Thank you for sharing!

Your article was successfully shared with the contacts you provided.

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

VANCOUVER, WA-Killian Pacific has closed on its acquisition of the 2.3 million-sf Columbia Business Center on the Columbia River from Schnitzer Investment Corp. The sale price was about $130 million. Both companies are based across the river in Portland, OR.

The sale price translates to about $56.50 per sf, which is at the low end of the $55- to $60-per-sf range GlobeSt.com first reported in late April. The eclectic nature of the 219-acre park and its 26 buildings made the negotiations complex, according to local sources familiar with the property.

First and foremost among the complexities is the fact that more than half of the park – 128 acres – is subject to a ground lease that expires in just 24 years, which is less than half what an investor would typically want. In addition, the buildings were constructed between 1940 and 1996 and range in value from $30 per sf to $75 per sf, local sources told GlobeSt.com in April.

What makes the development attractive is its plus-90% occupancy, its on-site access to water and rail, and its proximity to the Interstate 5 and Interstate 205. The property has 6,200 feet of river frontage; two barge slips capable of accommodating sea-going barges of up to 400 feet; rail and private rail service; 40 acres of yard storage; and trucking facilities with scale fueling, washrooms and a café.

Killian Pacific made the deal pencil by securing a high-leverage, low-interest loan from Greenwich Capital of Greenwich, CT, according to local sources. The financing allows strong cash flow from the property, mitigating the development limitations due to the relatively short-term control Killian has over most of the land.

Killian-Pacific principal Lance Killian did not return phone calls seeking comment. Glen Whitmore, Andrew Scandalios and Joe Morningstar of Holliday Fenoglio Fowler in New York had the disposition assignment. Lloyd Minten of HFF’s Portland office secured the acquisition financing.

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?



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
Live Chat

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