The $22 million sale of four buildings at the Round at Beaverton Central has been completed, laying the foundation for an anticipated rebirth of the city’s downtown core. In early April, the city of Beaverton bought the South Office building, commonly known as the Coldwell Banker building, for $8.65 million and approved spending an extra $200,000 for closing costs.
Portland-based ScanlanKemperBard Companies, a real estate equity firm, bought three remaining buildings for $13.25 million in a deal that closed April 27, according to global real estate firm Jones Lang LaSalle, which managed the two transactions.
City officials and a Portland developer said public investment in the Round was crucial to the redevelopment of partially vacant buildings at the Round, which encircles the Beaverton Central MAX station.
The city’s purchase eliminated rent that it was paying on a heating and cooling plant inside the building. If the city had renewed its lease, it would have paid $13.3 million over the next 33 years, officials said.
The public’s stake in the Round may grow larger, as officials consider moving City Hall to the Coldwell Banker Building. Feasibility studies evaluated the potential for administrative offices, a municipal court and police department, but officials said nothing has been confirmed.
Open houses this summer are expected to gather public opinions about how the building, which is more than half empty, could best be used.
ScanlanKemperBard made headway for new tenants in its three buildings, which total 160,000 square feet, said CEO Todd Gooding. A third of the space remains vacant. He would not give names for potential clients, except for Planet Thai, which replaced troubled restaurant chain Typhoon.
“Leasing activity is better than we had hoped for,” Gooding said.
Tenants include a 24 Hour Fitness, Anthem College, a parking garage and 24,447 square feet of retailers underneath The Crescent Promenade condos.
The city will design and install ground-level parking lots until the market improves, said Don Mazziotti, the city’s director of community and economic development.
In the meantime, the city is working with engineering consultant Cardno WRG in Portland to improve the south plaza, Mazziotti said. His department will also support small businesses that have offices on the third floor of the Coldwell Banker building.
The city is not in charge of signing leases for the newly acquired building and will not finalize any plans until the public is included, Mazziotti said.