By Keith Loria
ScanlanKemperBard Cos. has recapitalized the $65 million CH2M Center, a 226,815-square-foot, Class A office tower in Portland’s South End Innovation District.
HFF secured $44.2 million in financing for the disposition and recapitalization. The company represented SKP, with funds managed by Oaktree Capital Management L.P., and secured a 10-year, fixed-rate loan through Wells Fargo for the new partnership.
“CH2M Center is a best-in-class CBD tower with a phenomenal anchor tenant—CH2M Hill,” Logan Greer, HFF’s director, told Commercial Property Executive. “On an asset level, after successfully executing their value-add business plan, the seller looked to capitalize on the value they created.”
The 10-story CH2M Center offers a mix of traditional and creative office space, with views of downtown Portland. The property was renovated last year and also features a 228-stall parking garage Currently, the building is 87 percent leased to nine tenants, its roster including CH2M Hill, Konica Minolta, Zidell and the City of Portland.
Located at 2020 SW Fourth Ave., CH2M Center bridges Oregon Health & Science University, Portland State University and the South Waterfront, acting as the keystone of the South End Innovation District. It’s close to the Lincoln Street/SW 3rd Ave. MAX station and has a WalkScore of 93, a Bike Score of 93 and a Transit Score of 88.
“Lending interest was highly competitive,” Greer said.
HFF’s advisory team for the disposition and recapitalization was made up of Greer, Senior Managing Directors Gerry Rohm and Michael Leggett, Director Dave Otis and Analyst Jeff Hodson. The firm’s debt placement team consisted of Senior Managing Directors Tom Wilson and Paul Brindley. Leasing advisory was provided by Josh Schweitz and Travis Parrott of Kidder Matthews.
In May, ScanlanKemperBard teamed with Artemis Real Estate Partners to acquire a nine-property, 86,445-square-foot retail portfolio in Portland’s Pearl District from Hoyt Street Properties.
Photo courtesy of Yardi Matrix