Portland developer Kevin Cavenaugh has purchased the Oregon Theater, and he’s pledging to keep it intact.

Cavenaugh bought the 10,482-square-foot building, at 3530 S.E. Division St., from longtime owner Gayne Maizels for $1.8 million. It was the last remaining adult film theater in Portland, and for more than 40 years was known for sex acts on-screen – and in the audience.

The 94-year-old building has languished because of deferred maintenance. The property was listed for $2.1 million and was encumbered by liens prior to the sale. The purchase closed on Monday. Records show $16,799 in taxes was paid to Multnomah County on Wednesday.

Cavenaugh, owner of Guerrilla Development, said he’ll have the building cleaned thoroughly – he used a limited liability company named Double Scrub to complete the purchase – and will reopen it as another sort of theater.

“It’s the first building I’ve purchased where I’ll be pressure washing the inside more than the outside,” he said.

The building comprises a 6,000-square-foot theater, two 1,000-square-foot apartments with two bedrooms and a bathroom each, and two 1,000-square-foot retail spaces fronting Division Street.

On March 3, Willamette Week that the theater had shuttered.

Cavenaugh said his offer was one of more than 20 for the property, and not the highest dollar figure. Other bidders wanted to tear down the building, however, and Maizels preferred Cavenaugh’s plan to refurbish it.

Maizels was represented by City & State Real Estate, but the brokerage was not involved in the transaction. Ethos Commercial Advisors and Cavenaugh approached Maizels directly. Maizels could not be reached for comment.

Cavenaugh said he’ll keep the building’s structure and use as a theater – though not for the same kind of films.

“I can guarantee you that use will not continue,” he said. “I’m happily married with three children.”

Any significant changes would trigger a city requirement to reinforce the building with seismic bracing – something Cavenaugh is trying to avoid. A seismic retrofit would cost more than the building is worth, he said.

“It’s just going to get a whole hell of a lot of needed upgrades,” he said.

The building will receive a new heating and cooling system as well as accessibility improvements, and a fresh coat of paint, Cavenaugh said.

“All the sketchiness will go away, but all the flavor will remain – that’s the intent,” he said.

Cavenaugh does not have a theater operator lined up. The eventual operator will get naming rights, he said. The theater is relatively large, with about 400 fixed seats.

“I’m the idiot who bought a theater in the middle of a global pandemic,” he said. “It’s probably the dumbest thing I’ve done, and I’ve done a lot of dumb things.”

Still, Cavenaugh admitted there’s “some sadness” to the theater’s closure, and said he would find some way to memorialize its past.

“There’s part of me that laments this Portland that I moved to 30 years ago – this is another piece of it that’s going away,” he said.

The property is in the Richmond neighborhood, in a gentrified corridor of new apartment buildings, trendy eateries and retail boutiques.

Josh Bean said he and Brian Hanson of Ethos Commercial Advisors brought the Oregon Theater to Cavenaugh’s attention after learning it was for sale. The developer is perhaps best known for the Fair-Haired Dumbbell, a colorful mixed-use building near the east end of the Burnside Bridge. But he has also backed Tree Farm, The Zipper, The Ocean and numerous other projects.

“Kevin’s a visionary and was a logical fit for the project,” Bean said. “We were pleased we could broker the deal and provide a happy ending for both parties.”

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A 5,800-square-foot retail building in Portland’s Cully neighborhood has sold for nearly $2 million.

A local investor purchased the building at 5013-5027 N.E. 42nd Ave. for $1.957 million from The Guild, a limited liability company formed by local restaurateurs.

The property was sold as a fully leased asset. The tenants are Oakshire Brewing, a Eugene-based brewpub that opened a beachhead in the Portland market, and Miss Zumstein’s Bakery and Coffee Shop.

The buyer was listed as S&J Holdings, an LLC that lists Sonny and Jessie Randhawa of Portland as members.   The purchase, which closed Oct. 4, was part of a 1031 exchange, according to broker Ethos Commercial Advisors.

The seller, The Guild, LLC, has as members Alex Ganum, Benjamin Meyer and Marcus Hoover, according to the Oregon Secretary of State’s office. Ganum, Meyer and Hoover also started Grain & Gristle in Northeast Portland. Ganum is also the founder and owner of Upright Brewing, located near the Rose Quarter.

The Cully building was most recently occupied by Old Salt Marketplace, a meat-focused restaurant and butcher. It was completed in 1949.

Ethos Commercial Advisors’ Josh Bean and Brian Hanson handled both the lease and sale on behalf of the seller. “We were excited to help our good friends from Old Salt in this transaction,” Bean stated in a news release. “The Oakshire Beer Hall is a great addition to Northeast 42nd and has received a very warm reception from locals and beer tourists alike.”

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NBP Capital has hired Ethos Commercial Advisors to lease out the Portland firm’s portfolio of six historic office buildings in downtown and Old Town Chinatown.

The portfolio totals 263,446 rentable square feet, and consists of three downtown buildings (the New Market Theater, the George Lawrence Building and the Stevens building) and three Old Town Chinatown buildings (the Merchant Hotel, Norton House and Captain Couch).

Ethos is led by managing partner Josh Bean. The leasing office was already representing Ankeny + Ash Creative, which NBP Capital purchased in January.

“Ethos is doing a tremendous job driving tenant traffic to Ankeny + Ash, and we are confident that they have the skill and marketing power to bring great companies to our downtown buildings,” NBP Capital stated in a news release.

NBP Capital assembled the portfolio during the past seven years. The investment and development firm has grown dramatically during the economic expansion, developing the 232-unit Meetinghouse apartment building in Sellwood and the 84-unit East of Eleven building in the Buckman neighborhood, among other projects. The firm also purchased the old Multnomah County Courthouse for $28 million, with an adaptive reuse commercial renovation on tap for 2020.

NBP Capital also is in an early planning stage for the RiverPlace development that could involve 1,200 multifamily units.

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