WILSONVILLE, OR—A recent acquisition aligns with where investorssurmise commercial real estate is headed in a post-COVID-19 world.The property, Parkway Woods Business Park, was purchased byReinsurance Group of America.

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Parkway Woods Business Park is a 378,300-square-foot suburbancampus on 70-plus acres at 26600 SW Pkwy. The mixed-use property,which was formerly a campus for Tektronix and then Xerox, has sinceundergone significant common area renovations and is currentlyleased to two tenants–3D Systems, a printing and scanning company,and Dealer Spike, an online RV and marine dealership.

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The seller was Parkway Woods Business Center LLC, a jointventure between ScanlanKemperBard and Oaktree Capital. SKB recentlycompleted the recapitalization of the property and will stay on asa partner in the investment to help execute its strategicrepositioning.

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Comprised of three interconnected single-story buildings, SKBand RGA plan to reposition the property's large floorplates andleverage the amenities to meet the needs and size requirements of awide range of light industrial, manufacturing and R&D tenants.Additionally, the site includes more than 4.5 acres of developableland that could accommodate approximately 85,000 square feet of newindustrial space.

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SKB and RGA created the business plan to convert current backoffice space pre-COVID. The fundamentals of the Wilsonvillesubmarket have always accommodated that type of space, so COVID wasnot the cause of the business plan, but the types of businessestargeted upon completion will likely be the least impacted,GlobeSt.com learns.

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"This investment aligns with where we believe commercial realestate is headed in a post-COVID-19 world. Companies all acrossAmerica are re-evaluating risks to their manufacturing and supplychains, which we expect will benefit domestic manufacturing in astructural manner for the foreseeable future," said BrianHughes-Cromwick, SKB vice president of acquisitions.

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Parkway Woods features on-site public transportation, a loungeand fitness facility, a newly renovated lobby, an on-site snackshop, rotating food trucks, a disc golf course, a basketball courtand outdoor space.

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The seller was represented by Newmark Knight Frank's vicechairman Nick Kucha, managing director James Childress and directorJeff Hodson in cooperation with co-head of US capital markets KevinShannon and senior financial analyst James Ikeguchi. The buyer wasself-represented.

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"I would like to acknowledge and congratulate all partiesinvolved including SKB, Oaktree Capital, RGA and Bridge for theirprofessionalism and deal-making skills in order to transact duringthese unprecedented times," Kucha says. "Industrial assets aregenerally a more resilient property type during times ofvolatility, and we are looking forward to SKB and RGA'sredevelopment plan. Once complete, Parkway Woods will capture themost active segment of the Wilsonville leasing market."

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The property's location along Interstate 5 provides access tothe greater Portland area. The campus is served by the city ofWilsonville's SMART bus system, which accesses the greater southmetro area. There are also several dining and shopping amenitiesavailable at Argyle Square shopping center.

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Portland and its real estate market have changed dramatically inthe past few years. A wave of development in all sectors and newinstitutional players are behind Portland's advancement from atertiary market to a regional hub, according to Cushman &Wakefield.

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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.