The aroma of scam
Here's an odd story: The old federal Customs House over by the main Post Office has been sold for almost twice as much as the recent auction price in a deal that fell through. That old hulk of a structure didn't double in value over the past year and a half. So who overpaid?
Sounds like a Portland Development Commission purchase, in which case it will soon be handed over to one of the Usual Suspects for, oh, I don't know, $1.
And the feds say they will keep the buyer's identity secret until after the deal has closed. Will the local mainstream media flush out a name? That remains to be seen. The lack of transparency is absolutely appalling. Hey, Gatsby Wyden! How's about a little sunshine on this one?
UPDATE, 6:47 p.m.: According to this version of the story, the buyer's identity will be revealed when a 10% deposit is put down, within 10 days. How that is "finalizing" the deal is anyone's guess.
| Posted at 5:09 PM | Permalink |
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Comments (12)
Secure bike parking.
Posted by reader | February 27, 2012 5:11 PM
While it is a beautiful building, is it functionally obsolete and was constructed without an "exit strategy". The new owner will spend over $15 million to achieve basic seismic upgrades and install modern building systems (heating and cooling, bathrooms, etc). With $4.7 million purchase price, required basis building upgrades, tenant improvement costs, the total cost basis for the building will be over $325 per square foot ($25.75 million). Assuming the buyer requires a 9% return on cost, this equates to a NET rental rate of $29.25. Add operating expenses and gross rent will be in high $30s...this is 5-10% higher than top rents achieved for newer class 'A' buildings downtown. Hopefully this will be an owner/user that can justify above market costs for the benefit of a single user building...
Posted by Brian Owendoff | February 27, 2012 5:20 PM
It's got to be government, with money to burn. Maybe Metro? The Port?
Posted by Jack Bog | February 27, 2012 5:21 PM
The U of O?
Posted by Jack Bog | February 27, 2012 5:28 PM
Maybe Hollywood? Grimm and Leverage use that building.
Posted by Jon | February 27, 2012 6:01 PM
PSU starting another sustainability center?
Posted by pdxjim | February 27, 2012 6:20 PM
If its the PREM House, that's Homer's mgmt company.
Posted by Steve | February 27, 2012 6:20 PM
I smell a rat! Oh wait, that's just the uncollected garbage.
Posted by Portland Native | February 27, 2012 7:07 PM
It does sound like a classic CoP purchase, similar to the post office "deal".
Posted by Mr. Grumpy | February 27, 2012 7:24 PM
PDC bought it. PDC needs to expand since Sam is moving on over after he's out of the mayor's office. He's taking all of his staff with him, plus he'll have 7 PDC mentoring coaches helping him on ethic issues and how to read a spread sheet.
Posted by lw | February 27, 2012 8:44 PM
Like I have said before, I think Sam is going to turn it into the "Sam Adams Home for wayward boys".
Posted by Bart | February 28, 2012 7:54 AM
Word on the street is Jordan Schnitzer is purchasing to renovate into an art museum. This is a good use for this property and could make old town a bigger tourist draw (in addition to the Chinses Gardens).
Posted by Brian O | March 4, 2012 8:48 AM