{"id":1004278748,"date":"2018-11-12T05:55:26","date_gmt":"2018-11-12T13:55:26","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004278748"},"modified":"2022-12-09T00:52:30","modified_gmt":"2022-12-09T08:52:30","slug":"portland-industrial-property-changes-hands-for-49m","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/portland-industrial-property-changes-hands-for-49m\/","title":{"rendered":"Portland Industrial Property Changes Hands for $49M"},"content":{"rendered":"

By Keith Loria, Contributing Editor<\/em><\/p>\n

\"6433<\/a>

6433 SE Lake Road<\/p><\/div>\n

A joint venture between Specht Development Inc. and Ares Management LP has acquired a 992,190-square-foot industrial property in Milwaukie, Ore., for $48.5 million.<\/p>\n

The property is currently home to a SUPERVALU distribution center, which will continue occupying the facility.<\/p>\n

\u201cThe story of industrial product in the Portland metro area is the story of a lack of land,\u201d<\/em> Greg Specht, Specht Development\u2019s CEO, told Commercial Property Executive<\/em>. \u201cWe\u2019ve built millions of square feet over the years and we have very tight restricted land use regulations we have to adhere to, and there are very few large sites available for development.\u201d<\/em><\/p>\n

That\u2019s why when this property came to Specht Development\u2019s attention, the company quickly went to work to add it to its portfolio.<\/p>\n

\u201cWe were able to negotiate a sale agreement and a lease back at a price point that was attractive and lease-back terms that were reasonable for us,\u201d<\/em> Specht said. \u201cIt allows us to go through the entitlement process to drag this facility, which has been built in phases over many decades, into the 21st<\/sup> century.\u201d<\/em><\/p>\n

The property comprises warehouse, distribution and manufacturing space, as well as freezer\/cooler space and a separate 48,000-square-foot office.<\/p>\n

Located inside the I-205 freeway at 6433 SE Lake Road in Milwaukie, Ore., a submarket of Portland, the location was a major point of appeal to Specht Development.<\/p>\n

\u201cIt\u2019s 62 acres and within two five-irons of the CBD, inside the beltway,\u201d <\/em>Specht said. \u201cIt\u2019s got ample room for trailer storage and truck maneuvering and it\u2019s around a million square feet, so we thought it was a deal we needed to do.\u201d<\/em><\/p>\n

A bright future <\/strong><\/h2>\n

According to Specht, general industrial market vacancy rates, combined with historically low vacancy in the Clackamas\/Milwaukie region, bode well for the industrial property\u2019s future absorption.<\/p>\n

At the end of the grocery wholesaler\u2019s lease, the new owners plan to renovate and modernize the property. Changes ahead include replacement of the roofs and the asphalt, the addition of dock doors and painting throughout.<\/p>\n

\u201cWe have plenty of time to go through the design entitlement phase, and once SUPERVALU vacates, we\u2019ll begin the work,\u201d<\/em> Specht said. \u201cIt\u2019s just a good play. The market is very active with vacancies in the low single-digits, and we believe we can be very competitive on the pricing.\u201d<\/em><\/p>\n

Don Ossey with Capacity Commercial Group served as the sole real estate broker on the transaction and brought the off-market opportunity to the joint venture.<\/p>\n

Last December, Specht Development completed the largest speculative industrial development in the Portland region ever launched in a single phase with the 732,824-square-foot Vista Logistics Park<\/a>, comprising three buildings, including the metro\u2019s largest single vacant industrial space under one roof.<\/p>\n

Image courtesy of Specht Development<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Specht Development and Ares Management have teamed up on the acquisition of the nearly 1 million-square-foot facility, which currently houses grocery wholesaler and retailer SUPERVALU.<\/p>\n","protected":false},"author":451,"featured_media":1004278769,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21743,21808,21748,21783,21742,28440,15],"tags":[33121,38614,36948],"class_list":["post-1004278748","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-deals","category-featured","category-industrial","category-investment","category-latest","category-portland","category-west","tag-ares-management-lp","tag-capacity-commercial-group","tag-specht-development"],"acf":[],"yoast_head":"\nPortland Industrial Property Changes Hands for $49M - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/portland-industrial-property-changes-hands-for-49m\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Portland Industrial Property Changes Hands for $49M\" \/>\n<meta property=\"og:description\" content=\"Specht Development and Ares Management have teamed up on the acquisition of the nearly 1 million-square-foot facility, which currently houses grocery wholesaler and retailer SUPERVALU.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/portland-industrial-property-changes-hands-for-49m\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2018-11-12T13:55:26+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-09T08:52:30+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2018\/11\/6433-SE-Lake-Road.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"620\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Keith Loria\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/portland-industrial-property-changes-hands-for-49m\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/portland-industrial-property-changes-hands-for-49m\/\",\"name\":\"Portland Industrial Property Changes Hands for $49M - 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