MarkDaMan
12-18-2006, 04:25 PM
Deacon joins the Central Eastside
Portland Business Journal - December 15, 2006
by Wendy Culverwell
Business Journal staff writer
A long-vacant office building in Portland's Central Eastside Industrial District will be transformed into the new headquarters of S.D. Deacon Corp., a prominent local contractor. The transaction also further validates a city strategy to transform the industrial district.
S.D. Deacon teamed with Elliott Associates Inc. to purchase the former headquarters of Copeland Lumber, 901 N.E. Glisan St., for $3.85 million. The new owners are spending $2 million to update the aging building and replace mechanical equipment.
S.D. Deacon, with about 150 local employees, will occupy about 70 percent of the building. Elliott, a property management firm, will take the rest.
Copeland built the 25,000-square-foot building in 1977. Designed by Dale Farr of Fletcher Farr Ayotte, it won awards both for the design and its extensive landscaping.
When Copeland went out of business, it sat empty for years, waiting for the right company to move into Portland's close-in industrial sanctuary.
Steve Deacon, who founded the construction company that bears his name 25 years ago, said he decided five years ago to become an owner rather than renter as the leases expired on his four offices, in Portland, Seattle, and Newport Beach and Sacramento, Calif.
So far, the strategy is a success and Newport Beach is the only S.D. Deacon office still in leased quarters.
Interestingly, he almost gave up on finding a good site to buy in Portland and was prepared to renew his lease at Johns Landing, near the Old Spaghetti Factory.
S.D. Deacon employees had seen -- and rejected -- the Copeland Building a few years earlier, but Deacon decided to have a look for himself. It improved on second viewing.
"Once we saw it, it just felt right," he said. The size, forested site, proximity to downtown -- without being in downtown -- and abundance of parking filled Deacon's every wish.
Deacon said his company, naturally, is performing the construction work, which includes standard tenant improvements, a new elevator, mechanical gear and cosmetic updates. Work began at Thanksgiving and will continue through the move-in date in March.
S.D. Deacon's decision to make the Central Eastside its permanent base is welcome news to the neighborhood, said Tim Holmes, president of the Central Eastside Industrial Council.
"It's an office use that fits in the industrial sanctuary," he said. Because the former owner kept it up, it did not deteriorate into a neighborhood eyesore. Still, local businesspeople eyed the vacant building with a bit of regret.
"It's so sad to see such a wonderful building sit vacant," said Holmes.
S.D. Deacon was the right buyer for the building, said Denyse McGriff, project manager for the Portland Development Commission's Central Eastside urban renewal area. Many looked at the building, but S.D. Deacon brings the right combination of business -- industrial mixed with office -- and quality jobs. Too, the city was pleased to keep the company in town.
"I think they'll be good neighbors for the area," she said. Its decision to locate on the eastside validates the area as well.
"Companies are understanding the mission of the business district. This is a good place to do business," McGriff said.
S.D. Deacon is but one of a number of good things happening in the vicinity, which is just south of the Burnside Bridgehead area. The PDC is attempting to energize the area with an ambitious redevelopment project complete with offices, residences and retail.
Tom Usher, senior director with Cushman & Wakefield of Oregon Inc., agreed. He represented S.D. Deacon along with Mark and Brad Carnese.
The deal was difficult to bring to a close, but he said the neighborhood offers plenty of opportunity for growth.
With new development on Burnside to the north, the rehabilitation of the Holman Building to the south, and hip local businesses such as Doug Fir, Bikeworks, the Jupiter Hotel and others, there's a strong argument that it is a good place to be.
"I just think it's a great opportunity," Usher said.
S.D. Deacon is a multidisciplinary contractor with particular expertise in retail construction. Clients include Best Buy Co. Inc., Albertsons, Wal-Mart Stores Inc. and Nike Inc., to name a few. With $65.5 million in local billings in 2004 and 122 employees, it was ranked Portland's ninth-largest commercial contractor in the Portland Business Journal's 2006 Book of Lists.
wculverwell@bizjournals.com | 503-219-3415
Portland Business Journal - December 15, 2006
by Wendy Culverwell
Business Journal staff writer
A long-vacant office building in Portland's Central Eastside Industrial District will be transformed into the new headquarters of S.D. Deacon Corp., a prominent local contractor. The transaction also further validates a city strategy to transform the industrial district.
S.D. Deacon teamed with Elliott Associates Inc. to purchase the former headquarters of Copeland Lumber, 901 N.E. Glisan St., for $3.85 million. The new owners are spending $2 million to update the aging building and replace mechanical equipment.
S.D. Deacon, with about 150 local employees, will occupy about 70 percent of the building. Elliott, a property management firm, will take the rest.
Copeland built the 25,000-square-foot building in 1977. Designed by Dale Farr of Fletcher Farr Ayotte, it won awards both for the design and its extensive landscaping.
When Copeland went out of business, it sat empty for years, waiting for the right company to move into Portland's close-in industrial sanctuary.
Steve Deacon, who founded the construction company that bears his name 25 years ago, said he decided five years ago to become an owner rather than renter as the leases expired on his four offices, in Portland, Seattle, and Newport Beach and Sacramento, Calif.
So far, the strategy is a success and Newport Beach is the only S.D. Deacon office still in leased quarters.
Interestingly, he almost gave up on finding a good site to buy in Portland and was prepared to renew his lease at Johns Landing, near the Old Spaghetti Factory.
S.D. Deacon employees had seen -- and rejected -- the Copeland Building a few years earlier, but Deacon decided to have a look for himself. It improved on second viewing.
"Once we saw it, it just felt right," he said. The size, forested site, proximity to downtown -- without being in downtown -- and abundance of parking filled Deacon's every wish.
Deacon said his company, naturally, is performing the construction work, which includes standard tenant improvements, a new elevator, mechanical gear and cosmetic updates. Work began at Thanksgiving and will continue through the move-in date in March.
S.D. Deacon's decision to make the Central Eastside its permanent base is welcome news to the neighborhood, said Tim Holmes, president of the Central Eastside Industrial Council.
"It's an office use that fits in the industrial sanctuary," he said. Because the former owner kept it up, it did not deteriorate into a neighborhood eyesore. Still, local businesspeople eyed the vacant building with a bit of regret.
"It's so sad to see such a wonderful building sit vacant," said Holmes.
S.D. Deacon was the right buyer for the building, said Denyse McGriff, project manager for the Portland Development Commission's Central Eastside urban renewal area. Many looked at the building, but S.D. Deacon brings the right combination of business -- industrial mixed with office -- and quality jobs. Too, the city was pleased to keep the company in town.
"I think they'll be good neighbors for the area," she said. Its decision to locate on the eastside validates the area as well.
"Companies are understanding the mission of the business district. This is a good place to do business," McGriff said.
S.D. Deacon is but one of a number of good things happening in the vicinity, which is just south of the Burnside Bridgehead area. The PDC is attempting to energize the area with an ambitious redevelopment project complete with offices, residences and retail.
Tom Usher, senior director with Cushman & Wakefield of Oregon Inc., agreed. He represented S.D. Deacon along with Mark and Brad Carnese.
The deal was difficult to bring to a close, but he said the neighborhood offers plenty of opportunity for growth.
With new development on Burnside to the north, the rehabilitation of the Holman Building to the south, and hip local businesses such as Doug Fir, Bikeworks, the Jupiter Hotel and others, there's a strong argument that it is a good place to be.
"I just think it's a great opportunity," Usher said.
S.D. Deacon is a multidisciplinary contractor with particular expertise in retail construction. Clients include Best Buy Co. Inc., Albertsons, Wal-Mart Stores Inc. and Nike Inc., to name a few. With $65.5 million in local billings in 2004 and 122 employees, it was ranked Portland's ninth-largest commercial contractor in the Portland Business Journal's 2006 Book of Lists.
wculverwell@bizjournals.com | 503-219-3415
