Bain Capital JV Buys Portland MOB

The joint venture of Bain Capital and Evergreen Medical Properties has purchased a 60,000-square-foot medical office building in Lake Oswego, Ore. Shorenstein sold the asset for $14 million, and the buyer took out a $2 million acquisition loan from Columbia Community Credit Union, public records show.

The Lake Oswego submarket is facing an under-supply issue from a health-care facility perspective, hence the decision to invest in this asset, said Evergreen Medical Properties President Josh Richmond in prepared remarks. Demand for medical office buildings continues to be on the rise across markets nationwide.

The property was previously subject to a loan received in 2023 from Bank of America, which had a maturity date set for 2026. The asset last changed hands in 2007, as part of a $1.1 billion portfolio transaction in which Shorenstein purchased 46 properties from EQ Office, incorporating 3,882,036 square feet of office space in the Portland market, according to CommercialEdge.

A renovated facility near downtown Portland

Part of the Kruse Woods Corporate Park, the three-story building came online in 1996 and went through cosmetic renovations in 2003 and 2022. The facility features two passenger elevators, a conference room, has access to a fitness center and provides 204 car parking spaces.

Providence Health is the anchor tenant. The property was 73 percent leased at the time of the transaction. Medical services provided at the facility include primary and pediatric care, behavioral health, diabetes education and gynecology, among others.

Located at 4004 Kruse Way Place on 3.3 acres, the property has access to Interstate 5 and is some 10 miles southeast of downtown Portland. Medical providers in the surrounding area include Peak Medical Northwest, Providence ExpressCare and Bauer Medical.