Portland’s Internet Exchange Building Trades for $326M

Pittock Block. Image courtesy of JLL

Alco Investment Co. has finalized the $326 million disposition of the Pittock Block, a 302,262-square-foot carrier hotel in Portland’s central business district. A partnership between Harrison Street and fifteenfortyseven Critical Systems Realty acquired the historic building, which is one of only two primary internet exchanges in the Northwest.

The transaction is the highest priced single-property deal in Oregon since 2015, according to JLL. The new owner received a $163.5 million acquisition loan from JPMorgan Chase, public records show.

Located on 1 acre at 921 SW Washington St., the eight-story property was built in 1914 for the cost of $1 million, according to The Oregonian. In 1999, Alco renovated the building to better accommodate tenants with digital needs, the company’s Chief Investment Officer Doug Rosen noted in a prepared statement.

The carrier hotel hosts cloud-based and e-commerce companies and has 16 fiber-optic carriers and 179 service providers. Additionally, the property has office space and is the home of the Oregon Symphony’s administrative offices, Hennebery Eddy Architects and the City Club of Portland.

The JLL team that negotiated on behalf of the seller and sourced the buyer included Managing Director Buzz Ellis, Managing Director Conan Lee and Director Adam Taylor.

In October, Harrison Street and fifteenfortyseven Critical Systems Realty acquired the historic Wells Building, a 165,000-square-foot carrier hotel and data center in downtown Milwaukee. Ascendant Holdings sold the asset for $7.3 million.