JLL Picks Up Central Business District Office Tower
Pioneer Tower, a 17-story Class-A office building in Portland’s central business district, is now part of JLL Income Property Trust’s portfolio. The firm picked up the building for $122M at an estimated cap rate of 5%. Pioneer Tower sits atop Pioneer Place Mall and is close to light rail. At the time of sale, the building was 95% occupied.
“While our investment strategy has led us to underweight our allocation to office properties,” JLL Income Property Trust CEO Allan Swaringen says, “the opportunities at Pioneer Tower are very compelling. Portland is currently exhibiting a low direct vacancy rate of 6.7%, has maintained a lower-than-10% vacancy rate for the past 10 years, and is one of LaSalle’s target office markets.”
JLL Income Property Trust’s research and strategy team has promoted its "DTU" theme, consisting of demographics, technology and urbanization, for identifying higher-quality, core urban investments, Allan says. All of those factors intersect at Pioneer Tower, along with the opportunity to invest at nearly a 10% discount to replacement cost.
