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Old Posted Apr 19, 2007, 3:17 PM
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First and Main | 251 feet | 16 floors | Complete

if anyone can find the first and main thread, we can post the story there...couldn't find it in the search though.

New giant on the horizon
Office space - Shorenstein Properties' downtown Portland project breaks a seven-year drought in high-rise construction
Thursday, April 19, 2007
DYLAN RIVERA
The Oregonian

A family-run San Francisco real estate giant that recently bought its way to the top of Portland's office market intends to start construction by the end of the year on downtown's first high-rise office tower since 2000.

Shorenstein Properties also will start planning the final two office buildings in the Kruse Way office corridor, where rents and tenant demand are the strongest in the region.

Doug Shorenstein, chairman and chief executive, disclosed those plans Wednesday as he introduced his company to Portland-area real estate and business leaders. In the largest commercial real estate deal in Oregon history, his company last month paid $1.13 billion for 46 buildings and three development sites -- equivalent to the dollar volume of about five years' worth of typical Portland-area office transactions.

Shorenstein said the company would begin the downtown project even without securing an anchor tenant for the building. That represents a reversal from a prior owner, Equity Office Properties Trust, which had insisted it would not start construction without significant lease commitments.

It also places Shorenstein in a contest with Portland's Tom Moyer, who earlier this year said he would soon build an office tower without the financial security that comes with pre-leasing commitments.

"The empirical evidence, with low vacancy rates and existing job growth, justifies the need for additional space two years out," Shorenstein said Wednesday.

Shorenstein Properties owns 25 million square feet of space in 11 metro areas across the nation, including Seattle and San Francisco. It has studied Portland for many years and was attracted to the region's moderate job growth and "reasonable" growth restrictions, which curb competition among commercial real estate developers, Shorenstein said.

The company typically holds and manages buildings for 10 to 20 years, Shorenstein told a sold-out breakfast gathering of the Commercial Association of Realtors Oregon/Southwest Washington. The company borrowed about 65 percent of the Portland purchase price, a relatively low fraction of debt.

The Shorenstein family put about $100 million of its own money in the deal, making it the second-largest stakeholder after the Yale University endowment.

With the purchase, the company obtained buildings that comprise 85 percent of the Kruse Way office market, where rents are among the highest in the region at more than $30 a square foot, Shorenstein said. The company's two development sites are the last in the corridor, he said.

He set no date for development. Potential development sites in Johns Landing and the Washington Square area would require more study, Shorenstein said.

The company's long-term holding period and community involvement won accolades from the Portland real estate community Wednesday.

"They have a long track record, they care about their tenants and the community that they're in," said Jordan Schnitzer, president of Harsch Investment Properties, a commercial development firm.

Other development firms said they welcomed the competition.

Vanessa Sturgeon, president of Tom Moyer's TMT Development, said Moyer would not be deterred by Shorenstein's intent to build.

"Tom Moyer develops for the long term, and there's always going to be competition in a market and there's nothing wrong with positive, healthy competition," Sturgeon said. "But Tom Moyer's a Portland man, TMT's a Portland firm and if history is any indicator, we deliver what's right for the Portland market."

Moyer personally financed construction of the Fox Tower, which opened in 2000 with 93 percent occupancy.

Known as First and Main, Shorenstein's downtown project would rise next to the Justice Center downtown, at the west end of the Hawthorne Bridge.

The project became controversial last year, when Multnomah County said it intended to build a courthouse there, and threatened to condemn the site, although the county did not have funding for the project.

Doug Butler, facilities director for Multnomah County, said Shorenstein officials had met with him to discuss their plans. Butler said he hopes a tunnel can be built during the office tower's construction that could allow for a secure, underground connection from the Justice Center to a future courthouse east of the First and Main site.

Shorenstein is "open to discussion to help any way we can," to facilitate the county's plans, said Charles Malet, executive vice president and director of leasing and asset management for Shorenstein.

Shorenstein bought the portfolio from The Blackstone Group, which bought Equity Office for $39 billion in what was the largest leveraged buyout in U.S history when it closed in mid-February.

Within days of the closing, Blackstone sold off multibillion-dollar pieces of the Equity Office empire from Boston to Seattle.

Dylan Rivera: 503-221-8532; dylanrivera@news.oregonian.com

http://www.oregonlive.com/business/o...480.xml&coll=7
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Old Posted Aug 9, 2007, 3:48 PM
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As First and Main dig begins, county hopes to piggyback
Daily Journal of Commerce
by Libby Tucker
08/09/2007


Excavation work for a new 15-story office tower at Southwest First and Main in downtown Portland will soon begin. And Multnomah County, which has plans to build a new courthouse on an adjacent property, wants to piggyback on the dig to build a tunnel through the site.

The county, hoping to build a courthouse next door to its Justice Center at 1120 S.W. Third Ave., considered buying the First and Main site. But the county failed to act before the property was snatched up in 2005 by Equity Office Properties. The Blackstone Group of New York in February acquired Equity Office and its Portland portfolio, and then dumped the portfolio, including First and Main, to Shorenstein Properties of San Francisco.

Negotiations with Shorenstein are now under way to somehow incorporate into First and Main’s underground parking structure a tunnel that would connect the existing Justice Center with a new courthouse to be built at the Hawthorne bridgehead.

“We’re talking with (Shorenstein) about what the options are to link the two buildings,” Pam Krecklow, the courthouse project manager for Multnomah County, said. “And since First and Main is between them,” she said, it’s the ideal location for a tunnel.

It’s too early to know the cost or location of such a project, she said, but the deal could throw the county into a public-private partnership with Shorenstein.

The county, Krecklow said, has long planned to build a tunnel as part of a project that would replace the nearly century-old courthouse at 1021 S.W. Fourth Ave.

The Multnomah Bar Association advocates replacing the courthouse, which has an outdated electrical system and is not earthquake-safe, Judy Edwards, executive director of the bar association, said.

By partnering on Shorenstein’s First and Main dig, the county could split the costs with the real estate developer and save money. And it would avoid having to dig a longer tunnel, because the county won’t be able to dig a direct route to the planned courthouse under the First and Main site once Shorenstein builds an office tower on it.

General contractor Hoffman Construction Co. last week took bids for excavation on the site. In October the contractor will begin digging a city block-sized hole 35 feet deep to make way for a three-story underground parking structure for the new office building.

A tunnel under the First and Main site is technically feasible, Brett Shipton, an associate with GeoDesign Inc., the project’s geotechnical engineers, said. The decision to go ahead with the partnership, he said “is probably political at this point.”

“Right now (the county) is busing between the Justice Center and the current courthouse and that’s problematic on numerous levels: security, operations, cost,” Krecklow, said. “A tunnel would provide a secure (route).”

But the county still has only secured $9 million for the courthouse project – enough to tear down an old approach to the Hawthorne Bridge to clear that site for courthouse construction. Demolition of the approach is scheduled to begin in 2008, Krecklow said.

“It’s always good to segregate the accused from the general public, and so if that’s the best way to get them there for their safety and the public safety, we’d support that,” Edwards said. “We’re just hoping they get started building a new courthouse before (the old) one falls down.”

First and Main dig to use new tech

Downtown office workers may hardly notice when excavation work for the 15-story First and Main office building begins in October.

Instead of driving the building’s steel piles into the ground with a large hammer, contractors will use a quieter “decompress” system that essentially shoves the metal into the soil without slamming it, according to the project’s geotechnical engineer.

It is the first time the new approach to pile driving has been used in Portland, Brett Shipton, an associate with GeoDesign Inc., said.

“It’s a press rather than a hammer, so it won’t disturb surrounding businesses,” Shipton said.

The machine will drive steel sheets 35 feet into the ground, shoring up the soil to keep surrounding roads intact during excavation. The metal sheets will then serve as the walls for a new three-story underground parking structure once digging is finished. – Libby Tucker

Project details:

Owner: Shorenstein Properties LLC, San Francisco

Developer: Gerding Edlen Development Co., Portland

Contractor: Hoffman Construction Co., Portland

Architect: GBD Architects, Portland

Engineer: KPFF Consulting Engineers, Portland

Civil Engineer: Harper Houf Peterson Righellis, Portland

Geotechnical Engineer: GeoDesign Inc., Portland
http://www.djcoregon.com/viewStory.c...29912&userID=1
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Old Posted Aug 9, 2007, 5:45 PM
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good news
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Old Posted Aug 9, 2007, 8:58 PM
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Old Posted Aug 9, 2007, 9:51 PM
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That doesn't look half bad. I hope it has an engaging street presence though.

I work 2 blocks from the site, so I'll put some pictures up for everyone once things get underway.
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Old Posted Aug 9, 2007, 11:40 PM
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Not too bad, at least it will update the look of that part of the skyline when you come across the bridge.
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Old Posted Aug 10, 2007, 12:12 AM
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I have to say I think it looks very plain and somewhat boring, even ugly. But that's just my opinion. I wonder if anyone studied the glare issues with the morning sun coming over the bridge...
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Old Posted Aug 10, 2007, 12:58 AM
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I wonder if anyone studied the glare issues with the morning sun coming over the bridge...
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Old Posted Aug 10, 2007, 1:36 AM
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By itself it looks like something you'd see over at Lloyd Center. Not a compliment. But in the photo that shows the building in context, surrounded by "traditional" Portland buildings (don't know what else to call them, but that does not mean I don't like some of them), I find it refreshing. And almost ANY building that helps block views of the Federal Building (worst modern building in Portland, IMO) is an improvement. Therefore, I like it.
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Old Posted Aug 10, 2007, 3:59 AM
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Ho hum, another very mediocre building for the waterfront. Meh.
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Old Posted Aug 10, 2007, 4:51 AM
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I hate it, but... it will perfectly complement that mass of mediocre mid-rise buildings that makes up most of downtown. It has kind of a "hey, Portland woke up and discovered it was 1997" look to it.

Looking at that top picture makes me miss the old city, so much of which has been torn out.
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Old Posted Aug 10, 2007, 5:02 AM
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I don't think it's that bad. It's leaps and bounds better than anything Portland has in that area.
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Old Posted Aug 10, 2007, 5:07 AM
kvalk kvalk is offline
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"It's leaps and bounds better than anything Portland has in that area."

Not really, the federal courthouse is only a block away, and even the brick building a couple blocks south, which i think was once called the BofA building, is better.
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Old Posted Aug 10, 2007, 5:15 AM
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The first rendering:

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Old Posted Aug 10, 2007, 6:53 AM
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ugh.. what are those ugly pergola things that jut out of the roof? yuck
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Old Posted Aug 10, 2007, 4:00 PM
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Quote:
Originally Posted by kvalk View Post
I have to say I think it looks very plain and somewhat boring, even ugly. But that's just my opinion. I wonder if anyone studied the glare issues with the morning sun coming over the bridge...
what, we have sun in oregon now?

You must be confusing us with California!

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Originally Posted by mcbaby
ugh.. what are those ugly pergola things that jut out of the roof? yuck
Perhaps they are a giant trellis for growing large vines. You know, Jack-in-the-beanstalk scale.
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Old Posted Aug 10, 2007, 4:22 PM
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I think the building design is solid...certainly not innovative, but we have PAW going up for the 21st century look.

I actually have a window that overlooks the First and Main site. Can't wait to see construction start.
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Old Posted Aug 11, 2007, 10:48 AM
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when does construction start?
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Old Posted Aug 13, 2007, 5:23 AM
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In person is the glass as dull as they look in pictures? It just looks like a tall dull blob from the pictures I've seen.
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Old Posted Aug 15, 2007, 3:27 AM
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theres going to be the new county courthouse in front of it... eventually
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