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Progress Ridge TownSquare sold for $101 million

Sale of Beaverton shopping center largest of its kind in Northwest history

FILE PHOTO - The upscale theaters at Cinetopia are one of the biggest draws bringing customers to Progress Ridge TownSquare in southwestern Beaverton, near the Tigard boundary.A California company has bought the Progress Ridge TownSquare shopping center in southwestern Beaverton for $101 million.

Donahue Schriber Realty Group's purchase of the property from Tualatin-based Gramor Development was announced Monday. It is the largest sale price for a grocery store-anchored shopping center in Pacific Northwest history, according to officials at Capital Investments, which brokered the sale.

Gramor President Barry Cain said the Progress Ridge project took about a decade of preliminary work before even breaking ground in 2010 and opening the next year along Southwest Barrows Road, just north of the Tigard city boundary.

Part of the center overlooks Progress Lake, which fills a former rock quarry on the site.

“It was an important development for us,” Cain said. “We put a lot of our lives into doing that. There were mixed emotions about selling it.”

Cain said the market for vibrant shopping centers — Progress Ridge TownSquare is 98 percent occupied — is strong right now.

“It’s a great area and everybody can see it’s a great area. It was just good timing for us,” he said.

Cain said his privately held company’s decision to sell Progress Ridge is closely tied to its next big investment: The Waterfront Vancouver USA, a 32-acre development including restaurants, shops, offices and a park is already under construction on the Washington shoreline of the Columbia River. The first phase of that project is expected to open in less than two years.

Cain said it was important to him and his company to find a buyer “that would maintain and continue to provide the community a first-rate destination” at Progress Ridge.

Audrey Yokota Rhoads, Donahue Schriber's vice president of marketing and public relations, said her company has no plans to make major changes at the shopping center, which they believe is already serving the market well.

"We were so impressed with the current tenant lineup," she said.

Gramor also has developed numerous other shopping centers in the Portland metropolitan area and beyond. Among them, Gramor currently owns Murray Scholls and Timberland town centers in Beaverton and Parkway Village at Sherwood and the Coho Professional Building in Tualatin, which includes the developer’s offices.

FILE PHOTO - La Provence, sitting beyond to a small vineyard and overlooking Progress Lake, is among restaurants, shops and other businesses located at Progress Ridge TownSquare.The 213,849-square-foot Progress Ridge TownSquare is anchored by New Seasons Market and Cinetopia but also has a wide variety of restaurant, retail and professional tenants.

Big Al’s bowling center and other retail space across Barrows Road are not part of the sale.

The shopping center is in an established residential area, just down the road from Bull Mountain and large housing developments now rising in Tigard’s River Terrace area and coming soon to South Cooper Mountain in Beaverton. A growing number of good-paying jobs at Nike and other Washington County companies is helping spur growth.

Jack Steinhauer, Donahue Schriber’s vice president of acquisitions and development, said the purchase allows the company to continue to grow in the Pacific Northwest, where they have a handful of properties in Oregon and Washington, including the Keizer Station Village Center near Salem.

The Progress Ridge area’s “demographics and education levels are strong, and New Seasons Market is a dominant grocer who clearly understands what local consumers want,” Steinhauer said in a news release.

Donahue Schriber Realty Group, based in Costa Mesa, Calif., is a privately held Real Estate Investment Trust (REIT) with 64 shopping centers containing more than 10 million square feet of retail space. Most of its centers are located in California, but its portfolio also includes properties in Oregon, Washington and Nevada.

Michael Horwitz, a partner at Capital Pacific, said the Progress Ridge TownSquare was never marketed publicly.

Instead, Gramor asked his firm to identify a potential buyer and Capital Pacific approached Donahue Schriber because they have a reputation for investing in higher-quality centers and have shown interest in Pacific Northwest investments.

“They recognize quality and they had good local market knowledge and understand why this property was so special,” Horwitz said.