Schnitzer NW Picks C&W to Prelease Office Tower

Schnitzer Northwest is planning to build an office tower on the so-called Beim and James Block at the base of the Morrison Bridge, which it purchased with the Goodman family two years ago for $5 million. The size of the project is in the process of being determined, but the city's zoning code would allow about 20 stories, not including any height bonuses that may be available in exchange for certain public amenities.

According to real estate sources with knowledge of the decision, Schnitzer specifically requested that Usher be a part of the team before making its selection. Schnitzer's managing investment partner Dan Ivanoff tells GolobeSt all the finalists would likely could have handled the job, but the Fox Tower team's "straight over tackle" experience leasing up a new office buidling and Usher's involvement put it over the top. "Not too many people remember, but Tom was a very successful broker before he became a manager," says one longtime local broker. "I suspect some of the owners of that block remember that."

Terry Shanley, the new managing director for Cushman & Wakefield's local office, says his firm was informed of the decision a week ago last Friday. In addition to Usher and the Fox Tower team, says Shanley, Gordon King's work on the presentation team also helped seal the deal.

A few blocks down the street, Norris, Beggs & Simpson brokers Joe Vaughan and Chris Johnson are marketing for prelease the 100 Columbia building, Louis Dreyfus' planned 15-story, 315,000-sf office building. Neither project has received final approvals, though 100 Columbia is a several months further along in that regard, having already received design review approval.

Both developers aren't expected to break ground until 50% or more of the space is preleased, a typical requirement by banks that provide construction financing. Rates for space in both buildings are expected to begin at a top-of-the-market rate of around $30/sf.