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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