September 14, 2020
PORTLAND, OR – CRG, the real estate development and investment arm of Chicago-based Clayco, formally announced the sale of The Cubes at Troutdale, a 350,000 square foot speculative industrial facility located in the Troutdale Reynolds Industrial Park on the east side of Portland.
The sale to KKR closed on July 17, and the facility — which includes a 76,000 square foot cooler space — was leased to C&S Wholesale Grocers, the largest wholesale grocery supplier in the United States.
“The Cubes at Troutdale was a successful project by all accounts” said Shawn Clark, President of CRG. “We’ve forged amazing local relationships to deliver a first class building in advance of the needs of a best in class tenant. We are thrilled with the outcome and look forward to doing more work in the region.”
The firm’s work in the region includes the development of The Cubes at DuPont, 1.6 million square foot business park featuring three buildings, including one which leased to Kimberly-Clark in June last year.
CRG led the development of The Cubes at Troutdale and formed a joint venture partnership with U.S. Logistics Fund 1 to invest in the project. Vertical construction began in February of 2019 and the building reached substantial completion earlier this year. The project is expected to create 300 new jobs for C&S.
Clayco subsidiary Lamar Johnson Collaborative was the architect and Sierra construction served as the general contractor for the project. CBRE’s Darla Longo, Paige Morgan and Brett Hartzell represented CRG and USLF I in completing the sale. Newmark Knight Frank’s Steve Willhite, SIOR and Patrick Ulch, CCIM represented the tenant.
“We are seeing unprecedented industrial demand across the country, but this location really stood out because sites like this are incredibly rare in the Pacific Northwest,” said Kevin Newell, Vice President of Investments and Capital Markets for CRG. “To pair a tenant like C&S with a location like this is major victory for the user and our investors. That’s what we hope for with each of our industrial projects.”
The site is located along Interstate 84 at 2503 NW Sundial Road in Troutdale, Oregon. It has 36’ clear height, cross dock capability, ample trailer storage and car parks associated with the new state-of-the-art industrial distribution centers.
Despite the current national economic uncertainty, the industrial market in Portland surged, seeing 33 new industrial sales – a 32 percent increase in the second quarter from one year ago — according to CBRE Research. Facilities like The Cubes at Troutdale will continue to be in high demand as U.S. e-commerce sales, which saw the highest volume increase in history in Q2 2020, continue to see record volumes.
There is added pressure for cold storage facilities as suppliers adjust to the significant shifts in consumer habits for online restaurant and grocery orders due to the pandemic.
“The Cubes at Troutdale combines brand new state-of-the-art construction with a strategic location in Portland’s primary logistics corridor,” said Paige Morgan, Senior Vice President, CBRE. “The property includes nearly 76,000 square feet of sought-after cooler space and is fully leased by a high-quality tenant in an industry seeing unprecedented demand in the wake of COVID-19.”
CRG is a privately held real estate development firm that has developed more than 8,500 acres of land and delivered over 197 million square feet of commercial, industrial, institutional and multifamily assets exceeding $12 billion in value. CRG, headquartered in St. Louis, leverages a powerful North American platform with local market expertise and offices in Atlanta, Chicago, Columbus, Southern California and Philadelphia. CRG’s philosophy of developing for the future and anticipating the enhanced needs of next generation users led to the creation of its industrial brand, The Cubes, and its multifamily brand, Chapter. For more information, visit CRG’s website at www.realcrg.com.
About The Cubes
The Cubes is a North American industrial brand owned and developed by CRG. The Cubes represents CRG’s philosophy of developing for the future and anticipating the enhanced needs of tomorrow’s modern industrial user. The Cubes are designed with an emphasis on sustainability, and implement state-of-the-art specifications, including maximum clear heights, dock doors and trailer storage to keep pace with the shift to consumer-centric logistic strategies. The Cubes are located on strategic sites that take into consideration both logistics and labor supply, always with the end user in mind.