Press Release, October 01, 2018
ARA and Unico Properties Acquire Premier Office Tower in Downtown Portland, OR
PORTLAND, OR., (October 1, 2018) – American Realty Advisors (“ARA”) an institutional fund manager with more than $8.7 billion in assets under management, along with JV partner Unico Properties LLC, a real estate investor and operator, has acquired MODA Tower, a 398,412 square-foot office tower in downtown Portland, Oregon.
The Class A property is centrally located in Portland’s thriving central business district, featuring panoramic views, high-quality finishes, an on-site Nordstrom Rack, and five levels of parking. The tower’s design creates six corner offices per floor.
“Portland’s CBD has quickly emerged as one of the nation’s fastest growing tech and innovation hubs,” says Albert Pura, Senior Director at ARA. “Firms are continuing to migrate to the region in search of strong value alternatives as compared to San Francisco, Los Angeles and Seattle. MODA Tower will benefit from this ongoing economic growth and migration of jobs, driving long-term demand for the property and placing upward pressure on rents.”
MODA Tower is one of the few assets in the region that was delivered after 1999.
“Most of the office buildings throughout the region are of older vintage and require significant capital investment in order to remain competitive,” explains Pura. “This was a rare opportunity to acquire a newer asset with strong in-place cash flow, one of the most prestigious business addresses in the city, and very limited opportunities for new development of an office property of this scale due to a lack of available sites.”
MODA Tower has strong historical occupancy with original tenants MODA Health and Lane Powell occupying the property since its initial development.
“We strategically target properties that have proven track records and strong in-place occupancy,” says Pura. “At 90 percent occupancy, the asset has immediate stabilized cash flow with opportunities to increase NOI through leasing remaining vacant space, as well as taking advantage of ancillary revenue opportunities within the five levels of parking. Our core approach is to acquire properties that will deliver long-term value to our investors and be sustainable in times of economic volatility. The contractual long-term leases, variety of revenue streams, and overall market fundamentals position this asset to continue to perform well over time.”
“In collaboration with ARA, we’re excited to invest further in downtown Portland with the acquisition of a top asset with excellent window lines, and an ideal floorplate,” says Brian Pearce, Unico Properties Senior Vice President, Real Estate Services. “We look forward to bringing an exceptional amenity package and a first-class tenant experience to the building, and elevate MODA Tower to a top tier building in the market.”
According to Pearce, the property provides direct access to the MAX light rail transit system and features an unmatched amenity package including an on-site daycare facility, gourmet coffee and food service, bike storage, exterior terraces and unobstructed views of Mt. Hood and Willamette River.
“Office tenants and employees are seeking extremely walkable locations with direct access to transit and amenities,” says Pearce. “MODA Tower is precisely aligned with these demands, quickly connecting tenants to a diverse variety of restaurants, hotels, and entertainment venues. There is an additional opportunity to add value to the asset through strategic renovations and upgrades, including a renovation of the building lobby.”
Pearce adds, “We have a close pulse on the Portland market and in-demand needs of the region’s tenants. This is our second acquisition with ARA in the downtown Portland region. Together, we acquired the 23-story high-rise Congress Center office tower last year, and anticipate that we will have similar success with this property.”
MODA Tower is located at 601 SW 2nd Avenue in Portland, Oregon. Jason Flynn at Eastdil Secured represented the seller.
ABOUT AMERICAN REALTY ADVISORS
American Realty Advisors (”ARA”) is a premier private equity real estate investment manager of institutional quality commercial real estate portfolios with more than 500 investors and over $8.7 billion in assets under management. ARA is 100 percent employee owned and client focused and currently has more than 100 employees. The firm was registered in 1990 with the U.S. Securities and Exchange Commission as an Investment Advisor under the Investment Advisers Act of 1940. ARA is also a fiduciary to its clients and acts in the best interests of our investors. More information regarding ARA can be found at www.aracapital.com.
ABOUT UNICO PROPERTIES LLC
Unico Properties LLC, a subsidiary of Unico Investment Group LLC, is a commercial real estate investor, developer, and full-service operator focused on office and multifamily assets in emerging markets throughout the United States. Founded in 1953, Unico has been transforming the built environment by creating innovative, people-focused building experiences through a cadre of subsidiary companies that deliver boutique expertise and institutional execution for its own accounts and select third-party clients. The private equity real estate investment firm currently owns and operates 17 million square feet of commercial properties across the United States and continues to grow. For more information about Unico, please visit the firm’s website at https://unicoprop.com.
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