December Significant Sales
2023 ended on a relatively quiet note. The number of transactions was down across the board in all segments compared to 2022 and compared to Q4 2022. There were two sales that highlighted the current state of the CRE market.
1220 Main, the former corporate HQ of First Independent Bank, was sold in December for $12,347,000. The building consists of 63,450 square feet of office space in the CBD of Vancouver. It included 63 parking spaces. This works out to a price of $194.59 a square foot. You may recall this property had been part of a portfolio being sold earlier this year, along with 210 E 13th Street. Block 56, which was purchased by the Angelo family in April for $305.61 a square foot. Two significant pieces to this sale, are the price per square foot and how it may impact other CBD values, and another outside of Clark County buyer, again reinforces the value of commercial real estate investors see in Clark County.
The second Significant sale was much smaller in size but gives us a great snapshot of how the market has changed. This property is located at 2900 E Mill Plain Blvd, a 20 thousand square foot parcel. The intersection of Grand and Mill Plain. Long time location for Blind Onion Pizza. Had been operated by a PM company out of Florida for the past 12 years. The sales price was $1,301,000. The building is 5400 square feet of retail with 22 parking spaces. It now has a Vine location on the Mill Plain side of the building. Value of $240.93 a square foot, and a CAP rate of 7.36. The time on the market was 40 days, and it is our understanding within 4-5 days of it being posted on the market, it had five full-priced offers.
With both of these sales, we see the value per square foot having backtracked from previous levels earlier in 2023. The short time on the market for 2900, with the high levels of interest, emphasizes that Calrk County still has many active investors who, when they see perceived value, will be aggressive at going after them.