Renovation Takes Amenities and Architecture into Consideration

PORTLAND, OR—PacWest, a 550,000-square-foot 30-story class-A office tower, was originally developed in 1984 in a downtown location at 1211 SW 5th Ave. The tower ranks among both the tallest and largest office properties in Portland.

LPC Realty Advisors I LP, an affiliate of Lincoln Property Company, acquired the property formerly known as Pacwest Center in 2016 on behalf of a pension fund client. Focused on creating the ideal tenant experience, LPC has since invested substantial capital into the project via design features throughout the tower in addition to new indoor and outdoor amenities focused on health, well-being and social engagement. GBD and West of West Architects assisted with the design of the design upgrades. LPC set out with the mission of providing a thoughtful amenity package while being mindful of the property’s architecture.

“LPC had the unique opportunity to create a best-in-class amenity package not yet seen in the marketplace,” Patrick Gilligan, executive vice president of LPC West, tells GlobeSt.com. “We also ensured that a building of such iconic stature was well-respected during our renovation by embracing the existing curvatures and original elements.”

The renovations and amenities package completed on the property includes a reimagined two-story lobby that embraces the building’s curvilinear design. There are new conference and meeting facilities, and a full-service tenant lounge which opens to a large outdoor terrace with many areas to meet, collaborate and recharge.

There is also a fitness facility with innovative equipment, fitness on demand, steam rooms and towel service. Finally, engaging the city’s expanding cyclist population, PacWest has a new indoor bicycle hub with its own dedicated shower and locker facilities, automated entries, and bicycle repair and wash areas.

Lana Baldock and Dan Swift of Cushman & Wakefield’s Portland office are responsible for the tower’s office leasing with Dan Bozich of Urban Works Real Estate handling the retail leasing.

“In acquiring this asset, LPC capitalized on a rare market opportunity, and they have remained steadfast in their vision and goal to transform this tower into a new and improved modern marvel,” says Baldock. “With these new one-of-a-kind upgrades and well-appointed design and amenity elements, PacWest instantly becomes a centerpiece for downtown Portland, raising the bar for office buildings in our region. We are excited about what this means for Portland and its future as a desirable and innovative city that has long been admired by the world for its uniqueness, creativity and talent.”

PacWest currently houses a strong tenant mix ranging from professional/creative services and technology companies. The building transformation has helped attract significant new leasing activity, including two full-floor leases to Technolutions on the 26th floor and KeyBank on the 20th floor.

Notably, the top two floors (29 and 30), have recently become available. This will be the first time in more than two decades that these top two floors are being offered to the market on a for-lease basis.

The tower contains 29 floors of office space atop ground-floor retail plus three levels of underground parking. PacWest is located at the epicenter of Portland’s 57-block transit mall in the city’s central business district, featuring immediate public transportation access with MAX light rail and bus stops directly in front of the building. The building is also surrounded by numerous amenities including many of Portland’s most popular cultural attractions, while the downtown retail core and several hotels are within blocks of the property.

“LPC has worked diligently designing and improving PacWest to be one of the best office destinations in not only Portland, but the Pacific Northwest,” Swift says. “We are hearing extremely positive feedback from the brokerage community and from tenants about how spectacular this property has become. There is really nothing quite like it in Portland.”

The overall vacancy rate for the Portland office market closed the second quarter of 2019 at 10.3%, up 10 basis points from an adjusted first quarter figure of 10.2%, though down 20 basis points from the 10.5% recorded one year ago, according to a second quarter office report by Cushman & Wakefield. During the second quarter, the overall vacancy rate was up by 10 basis points in the CBD to 11.3% while flat at 9.2% for the suburban markets. Direct vacancy was essentially level across both the CBD and suburban markets during the quarter with a total of 5.1 million square feet. However, there was some increase in class-B and -C sublease vacancy in a smattering of properties across the CBD, up 32,000 square feet and 22,221 square feet, respectively.