Case Study

Challenge:

  • The 360 Bond Building is the most prestigious offi ce building in the Bend market, of institutional grade quality, and carrying a rent roll of solid, credit tenants. However, Bend is not a target for most institutional investors because it is a tertiary market.
  • 360 Bond is much higher quality than other Bend offi ce inventory, so it was a challenge to “comp out” the rents, and therefore, the income, making it more diffi cult to justify the valuation.
  • The transaction size was large enough that most high net worth individuals and 1,031 buyers were not part of the buyer pool.

Strategy:

  • Sell the story of a compelling opportunity to own an institutional quality asset with strong in-place income, and the ability to add value on lease rollover as Bend rents continue to rise.
  • Market the highly amenitized building and Old Mill District - anchored by a new mixed-use development, next to shopping, restaurants, a movie theater, amphitheater, walking trails and downtown Bend.

Result: Sold the building for $25.5 million ($312 PSF) to a high net worth buyer from Eugene, Oregon.