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Downtown Portland’s CH2M Hill Center sold for $38.7 million

By Elliot Njus
The Oregonian

A prime downtown Portland office building has changed hands in a $38.7 million deal.

Portland real estate investment firm ScanlanKemperBard Cos. and a Minnesota-based partner, Wayzata Investment Partners, bought the 220,000-square-foot CH2M Hill Center at 2020 S.W. Fourth Ave. in a transaction that closed last week.

The building is 94 percent leased, with 60 percent of the space used by the CH2M Hill engineering firm for which the building is now named. SKB President Todd Gooding said the seller, Oregon Pacific Capital Management Corp., had owned the building since it was built in 1982.

“They’ve done a fine job with it,” Gooding said. “It’s a little tired, and we’re looking at putting some T.L.C. into it.”

SKB has been active since 1993, but was hit hard by the recession. It liquidated most of its holdings in Portland in 2007 and 2008, and sent some of its portfolio back to lenders.

“We’re looking to rebuild our brand,” Gooding said. “It’s been a tough four years for us. I’m not going to sugarcoat that. Most of our problems are behind us, and by virtue of what we’ve done in the past we’ve been able to attract institutional capital partners that want to invest in the Pacific Northwest.”

SKB paid $13.25 million earlier this year for three buildings at The Round in Beaverton. Gooding said the company has made about $120 million in investments over the last 18 months.