Single-Tenant Office

Mitchell International Building

8909 S Barbur Blvd, Portland, OR 97219

Listing Price: $5,600,000

Cap Rate
7.24%
Tenant Name
Mitchell International
Years Remaining On Lease
5.40
Guarantor
Corporate Guarantee
Rentable SF
44,148
Lease Type
Triple Net (NNN)
Rent Per Square Feet
$10.01

Investment Overview

Marcus & Millichap is pleased to present the Mitchell International Building located at 8909 SW Barbur Boulevard, Portland, Oregon. Originally built by the Federal Government for the Veterans Administration (VA) Medical Office Center, the building is a high-quality structure especially relative to the competitive set. It’s an attractive two-story class “B” office building located on Barbur Blvd just outside Downtown Portland and it was substantially renovated in 2012 and 2016. The entire building is master-leased to Mitchell International, a privately held subsidiary of Kohlberg Kravis Roberts & Co, through January, 2026. Although it’s still included in the Master-Lease, the entire lower level is not being utilized by Mitchell and will be delivered as a warm shell. The low-maintenance triple-net lease provides a 7.24 percent going-in cap rate with annual rental increases through January 2026. This is an extraordinary opportunity for value-add investors, allowing time to devise repositioning or renovation strategies for the building. With a third of the building income-generating, but not in use, it provides an opportunity for owner-users seeking 5,215 to 17,000 square feet for immediate occupancy or for an investor with a tenant in tow to capture additional yield. The 1.95 acre, 84,922 square foot CE (Commercial Employment) zoned parcel also provides attractive redevelopment opportunities for the property. CE zoning allows for residential, retail, and office development, with 45-foot height, 2.5 to 4.0/1,000 FAR parameters. Mitchell International acquired Qmedtrix Systems in 2016, which had occupied the building since 2012. Founded by Glenn Mitchell in 1946, the company got its start in the automotive parts and collision repair industry. Today, Mitchell empowers over 300 clients across the Property and Casualty industry by providing them with smart technology solutions, deep industry expertise, and seamless connections to the broadest range of solutions, networks, and partners. In 2013, the private equity firm Kohlberg Kravis Roberts (KKR) bought Mitchell from Aurora Capital for $1.1 billion. It is now a wholly-owned subsidiary of KKRs Magellan Parent Corp.

Investment Highlights

  • 100% Triple-Net, Master-Leased, Value-Add Investment- Owner-User or Redevelopment Opportunity
  • 7.24% Cap Rate, Five-Year, Low-Maintenance, Reliable, Pandemic-Tested Return, with 2.00% Rent Escalations
  • Close-In Southwest Location, 6.0 Miles from Downtown Portland and 16 Miles from Portland International Airport
  • Strategically Located within Five to Seven miles from OHSU, Providence Milwaukie Hospital, Providence St. Vincent, Legacy Meridian Park Medical Center hospitals and Lewis & Clark College, and PCC-Sylvania Campuses.
  • Lease Expiration Coincides with New MAX Light Rail Line Completion in 2026
  • Situated on a 1.95-Acre, 84,922-Square Foot CE (Commercial Employment) Zoned Parcel, 44,148-Square Foot Rentable Building Area
  • 290-Foot Frontage on Highway 99 West/Barbur Boulevard, with Excellent Visibility from I-5 and Barbur Boulevard, 117,500 and 21,100 Vehicles Per Day, Respectively
  • 120 Surface Parking (2.7/1,000 Ratio), Including 30 Covered Spaces and Additional Street-Parking Available

Exclusively Listed By

Financing By

Single-Tenant Office

Mitchell International Building

Listing Price: $5,600,000

Cap Rate
7.24%
Tenant Name
Mitchell International
Years Remaining On Lease
5.40
Guarantor
Corporate Guarantee
Rentable SF
44,148
Lease Type
Triple Net (NNN)
Rent Per Square Feet
$10.01

Investment Highlights

  • 100% Triple-Net, Master-Leased, Value-Add Investment- Owner-User or Redevelopment Opportunity
  • 7.24% Cap Rate, Five-Year, Low-Maintenance, Reliable, Pandemic-Tested Return, with 2.00% Rent Escalations
  • Close-In Southwest Location, 6.0 Miles from Downtown Portland and 16 Miles from Portland International Airport
  • Strategically Located within Five to Seven miles from OHSU, Providence Milwaukie Hospital, Providence St. Vincent, Legacy Meridian Park Medical Center hospitals and Lewis & Clark College, and PCC-Sylvania Campuses.
  • Lease Expiration Coincides with New MAX Light Rail Line Completion in 2026
  • Situated on a 1.95-Acre, 84,922-Square Foot CE (Commercial Employment) Zoned Parcel, 44,148-Square Foot Rentable Building Area
  • 290-Foot Frontage on Highway 99 West/Barbur Boulevard, with Excellent Visibility from I-5 and Barbur Boulevard, 117,500 and 21,100 Vehicles Per Day, Respectively
  • 120 Surface Parking (2.7/1,000 Ratio), Including 30 Covered Spaces and Additional Street-Parking Available

Investment Overview

Marcus & Millichap is pleased to present the Mitchell International Building located at 8909 SW Barbur Boulevard, Portland, Oregon. Originally built by the Federal Government for the Veterans Administration (VA) Medical Office Center, the building is a high-quality structure especially relative to the competitive set. It’s an attractive two-story class “B” office building located on Barbur Blvd just outside Downtown Portland and it was substantially renovated in 2012 and 2016. The entire building is master-leased to Mitchell International, a privately held subsidiary of Kohlberg Kravis Roberts & Co, through January, 2026. Although it’s still included in the Master-Lease, the entire lower level is not being utilized by Mitchell and will be delivered as a warm shell. The low-maintenance triple-net lease provides a 7.24 percent going-in cap rate with annual rental increases through January 2026. This is an extraordinary opportunity for value-add investors, allowing time to devise repositioning or renovation strategies for the building. With a third of the building income-generating, but not in use, it provides an opportunity for owner-users seeking 5,215 to 17,000 square feet for immediate occupancy or for an investor with a tenant in tow to capture additional yield. The 1.95 acre, 84,922 square foot CE (Commercial Employment) zoned parcel also provides attractive redevelopment opportunities for the property. CE zoning allows for residential, retail, and office development, with 45-foot height, 2.5 to 4.0/1,000 FAR parameters. Mitchell International acquired Qmedtrix Systems in 2016, which had occupied the building since 2012. Founded by Glenn Mitchell in 1946, the company got its start in the automotive parts and collision repair industry. Today, Mitchell empowers over 300 clients across the Property and Casualty industry by providing them with smart technology solutions, deep industry expertise, and seamless connections to the broadest range of solutions, networks, and partners. In 2013, the private equity firm Kohlberg Kravis Roberts (KKR) bought Mitchell from Aurora Capital for $1.1 billion. It is now a wholly-owned subsidiary of KKRs Magellan Parent Corp.

Exclusively Listed By

Financing By

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