Deal Watch: Industrial real estate is climbing, barely

DURING THE MONTH of June, some of the largest commercial real estate deals in the Portland Metro and Vancouver area involved industrial buildings and land.


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DURING THE MONTH of June, some of the largest commercial real estate deals in the Portland Metro and Vancouver area involved industrial buildings and land.

The biggest of which was the JLPS purchase of a 67,500-square-foot facility and 12.67 acres of land on Marine Drive along the Portland side of the Columbia River for $5.16 million. Frontier Missions was the seller.

Norm Eder, executive director of the regional industry group Manufacturing 21 Coalition and a partner at Portland’s Conkling Fiskum & McCormick, ventures one reason for the number of sales could be that the region’s manufacturing sector has remained relatively strong despite the current economy.

Jim Edwards, senior VP at Portland-based Birtcher Development and Investments, says that industrial real estate sales have indeed been improving since the first of the year. He lays out the recent historical industry trend: 2000 to 2004 was slow; 2005 to 2006 was good; 2007 was down dramatically. This year has seen some resident companies expand and some new companies move to the state, he says.

But lest anyone consider breaking out champagne at that news, Edwards puts it into perspective. “It’s a good sign, but I wouldn’t call it an indicator of a trend,” he says.

His pragmatism is based on a very familiar factor: the bottoming-out residential housing market. Based on what they manufacture, many companies in the industrial sector are directly or indirectly affected by what happens in the residential market. That, in turn, directly affects industrial real estate.

It’s the inverse of the apartment real estate market — two complexes were sold in the Portland metro area in June — which is seeing an upswing in demand as condo sales go down the toilet. But despite the differences between the two real estate markets, the ups and downs of each are driven by a very basic tenet, Edwards says.

“It’s supply and demand, again and again and again,” he says.


$1.6BNDCadence Design Systems (Wilsonville)Mentor Graphics (Wilsonville)6/30
$47.1M (cash)NDMentor Graphics Corporation (Wilsonville)Flomerics Group (England)6/30
$31.15M (cash)Q2’08Cascade Pacific Pulp / Wayzata Investment Partners (MN)pulp mill (Halsey) / Pope & Talbot (Portland)6/20
$5.5MQ2’08Oregon Health & Science UniversityPacific Oncology (Beaverton)6/27
NDQ2’08Western Division/ Universal Forest Products (MI)D-Stake Mill (McMinnville )6/10
NDQ2’08Evraz NA (Portland )/ EVRAZ Group S.A.assets (Canada)/ IPSCO6/13
NDQ2’08Western Division/ Universal Forest Products (MI)Manufacturing Country (Independence)6/10
ND (stock)Q3’08Mt. Hood Beverage Co. (Portland)Columbia Distributing Co. (Portland); Gold River Distributing (Medford)6/3
$12.1MParkland Developmentoffice bldg (Portland) / Opus Northwest5/30
$10.8MCHG CXA Troutdaleretirement facility (Troutdale) / Cherry Park Plaza6/11
$5.16MJLPSfacility & 12.67 acres (Portland) / Frontier Missions Inc6/30
$3MWholesale Stonemanufacturing facility (Tualatin) / Specht Properties6/24
$3.5Mmultiple buyers* (Portland)Corporate Woods Apartments ( WA) / 745 Special Assets6/17
$3.05MWillamette Capital Investments (West Linn)2.67 acres (West Linn) / Willamette Christian Church of West Linn6/30
$2.1MOlbricht Living Trustindustrial flex bldg (WA) / Eastridge Associates 16/30
$1.8M506 CollegeAltamont Apartments (Portland) / Sing and Debbie Chan6/30
$1.4MExpoindustrial bldg (Portland) / Waddoups/Wagner Investments6/17
$1.21MHousing Authorities Risk Retention Pool2 office bldgs (Vancouver) / Jason and Martha Olin6/24
$1.19MBedrock Developmentoffice bldg (Beaverton ) / office space6/4
NDFisher Investments (CA)120 acres (Camas)6/4
NDMetro (Portland)25 acres (Lake Oswego)6/24
$344.67M (debt)PeaceHealth (Eugene)/ Alan Yordy, CEOpublic offering6/25
$106.4M (debt)Lewis & Clark College (Portland)/ Thomas John Hochstettler, presidentpublic offering6/17
$50M (equity)SpectraWatt (Hillsboro)/ Andrew B. Wilson, CEOIntel Capital/Intel (CA)6/16
$40M (order)Digimarc Corp (Beaverton)/ Bruce Davis, chairman & CEOGeorgia Department of Driver Services (GA)6/2
$25.4M (contract)FLIR Systems (Portland)/ Earl R. Lewis, president and CEONaval Surface Warfare Center (IN)6/19
$23.1M (order)FLIR Systems (Portland)/ Earl R. Lewis, president and CEOU.S. Coast Guard6/24
$10.6M (order)Northwest Pipe (Vancouver, WA)/ Brian W. Dunham, president & CEOundisclosed distributor (TX)6/27
$6.7M (order)FLIR Systems, (Portland)/ Earl R. Lewis, president and CEOColombian Ministry of Defense (Colombia)6/26
$3M (order )Danner subsidiary (Portland)/ Joseph P. Schneider, president & CEOU.S. Marine Corps6/24
$1M (grant)Oregon Health Care Quality Corp (Portland)/ Dr. David Shute, directorRobert Wood Johnson Foundation (NJ)6/5

List researched by Mark Druskoff

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