Sponsored by Oregon Business

Deal Watch: Industrial real estate is climbing, barely

| Print |  Email
Friday, August 01, 2008

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

MERGERS AND ACQUISITIONS
PRICE EXP. CLOSE BUYER / PARENT (HQ) SELLER / PARENT (HQ) ANNOUNCED
$1.6B ND Cadence Design Systems (Wilsonville) Mentor Graphics (Wilsonville) 6/30
$47.1M (cash) ND Mentor Graphics Corporation (Wilsonville) Flomerics Group (England) 6/30
$31.15M (cash) Q2’08 Cascade Pacific Pulp / Wayzata Investment Partners (MN) 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. 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) Columbia Distributing Co. (Portland); Gold River Distributing (Medford) 6/3


REAL ESTATE TRANSACTIONS
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 facility & 12.67 acres (Portland) / Frontier Missions Inc 6/30
$3M Wholesale Stone manufacturing facility (Tualatin) / Specht Properties 6/24
$3.5M multiple buyers* (Portland) Corporate Woods Apartments ( WA) / 745 Special Assets 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 6/30
$1.8M 506 College Altamont Apartments (Portland) / Sing and Debbie Chan 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 Fisher Investments (CA) 120 acres (Camas) 6/4
ND Metro (Portland) 25 acres (Lake Oswego) 6/24


CAPITAL RAISING
PRICE (TYPE) COMPANY (HQ) / LEADERSHIP INVESTOR (HQ) ANNOUNCED
$344.67M (debt) PeaceHealth (Eugene)/ Alan Yordy, CEO public offering 6/25
$106.4M (debt) Lewis & Clark College (Portland)/ Thomas John Hochstettler, president public offering 6/17
$50M (equity) SpectraWatt (Hillsboro)/ Andrew B. Wilson, CEO Intel Capital/Intel (CA) 6/16
$40M (order) Digimarc Corp (Beaverton)/ Bruce Davis, chairman & CEO 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 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 U.S. Marine Corps 6/24
$1M (grant) Oregon Health Care Quality Corp (Portland)/ Dr. David Shute, director Robert Wood Johnson Foundation (NJ) 6/5

List researched by Mark Druskoff

Have an opinion? E-mail This e-mail address is being protected from spambots. You need JavaScript enabled to view it
 

More Articles

Raising the Stakes

February 2015
Monday, January 26, 2015
BY LINDA BAKER

The 2014 Bend Venture Conference set a record for the most cash, investments and prizes awarded at an angel conference in the Pacific Northwest. Investments in the six winning companies exceeded $1 million. The 11th annual conference was hosted by Economic Development of Central Oregon.


Read more...

Help Wanted: Poached Jobs aids restaurateurs

March 2015
Friday, February 20, 2015
BY JACOB PALMER | OB DIGITAL NEWS EDITOR

“We thought there was room for something new.”


Read more...

Are wolves good for business?

Contributed Blogs
Friday, March 06, 2015
030615-wolf-thumbBY JEFF DELKIN | OP-ED CONTRIBUTOR

As a local business owner, I believe it’s important to build our economy on a platform of conservation values.  


Read more...

Grassroots movement pursues carbon bills

News
Tuesday, February 24, 2015
eventthumbBY KIM MOORE | OB RESEARCH EDITOR

A partnership of a grassroots environmental organization and a youth group is striving to build community and business support for carbon price legislation.


Read more...

6 chiefs of staff dish on their bosses

The Latest
Thursday, February 05, 2015
legilistiblog-thumbBY JACOB PALMER | OB DIGITAL NEWS EDITOR

We ask chiefs of staff for the scoop on Oregon legislators.


Read more...

Party Like It’s 1999

Contributed Blogs
Wednesday, February 25, 2015
pets-com-sock-puppetBY JASON NORRIS, CFA | OB GUEST BLOGGER

Pets.com, GeoCities, eToys, and WorldCom … blasts-from-the-past that all signify the late 1990s Internet bubble. Yet we believe the dynamics of the market, specifically in technology stocks, are much different today than it was during the late 1990s.


Read more...

Downtown flower shop readies for the Valentine's Day rush

The Latest
Monday, February 09, 2015
021015-giffords-thumbBY MEGHAN NOLT

VIDEO: Gifford's Flowers brings family approach to PSU-area shop.


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS