Newport Beach, CA and Portland, OR – Bixby Land Company, a Newport Beach, California-based investor, has purchased CDK Plaza for $33.4 million from KBS Real Estate Investment Trust, an affiliate of KBS Realty Advisors. The 185,729-square-foot Class A office complex, located at 2525 Southwest 1st Avenue in downtown Portland, OR, is scheduled to undergo significant upgrades in 2017 as Bixby furthers the reach of its value add office strategy into primary Pacific Northwest markets.
Bixby’s plans call for the redesign of an expansive plaza and courtyard area between two buildings, plus new lobbies and corridors, landscaping upgrades, and aesthetic improvements to the glass curtain wall. The upgrades are in line with the amenity-rich work places that have become a hallmark of Bixby office projects.
“The improvements we have planned will make this office campus much more appealing to companies looking for a progressive work environment,” said Mike Severson, senior vice president of investments at Bixby Land Company. “We view this as an excellent opportunity to apply our experience gained through the repositioning of some 30 office buildings throughout California,” added Severson.
The four-story, two-building campus was 96% leased at the time of sale, though anchor tenant CDK Global intends to vacate a portion of its fourth floor space in 2017, enhancing the opportunity for Bixby to add value to the project.
CDK Plaza features close proximity to light rail and interstate freeway access, plus abundant onsite parking at 3.4 stalls per 1,000 square feet, one of the highest parking ratios in Downtown Portland.
Strong submarket fundamentals were a compelling factor affecting Bixby’s interest in the project. According to Colliers International, the Portland central business district reported 8.3% vacancy as of the third quarter of 2016.
“This purchase extends our investment activities in value add office and core industrial properties in select markets throughout the West Coast, Arizona and Nevada,” added Severson.
Bixby prefers value add office investments in the $10 million to $100 million range, and seeks leased, institutional grade industrial investments in the $10 million to $50 million range.
The seller was represented by Darwin Rodriguez and Jason Flynn of Eastdil Secured; Bixby represented itself in the transaction.