March 8, 2022 9:00 AM
Newmark announces it has arranged the $61.5 million refinancing of The Galleria Building, a 196,032-square-foot, Class A office property in downtown Portland, Oregon.
Newmark Vice Chairman Ramsey Daya, Senior Managing Director Chris Moritz, Director Travis Bailey and Senior Financial Analyst Grant Gooding helped secure the financing on behalf of sponsor Unico Properties and Partners Group, a leading global private markets firm, acting on behalf of its clients.
“The Galleria received intense interest from multiple lenders due to its low leverage, strong recent leasing momentum and location within the highly desirable West End neighborhood,” said Daya. “This financing will allow our client to complete its capital improvement plan to further the appeal of this beautiful historic building.”
The five-story office building was built in 1910 and was originally known as the Olds, Wortman & King department store. Unico Properties and Partners Group acquired the property in December 2018 and have enacted a major capital repositioning plan. This major overhaul of the historic asset has transformed it into one of the most desirable projects in Portland, recently completing a new long-term lease with SERA Architects for the entire top floor. Upon completion of the major capital plan, the Galleria will offer tenants brand-new, best-in-class features including a state-of-the-art fitness center, newly renovated lobby and exquisite architectural details with an expansive window line and 13-foot ceiling heights throughout. The property is also pursuing LEED Gold, Fitwell and WiredScore certifications.
Spanning a full city block directly on the MAX transit line at SW 9th & Morrison, the Galleria is located in the West End, a vibrant and emerging downtown neighborhood that has been the epicenter for new development in the urban core. Noteworthy new West End developments over the past five years include the Ritz Carlton Hotel Tower (Block 216), Eleven West, the Moxy Hotel, the Hyatt Centric Downtown, and the Indigo. The Galleria offers immediate walkable access to multiple eateries, bars, nightlife, lodging and shopping destinations.
Unico Properties is one of the most prolific real estate developers in the Pacific Northwest with a proven track record over its more than 60-year history acquiring, managing, and developing commercial properties. Unico currently owns and operates nearly 18 million square feet spanning the western U.S. markets through significant investment of its own capital alongside joint venture capital from institutional and private investors.
Partners Group is a leading global private markets firm with $127 billion in assets under management as of 31 December 2021. Since 1996, the firm has invested over $170 billion in private equity, private real estate, private debt, and private infrastructure on behalf of its clients globally.
Preliminary financing activity in the U.S. reached $670.2 billion in 2021, according to Real Capital Analytics data analyzed by Newmark Research. This represents a 7.6% increase over 2020’s financing activity. Mirroring the investment sales market, financing activity has remained bifurcated, with lenders favoring multifamily, industrial and office over hospitality and retail. With borrowing costs expected to increase each quarter in 2022 due to rising interest rates, it is expected that financing activity will be robust during the first half of the year as asset owners and investors are incentivized to lock in financing.
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. Newmark generated revenues in excess of $2.9 billion for the year ending December 31, 2021. Newmark’s company-owned offices, together with its business partners, operate from approximately 160 offices with over 6,200 professionals around the world. To learn more, visit nmrk.com or follow @newmark.
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