Vehicle Emissions Facility | Revenue Generator for State of Oregon
Hillsboro, OR (Portland MSA)
Price: $8,058,000Cap Rate: 4.25%Building SF: 16,380 SFLot Size: 3.4 AcresYear Built: 1996Status: Available

Investment Highlights: 

State of Oregon (S&P: AA+) – Low Risk Investment Grade Credit Tenant – Rare Portland Single Tenant Investment – The subject property is leased to the State of Oregon, which carries an investment grade credit rating of AA+ from Standard & Poor’s and Aa1 from Moody’s.  The subject property is leased to the State of Oregon’s Department of Environmental Quality (“DEQ”), a state mandated program focused on vehicle emissions testing. This particular facility is one of the busiest stations in the state.

Irreplaceable Location – Mission Critical Revenue Generating State Facility – 20+ Year Operating History – Originally a build to suit in 1997, this location took the State of Oregon nearly 3 years to locate due to the local jurisdictions sensitivity to generating new vehicle trips. Most Portland metro areas charge large traffic-impact fees based on each vehicle trip generated.
The “DEQ” facilities around the state collect fees and are revenue generators for the State of Oregon. This insures their continued use and thus has resulted in the continuous occupancy at this location for nearly 20+ years.

The tenant has exercised multiple renewal options including a 10-year extension in 2017. The site is one of the busiest stations in the State of Oregon which reaffirms its status as a mission-critical facility in the region.

Proximity to Intel’s D1X Fab – Multi Billion Dollar Campus – Intel Largest Employer in Oregon   – Intel has spent several billion dollars – the exact amount is a closely guarded secret – to build and equip a massive Hillsboro factory designed for new generations of computer microprocessors. Intel wrapped up the first phase in 2013 and is now developing its next generation of 10 nanometer computer chips there. Construction on a second phase called “Mod 2” began in 2012 and is largely complete, awaiting future iterations of computer technology. The enormous project, called D1X, constitutes more than 2 million square feet of clean rooms to develop and produce computer chips, plus more than 1 million square feet in associated support buildings. It’s the most advanced factory of its kind in the world and among the biggest. With a site population of approximately 20,000 at the end of 2017, Intel is Oregon’s largest private employer.

Easy Access from State Route 26 (62,000 CPD) – Located on Major Retail/Commuter Corridor – The Property is located at the on/off ramp to State Route 26, for quick access to Downtown Portland just 14 miles to the east. State Route 26 is a major commuter corridor, carrying an average of 62,000 cars per day, providing outstanding visibility for the building, and easy on/off access for visitors to the site.

Located in Hillsboro’s High Tech Corridor – Heavy Population of Software, Hardware, Semiconductor, Manufacturing Companies – Home to Intel, Tektronix, Nike, Jireh Semiconductor – The property is ideally situated within Hillsboro’s high tech corridor, which is known for its heavy population of software, hardware, semiconductor and manufacturing companies. The area serves as home to some of the industry’s biggest names such as Oracle, Yahoo, Intel, Hitachi High Technologies, Tektronix, and Nikon Precision, with neighboring companies including Jireh Semiconductor, Epson, Digital Realty, Laika, and many more. The surrounding area has seen dynamic growth, with numerous residential communities and neighborhoods popping up as employers increase their work pool and require additional housing.

Located in Hillsboro – Major Economic Center within Portland Metropolitan Area – Rapid Job Growth  – The property is ideally situated within Hillsboro’s high tech corridor, which is known for its heavy population of software, hardware, semiconductor and manufacturing companies. The area serves as home to some of the industry’s biggest names such as Oracle, Yahoo, Intel, Hitachi High Technologies, Tektronix, and Nikon Precision, with neighboring companies including Jireh Semiconductor, Epson, Digital Realty, Laika, and many more. The surrounding area has seen dynamic growth, with numerous residential communities and neighborhoods popping up as employers increase their work pool and require additional housing.
Hillsboro is located 20 minutes west of Portland and a short hour’s drive from the Pacific Ocean in the heart of the “Silicon Forest”. One of the oldest communities in Oregon, Hillsboro has grown exponentially due to diverse industries and job growth that consistently out performs the region and US. Today, Hillsboro is Oregon’s fifth largest city and has one of the healthiest economies in the Northwest.


Ryan Barr

rbarr@lee-associates.com
O. 760.448.2446
F. 760.929.9977

Ryan Bennett

rbennett@lee-associates.com
O. 760.448.2449
F. 760.929.9977