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PORTLAND, OR-A 12.1-acre Northeast Portland industrial property with 75,000 sf of buildings on it has changed hands for $3.4 million. The seller is David Mazzocco. The new owner is Halton Co., a locally based five-store Caterpillar equipment retailer whose headquarters are across the street from the property.Halton VP Mark Fahey tells GlobeSt.com the purchase is for an expansion of its existing operations. No other locations will be closed as a result of the purchase. The are no plans to add any buildings to the property, he says.Don Ossey of Capacity Commercial represented Halton. Jennifer Medak, John Medak and Ken Boyko of NAI Norris, Beggs & Simpson represented Mazzocco. Mazzocco acquired the property in 1999 for $4.5 million, according to local property records. At the time of the acquisition, the property was fully leased to Voith Sulzer, which had signed on at the top of the market. Boyko tells GlobeSt.com that Voith is now utilizing only about 20,000 sf of the complex but is on the hook until September.Ossey tells GlobeSt.com that one reason for the discounted price is that the lease revenue Mazzocco valued into his acquisition is ending. “The rent the tenant was paying justified that value,” says Ossey. “That lease is going away.” Medak adds that the $1.1 million discount is also due to the age of the buildings and some environmental clean-up that still needs to occur. As part of the sale, that clean-up is now Halton Co.’s responsibility. Boyko says the issue is hydrocarbons found in a septic tank. The cost to clean it up is estimated at $100,000 but could go as high as $250,000, he says.

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