owned asset west of Denver, CO. The company has hired Cushman & Wakefield to perform a multiple scope of services including project leasing and project management. The Cushman & Wakefield project leasing team will consist of local market experts Lana Baldock, Dan Swift and Havilah Coady of the firm’s Portland office. The team previously handled leasing efforts for the property for five years during Shorenstein’s tenure as owner and helped successfully drive occupancy to its current rate of 97 percent at the time of sale.
The project management portion of the assignment will be led by Laura Nichols of Cushman & Wakefield’s Project and Development Services, who, along with her team, will work closely with Zeller Realty Group on strategic planning and construction management to meet future objectives and goals set forth by ownership.
The downtown Portland office market continues to flourish. According to recent Cushman & Wakefield research, the central business district continues to see healthy tenant demand and leasing activity. Fueled by ongoing positive occupancy growth, direct Class A office vacancy dipped further into single digits by the close of 2016 at 9.6 percent. Meanwhile, the area ranks as one of the fastest-growing population markets in the country and has been a hotbed for in-migration by tech and creative companies.
Eastdil Secured represented Shorenstein in the transaction. The price was not disclosed.
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