Compass Commercial founding partners reflect on 15 years in
Transcription
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