American Reality Advisors, Unico purchase Moda Tower
A Class A office tower in Portland's Central Business District has a new owner.
American Realty Advisors and joint venture partner Unico Properties LLC have acquired MODA Tower, a 398,412 square-foot office building at 601 S.W. Second Ave.
Moda Tower currently is 90 percent leased, including two of the building's original tenants, Moda Health and the Portland law firm of Lane Powell. Nordstrom Rack occupies a ground-floor retail space in the building. The building also contains five levels of above-ground parking
Constructed between 1997 and 1999 from a design by Zimmer Gunsul Frasca, which now goes by ZGF Architects, the building was originally called ODS Tower after the health care company that originally owned it. ODS sold the building for $123 million in 2005, but remained on as the tower's main tenant. The building was sold again in 2013, for $129 million. The building name was changed to Moda Tower after ODS rebranded itself as Moda Health.
While Portland is currently experiencing a flurry of new office construction, Moda Tower's new owners see the building as a prime contender when it comes to attracting tenants.
Most of the new office spaces rising are on the fringes of the downtown area. Moda Tower, however is "right in the center of everything," Brian Pearce, Unico Properties senior vice president of real estate services, said.
"(Moda) has a great window line and a great floor plate," Pearce said
While the lobby of the building will receive some updating, the work will be limited, according to Pearce. That's a benefit of the building being less than 20 years old.
"It just needs a light refresh versus this heavy lifting you're seeing a lot of (older) buildings in Portland have to do."
Efforts will be made to fill the 10 percent of the building that's currently vacant, but the tenants occupying the rest of the building all have long-term leases, one of the more compelling aspects of purchasing the property for Unico and American Realty Advisors.
"The thing that really was attractive ... was there's not a lot of leasing to do," Pearce said." Our tenants have longer term leases. So, there's less risk for us in the in the case of any short-term (market) uncertainty that may be out there."
Moda Tower is the second property that Unico Properties and American Reality Advisor have purchased through a joint venture. The first property, purchased last year, was the 384,951 square-foot Congress Center on Southwest Fifth Avenue. The 23-story office tower, which was built in 1980, is now called Sixth+Main.