The commercial real estate market remains quite healthy here in Clark County. The area’s 20 most noteworthy commercial real estate deals created almost a quarter billion dollars in sales activity in the first half of 2017.
It should come as no surprise, considering the focus on rising rents and affordable housing that the top four sellers in terms of value were apartment complexes, led by the sale in February of the Silver Oak Apartment Homes for $35.15 million. Five of our top 20 were in the multi-family arena and totaled over $114 million. Silver Oaks was followed by Sedona at Bridge Creek for $31 million, Pioneer Vista in Ridgefield for $22 million and Larkspur Place Apartment Homes at $18.1 million.
Many in the industry wonder how much longer the multi-family sector can retain their strong performance. If you analyze the population growth and then consider the short inventory of available new homes being constructed, it seems that demand-pull pricing of single-family homes and the performance of multi-family properties should remain strong for several more years.
Of our top 20 transactions, the retail sector had five of them, with the largest being Fourth Plain Center. The center, built in 1978, was sold by Ron Kiel for approximately $15.1 million – or $187.74 a square-foot. Also of note was the sale of Orchards Market Center, for $8.1 million – about $179.23 a square-foot. Both properties have been longtime providers of retail services to the “central commercial hub” of Vancouver, which is defined by the intersections of I-205/SR-500/SR-503. Connect this with the sale in 2016 of Westfield Vancouver Mall and there has been significant transition in ownership in this retail hub.
There were three major industrial sales: the largest was in Ridgefield by Pacific Power Products, which tallied $9.3 million; Sunlight Supply sold their property on NE 88th as they transition down to Centennial Industrial Park and continue to expand operations along Fruit Valley Road; and the acquisition of the Fourth Plain Commence Center for $4.1 million – this is the former Kyocera production site and has great potential for development and attracting employers.
Specialty properties represented a significant portion of the top 20, being either healthcare or senior care-related. Most significant was The Hamptons Alzheimer’s community changing hands for $18.1 million. The specialty category saw four transactions total almost $33 million. This continues to be a strong sector of the market.
Finally, in the bare land category, Rotschy invested $10.5 million to acquire 126 acres of industrial land out on 18113 NE 18th Street. This will be a great property to keep an eye on as it moves through the development process. Additionally, Lennar purchased seven acres of residential land from Hinton Development along NE 182nd Ave. for $4.3 million.
Over half of the new owners are located outside the Clark County/ PDX metro area – another clear indication that we remain an attractive market for investment.
Jim West is a commercial real estate broker with Zenith Properties NW LLC. He can be reached at jim@zenithpro.com.
