Gary Griff and Coleen Coleary of Cushman & Wakefield represented Parr following a referral from Mike Holzgang, a former rainmaker for C&W now under the Colliers International umbrella. The seller, CT Investments Inc. was represented by Insignia/ESG and Peracon.com, an Internet Web site that provides buyers online access all the documents necessary for proper due diligence.
The sale price translates to $76.70 per sf, which is well below replacement cost. The cap rate figures out to be about 9%, Griff tells GlobeSt.com. As part of the transaction, Parr assumed an approximately $8 million in debt held by Prudential. The rest was paid using equity and part of a credit facility Parr has with Wells Fargo.
Built specifically for Nordstrom in 1977 by a California developer, the full-block building fronts Broadway, the main thoroughfare through Downtown, and is flanked on both sides by the city's popular light rail line, which has stops just across Broadway at the city's main public square. By all accounts, there is not a better stand-alone retail location in the Central City, and Nordstrom knows that. The retailer recently spent $5 million on improvements to the building and has 17 years left on a lease that includes options to 2037.
David Parr was not immediately available for comment Thursday afternoon. Parr Financial owns several shopping centers and has interest in a number of facilities leased by Oregon Health Sciences University. Parr-Franklin LLC, another local investment firm Parr is involved with, also owns OHSU-leased facilities as well as other leased by state agencies such as the Department of Environmental Quality and the Department of Motor Vehicles.
The Nordstrom Building was put on the market last year and then taken back off. Griff says Parr was interested at that time but wasn't able to get the deal he wanted. This time, he did, says Griff, who had nothing but good things to say about New York-based Peracon.com.
"It's probably the best Web site for completing real estate transactions I've ever seen. If you are a qualified buyer or broker, absolutely everything about the building was available -- historical operating statements, copies of the lease, environmental and technical reports, and blueprints. It definitely facilitated the sale."
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