CBRE Announces $25 Million, All-Cash Sale of 74,878-SF, Stabilized Neighborhood Center in South Portland Suburb

CBRE has announced the all-cash sale of Village @ Main Street, a 74,878-square-foot retail neighborhood center in Wilsonville, to MOB Investments Inc for $25 million at a 7.39% cap rate. The sale marks the property’s first time on the market and Oregon’s largest retail sale in the second half of 2023.

Joey Blatner, Wes Bochner, and Megan Wallachy with CBRE Northwest Retail Capital Markets represented the seller, Village Commercial LLC, in the transaction.

Built in 1999, the property is located at 8309-8699 SW Main Street and comprises 12 buildings in a campus-style layout with 1,875-feet of frontage along Wilsonville Road. The property was 91% occupied at the time of sale by 20 tenants representing a mix of local, regional and national retailers, including Red Robin, Jimmy Johns, Gentle Dental, Arthur Murray Studios and Mattress Firm.

“The property’s sole owners developed and held the center for more than two decades but sought capital to fund their other investments. Despite market challenges, our team leveraged its contacts and creativity to seek a buyer interested in a value-add opportunity,” said CBRE’s Blatner. “In a challenging market, we generated six competing offers, which ultimately led to a significant transaction that met the investment needs of both parties.”

The property is situated just east of I-5 along SW Main Street between Town Center Loop West and Rebekah Street. It is adjacent to Village @ Main Street Apartments, 23 minutes from Portland and 33 minutes from Salem. The property is also within the Portland metro’s urban growth boundary.

Neighborhood/strip centers accounted for 47% of the total retail sales volume in the fourth quarter of 2023, according to CBRE Research. The I-5 Corridor submarket, where the property is located, posted a total availability rate of 5.4% and a total vacancy rate of 3.6%.