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A two-building office property in Portland’s Pearl District has sold to a fund managed by Rialto Capital Management LLC for $36.5 million.

The purchase comprises Fremont Place I and II 鈥� one two stories and the other three stories 鈥� at 1650 and 1750 N.W. Naito Parkway. The buildings offer a total of 123,600 square feet of office space. The buildings are 63 percent leased to tenants in the telecommunications, engineering, health care and other industries, according to a Jones Lang LaSalle news release.

The transaction equates to $295 per square foot.

Multnomah County recorded the transaction on Feb. 14. Rialto used a limited liability company, RREF III-P Fremont Place, registered in Miami. The seller was Fremont Place LP, an entity linked to Lincoln Property Co. of Dallas.

JLL secured a $37.3 million five-year acquisition and bridge loan from a debt fund. The loan will be used for the acquisition as well as interior and exterior renovations.

Rialto Capital aims to transform the buildings, constructed in 1987, into an 鈥渦rban waterfront campus,鈥� according to JLL. The buildings are along the Willamette River just south of the Fremont Bridge.

The new owner plans to build an outdoor amenity space.

JLL’s Capital Markets team representing Rialto Capital was led by Managing Director Casey Davidson and Director Zachary Kersten.

Lincoln Property Co. will continue to manage the office properties, and is moving forward with plans to build the Fremont Apartments, a 17-story multifamily building, on an adjacent parcel that currently serves as a surface parking lot for the office structures.

According to Patrick Gilligan, an executive vice president with Lincoln Property Co., the firm is partnering in a joint venture with Utah-based opportunity zone funder Bridge Investment Group. A $7.2 million foundation permit for the project is under review; Gilligan said the firm hopes construction will start this spring and finish in 2022.

The TVA Architects-designed project received the go-ahead in 2018 when the Portland City Council rejected an appeal from the Pearl District Neighborhood Association of prior approval issued by the Design Commission. Andersen Construction will serve as general contractor.