SOLD! Office Building in Vancouver, WA

The SVN Bluestone investment team of Cliff Hockley, Jim Wierson II, and Olesya Prokhorova sourced a transaction for a client that involved a complicated 1033 Exchange. Finding a property that made sense was extraordinarily difficult. The client wanted to buy a property in a market as the CAP rates were adjusting downwards. Most options simply did not make any financial sense. Additionally, the client wanted to invest outside of Multnomah County. We looked at residential, industrial, retail and finally office properties and we were unable to identify a reasonable option for our client.

Spiking office vacancies, high turnover costs, and the low demand for office space nearly eliminated all of the office properties as possible options. However, the team found 5101 NE 82nd in Vancouver, WA, a 28,500SF class A office building that the clients were impressed with. It was an attractive investment with a well-diversified tenant base and was a professionally managed property in excellent condition. However, early in the transaction, one of the major tenants gave notice to vacate the property, forcing the Buyers and the Sellers to find a creative way to make a deal come together. With the help of SVN Bluestone (Buyer representatives) & flexible collaboration of Seller and Dean Franklin Realty (Seller representatives), Buyers successfully negotiated favorable contract terms. As the market continued to rapidly change with mortgage rates rising at unprecedented rates, the Buyers decided to close using all cash and meeting the terms of their 1033 exchange! The final Sales price was $7,350,000.

The client signed a new property management agreement with the Commercial Department of Bluestone Real Estate Services, consolidating all real estate activity under one team. The assigned property manager, Amy Bloom, manages several other buildings in the area and is well-versed in the Vancouver market and vendors. The building is a beautiful asset for the client that we’re all looking forward to working on in the months and years to come.