Unico Properties has signed Lane Powell to a long-term lease renewal for space in a 24-story high-rise in downtown Portland.

The law firm’s renewal is for 63,000 square feet at Moda Tower, which was completed in 1998. Unico and partner American Realty Advisors recently undertook a $5 million renovation project, which included a lobby remodel and new amenities.

The building, at 601 S.W. Second Ave., has 398,412 square feet of commercial space on a full block bounded by Southwest Morrison and Alder streets, and Second and Third avenues. Unico and ARA purchased the property for $176.25 million in 2018. Lane Powell is the building’s second-largest tenant after Moda Health.

“There’s no denying that COVID-19 has created a challenging environment, but it’s exciting to see a major law firm double down on its commitment to downtown Portland, and this move signals the resilience of downtown Portland and a bright future coming out of the pandemic,” Charlie Floberg, Unico Properties’ director and market leader in Portland, stated in a news release.

New amenities at the building include a gym, a tenant lounge with Xbox 360 and beer kegs and shuffleboard, a 65-person conference room with video conferencing technology, and a 1,800-square-foot outdoor terrace.

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The Moda Tower, a major downtown Portland office property, has sold to a pair of investment and asset-management companies.

American Realty Advisors and Unico Properties purchased the 398,412-square-foot asset in a joint-venture agreement for approximately $176 million. The seller was UBS Realty Investors.

The building, which sits at 601 S.W. Second Ave., was completed in 1999. It has five floors of underground parking. Long-term tenants include Moda Health and law firm Lane Powell; the building is 90 percent leased.

The acquisition provides a “stable, well-leased building that will provide some stable, risk-adjusted returns,” said Brian Pearce, senior vice president at Unico Properties.

Pearce said Unico was looking for a low-risk asset to guard against a future economic downturn.

“In this market, we’re at that stage in the cycle where we’re getting toward the end stage at some point,” he said. “I know everybody’s been saying that for the last couple of years, myself included. What we really like about it – it’s a very stable investment.”

Some modest renovations will take place, Pearce said.

“Everybody’s doing lobbies, fitness centers, things like that; we’ll be no exception,” he said. “The good news here is it’s a light touch. It doesn’t need a super-expensive repositioning, which is another thing we like about the building.”

Albert Pura, senior director of American Realty Advisors, stated in a news release, “This was a rare opportunity to acquire a newer asset with strong in-place cash flow, one of the most prestigious business addresses in the city and very limited opportunities for new development of an office property of this scale due to a lack of available sites.”

Jason Flynn of Eastdil Secured represented the seller. The transaction was completed Sept. 28.

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The Congress Center, a 23-story office tower in downtown Portland, has been purchased by American Realty Advisors and its joint-venture partner, Unico Properties. The purchase price was not disclosed.

“It’s an A-plus location, on the transit mall right in the center of downtown,” said Brian Pearce, senior vice president at Unico Properties. “Any time you can buy such a well-located asset for such a decent value, you’ve got to take a hard look at it.”

The seller was Shorenstein, a San Francisco-based real estate investment firm.

Unico and American Realty Advisors plan to upgrade and reposition the property, Pearce said.

“It’s a medium-term hold,” he said. “The plan is to obviously make some improvements, redo the lobbies, upgrade some building amenities and reposition the asset so it’s one of the top buildings in the market again.”

The 389,260-square-foot building was completed in 1982, according to city records. The glass-walled tower is at 1001 S.W. Fifth Ave.

The Congress Center joins a fleet of older office properties that have recently been purchased to be renovated and ultimately command higher rents. Such properties are being forced to compete with modern, creative-office spaces that are generating rents exceeding $40 per square foot in some cases.

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