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MCMINVILLE, OR-The 135,700-sf McMinville Plaza has changed hands for $15.1 million. NBS Real Estate Capital of Portland acquired the well-leased center on behalf of its inaugural investment vehicle, Morrison Street Fund I.

McMinnville Plaza property was built on 13.24 acres fronting Highway 99 at the eastern gateway to the city. The buildings were built in phases between 1984 and 2001.

Occupancy is about 90%. Tenants include JC Penney, Ross, Petco, Pier 1, Fashion Bug, Schucks and Payless ShoeSource. The shopping center is ghost anchored by a newly renovated Safeway lifestyle concept store.

The shopping center is the last acquisition for Morrison Street Fund I, which over the past two years parlayed $25 million of equity into a portfolio of Western US properties with a combined asset value of $160 million worth of Western US properties. The biggest property in the portfolio is the 400,000-sf I-84 Distribution Center in Portland.

In January, GlobeSt.com reported that NBS is raising funds for its second fund, aptly named Morrison Street Fund II. The second fund is expected to close with twice as much equity or about $50 million. With leverage, the money will be parlayed into about $200 million of real estate.

Unlike the first fund, which was largely limited to the Northwest, the second fund will be specifically targeting more assets outside of the region, in states such as Arizona, California and Nevada. As part of the broader focus, NBS recently brought on as acquisitions VP David Tindall. Tindall spent the past eight years with ING Clarion, making acquisitions in California and Arizona on behalf of the firm's large state pension fund clients.

Similar to the first fund, Morrison Street Fund II will make investment across the risk spectrum. About 80% of the equity will be used to acquire real estate properties, while the other 20% of the equity will be placed as short-term loans. The fund's sweet spot is investments in the $10- million to $30-million range.

Instant Insights /

135,700-SF Shopping Center Acquired by Fund

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