Airport Way
Cascade Station:

History

Cascade Station is a 120 acre parcel of property that is owned by the Port of Portland.  It is located at the southwest corner of the intersection of I-205 and Airport Way, in the Airport Way Urban Renewal Area.

The project was part of the consideration for PDC’s investment in the extension of the Airport Max Light-Rail line in 1999 from the then terminus at Gateway to the Airport, whereby the Port granted the development rights to Cascade Station to PDC in exchange for PDC’s financial commitment to the construction of the Max Light Rail line.  In furtherance of PDC’s urban renewal goals, PDC then assigned these rights to Cascade Station Development Company, since the redevelopment of Cascade Station required private sector financial participation.

In February 1999, the City Council adopted the Cascade Station/Portland International Center (PIC) Plan District, which was essentially the zoning code for the development.  The document governed the allowable development rights and design standards for development of the property.  On June 11, 1999, Portland Development Commission (“PDC”) executed the Development Agreement between PDC and Cascade Station Development Company (“CSDC”).  That document had design standards, maximum development rights, plan approval processes, and also discussed PDC’s goals for employment in the district.

The original development rights were:

• 1,325,000 sf of office
• 400,000 sf of retail (with no retail use occupying more than 60,000 sf per floor)
• 1,200 hotel rooms
• One gas station, with up to twelve pumps
• A 24 screen movie theater

Unfortunately, following the execution of the agreement in 1999, development stalled due to the events of September 11, 2001 and because the site’s zoning precluded any retail larger than 60,000 sf in size. This effectively precluded any anchor retail stores from locating there, and the small stores would not sign on.

On February 17, 2005, the 1999 Plan District was amended with the intention of reviving development interest at Cascade Station.  Development rights for the property were modified to allow, among other uses, up to three larger-format retailers.  These anchor tenants are expected to provide the necessary customer draw that would spur the rest of the smaller retail to move forward, as well as the office and hotel uses. 

The amended development rights are:

• 1,115,000 sf of office
• 807,500 sf of retail (including up to three retailers in excess of 90,000 sf)
• 250 hotel rooms
• One gas station, with up to twelve pumps

On July 13, 2006, the transactions closed and PDC took control of the 36 acres. The construction of the IKEA store and the entire retail center commenced in August 2006. IKEA opened in July 2007 and is being followed by the rest of the shopping center as each individual retail space is finished. In addition to the retail developments, one hotel is under construction with completion scheduled for next summer, and two other hotels and two new office buildings are in for permits. These will begin construction early next spring and will be completed by the early 2009.

In August 2006, PDC staff issued a Request For Proposals (RFP) from brokerage firms to market the 36 acres. The Grubb & Ellis Company was recommended by the Evaluation Committee following review of the submittals and interviews of two short-listed firms. On December 25, 2006, the Board authorized execution of a Professional Services Contract with Grubb & Ellis.

After receiving updated appraisal information and preparing a marketing package, Grubb & Ellis began soliciting potential buyers in the Spring of 2007.

At full build-out, Cascade Station would generate approximately 7,600 new jobs and over $2.4 million annually in taxes to the City of Portland.

Map of Cascade Station Master Plan with PDC controlled parcels in yellow.

Significant Milestones at Cascade Station

In October 2005, IKEA jump started Cascade Station’s development by announcing their plans to locate their Portland store at the Cascade Station site. IKEA, a leading international home furnishings retailer, built a 280,000 square feet store, which opened their doors on July 25, 2007. The IKEA Portland store at Cascade Station became a catalyst to further retail, restaurant, hotel, and office development.

Adjacent to IKEA is a Retail Center developed by CenterCal Properties, LLC. The Retail Center consists of 41 retailers and restaurants. CenterCal is well underway with construction, and many retail stores are now open, with project completion anticipated in Winter 2008/09. To inquire about leasing space at the Retail Center, please click on the following: CenterCal Properties, LLC.

Across the street from the Retail Center on Cascades Parkway two hotels (Aloft and Hyatt Place), two office buildings, and a mixed-use building of office and retail are being developed. To inquire about leasing space at the two office buildings, please click on the following: Trammell Crow Company. For inquires on the mixed-use building leasing, please click on the following: CenterCal Properties, LLC.

In addition to the completed and in construction sites, Cascade Station has remaining five parcels of land to be developed, of which four are PDC controlled. Grubb and Ellis represents the Portland Development Commission in marketing the remaining four parcels (Parcels A, D, E and G) at Cascade Station.  For more information on parcels available, contact Grubb & Ellis Associate Dave Squire, by phone at (503) 972-5505 email at Dave.Squire@Grubb-Ellis.com or Irfan Tahir, by phone at (503) 972-5509 email at Irfan.Tahir@Grubb-Ellis.com or visit the Grubb & Ellis website for Cascade Station by clicking on the following: Grubb and Ellis link for Cascade Station.

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