707 SW Washington St, Portland, OR, 97205-3536, US

Union Bank Tower

Asset description

JLL, as exclusive advisor, is pleased to present a joint venture opportunity for the development of the data center build-out of Union Bank Tower, a 180,735-square-foot office and data center asset strategically located in Portland's West End CBD. This offering proposes a unique structure where the existing office component is separated from the data center expansion, allowing for specialized management and risk allocation between partners. The proposed JV agreement will be designed to leverage the strengths of both parties, combining current ownership's real estate expertise with the potential partner's data center operational knowledge.

This iconic property, situated one block from Portland's Internet Exchange and in close proximity to major switching facilities, currently hosts 12 fiber-optic carriers and 15 data center tenants in its Meet-Me-Room (MMR), as well as significant leases with companies such as Verizon, AT&T, Comcast, and Lumen. The asset offers significant value-added potential through expansion of its data center footprint in three phases, for a combined 10.157 MW.

With the nearby Pittock Block trading at nearly $1,100 per square foot in late 2020, this opportunity represents a unique position in Portland's growing data center market, offering partners the chance to capitalize on the property's strategic location and existing infrastructure while creating substantial value through expansion.

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Attributes

Building area gross

180,735 sf

Land area gross

0.92 acres

Occupancy

75.1%

Parking spaces

343

Floors

Year built

1969

Year renovated

2012

Media

Investment highlights

Connectivity: Existing long-haul fiber backbone with multiple carriers and an established Meet-Me-Room.
Path to Power: In-place power for short-term leasing with near-term expansions from Pacific Power providing as much as 10.157 total MW in the future.
Expansion space: Building has multiple areas identified for data center conversion, accommodating standard and higher density designs. The shell space on the 10th Floor offers an immediate opportunity to lease 560 kW and further develop the MMR ecosystem.
Market Strength: Close proximity to Hillsboro submarket, which is one of the fastest growing and largest data center markets in the country. Portland is a key exchange point for several hyperscalers with owned data center in central Oregon.