Office projects expand

Developer Mark Madden is betting that it will continue.

Madden and his investors plan to break ground early this year on a five-story office project on the south side of the old Penske property at Northwest 14th Avenue and Overton Street.

His building and two other office projects reflect the Pearl's growth west toward Interstate 405, the market's swing from condos to offices and apartments and the Pearl's continued shift from industrial to office.

Unico Properties of Seattle has an office and apartment project under way along Lovejoy Street.

To the west, developers Al Solheim and R.C. Ford have the Machineworks office project under construction.

Two blocks north from that, Madden's project is expected to break ground in the first quarter of 2008.

Madden, a former commercial broker, developed the Lovejoy Square where Office Max is located and rehabbed a retail building on Northwest 10th Avenue and Couch Street

Madden bought the Penske property for $6.5 million in November 2006. Penske's truck rental business has since moved to the blue-collar district on Northwest Yeon Avenue.

Madden's new building will cover 61,000 square feet with an office penthouse and first-floor shops.

Don Drake, a vice president at Melvin Mark Brokerage Co. who has the listing, says Madden is targeting medical clinics. Health care remains one of Portland's strongest growth sectors. Drake says the project hopesto score a gold environmental rating from the U.S. Green Building Council. If all goes as planned, tenants would move in in early 2009.

Madden's interest in the north Pearl will continue for a while.

He plans a second phase on the other half of the Penske property, and next month, he'll close on the purchase of the block just east of the Penske property.