T
he PacWest Tower in downtown Portland has changed hands. An Alaskan developer, Fountainhead Development of Fairbanks, bought the 418‑foot, 550,000‑sq‑ft building at 1211 SW Fifth Ave for an undisclosed sum. Newmark, the broker, said the sale closed after 15 bids, with a “new‑to‑market capital source” ultimately winning. The Portland Business Journal identified Fountainhead as the buyer, and Vice President Wyatt Cerny confirmed the deal on Tuesday, though the family has not commented further.
The property, one of the city’s largest office towers, has yet to have its deed recorded with a sale price. Given the current market, the price may be well below its last transaction. The building was originally developed in 1984 by Mitsubishi Estate Co. of Tokyo and sold in 2016 to Lincoln Property Co.’s LPC Realty Advisors for $170 million. LPC invested $44 million in upgrades, adding a new lobby, gym, terrace, and bike hub.
Recent leasing activity includes law firm Schwabe renewing its lease with a planned remodel, and investment firm Becker Capital Management taking over space formerly used by a tech company. Yet downtown office vacancy now stands at about one‑third, according to CBRE, a sharp rise driven by 2020 protests, the pandemic, and a shift to remote work.
The broader downtown office market has seen steep price declines. Big Pink, Portland’s largest tower, sold for $45 million in July, a fraction of its previous value. Montgomery Park, another major complex, closed for $33 million in August. These losses have contributed to significant property‑tax shortfalls for local governments. In Multnomah County, “compression” losses—unique to Oregon tax law—exceeded $130 million in 2024, up 22 % from the prior year and far above the $78 million recorded in 2019. County officials blame falling office values for the tax gap.
The sale of the PacWest Tower reflects the ongoing repricing of downtown Portland real estate, as businesses reassess their need for physical space and investors seek new opportunities in a market that has seen its most valuable assets drop dramatically in value.
