PORTLAND, Ore. – Cushman & Wakefield announced today that the Portland office of Capstone Partners and its joint venture partner Premium Property USA, Inc, have acquired a rare and coveted 2 city block section of properties that will offer 72,000 square feet of new creative/technology office in the Central Eastside Industrial District.
Developer Plans Repurposed Creative Tech Hub called Custom Blocks
Capstone Partners plans to repurpose all of the former industrial buildings originally built in the 1940s and 1950s into a new high-end creative office/tech and artisanal food and beverage maker hub to be known as Custom Blocks. Construction is set to start in early February with shell completion and occupancy for tenants by November 2017.
Located at SE Madison, 10th Avenue and SE Main Street, Custom Blocks is located in the heart of the Central Eastside Industrial District adjacent to the New Deal Distillery, and within a short walk to the The Redd, LOCA, and many other well know coffee roasters, breweries and other artisanal makers. The site formerly served as the Custom Stamp and Manufacturing plant for nearly 50 years before it shuttered operations. Capstone Partners named this landmark project Custom Blocks to honor the history of Custom Stamping and its unique contribution to the industrial character of the neighborhood.
Chris Nelson, Principal of Capstone Partners commented, “We were attracted to the scale and potential of this unique multi-block acquisition opportunity. The property has tall 18 foot ceilings, large open floor plates with extensive clear spans of old growth timber, and large glass lines around perimeters. The repurposed project will be able to accommodate multiple occupants or can serve as a scalable headquarters for a single user.”
Capstone brought in Premium Property USA as its joint venture partner, the fourth project the firms have developed together in the Portland area.
Herbert Michel, President of Premium Property USA, Inc., commented, “The property has high street visibility and it is located in the bull’s eye of the Central Eastside Industrial District with excellent access to bike paths and public transportation. The surrounding restaurants, bars and brew pubs are only a few steps away. The conversion of these ‘historic’ premises to creative office space will be done in a very sensitive way in order to preserve ‘the industrial soul’ of these old buildings. Also, utmost attention will be paid to architectural details and great new amenities will be introduced for the benefit of the future tenants that desire to become part of the true fabric of Portland’s authentic Eastside culture.”
Cushman & Wakefield’s Portland office, led by industry veteran Brad Carnese, a Senior Director, represented owner/operator Custom Stamping & Manufacturing Co in the disposition. In addition, Mr. Carnese along with fellow industry veterans Tom Usher, Mark Carnese, Doug Deurwaarder and Matt Johnson—the four collectively known as The Usher Team—also of the firm’s Portland office, have all been retained by Capstone and to handle the leasing of Custom Blocks.
Brad Carnese said, “For the first time in a half century, this facility was brought to market and provided an amazing development/redevelopment opportunity. We received strong interest from multiple potential developers on the West Coast wanting to acquire the property and our client selected Capstone as the buyer due to its visionary proposal and ability to transact in a timely manner.”
To access a high res EXTERIOR rendering of Custom Blocks, click here.
To learn more about potential leasing opportunities, please contact the Cushman & Wakefield leasing team.
To access a high res INTERIOR rendering of Custom Blocks, click here.
Working from offices in Portland and Seattle, Capstone invests and develops office, industrial, multi-family, mixed use and retail properties. Since 2002, Capstone has developed and/or acquired over 4 million square feet of industrial, multifamily, Class A office, medical office and retail space representing over $980 Million in investment activity.
Capstone’s Portland office is currently under construction on 332 multifamily units, 355,000 square feet of spec industrial, 192,000 square feet of spec urban creative/tech office with a pipeline of another 900,000 square feet of spec industrial and 30,000 square foot of urban retail center.
In July of 2016, The Portland Business Journal ranked Capstone Partners the largest commercial developer in the Portland Metro area for the second year.
About Premium Property USA
Premium Property USA, Inc. is a wholly owned subsidiary of a privately held real estate development and investment company located in Zurich, Switzerland. In 2012, Premium Property entered the US Real Estate market as an active co-developer and majority equity partner of local sponsors in Oregon and Texas. Over the past 16 years, its global development and investment volume has well exceeded the mark of US$ 1,0 billion. The company’s references include apartment and office buildings as well as retail and logistic facilities.
About Cushman & Wakefield
Cushman & Wakefield is a leading global real estate services firm that helps clients transform the way people work, shop, and live. Our 43,000 employees in more than 60 countries help investors optimize the value of their real estate by combining our global perspective and deep local knowledge with an impressive platform of real estate solutions. Cushman & Wakefield is among the largest commercial real estate services firms with revenue of $5 billion across core services of agency leasing, asset services, capital markets, facility services (C&W Services), global occupier services, investment & asset management (DTZ Investors), project & development services, tenant representation, and valuation & advisory. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.