Newmark announces the sale of two office assets - American Brush and Framework - in Portland’s Central Eastside. Located at 116 and 134 NE Sixth Avenue, respectively, the buildings total 35,197 square feet and are both 100-percent leased.
Sean Fulp and Bill DeLacy and Jeffrey Hodson with Newmark’s Private Capital Group, cooperated with Nick Kucha of Newmark’s Capital Markets group to represent the seller, Portland-based Urban Development and Partners (UD+P). The buyer, San Francisco-based Abbott Corporation, was represented by Patrick Gilligan Sr. of Lone Tree Partners.
“The finish quality, open layouts and abundant light of both American Brush and Framework visually complement one another, making the paired offering highly marketable. The buildings generated significant investor interest due to asset quality, location and an excellent tenant mix,” Nick Kucha said.
One of Portland’s premier multifamily and office developers, UD+P was an early entrant into the transformation of the Central Eastside. UD+P’s adaptive reuse of the 1907-built building - once home to the American Brush Company and renamed, simply, “American Brush” - included structural seismic renovations and design restorations featuring exposed brick and timber and open office layouts. Renovations were completed in 2013. In 2015, UD+P delivered adjacent Framework, a five-story heavy timber and curtain wall glass office building. Proximate to the Burnside Bridgehead in the Central Eastside, the assets are in one of the most desirable and quickly transforming sections of Portland.
Portland’s urban core, inclusive of the Close-In Southeast submarket, among others, has grown rapidly throughout the current cycle. According to Newmark Research, average office asking rents in the urban core were $34.44 per square foot as of the fourth quarter of 2019, an increase of 4.3 percent from the prior year. Additionally, urban core office tenants absorbed 275,714 square feet in 2019, and the vacancy rate fell to 11.5 percent from 11.9 at the same time in 2018.
Newmark (“Newmark”), operated by Newmark Group, Inc. (“Newmark Group”) (NASDAQ: NMRK), is one of the world’s leading and most trusted commercial real estate advisory firms, offering a complete suite of services and products for both owners and occupiers. Together with London-based partner Knight Frank and independently-owned offices, Newmark’s 18,000 professionals operate from approximately 480 offices on six continents. Newmark’s investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting, government-sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management. For further information, visit www.ngkf.com.
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