KOIN Center Sold, HFF Arranges Loan

Earlier this year it was announced that ScanlanKemperBard Companies (SKB) had purchased the KOIN Center in Portland, Oregon for $88 million, about $250 per square foot; this week Holliday Fenoglio Fowler, L.P. (HFF) announced that it had secured a $60 million finance loan on behalf of SKB for the property. According a press release, HFF placed the five-year, floating-rate loan with CIBC World Markets. The loan, which finances the recent all cash acquisition of the property, is structured with an initial funding of $50 million and future advances of $10 million. The future advances are intended to fund major renovations of the lobby and common areas as part of the repositioning of KOIN Center. 

SKB said earlier this year that plans to invest $4.3 million in capital improvements, including renovations to the lobby, bike lockers, elevator lobbies and restrooms. It also plans to create white-shell spec suites with open floor plans. "We're excited to have this rare opportunity to purchase what was once arguably downtown Portland's most desirable office property," said SKB president and principal Todd Gooding. "We plan to invest heavily in renovations that will return the landmark to prominence and provide vastly improved office space options in an increasingly tight Class A market."

KOIN Center is situated in the southern corner of Portland’s central business district, which will soon see a new Orange line as well as numerous planned developments including the Hilton Curio Collection hotel project and the Phil Knight Cancer Research Institute. The 34-story skyscraper at 222 S.W. Columbia Street was 84% leased at the time of sale with major tenants including Schnitzer Steel Industries, Skanska, Wells Fargo Advisors, Potbelly Sandwich Works and Mika Sushi.

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