Sale of ODS Tower Office Building Finalized Today

Downtown Building Purchased by Morrison CF-LLC Will Retain Name, Tenants

Portland, Ore. - The ODS Companies (ODS) is pleased to announce the sale of the ODS Tower. The 24-story office building, located at 601 S.W. Second Avenue in downtown Portland , was sold to Morrison CF-LLC, a partnership group that includes The Ashforth Company.

Morrison CF-LLC purchased the property for approximately $123 million in a simultaneous sale of a long-term leasehold interest in the building and an ownership interest in the land. ODS was the majority owner of the building in partnership with its developer, Wright Runstad & Company and others. A Goodman Family entity owned the remaining interest in the building and owned the rights to the land. Chris Johnson, Marykay West and Joe Vaughan of NAI Norris, Beggs & Simpson, a Portland-based real estate and investment firm, brokered the transaction.

According to Jon Jurevic, ODS Senior Vice President and Chief Financial Officer, the sale of the ODS Tower will not affect any of the leases held by the building's current tenants. Furthermore, the move will not change ODS' role as the building's anchor tenant. "The ODS Tower is home to more than 500 ODS employees and we have a lease for our existing space in the building that will remain in effect through 2019," Jurevic said. "Our members and business partners can rest assured that nothing will change in the way we conduct business as a result of this sale."

Jurevic said the decision to sell the building was based on the favorable commercial real estate market in Portland , not on any operational considerations. "ODS has never been in a better position financially, as evidenced by our solid underwriting results and membership growth," he said. "We had always considered the Tower an investment that would be available for sale if favorable economic circumstances were in place. Given the current real estate market, we felt the time was right to move forward."

Under the terms of the sale agreement, Ashforth Pacific, Inc. will assume property management duties. The building will continue to operate as the ODS Tower. Ashforth Pacific, Inc. manages seven other office buildings in the Portland area, including the Lloyd Center Tower and the Liberty Centre.

"We're extremely pleased with the group of buyers that has purchased the ODS Tower," Jurevic said. "Under this new ownership, the ODS Tower is poised to continue its excellent operational track record well into the future. In addition, given Ashforth Pacific's successful history of managing office buildings and parking facilities, tenants can expect a smooth transition."

Chris Johnson, Executive Vice President of NAI Norris, Beggs & Simpson adds, "ODS Tower is one of the premier, Class A office properties in Portland . The opportunity to bring together a buyer and seller such as these two entities is rare, and it is exciting to be a part this transaction. Downtown Portland will retain an incredible company and tenant in ODS and The Ashforth Company will acquire and manage a building in keeping with their elite portfolio."

The ODS Tower was completed in 1999 to provide additional space for the company's needs and serve as an investment vehicle to fund future growth. The building was originally developed by a partnership group that included ODS, Wright Runstad & Company and a Goodman Family entity. At the time it opened, the ODS Tower was the first major office structure built in downtown Portland since 1991. T he building includes retail space occupied by Nordstrom Rack, YMCA child-care facilities, a 400-space parking garage and 18 floors of office space-six of which are occupied by ODS.

ODS is a multi-faceted organization that provides dental, medical and professional liability insurance products, along with a variety of business services including dental practice management software and benefits administration. ODS serves more than 650,000 members. Founded in 1955, ODS is Oregon 's leading dental insurer and one of Oregon 's largest medical insurers. ODS is headquartered in Portland , with offices in and Medford , Milwaukie , and La Grande , Oregon , and in Anchorage , Alaska .

News Archive