Portland Office Campus Trades for $118M

Goldman Sachs Merchant Banking and Lincoln Property Co. bought Field Office a year after its completion. The seller and developer was a joint venture of Project^ and National Real Estate Advisors LLC, which was represented by Newmark Knight Frank.
Field Office. Image courtesy of Project^
Field Office. Image courtesy of Project^

Field Office, a creative office campus in Portland, has come under new ownership just one year after its opening. With the assistance of Newmark Knight Frank, developers Project^ and National Real Estate Advisors LLC sold the 304,500-square-foot property to a venture of Goldman Sachs’ Merchant Banking Division and Lincoln Property Co. for $118 million.

Project^ and National Real Estate Advisors LLC invested approximately $108 million in the development of Field Office, aided by a $65 million construction loan from Bank OZK. Located on 2.3 acres fronting River Promenade, the LEED Platinum-certified complex encompasses two six-story buildings carrying the addresses of 1895 and 2035 N.W. Front Ave. In addition to 279,200 square feet of premier office space, the property features 25,300 square feet of ground-level retail offerings and a below-grade parking facility.

Project^ had conceived the Hacker Architects-designed Field Office as a destination for businesses growing beyond the start-up phase in the area. Tech firms Adpearance and Ampere were among the firms that pre-leased space at the property, where JLL oversees office leasing. In the sale transaction, NKF’s Kevin Shannon, Nick Kucha, Steven Golubchik, James Childress and Bill DeLacy represented the sellers, while the buyers represented themselves.

Billion-dollar magnet

The investment community has been quite keen on the Portland office market for the last few years, and experts expect the sentiment to continue in 2019. According to a first-quarter 2019 report by NKF, “With approximately $239.2 million in major office building transactions in the first quarter and several known pending sales, Portland is on track to achieve total sales of $1 billion this year, the same as in 2017 and 2018.”