PORTLAND-Negotiations are underway for the sale of the 173,392-sf Nordstrom building in the heart of this city’s thriving Downtown. A source at Peracon Inc., the New York City-based on-line commercial real estate platform listing the 173,392-sf property for $14.27 million on behalf of Portland CT Investment Inc., says certain letters of intent are being negotiated, but that new offers are still being accepted despite a Nov. 22 bid deadline posted on the company’s Web site.

“The offers we are entertaining involve some complexities,” says Peracon account manager Robert Ginsberg, who is co-brokering the property with Pam Baker, a Portland-based broker with Insignia/ESG. “It may be several more weeks that we are willing to entertain LOIs.”

The four-story building at 701 Broadway is 100% leased by the specialty retailer Nordstrom. The Peracon Web site describes is as “a premier property with a triple net base rent and a substantial contingency rent affording bright prospects for future increases.” A financial summary of the property shows that both effective gross revenue and net operating income from the building dropped in 1999 compared to 1998. In 1998, effective gross revenue was $1,123,751 and the net operating income was $1,104,986. Last year, effective gross revenue was $1,080,409 and net operating income was $1,069,492, thanks to an accompanying drop in total operating expenses of about $7,850.

Two-year-old Peracon bills itself as “the first Internet-based commercial real estate platform to provide buyers, sellers and their agents with full-service, end-to-end transaction capabilities.” The privately held company is a member of the BV Group, a merchant-banking firm that invests in venture and growth capital, private equity funds and privately negotiated stakes in publicly traded companies. BV presently has more than $500 million under management and has completed more than 30 direct investments and ten private equity fund investments. Additionally, the Group has been the primary founder of several technology and communications ventures.

The Nordstrom property is one of six institutional-grade offerings currently being marketed by Peracon. The other properties are located in Washington, DC.; New York City; Palm Beach, FL; and Huntington Beach, CA. In each case, Peracon will co-list the property with a broker in the market where the property exists. Co-brokers for the currently listed properties include CB Richard Ellis, Insignia/ESG, Eastdil Broker Services, Sonnenblick-Goldman, and Advantis. All of the properties range in value from $15 million to $30 million. Peracon expects to close its first property sale in January 2001.

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