PORTLAND, OR – ASB Real Estate Investments announced today the $14 million acquisition of a 55,500-square-foot warehouse property in Portland’s upscale Pearl District, which ASB and joint venture partner Specht Development, Inc. plan to redevelop into creative office space. ASB’s purchase was made on behalf of its Allegiance Fund, a $5 billion core investment vehicle. The seller was a partnership between Torpet, LLC and G. Denhart, LLC.

Built in 1922, the property at 1010 NW Flanders Street features a distinctive brick façade with timber and concrete construction, 10,000-square-foot floorplates, 11-to 14-foot high ceilings, hardwood floors, industrial sized windows for ample natural light, and exposed duct work. A planned $10 million refurbishment of the building by ASB and Specht will convert the building into prime, Class A loft office space and also will include a new rooftop deck. The project is expected to take about a year to complete once permits are secured.

Aaron Duncan, Senior Vice President and Head of Western Investments at ASB Real Estate Investments, said: “The Flanders Street acquisition fits with ASB’s strategy to build its portfolio of creative office assets in highly desirable urban markets where growth is driven by an influx of young professionals filling high-tech, jobs from high growth companies. Portland and the Pearl District, in particular, fit this profile with significant interest from tech and software companies looking for the type of loft space we will be providing once the redevelopment is completed.”

In addition to its location in one of Portland’s most vibrant neighborhoods, 1010 Flanders offers commuters immediate access to Interstate 405, public bus lines, and the Portland Streetcar line which runs by the property connecting South Waterfront, the Portland State University, the Central Business District and the Northwest Portland District.

The Pearl District purchase represents ASB’s first Portland acquisition. The company has concentrated its investment activity in major U.S. cities including New York, Washington DC, Boston, Chicago, San Francisco, Los Angeles, Miami and Denver. Further, a separate ASB account and Specht have partnered on nine industrial and office developments in Oregon and Washington since 1988, with a cost basis in excess of $80 million.

Nathan Sasaki of Apex Real Estate Partners represented both the buyer and seller on this transaction.

About ASB Real Estate Investments
ASB Real Estate investments (ASB), a division of ASB Capital Management, LLC, is a leading U.S. real estate investment management firm, managing $6.0 billion* in gross assets under management for over 300 institutional clients. Headquartered in Washington DC, ASB invests in major urban markets across the country, concentrating in office, multifamily, retail and industrial properties. ASB manages the ASB Allegiance Real Estate Fund, its sole vehicle for core investing; the ASB Meridian Real Estate Fund, a low-leverage value creation vehicle; and a development separate account.

About Specht Development, Inc.
Since its founding, Specht (and its affiliated entities) has been responsible for developing or providing project and construction management on over 8 million square feet of commercial and industrial real estate with a cost basis in excess of $700 million.

* as of September 30, 2015

The information provided in the release does not constitute an offer to sell or buy securities or the solicitation of an offer to sell or buy securities.