PORTLAND, OR – ScanlanKemperBard (SKB), in a joint venture with Oaktree Capital Management (“Oaktree”), announced today that it has closed on CH2M Center, a 10-story, 226,815 square foot (SF), Class A office building with 225 parking spaces and refurbished amenity areas.
SKB originally purchased the property in 2012 as part of a joint venture with its investors and Wayzata Investment Partners. CH2M Center is located in the University/South Downtown District of Portland’s Central Business District, an area that is experiencing significant redevelopment activity and investment.
Since acquiring CH2M Center, SKB has completed many strategic initiatives to position the property for continued success. Major improvements completed include a lobby renovation, a revamped exterior entrance and updates to bike lockers, restrooms, elevator cabs, lighting and building amenities, as well as upgrades to the majority of the building’s systems, achieving LEED Gold designation in the process. The property is currently 87% leased, with only two vacancies remaining.
The largest tenant, CH2M, is an international engineering firm and original tenant in the property. Additional key tenants include The City of Portland, Zidell Marine and HealthInsight. SKB and Oaktree’s business plan includes increasing occupancy from 87% to 95% over a long-term hold. They will continue to convert traditional office spaces to open, creative layouts and offer competitive TI packages necessary to capture strong tenants.
According to SKB Executive Vice President of Asset Management and Principal, James Paul, “With OHSU’s commitment to the South Waterfront and Amazon’s commitment to Broadway Tower, we believe the economic drivers in downtown Portland are moving south, and we look forward to experiencing that growth at CH2M Center.”
SKB is an established real estate merchant banking firm 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 $4.12 billion, comprised of 28.1 million square feet of office, 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.
About Oaktree Capital Management
Oaktree is a leader among global investment managers specializing in alternative investments, with $100 billion in assets under management as of September 30, 2017. The firm emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in distressed debt, corporate debt (including high yield debt and senior loans), control investing, convertible securities, real estate and listed equities. Headquartered in Los Angeles, the firm has over 900 employees and offices in 18 cities worldwide. For additional information, please visit Oaktree’s website at oaktreecapital.com.