The 17-year-old center is 100% leased to multiple tenants including Izzy's Pizza, Baxter's Auto Parts, Wells Fargo Bank and Gentle Dental. It is located at 1001 SE Tualatin Valley Highway, just down the street from the 357,943-sf Sunset Esplanade shopping mall, of which Pan Pacific Retail Properties acquired 256,034 sf earlier this year for $28.58 million.
Without being specific, Kehoe tells GlobeSt.com there are no significant renewals coming up at the mall for several years and describes the return on investment as "damn good." Triple-net asking lease rates at the mall are $12-to-$13 per sf.
Bill Burton of C&W represented Kehoe in the transaction. C&W's Gary Griff sourced the $5.25-million acquisition loan. Lehman Brothers is the lender. Kehoe's property manager is Lou Elliott & Assoc.
Kehoe says he got started in the development business building houses in the suburbs and then did a lot of condo and apartment development. He says he's now focused on the acquisition of income-producing properties and land for the development of more income-producing properties.
Kehoe tells GlobeSt.com he also recently purchased a 15,000-sf warehouse building in the 2200 block of Northwest 21st and is in escrow for another property at Northwest19th and Overton. Kehoe says he's planning townhouses for the Overton site, a ground breaking for which is tentatively scheduled for the end of the year.
Despite all the activity, Kehoe tells GlobeSt.com he's also in negotiations for a third Northwest property and is "definitely looking" for more industrial, retail or residential property both inside and outside the Portland CBD.
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