By Jon Bell
For the past almost five years, Chicago-based real estate investment firm Zeller Realty Group has been itching to get into Portland, Oregon.
Now, they’re in.
ZRG has purchased the Umpqua Bank Plaza at 1 S.W. Columbia St. in downtown Portland from Shorenstein Properties. Several local sources confirmed the price was $90 million. Shorenstein paid $84 million for the 19-story building in 2007.
“We love the demographics and the fundamentals of the Portland market,” said Bill Rogalla, director of acquisitions and dispositions for ZRG. “This opportunity presented itself and we pursued it aggressively.”
Ryan Bergman, a vice president with ZRG, worked with Rogalla on the deal. Eastdil Secured represented Shorenstein.
Umpqua Bank occupies multiple floors of the building for its corporate headquarters.
ZRG has hired Cushman & Wakefield to handle leasing and management of the building. The local team includes Lana Baldock, Dan Swift and Havilah Coady, who also handled the leasing during five years of Shorenstein’s ownership and pushed the building’s occupancy rate up to 97 percent.
“We are eager to continue our effort of tenant retention while bringing this iconic tower to full occupancy,” Baldock said, in a release. “Umpqua Bank Plaza is a distinguishing property in Portland and we are thrilled that ZRG is entering the market by acquiring the asset.”
Although this is ZRG’s first foray into Portland, Rogalla said it will not likely be its last.
“We’d love to expand our presence in Portland, and Seattle has been on our radar as well,” he said. “The Pacific Northwest is a high priority for us.”