Holman building adds to an energetic district
Portland Business Journal - April 13, 2007
by Wendy Culverwell
Business Journal staff writer
Two years ago, Jeff Reaves told the Portland Development Commission the old eastside Holman building was a building "only an architect could love."
Many months and many millions of dollars later, Reaves, principal with Group Mackenzie Architects, is having an easier time making his point.
"Now everyone can love it," Reaves said April 10, when the old warehouse made its debut as a new office building dubbed the RiverEast Center.
Reaves teamed with Jay Haladay, owner and president of Tigard software firm Coaxis Inc., to buy the building from the PDC and redevelop it into a new home for both companies.
The development commission bought the 77,100-square-foot 1951 warehouse for $2.4 million and sold it to Reaves and Haladay at a much lower price hoping an office makeover will lead to new activity on the Central Eastside's southern flank.
The building fronts the Eastbank Esplanade and contains Portland Boatworks and several nonprofits, including the Willamette Riverkeeper.
Coaxis plans to move its 120 employees to its new quarters over the weekend. Group Mackenzie, which is moving from the Johns Landing area, will arrive later, bringing the number of jobs housed there to about 250.
Haladay said the new home works better than he expected it would when he and Reaves responded nearly three years ago to a request for proposals for the property from the PDC.
One factor helping the property is the fact gas levels are up more than $1 a gallon from three years ago, and employees are eager to be in a central location.
The 11-month, $20 million renovation added banks of windows to the old concrete structure, new mechanical systems and of course, a seismic update to keep it from shaking or collapsing in an earthquake.
PDC contributed $3 million to the effort, including a $1 million loan for the seismic work, $600,000 to make over the surrounding site as a public plaza, and a $1.4 million grant to bring jobs to the district.
Cheryl Twete, PDC's development director, said the payoff is already apparent.
"There's a lot of energy in this district," she said.
Reaves and Haladay, who met because their daughters are friends, formed a limited liability corporation that owns the building and leases it back to their company as well as a smattering of tenants. Reaves and his wife have a 40 percent share and Haladay and his wife own 60 percent, reflecting the company's larger share of office space.
Project partners included Howard S. Wright Construction Co., the general contractor; GVA Kidder Mathews, the construction manager; Interface Engineering, the mechanical engineer; GreenWorks PC, the landscape architect; and CBRE Melody, which arranged a $10.05 million loan to the owners.
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