MILWAUKIE, Ore.–(BUSINESS WIRE)–A joint venture between real estate funds managed by Ares Management,
L.P. (NYSE: ARES) and an affiliate of Specht Development, Inc.
announced today the $48.5 million purchase of an industrial facility
located on 62 acres at 6433 SE Lake Road in Milwaukie, Oregon, a
submarket of the greater Portland, Oregon area. The transaction closed
on October 26, 2018.
The property is currently used as a distribution center for grocery
wholesaler and retailer SUPERVALU, which will continue to occupy the
facility. At the end of SUPERVALU’s lease, the joint venture plans to
renovate and modernize the property, including such improvements as new
roofing, dock doors, and structural upgrades.
The 992,190-square-foot property includes warehouse, distribution and
manufacturing space, freezer/cooler space, and ample room for truck
maneuvering and excess trailer storage. It also has a separate
48,000-square-foot office on the site.
“This investment makes sense for many reasons. Located inside the I-205
freeway, it is well-situated to the Portland metropolitan core and the
buildings can be utilized in a multitude of ways,” said Greg Specht, CEO
of Specht Development. “Both our acquisition costs and our expected
renovation costs will allow for extremely competitive rental rates to be
offered to future tenants. General industrial market vacancy rates,
combined with historically low vacancy in the Clackamas/Milwaukie area,
bode well for this property’s future absorption.”
“This acquisition fits the Ares Real Estate Group’s longstanding
investment strategy of identifying high-quality, infill properties in
need of substantial repositioning and improvement. It also continues our
practice of partnering with best-in-class developers and sponsors like
Specht Development,” said Jay Glaubach, Partner in the Ares Real Estate
Don Ossey, SIOR, with Portland-based Capacity Commercial Group, served
as the sole real estate broker on the transaction and brought the
off-market opportunity to the joint venture. Josh Katzin, Managing
Director at ACORE Capital, a leading commercial real estate finance
company, originated the acquisition loan. JLL served as Capital Markets
Broker, represented by Buzz Ellis, Paige Morgan, Brian Halpern, Alex
Kane, and Mark Detmer in sourcing both the debt and equity for the
About Ares Management, L.P.
Ares Management, L.P. is a publicly traded, leading global alternative
asset manager with approximately $125 billion of assets under management
as of September 30, 2018 and 18 offices in the United States, Europe,
Asia and Australia. Since its inception in 1997, Ares has adhered to a
disciplined investment philosophy that focuses on delivering strong
risk-adjusted investment returns throughout market cycles. Ares believes
each of its three distinct but complementary investment groups in
Credit, Private Equity and Real Estate is a market leader based on
assets under management and investment performance. Ares was built upon
the fundamental principle that each group benefits from being part of
the greater whole. For more information, visit www.aresmgmt.com.
About Specht Development, Inc.
Specht Development, Inc. was formed in 1992 as the development services
arm for all related Specht entities, and has been responsible for
developing or providing project and construction management on over 11
million square feet of commercial and industrial real estate with a cost
basis in excess of $1 billion. For more information, visit www.spechtprop.com.
About ACORE Capital
ACORE Capital, LP is a commercial real estate finance company focused on
originating, acquiring and managing first mortgages, B-notes, mezzanine
debt and preferred equity throughout the United States. ACORE, which is
an acronym for Alpha Commercial Real Estate, specializes in providing
borrowers with customized financing solutions at competitive rates and
flexible terms. For investors, ACORE is focused on generating alpha
through attractive commercial real estate debt investments coupled with
superior risk management. ACORE is led by commercial real estate finance
veterans Boyd Fellows, Stew Ward, Chris Tokarski and Warren de Haan. For
more information, please visit www.acorecapital.com.
For Ares Management:
Carl Drake, 800-340-6597
Amy Rosenberg, 503-869-2688