Bentall Kennedy Enters Portland MOB Market

The Class A asset includes space for medical offices, day surgery, on-site diagnostic imaging and laboratories, as well as 3,000 square feet of retail.

The Oregon Clinic Medical Office Building, Portland, Ore.
The Oregon Clinic Medical Office Building, Portland, Ore.

Bentall Kennedy Limited Partnership purchased The Oregon Clinic Gateway Medical Office Building in Portland, Ore., on behalf of its U.S. core fund. The 101,299-square-foot asset marks the firm’s first medical office building investment in Portland, bringing its U.S. portfolio of managed MOBs to 23 properties and 1.8 million square feet. CBRE represented the seller, The Oregon Clinic Gateway Medical Office Building LLC, which executed a lease with Bentall Kennedy.

Strong tenants

Located on a one-acre parcel at 1111 N.E. 99th Ave. in the Gateway District of Portland, the Class A, LEED Gold-certified facility includes space for medical offices, day surgery, on-site diagnostic imaging and laboratories, as well as 3,000 square feet of retail. The three-story building was originally constructed in 2006 and was fully leased at the time of the transaction.

Major tenants included The Oregon Clinic and Providence St. Joseph Health, a 50-hospital health care system. The property is just off Interstates 205 and 84 and by the Gateway Shopping Center, which is less than two miles from the Adventist Medical Center.

“Bentall Kennedy has extensive experience in the medical office building sector, having built a substantial portfolio for our investors and clients across several U.S. regions, that is currently 96 percent leased. This transaction allows us to expand in Portland, one of our target growth markets for medical office,” said Steve Reents, senior vice president of transactions for Bentall Kennedy, in prepared remarks.

The company recently made its first single-tenant office investment in the U.S. in partnership with Warba Bank, with the acquisition of ManPower Headquarters in Milwaukee, Wis.

Image courtesy of Bentall Kennedy