OHSU Buys Defaulted Office Building for $17.7 Million

The purchase is one of very few in downtown Portland since the pandemic crushed the market.

OHSU's new property sits just west of the Marquam Bridge. (Henry Cromett)
By Anthony Effinger

Oregon Health & Science University went bottom-fishing in the Portland real estate market, purchasing the defaulted Crossing at First for $17.7 million, according to property records and an internal announcement by OHSU.

“Investing in a downtown Portland hub helps OHSU meet its responsibility to ensure we can best serve Oregonians,” the university said in a message to employees obtained by WW. “Similar to the hospital expansion and potential Legacy integration, we are making decisions to support our ability to grow our capacity.”

OHSU is in talks to acquire Legacy Health.

Crossing at First, a three-building complex located at Southwest 1st Avenue and Arthur Street, is adjacent to other OHSU buildings. The purchase will save money on rent, the university told employees.

“This investment enables OHSU to transition from leased properties into OHSU-owned properties, resulting in substantial long-term savings,” it said.

OHSU’s public relations department didn’t immediately reply to an email seeking comment.

Crossing at First was a casualty of downtown Portland’s real estate collapse. Bixby Land Company, based in Newport Beach, Calif., bought the three buildings and turned them into one complex, spending a total of $44.2 million in 2016 and 2017 when tech companies were flocking Portland to escape higher rents in Seattle and San Francisco.

Bixby planned to spend $8 million remodeling the buildings, according to a 2017 press release.

During the pandemic and the riots downtown, the complex struggled to find tenants. It went into foreclosure in 2022 and was taken over by an affiliate of the lender.

At $17.7 million, OHSU got the building for far less than half of what Bixby Land spent just seven years ago.

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