Legal Aid and Oregon Law Center lease 17,000 SF in downtown Portland historic building

A historic office building purchased at a discount last year signed two new tenants.

The Oregon Law Center and Legal Aid Services of Oregon will move into the American Bank building next to Pioneer Courthouse Square in downtown Portland, taking nearly 17,000 square feet between them, according to owner Menashe Properties.

The Oregon Law Center will be on half of the 14th floor and Legal Aid Services of Oregon will take the ninth floor.

“After entertaining several offers, including one from our current building, and taking numerous tours, the Menashe group and the American Bank Building made the decision an easy one,” said Jeremy Aliason, executive director of Legal Aid Services of Oregon. The move is scheduled for January 2025, and Legal Aid Services of Oregon will take 11,250 square feet at American Bank, roughly the same amount of space it now occupies at the Cascade Building at 520 S.W. Sixth Ave.

“Several factors influenced our decision to relocate, including cost savings, improved access to public transit, enhanced security, and the added benefit of amazing views. Ultimately, this move is the right decision for our clients,” Aliason said in an email. “By reducing our spending and securing a long-term lease, we are able to create greater financial stability. We are also thrilled to be in the same building as our sister legal aid organization, the Oregon Law Center.”

Heather Kemper, Oregon Law Center’s interim executive director, noted, “Most OLC employees participate in a hybrid work schedule. The American Bank Building provided just the right fit for our working model. We have a centrally located office space that provides easy to access to our clients, big bright offices perfect for office sharing and office amenities that will make working downtown more enjoyable for our staff. We’ve been impressed with the professionalism of the Menashe property management staff and look forward to working with them throughout our lease.”

The Menashe family bought American Bank last September for $13.6 million, down 70% from its 2014 sale price of $45.1 million.

Counting the two new tenants, the building is half leased, according to principal Lauren Menashe, who called the leases “a strong signal of renewed confidence in downtown Portland.

“It is reassuring to see our local businesses recommitting to the heart of our city once again,” she said in an email.

Downtown Portland has continued to experience a turbulent office market, with foreclosures and tenants fleeing the core. The downtown office vacancy rate was 31.1% in the first quarter of 2024, according to data from real estate brokerage CBRE. Its steady rise has shown no signs of stopping.

The 15-story American Bank Building, at 621 S.W. Morrison St., was constructed in 1913, according to historical records. When the Menashes bought it last year, it came with tenants such as Morgan Stanley, Greenleaf Juice Co., CVS and Wells Fargo.

The Wells Fargo branch is temporarily closed. “Wells Fargo underwent storm damage back in January and subsequently decided to upgrade this branch as a result during the reconstruction,” Menashe said. “They plan to re-open mid-July.”

Source: BIZJOURNALS