South of the property, several towers are rising out of the ground in the Central District of the South Waterfront redevelopment area. Three condominium towers are under construction along with a medical research building for Oregon Health and Science University, which is expanding down to the waterfront from its landlocked campus atop the hill immediately west of the area. A tram will connect the two campuses.

Cox and Marandas tell GlobeSt.com they hope to keep the building leased up while they sit and wait for the right opportunity to redevelop the property. "Is it a three-, five-, seven-year play? It's a little bit of a wait and see; there's a lot going on down there and it is all about timing," Cox says. "We are very fortunate that at that purchase price it works as a leased investment." Adds Mirandis, "We're being vague, but it's the truth; we're going to see what happens."

The building is currently stabilized, with one space available. Swinerton is the largest tenant, leasing about 21,000 sf in the building. As part of the sale agreement, Swinerton will be let out of its lease obligation as other tenants are found for its space. Mark McFarland and Matt Krueger of Pacific Real Estate Partners have the leasing assignment.

"This property, located in the heart of the South Waterfront area, offered a unique opportunity to secure an income producing property and a future development site," says the broker who had the disposition assignment, David Hill of Grubb & Ellis Co. Marandas represented GHS in the acquisition.