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It’s official: Hollywood Bowl will soon become an Orchard Supply Hardware store.

Minnetonka, Minn.-based Oppidan Investment Co. (via KJT 232 LLC) has closed on its $7.25 million purchase of the 51-year-old bowling alley in the Hollywood neighborhood, according to Capital Pacific‘s Portland office. Capital Pacific represented the seller (G&M Hollywood LLC) in the transaction, and confirmed that Oppidan plans to redevelop the existing 42,404-square-foot building for the hardware retailer.

Word of the pending sale and project spread in October, when Baysinger Partners Architecture submitted plans to the city for early design assistance. Oppidan declined to comment on the timeline for the project, but the bowling alley is set to close its doors May 19.

Peter Dunn, a Capital Pacific partner who worked on the deal, said the property was marketed as a redevelopment opportunity from day one, given its prominent location near Interstate 84 and light rail, the structural integrity of the existing box building, and the highly trafficked neighborhood. The intersection of Northeast Halsey Street and 39th Avenue sees in excess of 32,000 vehicles per day, and the surrounding residential market has more than 186,000 households, Capital Pacific reports.

“It didn’t take long for us to plug in Orchard Supply or Oppidan,” Dunn said. “There were a few other groups in the market that had already taken a run at it, but I guess it was timing, and a matter of pricing it where you could get the most amount of money for your seller. … But also knowing that anyone that comes in here is going to have to spend a lot of money to redevelop it into a different use.”

Capital Pacific originally marketed the building for sale at $7.64 million, which factors out to a 7 percent cap rate. Dunn said Oppidan likely won’t tear down the building because that wouldn’t be financially feasible.

The seller – two private individuals from Bend, according to public records – purchased the building from the bowling alley in 2007 for $6 million. Hollywood Bowl began to lease the space, and still has about eight years left on its deal; however, the new owner had the option to terminate it by paying a $595,000 fee.

Dunn said Hollywood Bowl proved to be a solid investment.

“(The seller) is one of those success stories that bought at the height of the market, and goes to sell it and there’s equity, plus some,” he said.

Commercial Realty Advisors Northwest LLC represented Oppidan and Orchard Supply Hardware in the transaction.