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Landmark Portland Office Tower Sells for $88M

KOIN_Center_office_property_downtown_Portland.by Jon Bell, Staff Reporter
Portland Business Journal

The office portion of the shapely KOIN Center, a 35-story tower in downtown Portland, has sold to a well-known name in Portland’s real estate investment scene.

ScanlanKemperBard Companies bought the 19-story office property for $88 million, about $250 per square foot. The space last sold to American Pacific International Capital in 2009 for more than $53 million.

“We’re excited to have this rare opportunity to purchase what was once arguably downtown Portland’s most desirable office property,” said SKB president and principal Todd Gooding. “We plan to invest heavily in renovations that will return the landmark to prominence and provide vastly improved office space options in an increasingly tight Class A market.”

Office space in the KOIN Center occupies floors four to 19 and 48 luxury residential units occupy the upper 11 floors. The remaining floors consist of retail space and an underground parking garage. According to information from SKB, there is a total of just over 253,000 square feet of office and retail space spread over the 19 floors. In addition to the residential units, the building is also home to the local CBS affiliate television studio.

The property is currently 84 percent leased with a balanced tenant base of small, mid and large-sized users, representing a range of industry sectors, including finance, law, marketing and consulting. Current tenants include Schnitzer Steel Industries, Skanska, Wells Fargo Advisors, Potbelly Sandwich Works and Mika Sushi, among others.

SKB plans to invest $4.3 million1 in capital improvements, including renovations to the lobby, bike lockers, elevator lobbies and restrooms. It also plans to create white-shell spec suites with open floor plans.

According to SKB’s senior vice president of acquisitions, who led the acquisition team on the KOIN Center, “the upgrades will improve the property’s overall appeal and position the KOIN Center to improve its tenant base.”

In a separate deal that also closed today, SKB also acquired the Greenwood Corporate Plaza, a six-building Class B office campus near Denver, for $91.5 million.

SKB’s latest Portland purchase before the KOIN Center was the U.S. Bank Block, which it acquired in November for $40 million.

1SKB Note: SKB’s capital investment is now planned at 6 million.