PORTLAND, OR – ScanlanKemperBard Companies (“SKB”), in partnership with WHI Real Estate Partners (“WHIREP”), announced they have closed on the Water Tower Complex in Portland’s John’s Landing neighborhood. The complex, which is comprised of two buildings, is 93% leased and totals 123,188 rentable square feet.
The Water Tower was originally built in 1903 as a furniture warehouse and redeveloped by John Grey in the 1970’s as a retail market place. A Melvin Mark lead partnership acquired the asset in 2008 and elevated the profile of the property with a mix of both office and retail tenants. Constructed of reinforced concrete, the building still maintains many historic architectural features, including original hardwood floors and exposed timber beams.
The Bailey Building was also included in the sale and provides significant redevelopment potential along with the surrounding land due to its flexible zoning and desirable location.
SKB and WHIREP acquired the property for $24.8 million ($201 per square foot) and plan to make a significant capital investment to elevate the property to a best-in-class mixed use office and retail asset.
This is SKB and WHIREP’s second investment in John’s Landing, having purchased Riverside Center and 5550 Macadam in one transaction in January of 2017.
“We are grateful to Melvin Mark for the opportunity to acquire this asset as we are firm believers in the John’s Landing Submarket. The water views, neighborhood amenities and historical architectural features provide a unique urban experience at a price point and parking ratio typically found in the suburbs,” said Todd Gooding, President of SKB.
SKB is an established real estate merchant banking rm that acquires, develops and manages value-add and opportunistic office, retail, industrial and mixed-use properties in the Western United States. Since its inception in 1993, SKB has originated total portfolio activity of $4.19 billion, comprised of 28.3 million square feet of of ce, industrial and retail space and 2,154 residential units. With longstanding relationships in each of its markets, SKB has the ability to source, structure and execute value creation across a wide spectrum of real estate opportunities.
WHIREP is a real estate investment firm focused on repositioning middle-market properties throughout the United States. WHIREP seeks to generate attractive risk-adjusted returns by taking a highly proactive approach to investment sourcing and asset management. Its team is led by seasoned professionals, each of whom have had 25 or more years of real estate investment and capital markets experience. WHIREP manages a series of fully discretionary investment funds whose investors include university endowments, foundations, health care systems, pension plans and family offices, among others. Learn more about WHIREP by visiting their website at https://www.whirep.com/.