Container Building Gets Special Notice in Cornelius’ Enterprise Zone
The Myers Container Industrial Building totals 181,262 square feet on approximately 15 acres and was recently purchased for $11.2 million by a JV of Specht Company and owner/operators of Myers Container.
CORNELIUS, OR—The Myers Container Industrial Building was built in 1991, and expanded in 1994 and 1996. It totals 181,262 square feet on approximately 15 acres at 495 Northeast Holladay St.
The asset was recently purchased for $11.2 million. The buyer/borrower was formed as a joint venture between The Specht Company and the owner/operators of the Myers Container family of companies.
Rob McEachern and Jake Bigby of CBRE’s Portland office represented the buyer in the acquisition. CBRE capital markets’ debt and structured finance team in Portland led by senior vice president Nick Santangelo arranged $10.65 million in total financing which included a $7.164 million loan at acquisition and an additional $3.485 million of available future funding capital to complete the redevelopment of the site to suit Myers’ business requirements. The 10-year fixed-rate permanent loan was provided by East West Bancorp Inc. of Pasadena, CA.
The building is 100% leased to Myers Container LLC and Container Management Services LLC with four sublease tenants: Curls’ Transportation, Old Trapper, Omega Morgan and Serv-Pro. Building amenities include 25- to 28-foot clear heights, and covered dock and grade loading.
As user dynamics change with supply-chain growth requiring more facilities across industrial hubs, several secondary markets are becoming desirable from an investment perspective. The major risk to investors in smaller secondary markets is oversupply and lack of liquidity. Based on an examination of key metrics, CBRE identified Charlotte, NC, Cincinnati, Denver, Louisville, KY, Orlando, Portland, OR, St. Louis and Tampa as key secondary markets that will offer strong liquidity and relatively high income returns in 2020.
“The Portland industrial market is booming as several large tech and apparel companies have announced recent expansions in the region totaling in the multi-million-square-foot range,” says Santangelo. “With vacancy rates so low and new construction limited, demand for industrial product will remain strong for the foreseeable future.”
The property is located 35 minutes west of downtown Portland in Cornelius’ Enterprise Zone. The region is home to several retailers and wholesalers, as well as a growing number of logistics and distribution companies.
“Due to Portland and the surrounding metropolitan area’s urban growth boundary, there has been noticeable pressure on the development of industrial land,” Santangelo tells GlobeSt.com. “This phenomenon has been exacerbated by continued in-migration and access to a talented workforce, especially for companies competing in the tech and apparel sectors.”