Downtown Nordstrom Building Trades at $13.1 Mil

PORTLAND-The Downtown Nordstrom Building is under local control following its purchase this week by Parr Financial, a 22-year-old Portland-based real estate investment company owned by David Parr. Parr paid an individual investor from New York City $13.1 million for the 173,392-sf, three-story building in the heart of Downtown, and spent another $200,000 on fees and legal costs.

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.