Deal Watch: Powerhouse investor dips into Portland — then flips

| Print |  Email
Tuesday, May 01, 2007

DTPortland.jpg

The biggest name on Wall Street bought into the Portland real estate market this year, but the deal didn’t have staying power. The Blackstone Group — whose March blockbuster IPO filing has finance junkies salivating — bought out Equity Office Partners in February for a stunning $39.2 billion. It was the largest private-equity buyout on record (we wonder how long that will hold up) and it suddenly made Blackstone the largest single owner of Portland-area office space with 4.1 million square feet of cubicle acreage.

With alarming speed Blackstone’s real-estate pros in New York slapped a $1 billion price tag on the 40 Portland-area properites — which includes pretty much all of Kruse Way in Lake Oswego, arguably the market’s hottest address — and found a buyer in San Francisco-based Shorenstein Properties. The sale closed in late March.

Gary Griff, a veteran office-space broker  at Cushman & Wakefield in Portland, says the speed of the transation was astounding. “They‘re handling real estate more like stocks and bonds.”

As for Shorenstein, now the area’s largest office landlord, Griff doesn’t expect to see much change.  “For the price they paid, they’ve got to be looking at this as a long-term investment.”

The portfolio includes three developable properties, including a parcel at the foot of Portland’s Hawthorne Bridge where Equity was knee-deep in plans to build a high-rise office tower.

— Christina Williams

MERGERS AND ACQUISITIONS

ANNOUNCED EXP. CLOSE BUYER (HQ STATE) / PARENT SELLER (HQ) / PARENT PRICE (TERMS)
30-Mar Q1 ‘07 Motorola (IL) Tut Systems (Lake Oswego) $39m cash
28-Mar Q3 ‘07 Columbia Banking System (WA) Town Center Bancorp (Portland) *$45.1m (42% cash + 58% stock)
26-Mar Q1 ‘07 Littler Mendelson, P.C. (CA) Amburgey & Rubin, P.C. (Portland) ND
20-Mar ND Integra Telecom (Portland) Eschelon Telecom (MN) $710m (80% cash + 20% assumed liabilities)
13-Mar Q1 ‘07 Knorr Foods Co. / Ajinomoto Co. (Japan) New Season Foods (Forest Grove) ND
13-Mar Q1 ‘07 Ascentium Corporation (WA) Centerlogic (Portland) ND
13-Mar Q1 ‘07 LTC Global Solutions (Medford) Senior Wealth Care Insurance Services (TX) ND
8-Mar Q2 ‘07 The Campbell Group (Portland) Menasha Forest Products Corporation (North Bend) ND (cash + assumed liabilities)
20-Feb Q1 ‘07 Bear Mountain Forest Products (Cascade Locks) Smokehouse, LLC (Hood River) / Luhr Jensen ND
19-Feb Q2 ‘07 Eschelon Telecom (MN) United Communications (Bend) $13.9m (cash)
16-Feb Q1 ‘07 Country Coach Holdings, LLC (Junction City ) / Riley Investment Management, LLC (CA) Country Coach Subsidiary (Junction City) / National R.V. Holdings (CA) $51.75m (75% cash + 25% assumed liabilities)
14-Feb Q2 ‘07 CheckFree Corporation (GA) Corillian Corporation (Portland) $245m (cash)
*Sell-side advisers: McAdams Wright & Ragen (financial); Foster Pepper LLP (legal). Buy-side advisers: D. A. Davidson & Co. (financial); Graham & Dunn PC (legal).



 

REAL ESTATE TRANSACTIONS

ANNOUNCED BUYER (HQ) REAL ESTATE (LOCATION) SELLER PRICE
28-Mar Illig Investment Co. LLC (CA) Two industrial/flex complexes (Milwaukie, Lake Oswego) The Realty Associates Fund VI LP $9.69m
28-Mar Shorenstein Properties (CA) 46 office properties (Portland) Blackstone Group $1b
28-Mar HR Salem Associates LLC (Salem) Industrial building (Salem) Neilsen Manufacturing $6.17m
28-Mar SolarWorld AG (Germany) Oregon Technology Center (Hillsboro) The Benaroya Company $40m
28-Mar Arrington Medical Center LLC & Oleson Medical Center LLC (WA) Columbia Medical Plaza building (Vancouver, WA) Northwest Columbia Medical Plaza $5.13m
28-Mar Nike (Beaverton) 125-acre land parcel (TN) Belz Enterprises ND
28-Feb BFP Leveton LLC (Beaverton) Industrial building (Tualatin) Tofle USA ND
28-Feb Trailblazer Foods (Portland) Dayton Building (Portland) SN Investment Properties LLC $3.83m

 

CAPITAL RAISING

ANNOUNCED COMPANY (HQ) / LEADERSHIP INVESTOR PRICE TERMS
29-Mar Calypte Biomedical Corporation (Lake Oswego) / Roger Gale, CEO International investors $5.2m Private placement (common stock + warrants)
26-Mar Wellpartner (Portland) / W. Michael Wright, CEO 3i and Buerk Dale Victor (co-leads); Integra Ventures; Mediphase Venture Partners; Greenwoods Capital $7.5m Series C equity
22-Mar Serveron Corporation (Hillsboro) / Bart Tichelman, CEO El Dorado Investment Company; Nth Power; Cascadia Pacific Management; Oregon Life Sciences LLC; others $5m Equity
19-Mar HemCon Medical Technologies (Portland) / John W. Morgan, president & CEO Camden Partners Holdings LLC; Torch Hill Partners $12m Equity
19-Mar Vesticon (Portland) / Dr. John Epley & Cathy Epley, co-founders National Institutes of Health $1.03m Phase II SBIR grant
14-Mar ProteoGenix (Portland) / Don Mooney, president & CEO NLV Partners (co-lead); TPG Growth (co-lead); Burrill & Company $20m Series B equity
6-Mar Platial (Portland) / Di-Ann Eisnor, co-founder & CEO KeyNote Ventures, Kleiner Perkins, Caufield & Byers, Omidyar Network, Ram Shriram, Ron Conway $2.4m Series A equity
2-Mar Nike (Beaverton) / Nick Athanasakos, VP-supply chain Illinois State Board of Investment $27.6m Sale-leaseback


List researched by Mark Druskoff

ND=Not disclosed

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

 

More Articles

Back to School

September 2015
Wednesday, August 19, 2015
BY CHRIS NOBLE

Oregon is home to an abundance of gritty warehouses reborn as trendy office spaces, as well as crafty hipsters turned entrepreneurs. Does the combination yield an equally bounteous office products sector? Not so much. Occupying the limited desk jockey space are Field Notes, a spinoff of Portland’s Draplin Design Company, and Schuttenworks, known for whittling Apple device stands. For a full complement of keyboard trays, docking stations and mouse pads, check out the GroveMade line, guaranteed to boost the cachet of even the lowliest cubicle drone. 


Read more...

Big Trouble in China?

Guest Blog
Tuesday, August 18, 2015
0818-wellmanthumbBY JASON NORRIS | CFA

Earlier this month, the People’s Bank of China (PBoC) announced they were going to devalue their currency, the Renminbi. While the amount of the targeted change was to be roughly 2 percent, investors read a lot more into the move. The Renminbi had been gradually appreciating against the U.S. dollar (see chart) as to attempt to alleviate concerns of being labeled a currency manipulator.


Read more...

5 things to know about veterans in the workforce

The Latest
Wednesday, July 01, 2015
070215-vetsthumbBY JACOB PALMER | DIGITAL NEWS EDITOR

There are more than 10 million former military members working in the United States.


Read more...

Car be gone

Linda Baker
Thursday, August 06, 2015
070615car2goblogthumbBY LINDA BAKER

Car and ride sharing services have taken urban areas by storm. Low-income and suburban communities are left at the curb.


Read more...

Child care challenge

News
Wednesday, August 26, 2015
0927OHSUhealthystarts-thumbBY KIM MOORE AND LINDA BAKER

Child care in Oregon is expensive and hard to find. We delved into the numbers and talked to a few executives and managers about day care costs, accessibility and work-life balance.


Read more...

Reader Input: Energy Overload

June 2015
Wednesday, July 15, 2015

We asked readers to weigh in on the fossil fuel-green energy equation.


Read more...

Storyteller in Chief: Power Player

September 2015
Wednesday, August 19, 2015
BY LINDA WESTON

In 1996, after a 17-year career in the destination marketing industry, where I gained national standing as the CEO of the Convention & Visitors Association of Lane County, I was recruited by the founders of a new professional basketball league for women. The American Basketball League (ABL) hoped to leverage the success of the 1996 USA women’s national team at the Atlanta Olympics — much like USA Soccer is now leveraging the U.S. Women’s National Team’s victory in the World Cup. The ABL wanted a team in Portland, and they wanted me to be its general manager.


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