JLL Portland Completes Sale of Mill Creek Logistics Center
Mill Creek Logistics Center has an advantageous location along the I-5 corridor within the Oregon Enterprise Zone and E-Commerce Zone, both of which offer significant tax incentives
PORTLAND, Ore. (July 6, 2019) – JLL Portland’s Capital Market experts today announced the $105.5 million sale of the state-of-the-art Mill Creek Logistics Center in Salem, Oregon. JLL Managing Directors Buzz Ellis and Mark Detmer and Vice Presidents Adam Taylor and Ryan Sitov led the transaction on behalf of Portland developer Capstone Partners LLC and its joint venture partner PCCP, LLC.
Mill Creek Logistics Center has an advantageous location along the I-5 corridor within the Oregon Enterprise Zone and E-Commerce Zone, both of which offer significant tax incentives. At over one million square feet, and constructed in 2018, the building’s scale is indicative of an industry shift to ever-larger distribution centers, while the building’s location in Salem represents the growing need for logistics companies to expand outside of Portland to find sites that can accommodate modern distribution facilities.
The tenant - an international e-commerce corporation - signed a 12-year lease on the property, signaling their commitment to the facility and the Salem submarket. Mill Creek Logistics Center has been outfitted with built-to-suit features for its current tenant, including a moment frame structure, 7” thick reinforced concrete slab, high-efficiency LED light fixtures with motion sensors, ample trailer parking, and a hydrogen fuel cell charging facility with five charging stations for fork trucks. The metal roof deck is built to accommodate future solar panels, adding value and adaptability over the long term.
“Mill Creek Logistics Center is a best-in-class facility with technologically advanced features and energy-saving innovations,” said Ellis. “The long-term lease to a tenant with exceptional credit provides the buyer with a stable investment in a submarket that is sure to see continued growth.”
Added Detmer “Salem and the I-5 corridor are prime locations for distributors and manufacturers, and as Oregon’s population swells, we foresee a growing movement of future investments to this area.”
The Salem submarket boasts an ample and well educated blue-color workforce to support the transportation and logistics industries as well as an affordable cost of living.
Other companies establishing a presence in the Salem market include Home Depot, FedEx, Garmin, Henningsen Cold Storage, Kettle Foods, Willamette Valley Fruit Company and NorPac Foods.
About Capstone Partners LLC:
Capstone Partners is a Pacific Northwest regional real estate development and investment company with offices in Portland and Seattle. Capstone has completed over $1.4 billion of industrial, office, multi-family residential, and retail projects representing over 5.3 million square feet since 2002.
About PCCP, LLC:
PCCP, LLC is a real estate finance and investment management firm focused on commercial real estate debt and equity investments. PCCP has $9.4 billion in assets under management on behalf of institutional investors. With offices in New York, San Francisco, Atlanta, and Los Angeles, PCCP has a 21-year track record of providing real estate owners and investors with a broad range of funding options to meet capital requirements. PCCP underwrites the entire capital stack to exploit inefficiencies in the market and provide investors with attractive risk-adjusted returns. Since its inception in 1998, PCCP has successfully committed $19.8 billion of capital through a series of investment vehicles including private equity funds, separate accounts and joint ventures. PCCP continues to seek investment opportunities with experienced operators seeking fast and reliable capital. Learn more about PCCP at www.pccpllc.com.
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of over 91,000 as of March 31, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.