Dees Stribling, Bisnow National
SoCal-based Bixby Land Co. acquired the Marquam Building in Downtown Portland for $10.8M, capping a three-building, 260K SF assemblage in the area. Next: redeveloping the buildings into creative office, as it has done in California.
The acquisition of the 75K SF property at 2501 Southwest First Ave. follows Bixby’s $33.4M purchase of the adjacent CDK Plaza in December 2016. The company is now pursuing an $8M redevelopment of that property to transform its work environment.
The projects represent Bixby’s first foray into the Portland market, where it sees upside potential, considering property here is less expensive than in California, where the company has redesigned over 30 buildings since 2010. In the case of the Marquam Building, Bixby was further attracted to the building’s 66% occupancy at rents 50% below market.
“We like many aspects of the Portland investment market, not the least of which is the competitive cost basis dynamic with which to execute our value-add strategies,” Bixby Executive Vice President and Chief Acquisitions Officer Mike Severson said. “We’re looking for more investments in the area.”
The company has not detailed plans for the redevelopment yet, and no two are quite alike. But Bixby has been successful in its strategy.
In Silicon Valley, for example, Bixby's THE Campus project saw Verizon leasing 136K SF within 90 days of completion and ASML US taking the balance of the project six months later. The property features couch seating areas, fire pits and an outdoor kitchen. Tenants can burn calories on the bocce ball court, outdoor exercise deck and yoga area.
Chris Johnson of Colliers International repped Bixby, while the seller, OCF Joseph E. Weston Public Foundation, repped itself.