JLL arranges sale of Portland flex building to growing owner-occupier Sherpa Design

Portland, OR., Dec. 13, 2023 – JLL announced today a sale of 224 SE 2nd St., a 14,589-square-foot, Class B flex building in Portland’s transforming Central Eastside neighborhood.

JLL represented the seller, Beam Development and Urban Development + Partners, which had recently renovated the former coffee production facility for new tenants and eventual sale. JLL also represented buyer Sherpa Design in the off-market sale. The plug and play space was ready to accommodate Sherpa’s immediate occupancy. The 22-year-old product development, engineering services, and manufacturing firm relocated and expanded from another Portland location, providing space for current and future growth.

This relocation comes as Sherpa Design has been taking on new clients, expanding its full-time employee headcount, and increasing capabilities in its CNC machine shop and in-house 3D printing team. “We love the community and location in the Central Eastside,” said owner, Patrick Barrett. “The industrial-chic atmosphere of the building supports our company brand position, and affords us ample room for growth in our engineering and manufacturing business. Our employees love the central location, the nearby offerings, and great office environment.”

Barrett credits the successful outcome to JLL and other team members. “The entire process started from being introduced to the seller by JLL’s Matt Simpson, then working through the sale and lending process with partners Beneficial State Bank led by Sue Glass, and real estate attorney David Zehntbauer of Dunn Carney,” he said. “The cooperation and focus helped lead to an efficient and successful close. Beam Development has been awesome even after the sale and we look forward to contributing to the growth of this great part of Southeast Portland.”

Barrett also noted important support from Prosper Portland which has programs and incentives to attract and retain manufacturing companies. 

Originally built in 1936, 224 SE 2nd St. is a three-story flex building offering creative office and light industrial space. The building features large windows, 4,700-square-foot floorplates and high ceilings. The building underwent a complete renovation and repositioning in 2018 to facilitate a higher, better use.

Portland’s Central Eastside is an eclectic area that is home to growing tech firms and creative companies. Eastside Portland is bike friendly, easily accessible and offers a variety of entertainment, retail and restaurant amenities.

The seller was represented by a JLL team led by Managing Director Buzz Ellis of Capital Markets and Vice President Annalore Rodman of Agency Leasing.

“Beam and UD+P are strong local firms that JLL has worked with for many years, and in 2018, we worked with them on the improvements to transform this industrial space to be a more usable and desirable space that would attract a variety of tenant uses,” says Rodman. “The sale of Coffee Warehouse is one example of the interest we are seeing from tenants who are evaluating the cost to own versus lease in this market as they look to control their real estate obligations.”