What began as the initial investment in an enterprising strategy hatched during the last recession, came to fruition this week with the sale of 1631 NW Thurman Street, an investment property managed by a partnership between Becker Capital Management and Melvin Mark Companies.
The two-acre parcel, including a four-story, 67,306-square-foot creative office building and a 155-space parking lot, was sold to a Goldman Sachs-affiliated entity for $25.7 million. Nick Ehlen and Bryn Hokkanen, Melvin Mark Brokerage Company, represented 1631 NW Thurman Street LLC, and MaryKay West and Chris Johnson, Colliers International, represented Goldman Sachs in the transaction.
The property, built in 1903, was the first opportunity for the Becker and Melvin Mark partnership. The two companies brought their respective areas of expertise—investment management and commercial real estate—to provide investors with the opportunity to invest in income-producing real estate.
Since the original investment in 2013, Becker/Mark has participated in an additional $40 million of real estate transactions: the HCA Building in 2017, a 34,000-square-foot Class A office building located in the Tigard Triangle, and recently Five Centerpointe, a 114,000-square-foot Class A building in the Kruse Way Corridor.
In 2013, redevelopment of the North Pearl neighborhood surrounding 1631 NW Thurman was beginning to take shape. “At the time, our investment was a leap of faith since the property was outside the traditional Pearl District boundary,” said Nick Ehlen, who led negotiations for the investor group. “We knew the area had terrific potential and momentum was building for the creative office market segment. Our predictions were on target as new development has flourished around the property over the past five years,” he continued.
For Becker Capital Management, the partnership has opened new strategic opportunities as well. “We’re able to diversify what we have to offer to our investors beyond traditional equities and fixed income,” said Pat Becker, Jr., President of Becker Capital Management.
“Investors continue to see the growth potential in the Portland area and so do we,” said Jim Mark, Melvin Mark Companies CEO. “We’re actively looking for other success stories like this across all sectors—office, industrial and multifamily—desirable properties in emerging areas just waiting to be discovered. We remain firmly in acquisition mode”