PCCP Pays $83M for Portland Industrial Asset

Bybee Lake Logistic Center I & II. Image courtesy of CBRE

PCCP LLC, of Los Angeles, has acquired a 729,610-square-foot, two-building industrial complex in Portland, Ore. CBRE represented the seller, Seattle-based investment firm Washington Capital, on behalf of its clients, in the $82.5 million transaction.

READ ALSO: Industrial Real Estate 2021 Expectations

Bybee Lake Logistic Center I & II consists of two adjacent Class A industrial buildings at 7820–7832 N. Leadbetter Road and 14601–14621 N. Bybee Lake Court.

The 37.7-acre project is subject to a long-term ground lease from the Port of Portland and is fully leased to six tenants: Iron Mountain, CJ Logistics, OIA Global Logistics, Independent Dispatch, Bridgetown Enterprises, as well as Mergenthaler Transfer and Storage.

The Bybee Lake Logistic Center I & II buildings were developed in 2006 and are less than a mile from the Port of Portland in the city’s Rivergate Industrial District.

Bybee Lake Logistic Center I & II. Image courtesy of CBRE

The property provides immediate access to major highways and freeways, including I-5, SR-120, SR-14 and SR-30. The site is roughly 10 miles from Portland International Airport.

The CBRE team representing the seller included Brett Hartzell, Paige Morgan, Darla Longo, Barbara Perrier, Rebecca Perlmutter, Joe Cesta and Eric Cox.

In addition, CBRE’s Val Achtemeier arranged a $55.8 million floating-rate loan with MetLife on behalf of the buyer.

PCCP could not be reached for comment on the transaction.

Tight submarket

The Portland industrial real estate market is seeing unprecedented appreciation due to a lack of available land for development, accelerating rent growth and an overall attractiveness as a destination, Morgan said in a prepared statement.

Of Portland’s total 191.4-million-square-foot industrial portfolio, about 15.7 million square feet of space is in the Rivergate submarket. There, total net year-to-date absorption was 124,000 square feet, leaving a vacancy rate of 3.0 percent, according to a fourth-quarter report from JLL. Only about 41,000 square feet of warehouse/distribution space is currently under construction in the submarket.

Despite the difficult headwinds over the past year or so for the commercial real estate sector and the overall economy, PCCP has been active as a purchaser (of an office portfolio in Orlando), a seller (of a 475,800-square-foot industrial building in Pennsylvania’s Lehigh Valley), a lender (for the acquisition of a logistics center in the Bay Area) and an advisor (on a nearly $1 billion loan package for a 7 million-square-foot nationwide office, industrial and multifamily portfolio).