1440 NW Hoyt

Meriwether acquired 1440 NW Hoyt in an off-market transaction in October 2014 from an owner-user. The site included a 40,000 square foot two-story industrial building and an adjacent 4,300 square foot parking lot. As part of the acquisition, Meriwether also acquired a 72,000 square foot warehouse in Portland’s Guild’s Lake industrial district. Plans were developed to renovate and expand the existing 40,000 square foot building to include 75,000 square feet of creative office space on six floors. Just prior to pulling the building permit, an unsolicited offer to purchase the site was received from an institutional apartment developer. The decision to sell the site, rather than move forward with the redevelopment, was based on generating strong returns without incurring construction, financing, lease-up or capital market risks. Meriwether sold the parking lot in February 2016 and the 40,000 square foot building in June 2016. These sales, combined with the earlier sale of the Premier Industrial building in October 2015, generated a combined IRR of 31% and a 1.4x equity multiple over the 21-month hold period.