Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(To read more on the industrial market, click here.)

PORTLAND, OR-A joint venture that includes one of the tenants in the complex has acquired I-84 Industrial Center, a 14.33-acre 420,690-sf complex that is 100% leased. The purchase price was $13.75 million or $32.68 per sf. The asking price was $14.6 million.

The new ownership consists of NBS Real Estate Capital, Capstone Partners LLC and Benson Industries. NBS Real Estate Capital CEO Rance Gregory tells GlobeSt.com that when he tied up the property, it was expected that Benson Industries, which leased 32% of the space in the complex on a short-term basis, would not be willing to commit to a long-term lease because they never have in the past.

By making Benson part of the ownership group, however, which Benson also has not done in the past, Benson also was willing to break tradition with regard to its lease commitments and sign a long-term lease, Gregory says. Unisource Worldwide occupies the remaining portion of the property, also on a long-term basis.

The complex was built in phases between 1960 and 1982. In addition to the fully leased industrial space, which the ownership group intends to upgrade, the acquisition includes an unimproved 2.81-acre lot at Northeast 181st and Halsey Street that the JV plans to develop as retail.

Gregory says this is the 10th investment by NBS Real Estate Capital’s inaugural fund, Morrison Street Fund I LP, and its second investment in partnership with Capstone. Over the past eighteen months, NBS Real Estate Capital has invested 71% of the fund’s $26 million, providing equity and mezzanine debt for a portfolio of office, industrial, retail, and multifamily assets valued at $140 million.

The properties in the fund are located in Washington, Oregon, Idaho, Arizona and Nevada. With its second fund scheduled to launch in early 2006 with many of the same investors, NBS Real Estate Capital intends to expand its portfolio into California and Utah.

Benson Industries manufactures and installs glass curtain walls for high-rise construction. Gregory says the company has a lot of leased space in the market, all on short-term leases. Indeed, even the offering memorandum for the property stated that Benson doesn’t sign long-term leases, he says.

“Because the construction business is cyclical, they tend to take on shorter lease terms; but we also have been doing well such that it made sense for them to control some space more permanently,” Gregory says. “I don’t think they would have invested in the complex if they were not leasing long term and I don’t think they would have leased it long term if they weren’t investing in the complex.”

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
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


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 © 2020 ALM Media Properties, LLC. All Rights Reserved.