The Port of Portland has signed an agreement to lease just under 19.3 acres to a real estate management firm for the development of a new regional auto parts distribution facility to be operated by Subaru of America, Inc.
The new facility, which is set to break ground in February 2011, is envisioned as a 413,000-square-foot structure that will also feature a service training center and regional offices for Subaru.
The lease with property management firm Multi-Employer Property Trust is for a term of 55-years and Subaru will sublease the structure for an initial term of 10 years starting in October 2011. Trammell Crow Company will develop the facility for MEPT.
Financial details of the agreement were not released.
“The Port of Portland is thrilled to have Subaru of America, Inc. select Rivergate [Corporate Center III] for its West Coast distribution facility,” said Bill Wyatt, executive director of the Port of Portland. “The goal for this site was to attract users that will potentially utilize other port services and generate additional marine container business. With this lease, the Port has the opportunity to explore future logistics opportunities with Subaru for auto parts distribution operations.”
The new facility will be the second project within the 114-acre Rivergate center, which is envisioned as ultimately accommodating over 2.4 million square feet of industrial space. The site is near the port's Terminal 6 container terminal, and according to the port, ideally suited for marine cargo, rail and heavy distribution users.
Subaru and its related entities import approximately 10,000 twenty-foot containers into West Coast ports annually.
According to the port, another selling point for the location was the fact that Rivergate is already home to the largest LEED Silver certified industrial building in America. The new Subaru facility will be constructed to meet those "green" standards as well.
“We had several critical requirements for our new facility; it had to be highly-efficient and state-of-the-art,” said Stephen Gale, director of corporate facilities with Subaru of America, Inc. “We were also very pleased that the property met LEED standards, reflecting our commitment to the community and the environment.”
Port officials said that Subaru’s entry into Rivergate Industrial District will not affect the car maker's vehicle import activities across the river at the Port of Vancouver USA. The Port of Vancouver USA continues to serve as the West Coast port of entry for Subaru vehicles, with a 30,000 square-foot auto processing warehouse and 40-acre cargo backup area for its operations.