By JON BELL
What started out as an informal conversation between two friendly competitors about a year ago has ended up with the acquisition of an operating portfolio of more than 1.4 million square feet of prime Portland office space.
Seattle’s Urban Renaissance Group, whose handful of Portland projects include a repositioning of the downtown Yeon Building and the rehab of the former Oregonian building, among others, has acquired the operating portfolio of Langley Investment Properties. Langley is a privately held Portland real estate investment firm with more than 40 years of experience in the local market as well as in Seattle and San Francisco.
“It’s always interesting when you seek the advice of friends and it evolves into something that you couldn’t have dreamed up to be any better,” said Scott Langley, president and CEO of Langley Investment Properties. “This all started last January, and now here we are a year later.”
The acquisition finds URG, which is headed up by CEO Patrick Callahan, picking up the operating portfolio of Langley, which includes leasing, property management, parking and construction at four notable Class A office buildings in Portland: PacWest Center, Moda Tower, Liberty Centre and One Pacific Square. In total, the acquisition adds 1.4 million square feet of space to URG’s Portland operating portfolio, pushing it up to more than 2 million square feet. URG’s total operating portfolio now tops 10 million square feet in Seattle, Portland and Denver.
“Scott and I have known each other for quite a few years and we’ve had a good relationship as friendly competitors,” Callahan said. “This was the right time and the right opportunity with the right organization.”
He also said the move comes at a time when URG has been focused on growing its Portland footprint.
“Portland is clearly in great shape in terms of office market conditions,” Callahan said. “We have built a business there, and this allows us to double our size right way, so it’s really part of our logical desire to grow.”
Under the acquisition, Langley will join URG’s board of directors while also continuing to lead Langley Investment Properties, which will refocus on new investment and development opportunities. URG will move its Portland office into Langley’s corporate office at PacWest, and roughly 40 staff members from Langley will join URG, which has a Portland staff of around 12.
In addition, Tom Kilbane, URG’s Portland market leader, has also been promoted to vice president and regional general manager. He said tenants in the four buildings, which include the likes of Moda, NW Natural and Schwabe, Williamson & Wyatt, should notice no difference under the new operators.
“Our intent is to continue operating these buildings at a very high level,” Kilbane said. “We’re excited about the opportunity and the expansion of our portfolio.”
