Renovated Historic Office
For Sale
$1,900,000
220 SW 1st Ave, Portland, OR 97204
Renovated historic office property with existing tenant income and convenient access to multiple MAX stations.
Property Size5,000 SF
Price / SF$380
Days on Market30
Property Features for 220 SW 1st Ave
General Information
Standard status
Active
Size
5,000 SF
Additional Details
Public Transit
Yes
Building Details
Year Built
1889
Listing Agency:
LUXE Forbes Global Properties
(503) 389-2112
Listed By:
Vince Cortese
Source:
Christiesrealestateevg
Added: Jul 31
Changed: Aug 27
Last Checked: Aug 28 at 12:51PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of LUXE Forbes Global Properties
Investment Insights
Based on property information with market context.
The Lombard Building is a historic office property originally constructed in 1889 and later renovated to support contemporary functionality. Its architectural character remains central to the asset, while existing tenant income provides an established operating component.
The property is located in Portland’s central core within the Old Town/Chinatown district, surrounded by dining, shopping, entertainment, waterfront parks, and proximity to the Pearl District. Multiple MAX stations are within a 5-minute walk, Union Station is a 15-minute walk away, and Portland International Airport can be reached by a 21-minute drive. Together, the renovation, historic construction, tenant income, and transit connections define the property’s commercial profile.
The property is located in Portland’s central core within the Old Town/Chinatown district, surrounded by dining, shopping, entertainment, waterfront parks, and proximity to the Pearl District. Multiple MAX stations are within a 5-minute walk, Union Station is a 15-minute walk away, and Portland International Airport can be reached by a 21-minute drive. Together, the renovation, historic construction, tenant income, and transit connections define the property’s commercial profile.
Key Highlights
- Historic office property originally built in 1889
- Renovated building combining historic character with contemporary functionality
- Existing tenant income
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$64,724
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
3.41%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,294,480
$1.3M
Cap Rate 7%
$924,629
$924.6K
Cap Rate 9%
$719,156
$719.2K
Market Conditions
NOI Build-Up for 5,000 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$114.0K $22.80/SF
− Vacancy
−$27.7K −$5.54/SF
EGI
$86.3K $17.26/SF
− OpEx
−$21.6K −$4.31/SF
NOI
$64.7K $12.94/SF
Area
Portland, OR
Vacancy
24.30%
Lease Rate
$22.80 /SF/Yr
Expense Ratio
25.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,294,480
Cap Rate 7%
$924,629
Cap Rate 9%
$719,156
Alternative Uses
Best Use
Office B
$924.6K
$809.1K – $1.08M
NOI $64,724 @ 7.0% cap · market cap 3.41%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.40M
$1.23M – $1.64M
NOI $98,289 @ 7.0% cap · market cap 5.17%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
11,585
Businesses Nearby
Explore this area
Business Placement
Demographics for 97204, OR
1,001
Population
441
Households
2.3
Avg Household Size
40
Median Age
14%
College-Educated
90%
High-School Grad
0.2 sq mi
ZIP Area
5,005
Density / Sq Mi
$16,875
Median Earnings
$783
Median Rent
Market
Vacancy Rate% for Office in Portland, OR
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Renovated historic office property with existing tenant income and convenient access to multiple MAX stations.
Where is this office building located?
The property is located at 220 SW 1st Ave Portland, OR.
What is the asking price?
The asking price for this property is $1,900,000.
What are key features of this property?
This property features: Historic office property originally built in 1889; Renovated building combining historic character with contemporary functionality; Existing tenant income
