American Assets Trust Buys 365,000-SF Office Property

March 7, 2011
By Barbra Murray, Contributing Editor

First & Main, a 365,000-square-foot office building in Portland, Ore., that just opened its doors last summer, will soon get a new owner. American Assets Trust Inc. has entered into a definitive agreement with the building’s owner and developer, Shorenstein Properties L.L.C., to acquire the trophy asset for $129 million.

First & Main carries the distinction of being the first new office property to sprout up in downtown Portland since 2000. The 16-story tower at 100 SW Main St. took on another title in January of this year when it became the first multi-tenant commercial office building in the Pacific Northwest to achieve the U.S. Green Building Council’s LEED Platinum certification. Designed by GBD Architects, First & Main features 20,000 square feet of ground level retail space and a tenant roster that is nearly full. Upon the closing of the sale transaction, the office space will be approximately 96 percent leased, with the federal government accounting for 74 percent of the square footage.

Shorenstein commenced construction of First & Main in 2007 with funds from its $1.1 billion Fund Eight. Having completed lease-up and secured the prestigious LEED certification, Shorenstein, which is a value-add investment company, was ready to let go of the property. American Assets will rely on proceeds from its initial public offering to finance the acquisition. The REIT completed its IPO in January, raising $564 million.