Thank you for sharing!

Your article was successfully shared with the contacts you provided.

PORTLAND-David Parr will be ready for Nordstrom if it ever wants to talk expansion again. The new owner of the high-end retailer’s 173,392-sf Downtown store, Parr tells GlobeSt.com that prior to purchasing the building, he hired the architecture firm Thompson Vaivoda and Associates to provide a multitude of possibilities should the company wish to increase its Downtown presence. R&H Construction, one of Nordstrom’s favorite general contractors, also was involved in the pre-purchase discussions.

“We would look for any opportunity to assist them in expanding this property,” says Parr. “That’s why we involved Thompson Vaivoda & Associates; getting a look at what could and could not happen was a very important part of the deal.”

Earlier this year, there was talk of the company expanding into the building across Park Avenue, but the rumblings waned when the company’s earnings began to tumble. Out of respect for Nordstrom’s, Parr says he won’t get into the specifics of what TVA said could be done with the building. “It has a large number of options,” says Parr.

Regardless, assuming Nordstrom’s doesn’t go under, Parr appears to be sitting on a sound investment. Parr tells GlobeSt.com the capitalization rate on the $13.3 million he spent acquiring the building is “a little under 9%,” which means it should take a little more than 11 years for him to recoup 100% of his outlay. At that point, Nordstrom’s would still have five or six years left on its initial lease term.

Indeed, with Nordstrom’s high credit rating, the acquisition isn’t unlike Parr’s traditional investment, which are buildings leased by the government. He currently owns a building leased by the state Departments of Environmental Quality in Hillsboro, a state Department of Motor Vehicles building in Sherwood and Oregon Health Sciences University medical facilities in Westmoreland and Tigard.

“Nordstrom’s in the next best thing,” says Parr.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt. NET LEASE Spring 2021Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.