AUGUST 2008: 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.
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.
ABRAHAM HYATT
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MERGERS AND ACQUISITIONS
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PRICE
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EXP. CLOSE
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BUYER / PARENT (HQ)
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SELLER / PARENT (HQ)
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ANNOUNCED
|
|
$1.6B
|
ND
|
Cadence Design Systems (Wilsonville)
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Mentor Graphics (Wilsonville)
|
6/30
|
|
$47.1M (cash)
|
ND
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Mentor Graphics Corporation (Wilsonville)
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Flomerics Group (England)
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6/30
|
|
$31.15M (cash)
|
Q2’08
|
Cascade Pacific Pulp / Wayzata Investment Partners
(MN)
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pulp mill (Halsey) / Pope & Talbot (Portland)
|
6/20
|
|
$5.5M
|
Q2’08
|
Oregon Health & Science University
|
Pacific Oncology (Beaverton)
|
6/27
|
|
ND
|
Q2’08
|
Western Division/ Universal Forest Products (MI)
|
D-Stake Mill (McMinnville )
|
6/10
|
|
ND
|
Q2’08
|
Evraz NA (Portland )/ EVRAZ Group S.A.
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assets (Canada)/ IPSCO
|
6/13
|
|
ND
|
Q2’08
|
Western Division/ Universal Forest Products (MI)
|
Manufacturing Country (Independence)
|
6/10
|
|
ND (stock)
|
Q3’08
|
Mt. Hood Beverage Co. (Portland)
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Columbia Distributing Co. (Portland); Gold River
Distributing (Medford)
|
6/3
|
|
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REAL ESTATE TRANSACTIONS
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|
PRICE
|
BUYER / PARENT (HQ)
|
REAL ESTATE (LOCATION) / SELLER (HQ)
|
ANNOUNCED
|
|
$12.1M
|
Parkland Development
|
office bldg (Portland) / Opus Northwest
|
5/30
|
|
$10.8M
|
CHG CXA Troutdale
|
retirement facility (Troutdale) / Cherry Park Plaza
|
6/11
|
|
$5.16M
|
JLPS
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facility & 12.67 acres (Portland) / Frontier
Missions Inc
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6/30
|
|
$3M
|
Wholesale Stone
|
manufacturing facility (Tualatin) / Specht Properties
|
6/24
|
|
$3.5M
|
multiple buyers* (Portland)
|
Corporate Woods Apartments ( WA) / 745 Special Assets
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6/17
|
|
$3.05M
|
Willamette Capital Investments (West Linn)
|
2.67 acres (West Linn) / Willamette Christian Church
of West Linn
|
6/30
|
|
$2.1M
|
Olbricht Living Trust
|
industrial flex bldg (WA) / Eastridge Associates 1
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6/30
|
|
$1.8M
|
506 College
|
Altamont Apartments (Portland) / Sing and Debbie Chan
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6/30
|
|
$1.4M
|
Expo
|
industrial bldg (Portland) / Waddoups/Wagner
Investments
|
6/17
|
|
$1.21M
|
Housing Authorities Risk Retention Pool
|
2 office bldgs (Vancouver) / Jason and Martha Olin
|
6/24
|
|
$1.19M
|
Bedrock Development
|
office bldg (Beaverton ) / office space
|
6/4
|
|
ND
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Fisher Investments (CA)
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120 acres (Camas)
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6/4
|
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ND
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Metro (Portland)
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25 acres (Lake Oswego)
|
6/24
|
|
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CAPITAL RAISING
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PRICE (TYPE)
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COMPANY (HQ) / LEADERSHIP
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INVESTOR (HQ)
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ANNOUNCED
|
|
$344.67M (debt)
|
PeaceHealth (Eugene)/ Alan Yordy, CEO
|
public offering
|
6/25
|
|
$106.4M (debt)
|
Lewis & Clark College (Portland)/ Thomas John
Hochstettler, president
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public offering
|
6/17
|
|
$50M (equity)
|
SpectraWatt (Hillsboro)/ Andrew B. Wilson, CEO
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Intel Capital/Intel (CA)
|
6/16
|
|
$40M (order)
|
Digimarc Corp (Beaverton)/ Bruce Davis, chairman
& CEO
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Georgia Department of Driver Services (GA)
|
6/2
|
|
$25.4M (contract)
|
FLIR Systems (Portland)/ Earl R. Lewis, president and
CEO
|
Naval Surface Warfare Center (IN)
|
6/19
|
|
$23.1M (order)
|
FLIR Systems (Portland)/ Earl R. Lewis, president and
CEO
|
U.S. Coast Guard
|
6/24
|
|
$10.6M (order)
|
Northwest Pipe (Vancouver, WA)/ Brian W. Dunham,
president & CEO
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undisclosed distributor (TX)
|
6/27
|
|
$6.7M (order)
|
FLIR Systems, (Portland)/ Earl R. Lewis, president
and CEO
|
Colombian Ministry of Defense (Colombia)
|
6/26
|
|
$3M (order )
|
Danner subsidiary (Portland)/ Joseph P. Schneider,
president & CEO
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U.S. Marine Corps
|
6/24
|
|
$1M (grant)
|
Oregon Health Care Quality Corp (Portland)/ Dr. David
Shute, director
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Robert Wood Johnson Foundation (NJ)
|
6/5
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List researched by Mark
Druskoff
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