Compass Commercial founding partners reflect on 15 years in

In This Issue
Q1 Market Summary
2
3
4
Bend office market
Bend retail market
Bend & Redmond
industrial markets
Compass News
5
Jay Lyons
joins Compass
Commercial
New Compass
website serves
clients even better
Top Producers
6
Bend is getting back
to business
Top Deals
7
Nonprofit spotlight:
Bethlehem Inn
Cover Story Continued
8
Compass
Commercial
founding partners
reflect on 15 years
in Central Oregon
Compass Commercial founding partners
reflect on 15 years in Central Oregon
Steve Toomey and Erich Schultz founded Compass
Commercial Real Estate Services in 1996 with
plans to deliver a new kind of service in Central
Oregon. Since then, the company has grown into
Oregon’s largest commercial real estate firm outside
the Portland-metro area, something the pair never
saw coming. Schultz and Toomey recently reflected
on their 15-year partnership and the growth of the
company they helped start.
Q
Why did you decide to start Compass
Commercial Real Estate Services and what
was your vision for the company?
E.S.: While there were very good real estate
companies servicing Central Oregon at the time, we
didn’t feel that there was a commercial real estate
firm that offered the level of service that people had
come to expect in Portland, Seattle, San Francisco
and Los Angeles. We saw that Central Oregon was
growing largely due to migration from these markets,
so we set out to meet the needs of these people in
the fashion they were accustomed to.
Q
Is the company today where you pictured it
would be 15 years ago?
E.S.: At first, we were so focused on putting the
company together and getting it started that we
didn’t spend much time dreaming about five years
out, let alone 15. The company now is bigger
than we could have imagined which corresponds
with the unbelievable growth of Central Oregon in
general. Who could have predicted that?
S.T.: We never really talked about growing and were
surprised when other brokers began asking to join us.
Q
What qualities made the two of you a good
team to start the new company and work
together for 15 years? How has your relationship
grown over the years?
E.S.: Steve and I listen
to each other and
respect the other
guy’s opinion. We
don’t always
agree, but
we go with
the
best
idea
and
see it through.
Steve has gotten more intense, and I have
grown mellower. So the balance is the same but the
roles have changed.
S.T.: I don’t know about that. I just do what Erich
says and everything just seems to work out (laughs).
Q
What were you looking for in partners as the
business started to grow?
S.T: We were looking for brokers who’d demonstrated
the ability to be successful over several years.
Integrity in all business dealings is also important,
as is the ability to work on a team.
Q
What was your vision for creating a broker
services staff to support the company?
E.S.: Six or seven years ago, many real estate
companies — residential and commercial — went
to a model that required agents to pay little to their
brokerage companies and in return the company
provided little in the way of service. This requires
the agents to do a lot of activities other than selling.
We rejected this model and went the other way. We
decided to build a company where agents sell and
a support staff does the non-sales activities. In this
way, everyone is doing what they are best at.
S.T.: We also felt this model would provide
consistency of quality, and promote more of a team
concept within the office.
Continued on page 8


Compass surveyed 199
buildings for the firstABSORPTION quarter 2011 office
survey. The buildings
VACANCY
in the sample totaled
2,382,149
square
The citywide
feet.
office vacancy rate was
unchanged from the last quarter of 2010
and stands at 22.1%.
However, 503 square feet of positive
absorption took place in the first quarter,
compared with 55,616 square feet of
negative absorption in the previous quarter,
and 18,724 square feet of negative
absorption in the first quarter of 2010, so
it appears that the rising number of office
vacancies has subsided for the time being.
The survey results show that about 527,215
square feet of space is now available for
lease. In all of 2010, we saw a total negative
net absorption of 53,562 square feet, so the
lack of more vacancies is a welcome sight.
Compass surveyed 50 downtown office
Bend Retail Market
buildings totaling 506,249 square feet for
this quarter’s survey. The downtown office
vacancy rate increased from 12.6% to 13.6%
during the quarter. The submarket suffered
4,809 square of negative absorption, losing
ground for the second quarter in a row.
There were no significant leases or vacancies
during the quarter, with six buildings losing
less than 2,000 square feet each and two
buildings signing leases with less than 1,000
square feet.
The Hwy 97/3rd Street corridor also lost
ground, recording 7,239 square feet of
negative net absorption in the first quarter.
The vacancy rate rose from 28.4% to
29.6% from the last quarter of 2010, with
nine buildings showing higher vacancies
than previously, and only five buildings
showing positive absorption out of the 55
buildings surveyed.
The west-side submarket reported the only
positive absorption in the first quarter.
Overall, the west side gained 12,551 square
feet of net positive absorption. The vacancy
rate fell from 22.8% to 21.9%. Out of the
Net Absorption by Submarket — 1ST Quarter 2011
MARKET AREA
NO. OF
BLDGS.
TOTAL
SQ. FT.
VAC %
1ST QTR.
1ST QTR.
ABSORPTION
ABSORPTION
YTD
TOTAL 2010
Downtown
50
506,249
13.6%
(4,809)
(4,809)
7,354
Hwy 97/3rd St.
55
625,764
29.6%
(7,239)
(7,239)
14,329
West side
94
1,250,136
21.9%
12,551
12,551
(72,812)
BEND TOTAL
199
2,382,149
22.1%
503
503
(51,129)
Office Buildings over 3,000 square feet
94 buildings surveyed, 17 reported new
leases signed during the quarter and ten
showed more vacancies than the fourth
quarter of 2010.
Asking rents during the quarter appear
to have stabilized somewhat. Triplenet rents continue in the $.75 to $2.00
range depending on location, size and the
willingness of landlords to fill their buildings
at reduced rates. The overall feeling in
the marketplace is that these low rates
may continue for the next year or two, but
building owners are hesitant to sign leases
longer than three years out at reduced prices.
There were three office buildings recorded
sold in the first quarter in Bend. In February,
DENT Instruments purchased the former
Columbia Bank Building on Emkay Drive
and will move its operations to the new
location after an extensive remodel. The
15,816-square-foot building was purchased
for $1,550,000, less than half the
replacement value, or $98 per square foot.
Also in the same month, the multi-tenant
riverfront office building at 147 SW ShevlinHixon Drive sold for $759,000, only $128
per square foot.
ABSORPTION
Compass surveyed 246
retail buildings totaling
4,324,109 square feet
for the 2011 first-quarter
retail survey. The threemonth period ended with
VACANCY
a vacancy rate of 9.8%
compared with 9.7% for
the fourth quarter 2010 and 10.9% against
the first quarter of 2010, the first net loss in
seven quarters.
Still, the market remained nearly unchanged,
losing only 1,936 square feet for the first
quarter, compared to a gain of 24,680 square
feet for the previous quarter, and a gain of
65,035 for the first quarter of 2010. We think
this slight downtick will not be indicative of
further losses; we still maintain that the
retail market is strong and recovering at a
steady pace.
Four of the seven retail market areas surveyed
experienced positive absorption over the
Partners:
Howard Friedman , CCIM, Principal Broker
Cheryl Gardner , Principal Broker
John Keba , CPM, ARM, Principal Broker
Bruce Kemp , CCIM, Principal Broker
Darren Powderly , CCIM, Broker
Erich Schultz, SIOR, Principal Broker
Stephen Toomey , CCIM, Principal Broker
Gardner Williams , SIOR, Principal Broker
Brokers:
Russell Huntamer , Broker
Peter May , Broker
Jay Lyons , Broker
Robert Raimondi , Broker
Ron Ross , CCIM, Principal Broker
Marlo Wilson , Broker
DEVELOPMENT SERVICES
Steve Hendley , Development Services Manager
Property Management:
Herb Arathoon , CPM, Broker
Shauna Browne , Administrative Assistant
Tara Duncan , CCIM, Broker
Tina Castillo , Operations Manager
Cheryl Gardner , Principal Broker
John Keba , CPM, ARM, Principal Broker
Krista Polvi , Regional Property Mgr., Broker
Business Sales & Acquisitions
Broker Services:
Michelle Anderson , Marketing Coordinator
Eric Covert , IT Manager
Sandi Mickel , Reception, Admin. Assistant
Lisa Nielsen , Creative Director
Lupita Wesseler , Office Manager
Analysis and editorial by the management, staff and associates
of Compass Commercial Real Estate Services.
www.compasscommercial.com
2 Compass Points I Q1 2011
Compass Newsroom
I
Facebook Updates
Also losing ground, albeit temporarily,
was the Old Mill retail area, as Allyson’s
Kitchen and Ann Taylor Loft went dark over
the quarter, losing 10,443 square feet to
vacancies. The good news, however, is that
Mio Sushi and Ginger’s Kitchenware will
move into the Allyson’s space, and a lease
is out for signature on additional square
footage, so Q2 should show a nice positive
gain. But even with the new empty spaces,
the Old Mill Shops and the downtown
corridor remain very healthy.
Net Absorption by Submarket — 1ST Quarter 2011
2,400 SF w/high visibility on Bend’s west side
LEASE: Brookswood Meadow Plaza retail space
Steve Toomey OR RUSSELL HUNTAMER: 541.383.2444
MARKET AREA
NO. OF
BLDGS.
TOTAL
SQ. FT.
VAC %
1ST QTR.
1ST QTR.
ABSORPTION
ABSORPTION
YTD
TOTAL 2010
South 97
18
817,870
18.9%
4,056
4,056
53,968
Central 97
40
667,211
8.3%
12,383
12,383
18,527
North 97
26
1,121,460
4.7%
(15,895)
(15,895)
15,097
East side
28
571,269
9.4%
1,593
1,593
35,883
West side
53
507,223
13.5%
1,685
1,685
(2,343)
Old Mill Shops
16
221,909
6.2%
(10,443)
(10,443)
1,711
Downtown
65
417,167
5.7%
4,685
4,685
10,037
Bend Total
246
4,324,109
9.8%
(1,936)
(1,936)
132,880
SALE/LEASE: Retail building w/Hwy 97 frontage
26,325 SF divisible to 768 SF in northern Bend
BRUCE KEMP OR PETER MAY: 541.383.2444
Equine equipment consignment store opens in Bend
A Bit Less Equine Consignment tack
store opened at 425 NE Windy Knolls
Drive in late March. Howard Friedman of
Compass Commercial Real Estate Services
represented the tenant and Herb Arathoon,
also of Compass Commercial, represented
the landlord.
[email protected]
Follow Us on Twitter
LEASE: Westside Village Marketplace retail space
1,000 – 7,492 SF w/lease incentives in SW Bend
And in March, the Fraser Building on
Chandler Avenue was purchased from
Umpqua Bank by Summer 4, LLC, and
the first floor will be occupied by Alchemy
Solutions, a computer software company.
The 15,920 square foot building was
purchased for $1,825,000 or nearly $115
per square foot for a Class A building.
Compass Points is published quarterly by Compass Commercial Real Estate Services, 600 SW Columbia Street,
Suite 6100, Bend, Oregon 97702. (541) 383-2444. Subscription is free via sign-up on our website, www.
compasscommercial.com. All material in Compass Points is copyrighted, unless otherwise noted.
quarter, while three lost ground. The north
Highway 97 corridor led the way in negative
absorption as the Cascade Village Shopping
Center experienced several vacancies. The
Central Highway 97 submarket was the
biggest gainer, with a lease finally signed at
the former Ernesto’s Restaurant building,
which will soon be the new home to The Brew
Shop (formerly on Division Street) retail store
and an accompanying pizza and barbecue
dining component.
MARLO wILSON OR STEVE TOOMEY: 541.383.2444
Compass Commercial Real Estate Services is a full-service commercial real estate firm with expertise in all aspects
of the business. Compass Points is published to inform our clients, partners and colleagues of trends, activity and
opportunities in the Central Oregon commercial real estate and business markets.
© Compass Commercial, Inc. 2011.
SELECT RETAIL LISTINGS


Bend Office Market
A Bit Less co-owners Chris Lowell and
Linda “Chooch” Wohlers are longtime
friends and fixtures in the Central Oregon
horse community.
“In conversations with horse people in the
area, it became apparent that there was
a real need for a used horse-tack and
riding-apparel outlet,” said Lowell. “The
consignment industry in general has seen
12% growth over the last year, so we felt now
was the perfect time to expand and open a
consignment tack store in Bend.”
Customers can expect to find English and
western tack at a variety of price points. The
store is currently collecting high-quality, gently
used saddles, bridles, horse ware, equestrian
clothing and country home furnishings for
resale. For more information about drop-off
times, call (541) 280-4412.
— M.A.
Compass Points I Q1 2011
3
Bend Industrial Market


Compass surveyed 290
buildings for the first
ABSORPTION quarter 2011 industrial
review. The buildings in
VACANCY
the sample totaled 3.98
million square feet.
The citywide industrial
vacancy rate decreased from 17.8% to
16.3% over the last quarter. Approximately
647,000 square feet of space is now available
for lease.
The positive absorption for the first quarter
of 2011 was the second quarter in a row
that showed less vacancy. The first quarter
positive absorption was 63,214 square feet.
Adding that to the 83,500 square feet of
positive absorption in Q4 2010 brings the
vacancy rate down nearly four percentage
points from 2010 Q3, a very encouraging
Jay Lyons joins Compass Commercial
trend, as industrial leases indicate that
the technological, manufacturing and
distributing sectors are expanding. In all
of 2010, less than 40,000 square feet of
industrial space was absorbed, so the twoquarter positive trend is encouraging news.
Large empty or partially empty buildings
continue to influence the vacancy rates in the
industrial market statistics. Sixteen buildings
in Bend currently offer a minimum of 10,000
square feet for lease. This accounts for
approximately 376,233 square feet or 58%
of the total vacancy.
Spaces under 5,000 square feet account for
less than 17% of the total vacancy numbers,
while 83% of the vacant square footage is
larger than 5,000 square feet. Larger spaces
continue to lease for as low as $.20 per
square foot per month, while smaller spaces
Net Absorption by Submarket — 1ST Quarter 2011
MARKET AREA
NO. OF
BLDGS.
TOTAL
SQ. FT.
VAC %
1st QTR.
1st QTR.
ABSORPTION
ABSORPTION
YTD
TOTAL 2010
Southeast
130
1,623,908
16.3%
10,513
10,513
31,547
Northeast
113
1,801,003
15.6%
61,851
61,851
(52,236)
Central
37
353,990
28.6%
(9,150)
(9,150)
20,108
West side
10
201,440
0.0%
0
0
3,420
BEND TOTAL
290
3,980,341
16.3%
63,214
63,214
2,839
Industrial Buildings over 3,000 square feet
Redmond Industrial Market


ABSORPTION
VACANCY
Vacancies
The Compass Commercial
survey
included
76
buildings totaling nearly
1.47
million
square
feet. The vacancy rate in
Redmond rose to 29.0% in
the first quarter of 2011,
up from 27.1% at the end
of 2010.
exceeded
new
move-ins
by
27,091 square feet over the last 90 days.
Currently, more than 424,000 square feet
of space is available for lease. Only two new
leases were reported, one at the Pioneer
Industrial Condos on NE Hemlock, and the
other at a building on SW 21st, while 11
buildings reported more vacancies than the
previous quarter.
Rental rates remain in the $.25 – $.45 per
square foot per month range.
Net Absorption — 1ST Quarter 2011
MARKET AREA
NO. OF
BLDGS.
TOTAL
SQ. FT.
VAC %
1ST QTR.
1ST QTR.
ABSORPTION
ABSORPTION
YTD
TOTAL 2010
Redmond
76
1,463,901
29.0%
(27,091)
(27,091)
(32,730)
Industrial Buildings over 3,000 square feet
4 Compass Points I Q1 2011
Jay Lyons has joined
Compass Commercial
Real Estate Services
as assistant to Darren
Powderly and Erich
Schultz, both partners in
the company.
generally start at $.30 – $.40. This should
hold true for all of 2011.
The southeast submarket recorded 10,513
square feet of positive net absorption
in the first quarter. The vacancy rate
decreased from 17.0% to 16.3% as a
result . Breedlove Guitars leased 9,600
square feet in the Mountain View Heating
complex on 9th Street for the largest
transaction of the quarter.
The northeast submarket recorded almost
62,000 square feet of positive net absorption
in the first quarter, continuing its positive
gains from the fourth quarter of 2010. This
resulted in a vacancy-rate drop from 19.0%
to 15.6%. This is the lowest vacancy rate in
the northeast sector since the third quarter
of 2008!
The Sheldon Building on Hunnell Road
in Bend’s north end led the way, filling
the remaining 21,772 square feet over the
quarter, including a new business, Pono Farm
and Fine Meats, which specializes in the
“farm to table” concept of natural meats and
includes a deli.
The central submarket recorded 9,150
square feet of negative net absorption, the
fourth quarter in a row this sector lost ground.
The vacancy is now 28.6%, up from 25.8%
at the end of 2010. The Design Lighting
building on NE 2nd Street went dark over
the quarter, adding 5,000 square feet to
the overall vacancies, as well as a building
located at 1223 NE 1st Street that added an
additional 5,400 square feet of vacancy. Only
one new lease was reported in the sector, a
3,650-square-foot lease at the Brookman
Building on NE 1st Street.
The west-side submarket again started the
quarter with no vacancies and ended it the
same way. The west-side has been fully
occupied since the third quarter of 2010.
Lyons brings five years
of experience as an
investment and real-estate analyst in San
Diego, Calif., where he worked for NorthMarq
Capital and Capmark Finance. In his most
recent capacity, Lyons helped mentor other
analysts within NorthMarq.
Jay Lyons, Broker
A licensed broker in the states of Oregon
and California, he has also completed all
coursework toward his Certified Commercial
Investment Member (CCIM) designation and
is a member of the International Council of
Shopping Centers (ICSC).
Lyons graduated from the University of Denver
with a master’s of science degree in real
estate and construction management and
holds a bachelor’s of science in criminology
and law studies from Marquette University. He
also studied abroad in Australia and Spain.
“We set out with the goals of showcasing
properties we represent and better serving
our clients with an easy-to-use website,”
said Compass Commercial President Darren
Powderly, who oversees corporate marketing
efforts. “At Compass, we believe that investing
in marketing — such as our website, online
presence and professional marketing staff —
creates tremendous added value and exposure
for our clients and their properties.”
The new site features contemporary design
and an easy-to-navigate format. Its homepage
prominently displays featured listings from
For the second quarter in a row, no industrial
land was traded. However, a building at 2525
NE Twin Knolls was purchased by an outof-state investor for $975,000 or $50.83
per square foot for the 19,000-square-foot
industrial building in a short sale. Also, a
small industrial building on NE Lytle sold
for $300,000, $75 per square foot to Land
Effects, a landscape and design company.
to the
Top Producers
1st Quarter 2011:
January
Bruce Kemp,
CCIM, PARTNER
“I decided to move to Bend because of the
great live-work balance the community offers,”
Lyons said. “I chose Compass Commercial
because the firm clearly has the largest
presence in Central Oregon.”
Darren
Powderly,
— M.A.
CCIM, PARTNER,
PRESIDENT
New Compass website serves clients even better
Compass Commercial Real Estate Services
recently launched its redesigned website at
www.compasscommercial.com.
Congratulations
throughout Central Oregon, as well as a live
feed of commercial real estate and local news.
February
March
Ron Ross,
CCIM,
PRINCIPAL BROKER
“We set out with the goals of
showcasing properties we represent
and better serving our clients with an
easy-to-use website.”
The site also integrates Compass Commercial’s
strong social media presence, which includes
Twitter, Facebook and Linked In, as well as
an electronic version of Compass Points, the
region’s only market survey and analysis of
commercial real estate.
As always, visitors and clients will find sales
and lease listings, bank-owned properties
and in-depth information about Compass
Commercial brokerage, asset and property
management, business sales and acquisitions
and development services.
Compass Commercial staff, including Creative
Director Lisa Nielsen, Marketing Coordinator
Michelle Anderson, IT Manager Eric Covert
and Office Manager Lupita Wesseler ,
collaborated with Evan Earwicker of Bendbased Northwest Graphic to redesign and
develop the updated site.
Did you know?
Nearly 600 people follow
Compass Commercial on Twitter,
getting daily updates on property
listings and investor news.
See for yourself by visiting
http://twitter.com/#!/compasscom
and sign up to follow CompassCom.
— M.A.
Compass Points I Q1 2011
5
Bend
Nonprofit Spotlight
is getting back to business
Buyers are looking for cash flow and the Central Oregon lifestyle
By Peter May, MBA, Business Broker, Compass Commercial Real Estate Services
It’s no secret business
sales slowed during the
recession. Today, though,
the news is good and
getting better for those
interested in selling and
buying businesses.
During the economic
boom of 2005 through
2007, we didn’t see a
spike in business valuations like we did in
real estate. When the economy slowed, we did
however see a slowdown in sales as a result of
buyer panic and a decline in income for most
businesses, especially in 2009. All of these
factors contributed to owners not wanting to
sell during the downturn.
Peter May
Now, things are changing.
If your Central Oregon business is doing well
and you are ready to retire, move or switch
careers, we think now is a great time to sell
your business.
And we’re not the only ones. According to a
recent national survey of business brokers by
BizBuySell.com, 76% of responding brokers
anticipate that 2011 will prove a good year
to sell.
Financing remains a struggle for certain
business sales. Nearly half of the brokers
surveyed by BizBuySell.com reported that
financing is the biggest issue hindering
business-for-sale transactions. In Central
Oregon, we have also found that SBA financing
for business sales is just starting to pick up
again after a slow two years.
The survey respondents noted that the
economy is getting stronger, more businesses
are coming on the market and more people
are looking to buy profitable businesses. We
have found all these factors to be true in
Central Oregon as well.
According to the BizBuySell.com survey, the
extension of the favorable long-term capital
gains tax rate is having a slight effect on the
business-for-sale market in 2011, since the
future of capital gains rates is uncertain but
most likely to rise within the next few years,
the report said.
We have also spoken with local business
owners who are starting to feel more confident
about the local economy and prospects for the
future. There is also a strong demand from
buyers looking for ways to make sustainable
livings in Central Oregon.
In short, good businesses nationally and in
Central Oregon are selling; better financing
is becoming available; and many strong and
funded buyers are looking for opportunities.
Buyers with cash are looking for cash flow and
ways to do business in Bend.
Top ten deals of Q1, 2011
Compass closed 66 deals in the 1st quarter with a consideration value of more than $12 million. Below are some of the significant transactions
for January through March. This is a sampling of our deals. We hold some transactions in confidence per the wishes of our clients.
1) High Desert Sleep Center, office/
medical building sale, $1,975,000
Seller: Undisclosed, represented by
Ron Ross, CCIM, and Erich Schultz,
SIOR
Buyer: UMR Redmond, LLC
2) Columbia River Bank Building, office
building sale, $1,550,000
Seller: FDIC
Buyer: DENT Investments, LLC,
represented by Darren Powderly, CCIM,
and Peter May, Broker
5) 63028 NE Sherman Road, Bend,
3) 2525 NE Twin Knolls, industrial
building sale, $975,000
Seller: Twin Knolls Investments, LLC,
represented by Darren Powderly, CCIM;
Peter May, Broker; Bruce Kemp, CCIM;
and Erich Schultz, SIOR
Buyer: James Kincaid, represented by
Russell Huntamer, Broker, and Bruce
Kemp, CCIM
4) Fairhaven Vista, multifamily town
6 Compass Points I Q1 2011
homes sale, $800,000
Seller: Columbia State Bank,
represented by Ron Ross, CCIM
Buyer: Dino Vendetti, represented by
Darren Powderly, CCIM
industrial lease, $796,368
Lessor: Baseline Street, LLC, & 10th
Avenue Property, LLC, represented by
Robert Raimondi, Broker, and Tara
Duncan, CCIM
Lessee: Cascade Powersports, LLC,
represented by Robert Raimondi, Broker,
and Tara Duncan, CCIM
6) 147 SW Shevlin-Hixon Drive, Bend,
office building sale, $759,000
Seller: JGL, represented by Cheryl
Gardner, Principal Broker, and Herb
Arathoon, CPM
Buyer: Undisclosed, represented by
Erich Schultz, SIOR
7) 28.84-acre UAR-10 Land on Eagle
Road, commercial land sale, $650,000
Seller: SA Group Properties, represented
by Robert Raimondi, Broker, and Bruce
Kemp, CCIM
Buyer: VPS4, LLC
8) Village Meadow Lots, Sisters,
residential land, $561,000
Seller: Columbia State Bank,
represented by Ron Ross, CCIM
Buyer: Sisters Habitat for Humanity
9) Iris Ward Building, office lease,
$450,827
Lessor: Kim Ward, LLC
Lessee: Focus Physical Therapy, Inc.
represented by Howard Friedman, CCIM
10) Baney Corp. Building, medical lease,
$341,029
Lessor: Baney Corporation, represented
by Darren Powderly, CCIM, and Erich
Schultz, SIOR
Lessee: Bend Memorial Clinic,
represented by Darren Powderly, CCIM,
and Erich Schultz, SIOR
SELECT OFFICE & INDUSTRIAL LISTINGS
Bethlehem Inn houses those in need,
seeks home of its own
By Gwenn Wysling, Executive Director, Bethlehem Inn
Compass Commercial is proud to support and spotlight local nonprofits that make our
community a better place. This month, we’d like to introduce you to Bethlehem Inn.
Now 12 years
old, Bethlehem
Inn has grown
from a small,
seasonal, volunteer-powered organization
to the largest emergency shelter serving
men, women and families in Central and
Eastern Oregon.
As the largest provider of shelter for an entire
region, the Bethlehem Inn housed more than
700 individuals and families last year and
provided an array of services tailored to each
individual’s unique needs.
In Central Oregon, Bethlehem Inn has earned
the reputation as a reliable, consistent
provider of an ever-growing need for services
to those experiencing homelessness.
Scores of individuals and families, as well
as communities, are dependent upon the
organization’s expertise. By maximizing
and leveraging an array of resources, today
Bethlehem Inn is able to serve close to a
1,000 unique individuals with shelter and
services 365 days a year, in addition to
serving close to 60,000 meals annually.
The Inn started from the profound expression
of compassion by concerned citizens and
is poised to move to the next level of
serving the greater community. In the early
years, Bethlehem Inn was a homeless shelter
without a home, moving from church to
church over the four months of harsh Central
Oregon winters.
In 2004 the organization became a yearround operation and started to move from
volunteer-driven to professional staff. Since
then, the Bethlehem Inn has expanded
its programs and services to meet basic
needs of those experiencing homelessness.
These include Families First Program, Next
Steps for Individuals, Meals Program, Case
SALE: Morningside Medical building
15,278 SF, 100% leased Class A building in Bend
CHERYL GARDNER OR BRUCE KEMP: 541.383.2444
Compass Partner Howard Friedman (right),
his wife Nancy (left), and Cindy Murphy (center)
serve dinner at Bethlehem Inn. Not pictured
but also serves, Larry Murphy.
Management, Work Experience Program and
Life Skills curriculum.
In 2007, Bethlehem Inn moved to its current
county-owned facility at 3705 N Highway
97. The shared partnership with Deschutes
County has allowed the organization to
provide a much needed mission at not only
one, but two county provided facilities. The
current lease expires July 2012. Recognizing
the need for additional space for operations,
the Inn has enlisted a group of Real Estate
experts in the search for a new facility.
SALE: Class A office and retail building
36,771 SF on Hwy 97 in Redmond
ERICH SCHULTZ OR DARREN POWDERLY: 541.383.2444
LEASE/SALE: NE Bend industrial condo
2,271 SF end unit in Brinson Business Park
This vital, community-supported organization
is grateful to the generosity of volunteers
and donors who help serve this vulnerable
population and provide hope to families and
individuals in crisis. To learn more, please
visit www.bethleheminn.org.
Editor’s note: Bethlehem Inn recently
formed a real-estate task force, including
Howard Friedman of Compass Commercial
Real Estate Services, to help create a
strategy for its future location. If you have
an idea for a possible site or resources that
can help, please contact call Executive
Director Gwenn Wysling at (541) 3228768, ext. 15 or Howard Friedman, CCIM
at (541) 383-2444.
ERICH SCHULTZ OR JAY LYONS: 541.383.2444
SALE: Floyd A Boyd Co. building and land
15,677 SF building on 24.63 ac. in Redmond
PETER MAY OR DARREN POWDERLY: 541.383.2444
Compass Points I Q1 2011
7
Compass Commercial founding partners reflect on 15 years in Central Oregon
Continued from page 1
Q
What Central Oregon real estate
projects are you most proud of Compass
Commercial’s involvement in?
E.S.: The cradle-to-grave projects, where we
are involved in the development of the land,
the leasing of the project and then the sale of
the property. Mill Point Business Campus is
an example of that.
Q
What did you, the partners and the
company learn from the economic real
estate boom of the mid-2000s?
S.T.: How hard it is to remember the
second part of the most basic lesson for
From
the
profiting in real estate: “buy low — sell
high.” Some owners weren’t ready to sell
at the height, because it felt like everyone
expected prices to keep going up. And then
that didn’t happen.
Q
What qualities of the company helped
Compass weather the recession?
E.S.: We are fiscally conservative. During
the really good years, we did not distribute
all of our earnings. We didn’t know when
a recession was going to hit or how severe
it would be, but we knew it would happen.
Further, we continue to focus on meeting
client objectives. This focus results in our
clients coming back to us again and again. I
also think that our long-term support of the
community has served us well. People want
to support those who invest in the community.
Q
What are you most proud of about
where Compass is today?
E.S.: The teamwork and the development of
our members over the years.
S.T.: We were able to come through a
very tough period without losing key staff
members. Our goal from the outset was to
provide superior service to our clients and we
have never wavered from that objective.
Archives
Compass Commercial has spent the past 15 years growing with our community. As we reach this milestone, we looked back through our Compass
Points archives at the changes Bend, Central Oregon and our company have seen.
1996
• Bend’s population hovers
near 30,000
• Erich Schultz and Steve Toomey
become founding partners of Compass
Commercial
• Westside Village envisioned
• First phase of “The Old Mill District at
River Bend” approved
• Deschutes Fairgrounds in Redmond
plans move from what is now the Fred
Meyer’s property to current location
1997
• Bruce Kemp joins Compass
as a partner
1999
• Gardner Williams relocates
from Portland and joins
Compass as a partner
2000
2001
• Bend Parkway (Highway 97)
opens
2002
• Deschutes County ranked at 74th
fastest growing county in the nation by
U.S. Census data
2003
• Compass Partner Erich
Schultz shepherds Mill Point
business Campus sale. With a price
tag of more than $26.6 million dollars,
it becomes the largest transaction in
Deschutes County history at the time
• Deschutes Brewery expands, plans to
invest $15 million to add 35,000 SF
warehouse
2004
• The Baney Corp. starts plans
for The Oxford, a 50-room
boutique hotel downtown
2005
• Cheryl Gardner joins Compass
as a partner and growing our
Property Management division
• Howard Friedman becomes a
Compass Commercial partner
• The Bend Bulletin relocates to new
building on Chandler Avenue
• Retailer REI plans move to
Bend with eye set on remodeling iconic
smoke-stack building in the Old Mill
8 Compass Points I Q1 2011
2006
• Darren Powderly becomes a
partner at Compass
• Les Schwab makes plans to move
corporate headquarters to Juniper Ridge
2007
• Bend population reported
at 77,780
2009
• Compass adds Development Services
division headed by General Contractor
Steve Hendley
2010
• Compass Commercial merges with
Equity Growth Management, gaining
owner John Keba as a partner and
doubling square footage under
management
2011
• Compass
Commercial
celebrates 15 years of business and
is named as one of the 10 largest
Commercial real estate firms in the
state by Oregon Business Magazine