DowntownPortlandofficecomplexfacesloandefault


By Jonathan Bach – Staff Reporter, Portland Business Journal Jun 14, 2024 UpdatedJun 14, 2024 3:23pm PDT
ParkSquare,anofficecomplexthatsprawlsacrosstwobuildingsandsome296,000 squarefeetnearthedowntownPortlandwaterfront,appearstobeheadedfora foreclosuresale.
Thepropertyat100S.W.MarketSt.isthelatestcasualtyofthepost-pandemiccrashof Portland'sdowntownofficemarket,wherethevacancyrateis31%andrising,according tobrokerageCBRE.
NationalinvestorPCCPLLC,whichadvertises$23.6billioninassetsundermanagement, boughtParkSquarein2019for$96.5millionthroughalimitedliabilitycompanycalled ParkSquareOwnerLLC.Atthetime,ParkSquarewasnearlyfullyleasedwithtenants includingRegenceBlueCrossBlueShieldofOregonandHealthSparq.
ParkSquareOwnerLCCisnamedinadefaultnoticefiledJune11withMultnomah Countyandowesabout$37.5millionondebttiedtothebuildings.
Aforeclosuresaleisscheduledfor10a.m.onOct.30attheMultnomahCounty Courthouse,accordingtothenoticeofdefault.PCCPdidnotimmediatelyrespondtoan emailedrequestforcomment.
PCCPdoesn'tmakemuchmentionofParkSquareonitswebsitebesidesina2021-22 report,whereitboastedofParkSquare'stwo-starratingwithFitwel."Basedonour expectationthattheonsitegymwillbecompletedneartheendof2022,"thereportsaid, "PCCPisconfidenttheParkSquarepropertywillbeeligibleforanevenhigherFitwel ratinginthefuture"
ParkSquarerankedNo.25ontheBusinessJournal'slistoflargestofficebuildingsinthe Portlandmetro.ThetwobuildingsthatmakeupParkSquarearethesix-storyR.L. WoolworthBuilding,whichtoppedalistofemptiestofficebuildingstheBusiness JournalpublishedlastOctober,andasecond,seven-storybuilding.
Severaldowntowncommercialbuildingshavegonethroughforeclosuresincethe pandemicreshapedofficeculturetofavorhybridwork.
MostnotablewasMontgomeryPark,whoseownersdefaultedon$149millionindebt associatedwiththe18-acrepropertyinNorthwestPortland.Itscourthouseauctiontook placeinFebruary.Becausenooneshoweduptobid,itwentbacktoitslender.Brokerage NewmarkwasseekingtodrumupfreshinterestinMontgomeryPark,thecity'sthirdlargestofficebuilding,asofthisspring.