By IvyLee Rosario
In a joint venture with WHI Real Estate Partners, ScanlanKemperBard Cos. has acquired the Water Tower Complex in Portland’s neighborhood of John’s Landing, for $24.8 million. The new owners intend to implement an extensive capital improvements plan to elevate the property to a Class A mixed-use office and retail destination. This purchase marks the partners’ second investment in this neighborhood, following the acquisition of Riverside Center and 5550 Macadam in January 2017.
The property comprises two buildings totaling 123,188 square feet. Constructed in 1903 as a furniture warehouse, the asset was redeveloped in the 1970s by John Grey into a retail marketplace. In 2008, a Melvin Mark partnership purchased the complex and made it home to a mix of office and retail tenants. Currently 93 percent leased, the Water Tower kept its historic architectural features, such as the reinforced concrete, exposed timer beams and fir floors. The Bailey Building was also included in the sale and offers redevelopment potential, with its flexible zoning in the surrounding land.
“We are grateful to Melvin Mark for the opportunity to acquire this asset as we are firm believers in the John’s Landing submarket. The water views, neighborhood amenities and historical architectural features provide a unique urban experience at a price point and parking ratio typically found in the suburbs,” said Todd Gooding, president of SKB, in a prepared statement.
In May, a joint venture between WHI and EverWest Real Estate Investors secured $19.9 million in financing to convert a warehouse property in Austin into creative office space.
Image courtesy of ScanlanKemperBard Cos.