This six-building industrial facility is located on 62 acres at 6433 SE Lake Road in Milwaukie, Oregon, in the Clackamas submarket of the greater Portland, Oregon metro area. In a joint venture between real estate funds managed by Ares Management, L.P and an affiliate of Specht Development, Inc. the property was purchased in 2018 for $48.5 million. The seller signed a short-term sale leaseback at closing.
The seller, a grocery wholesaler (SuperValue), utilized the property as its primary distribution facility. The 1,012,428 square-foot property includes warehouse, distribution and manufacturing space, freezer/cooler space, a separate 2-story administrative office, a truck maintenance facility and approximately 10 acres of excess trailer storage. It also included a standalone 48,000-square-foot office on the site.
The Specht team successfully completed a four-year renovation and leasing plan to modernize the property and stabilize occupancy; improvements included new roofing, dock doors, added structural upgrades, added tenant entries, and various site improvements. Additionally, in order to enhance exit value, four additional parcels were created with and separate utility services were installed to allow disposition of individual buildings to users and/or owners.
Prior to expiration of the SuperValu lease, the standalone 116,000 s.f. freezer building was leased to C&S Wholesale Grocers.
The lease-up of the remaining warehouse, distribution and manufacturing space was completed within approximately two years of the expiration of the initial sale-leaseback.
In the fall of 2024 after successful completion of the renovation, subdivision and leasing plan, the property was sold to three separate buyers: one purchased the separate truck maintenance building and excess trailer parking as an IOS acquisition, one purchased the stand-alone freezer building and one purchased the stabilized warehouse building.
To complete the business plan Specht successfully navigated multiple land use approvals processes, a subdivision, wetlands fill permitting, seismic and structural upgrades, and a variety of other anticipated challenges on this unique asset.
Copyright © 2025 Specht Properties
Copyright © 2024 Specht Properties