PCCP JV Brings Industrial Project to Portland

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A joint venture of PCCP and Panattoni Development Co. plans to develop two Class A infill industrial parks totaling 625,320 square feet in Vancouver, Wash. The project includes Vancouver Logistics II and Hidden Glen Logistics.

The venture acquired the land for the development of Vancouver Logistics II for $10.1 million, with Zions Bancorporation providing a $30.9 million construction loan, Clark County records show. According to the same source, Hidden Glen Logistics is subject to a $27.2 million construction loan originated by HTLF Bank and the land purchase was financed with $10.8 million.

Vancouver Logistics II will include two buildings, of 163,676 and 175,044 square feet, and will feature 32-foot clear heights. According to Clark County Today, Panattoni previously completed Vancouver Logistics I in September 2022. The 170,089-square-foot building was leased to Thermal Supply Co. a month later.

Upon completion, Hidden Glen Logistics will total 286,600 square feet across 16.6 acres and will feature an approximately 1-acre trailer yard.

The two properties will be located at 7600 Northeast 88th St. and 6920 NE Saint Johns Road, 2 miles from each other. The development sites are situated in the Portland, Ore., market, roughly 16 miles from downtown, with access to interstates 5 and 205. The Port of Vancouver, Wash., and Portland International Airport are approximately 14 miles from the locations.

This project represents the latest partnership between PCCP and Panattoni. The two companies previously teamed up in the beginning of 2022 to develop Tyger Ridge Logistics Center, a 1.5 million-square-foot logistics park in Duncan, S.C. The industrial park is scheduled for delivery in the second quarter of 2023.

Portland’s industrial development potential

PCCP Senior Vice President Matt Cochran mentioned in prepared remarks that the characteristics of the Portland market, such as a limited supply pipeline and low vacancy rates, which in turn can lead to significant rent growth and tenant demand, are turning the area into an advantageous market for industrial development.

As of February, Portland had a vacancy rate of 4.3 percent, higher than the national rate of 3.9 percent, according to the latest CommercialEdge report. The market’s development pipeline had 1.6 million square feet under construction, representing 0.8 percent of stock.