SENTRE join the Division goldrush
SENTRE is buying three buildings on Southeast Division street and giving them a bookish rebrand. The commercial real estate investment firm has acquired a 64,000-square-foot residential and retail mixed-use property in Portland's hippest Southeast neighborhood for $28,750,000. That works out at $250,000 per unit. The firm plans to invest $1 million in contemporary interior and exterior renovations and rebrand the 93-residential units over retail property as Anthology on Division.
"Southeast Portland is a vibrant, growing neighborhood and the epicenter of the City's culinary scene," said Doug Arthur, President and CEO of SENTRE. "SENTRE looks forward to investing in the neighborhood by creating an authentic live, work and play environment at Anthology on Division for the new generation of professionals settling in the area."
Completed in 2014 and LEED Platinum Certified, the property is a collection of three buildings located at 3330, 3339 and 3360 S.E. Division St.. At its ground level, nine tenants encompass 12,350 square feet of retail space.
"One of the things we love is they built this to the highest quality," Arthur told the Business Tribune. "Our plan isn't to reposition the physical asset. We want to keep intact the original but view them as a collection of jewel box assets. They're unique but also serve a broader purpose."
As landlords Arthur says they might offer a VIP card to residents for the retail below.
"The better we brand the assets with a single website, and story, and connect residents to the retail, I think the better we'll retain the existing tenants, and over time they'll be willing to pay a little bit more rent."
"We love the Portland market, and we'd love to do more there. We're up there once a week looking for new properties," said Arthur.
Anthology will be on a block which is ground zero for Division foodies and their visitors, with a constant line outside Salt & Straw and a stream of gluten-lovers coming and going from French bakery St. Honoré Boulangerie.
The rebrand is intended to strengthen continuity between the three buildings, lobby and signage enhancements, upgraded interior apartment finishes, enhanced technology and efforts to further the connection between residents and retail tenants.
"The more time we spent in Portland the more we realized Southeast was the epicenter of the culture and Division was the center of the culinary culture. Starting with Bollywood to Ava Gene's and beyond you have every kind of food from breakfast to dinner, you don't find that anywhere else on the west coast," said Arthur. SENTRE is based in San Diego, California but has an office at 1953 N.W. Overton St..
SENTRE's entry into the Pacific Northwest market came with last year's acquisition of The Thornton in Slabtown. That is a 2016 building, developed by Martin Kehoe, who sold it for a record $631 per square foot or $25.5 million.
"We rebranded it to pay homage to Thornton Munger, one of the original commissioners of Forest Park Conservancy," said Arthur, talking about the famous nearby amenity. Gerding Edlen will do the onsite management at the Thornton and Anthology.
Since 2011, SENTRE has acquired, sold and/or developed more than $200 million in assets under the "SENTRE Living" brand, which primarily focuses on acquiring highly amenitized properties in the most desirable urban locations throughout the Western United States.
SENTRE is a full-service real estate investment and development firm with investment, development and operating experience in office, multi-family, retail and industrial properties. Through various structures, SENTRE has acquired, developed and/or operated projects in the Western United States and Mexico totaling more than 10 million square feet and $4 billion in transactional volume.