The Montgomery Park office complex in Northwest Portland has sold for $33 million to a company tied to the Menashe real estate family, according to property records filed on Friday.
Three family members involved in Portland-based Menashe Properties — Barry, son Jordan and daughter Lauren — initially declined to comment when reached on Friday.
On Saturday morning, Jordan Menashe, principal and chief executive of Menashe Properties, confirmed the deal in an email: “It is an honor to have the opportunity to purchase one of Oregon’s most iconic assets. We are going to do everything we can to revitalize Montgomery Park back to its glory days.”
The building at 2701 N.W. Vaughn St. last sold in 2019 for $255 million.
The Menashe family has in the past year purchased urban offices, namely the downtown J.K. Gill and American Bank buildings, at tremendous discounts amid Portland’s broader commercial property travails. According to data from real estate brokerage CBRE, more than 31% of city center office space is vacant.
COVID-19 “advanced and over-exaggerated work-from-home in a world where personal interaction is critical to professional and individual growth, success and happiness,” Jordan Menashe said.
Montgomery Park is a bellwether for Portland office culture by dint of its sheer size. It is the metro area’s third-largest office building, behind No. 2 Wells Fargo Center and No. 1 U.S. Bancorp Tower, according to a list compiled by the Portland Business Journal.
The Oregonian/OregonLive first reported on July 17 Menashe Properties was considering buying Montgomery Park. Founder Barry Menashe had denied the existence of a deal while leaving the door open to one later.
On Friday, property records filed in Multnomah County disclosed that Montgomery Park PDX LLC had purchased the building for $33 million, representing an 87% decline in value from its 2019 sale price when a company tied to Seattle-based Unico Properties bought it for $255 million.
After those owners defaulted on debt, the building went through a foreclosure auction in February but failed to attract any bidders then, so the lender brought on real estate brokerage Newmark to find buyers.
Barry and Jordan Menashe are associated with Montgomery Park PDX LLC in state business records. The limited liability company was established last month as a real-estate investment company.
In his email, Jordan Menashe said he saw the city as safer, cleaner and livelier than even six months ago. “I am impressed with this turnaround story that is developing,” he noted. “Portland boasts phenomenal walkability, edginess, and geographic perfection.”
This story was updated with comment from Jordan Menashe.
— Jonathan Bach covers housing and real estate. Reach him by email at [email protected] or by phone at 503-221-4303.
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