SKB Case Study

The Round – Beaverton, OR

Investment Highlights

  • Acquired a 160,000 SF transit-oriented, Class A office / retail mixed-use project and four adjacent land parcels in Beaverton, OR
  • Co-invested with an institutional real estate opportunity fund managed by a family office based in Chicago, IL
  • Acquired four adjacent land parcels within The Round as a critical component of SKB’s business plan
  • Delved to the core of the project to understand fundamental flaws that have plagued The Round since its inception and developed a business plan that rectifies those flaws
  • Negotiated and structured a public / private partnership with the City of Beaverton who recently purchased the Metro Beach Building located within The Round
  • SKB’s acquisition basis represents a 66% discount to The Round’s estimated replacement cost and currently has the lowest basis amongst its competitive set
  • With its combination of a reduced basis, a strong location that leverages TriMet MAX, pre-funded tenant improvements and highly competitive rental rates, The Round is now poised to realize the vision set forth at the project’s inception
  • SKB plans to gradually increase occupancy and Net Operating Income over the holding period through a combination of lease renewals and new leases and contemplate a disposition in three to five years

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