By Kate Snyder
More office space in Portland is hitting the market. A five-story creative office building with ground floor retail and secured parking garage in the city’s Pearl District has been listed for sale, according to a marketing brochure from CBRE, which has the listing. The property’s current owner is ASB Real Estate Investments. No asking price has been released.
Located at 1010 Flanders St., the 57,606 square foot property offers commuters access to Interstate 405, public bus lines and the Portland Streetcar line, which runs by the property connecting South Waterfront, as well as the Portland State University, the Central Business District and the Northwest Portland District. The asset was constructed in 1922.
A $10 million refurbishment of the building in 2017 by ASB and Specht converted the building into Class A loft office space. Improvements included a new rooftop deck, a new lobby, tenant amenities, restrooms, elevator and upgraded HVAC systems, according to the brochure from CBRE.
The property features a brick facade with timber and concrete construction. Its interior consists of flexible, smaller floor plates with an off-set core that could support various office configurations and user needs, ranging from serving as a regional office for Skanska, a multinational construction and development heavyweight, to housing Verizon’s drone software engineering team. The site also has seven stalls in the secured parking garage, which the brochure from CBRE describes as “ultra rare” for quarter block buildings in the Pearl District. There are also 85 secured bike parking stalls in the lower level.
ASB acquired the property in 2016 for $14 million, according to an announcement from the firm at the time. ASB partnered with Specht Development, Inc. in the deal and had a plan to redevelop the site into creative office space. The seller was a partnership between Torpet, LLC and G. Denhart, LLC.
At the time of the acquisition, Aaron Duncan, Senior Vice President and Head of Western Investments at ASB Real Estate Investments, said: “The Flanders Street acquisition fits with ASB’s strategy to build its portfolio of creative office assets in highly desirable urban markets where growth is driven by an influx of young professionals filling high-tech, jobs from high growth companies. Portland and the Pearl District, in particular, fit this profile with significant interest from tech and software companies looking for the type of loft space we will be providing once the redevelopment is completed.”
The purchase was ASB’s first Portland acquisition. Prior to the transaction, the company had concentrated its investment activity in major U.S. cities including New York, Washington DC, Boston, Chicago, San Francisco, Los Angeles, Miami and Denver, according to information from the firm.
