Thank you for sharing!

Your article was successfully shared with the contacts you provided.

PORTLAND-A 70,000-sf industrial building Harsch Investment purchased two years ago as an eventual tear down is attracting tenants thanks to its location adjacent the 1.7-million-sf Brewery Blocks redevelopment on the northwest corner of the Downtown core.

Built in phases, the full-block property at NW 13th Avenue and Davis street is an amalgamation of two-and-three-story buildings. The official address is 140 NW 14th Ave. In August 2000, Harsch put up $3.65 million to purchase the block from the Cronin family, which operated Electric Distribution Inc. out of the circa-1950 building.

“We bought it with intention that we would fill it with lower cost warehouse users and then tear it down and redevelop in complementary way to Gerding Edlen’s Brewery Block redevelopment,” company president Jordan Schnitzer tells GlobeSt.com. “As we began to see the market slow down, we decided to extend the time frame on that.”

Concurrently, however, as the Gerding Edlen Development’s Brewery Block project began to take shape, some real good retail activity started cropping up. That’s when Schnitzer decided to spend $1.3 million or so into renovating the building, including $400,000 on the retail space, which faces the exit to the Brewery Block’s 1,400-stall parking garage. It’s already beginning to pay off.

Local Steinway dealer Sherman Clay & Co., better known as Moe’s Piano from its 14 years in the Woodstock neighborhood, has signed a 10-year lease valued at just under $3 million for 11,700-sf on the ground floor of the building, which sits on a full block bounded by NW 13th and 14th avenues and Couch and Davis streets. As well, Schnitzer tells GlobeSt.com that an office user is about to be signed for 10,000 sf on the top two floors of the building.

All told, and not including the 20,000-sf basement, there is another 10,000 sf of office space to be leased on the building’s upper floors and another 11,000-sf of retail space on the ground floor, which is being vacated by local florist Tommy Luke.

Annual triple-net asking rates for the retail space are in the mid-to-high $20s per sf and rates for the office space are $13 per sf, which apparently provides an attractive contrast to the brand new, higher-end space available in the Brewery Blocks. Norris Beggs & Simpson has the listing assignment and handled both sides of the Sherman Clay transaction. LRS Architects is designing building’s interior façade.

“I’d call it class C space,” says Harsch, “‘C’ for ‘creative.’” With a neighboring block Harsch purchased six years earlier, Schnitzer says his company now has “the two premier blocks” adjacent I-405 in the Pearl District.

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.