By Jon Bell
An affiliate of the company that just a few weeks ago bought five floors of the iconic Meier & Frank Building in Portland has now sold one of its other downtown assets for $33.4 million.
KBS Real Estate Investment Trust, an affiliate of KBS Realty Advisors, has sold the CDK Plaza to Bixby Land Company for $33.4 million. Based in Newport Beach, California, Bixby is planning to make significant upgrades to the 185,729-square-foot plaza, which is its first foray into the Portland market. The four-story, two-building office plaza is located at 2525 S.W. First Ave.
California investor Bixby Land Company has purchased the CDK Plaza in Portland for $33.4 million. The acquisition is the company’s first in Portland.
Those upgrades will run about $7.5 million and include a re-design of the plaza and courtyard between the two buildings, new lobbies and landscaping.
“The improvements we have planned will make this office campus much more appealing to companies looking for a progressive work environment,” said Mike Severson, Bixby’s senior vice president of investments, in a release. “We view this as an excellent opportunity to apply our experience gained through the repositioning of some 30 office buildings throughout California.”
The complex is currently 96 percent leased, with the anchor tenant being CDK Global, a provider of IT and digital marketing services for the auto industry. CDK plans to vacate about 20,000 square feet of its office in early 2017, which will open up more space in the complex.
Darwin Rodriguez and Jason Flynn of Eastdil Secured represented KBS in the deal, while Bixby represented itself. According to county property records, KBS acquired the property in 2007 for $33.1 million.
Bixby’s acquisition adds to a long list of sizable office transactions that have transpired over the past year as investors have continued to take a liking to Portland. Among the year’s largest deals so far: the $18 million sale of the Board of Trade Building, the $31.5 million sale of Fremont Place I and II, the $69 million sale of the Commonwealth Building and the $122 million that JLL Income Property Trust paid for Pioneer Tower.