VANCOUVER, WA-Killian Pacific has closed on its acquisition of the 2.3 million-sf Columbia Business Center on the Columbia River from Schnitzer Investment Corp. The sale price was about $130 million. Both companies are based across the river in Portland, OR.

The sale price translates to about $56.50 per sf, which is at the low end of the $55- to $60-per-sf range GlobeSt.com first reported in late April. The eclectic nature of the 219-acre park and its 26 buildings made the negotiations complex, according to local sources familiar with the property.

First and foremost among the complexities is the fact that more than half of the park – 128 acres – is subject to a ground lease that expires in just 24 years, which is less than half what an investor would typically want. In addition, the buildings were constructed between 1940 and 1996 and range in value from $30 per sf to $75 per sf, local sources told GlobeSt.com in April.

What makes the development attractive is its plus-90% occupancy, its on-site access to water and rail, and its proximity to the Interstate 5 and Interstate 205. The property has 6,200 feet of river frontage; two barge slips capable of accommodating sea-going barges of up to 400 feet; rail and private rail service; 40 acres of yard storage; and trucking facilities with scale fueling, washrooms and a café.

Killian Pacific made the deal pencil by securing a high-leverage, low-interest loan from Greenwich Capital of Greenwich, CT, according to local sources. The financing allows strong cash flow from the property, mitigating the development limitations due to the relatively short-term control Killian has over most of the land.

Killian-Pacific principal Lance Killian did not return phone calls seeking comment. Glen Whitmore, Andrew Scandalios and Joe Morningstar of Holliday Fenoglio Fowler in New York had the disposition assignment. Lloyd Minten of HFF's Portland office secured the acquisition financing.