Myers Container Industrial Building The Myers Container Industrial Building is located at495 Northeast Holladay St.

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CORNELIUS, OR—The Myers Container Industrial Building was builtin 1991, and expanded in 1994 and 1996. It totals 181,262 squarefeet on approximately 15 acres at 495 Northeast Holladay St.

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The asset was recently purchased for $11.2 million. Thebuyer/borrower was formed as a joint venture between The SpechtCompany and the owner/operators of the Myers Container family ofcompanies.

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Rob McEachern and Jake Bigby of CBRE's Portland officerepresented the buyer in the acquisition. CBRE capital markets'debt and structured finance team in Portland led by senior vicepresident Nick Santangelo arranged $10.65 million in totalfinancing which included a $7.164 million loan at acquisition andan additional $3.485 million of available future funding capital tocomplete the redevelopment of the site to suit Myers' businessrequirements. The 10-year fixed-rate permanent loan was provided byEast West Bancorp Inc. of Pasadena, CA.

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The building is 100% leased to Myers Container LLC and ContainerManagement Services LLC with four sublease tenants: Curls'Transportation, Old Trapper, Omega Morgan and Serv-Pro. Buildingamenities include 25- to 28-foot clear heights, and covered dockand grade loading.

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As user dynamics change with supply-chain growth requiring morefacilities across industrial hubs, several secondary markets arebecoming desirable from an investment perspective. The major riskto investors in smaller secondary markets is oversupply and lack ofliquidity. Based on an examination of key metrics, CBRE identifiedCharlotte, NC, Cincinnati, Denver, Louisville, KY, Orlando,Portland, OR, St. Louis and Tampa as key secondary markets thatwill offer strong liquidity and relatively high income returns in2020.

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"The Portland industrial market is booming as several large techand apparel companies have announced recent expansions in theregion totaling in the multi-million-square-foot range," saysSantangelo. "With vacancy rates so low and new constructionlimited, demand for industrial product will remain strong for theforeseeable future."

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The property is located 35 minutes west of downtown Portland inCornelius' Enterprise Zone. The region is home to several retailersand wholesalers, as well as a growing number of logistics anddistribution companies.

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"Due to Portland and the surrounding metropolitan area's urbangrowth boundary, there has been noticeable pressure on thedevelopment of industrial land," Santangelo tells GlobeSt.com."This phenomenon has been exacerbated by continued in-migration andaccess to a talented workforce, especially for companies competingin the tech and apparel sectors."

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Lisa Brown

Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.