15110 SW Boones Ferry Rd
Lake Oswego, OR 97035
Office Property For Sale

Marcus & Millichap is pleased to present for sale the Spring Creek Office Building, a multi-tenant office property located in Lake Oswego, Oregon ("Subject Property"). Lake Oswego is among the most affluent neighborhoods in Oregon with an average HH income of $135,950 with a 1-mile radius of the Subject Property. Even better, within the submarket, Spring Creek is strategically located at the intersection of Kruse Way and SW Boones Ferry. The well-established Kruse Way office sub-market is only a few blocks away SW Boones Ferry is major East/West artery that connects Lake Owego to I-5. The Spring Creek Office Building is comprised of three levels which include a total square footage of 17,325 gross square feet and as its currently configured 15,042 rentable square feet. It is especially important to distinguish between these two measurements as most of the interior walls are non-load bearing and the building could be reconfigured with a more open floorplan and likely some additional rentable square feet added. Already one of the most high-income demographic neighborhoods in the Pacific Northwest, Lake Oswego has seen a flood of significant new development recently, all occurring near the Subject Property. Kruse Village which is a 62,000 square foot retail center with a focus on high-end retail, restaurants and medical office space. Mercantile Village is under construction and is a high-end development of 206 luxury apartments and 50,000 square feet of destination retail. The Springs at Lake Oswego (across Boones Ferry from the Subject) is a luxury senior housing development which offers independent living, assisted living and a Memory Care building. All of the sale comps prove a value higher than the asking price with a sales per square foot range of $208 to over $400/psf. The Subject is priced at $179/psf on the net rentable and $155/psf based on the gross square footage. Similarly, the rent comps prove out a $25/psf rental rate for the two main levels (200 and 300) and approximately $20/psf for level 100. This investment has a diversified income stream with a mix of seventeen professional tenants that range in size from 250 to over 1,700 square feet in area. Tenants include a physical and massage therapist, counselors, and technology/consulting companies. Several of these businesses have leased space at the subject property for over five years, affirming Spring Creek’s desirability to local small businesses. The subject property also represents a great opportunity for an owner-user as it can be configured for a single or multiple tenants. The nature of small office spaces is they tend to be short term in nature without renewal options so there are a number of options available to an owner/user who needs only a portion or all of the rentable square feet. Offered well-below replacement cost, the subject property is priced at $2,700,000 ($179 per rentable square foot) and represents a great investment opportunity in one of Portland’s most affluent submarkets. Located near the highly trafficked intersection of SW Boones Ferry Road and Kruse Way, the Spring Creek Office Building has superb access and connectivity to the Portland Metropolitan Area and is well-positioned to maintain its current income, attract future local professional tenants and appreciate in value.