U.S. Custom House buyer is Portland newcomer
By Elliot Njus | The Oregonian/OregonLive
Eastern Real Estate is also working with Portland-based
Lorentz Bruun Co.
KPFF Consulting Engineers
to renovate the building.
The Custom House is Eastern Real Estate's first property in Portland. The company says it has developed more than $1 billion worth of retail, office and mixed-use properties.
"We are thrilled and honored to be the new stewards of this important piece of Portland history," Brian Kelly, one of the firm's principals, said in a statement. "It is an absolute gem of the Pearl District and the city, and we look forward to the building's active use on the North Park Blocks."
The building has seemed close to getting a new life several times before.
Negotiations to turn the building into a boutique hotel fell apart in 2008, and an attempt to give it to The International School for free in 2009 failed because of the cost of renovations and seismic upgrades.
Portland property manager
PREM Group
won a 2010 auction to buy the building for $2.5 million and posted a 10 percent down payment, but the deal fell apart when the firm didn't put up the money to finalize the sale.
The four-story 1901 building has been vacant since 2005, when the
Army Corps of Engineers
moved out. It has been used in training exercises for federal agents and has appeared in the TV shows "
" and "
" since then.
The building, an example of Renaissance Revival architecture, has been on the National Register of Historic Places since 1974. Any use must preserve its historic characteristics.
Bidding started at $250,000 in early December. The auction was scheduled to end Feb 7, but was extended in 24-hour increments each time a new bid was entered.
The auction finally ended Feb. 27, with 10 anonymous participating. Six were willing to pay more than $3 million for the property.
Elliot Njus
Follow @enjus