CDC Purchases Retired Paper Manufacturing Plant in Oregon
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Commercial Development Company, Inc. (CDC) recently announced acquisition of a retired paper manufacturing plant in Newberg, Oregon. The site was acquired by CDC affiliate Newberg OR LLC. The transaction included the acquisition of real estate assets and a corporate indemnification for legacy environmental liabilities associated with the site. CDC affiliate Environmental Liability Transfer, Inc. (ELT) facilitated the transfer of environmental liabilities. CDC and affiliates will now oversee the sale of equipment and demolition of the buildings.
CDC will look to reposition the site to take advantage of the site’s development potential, which includes 120 acres of industrial/mixed land, four acres of multi-family land, and 1.5 acres of commercial land located in an Opportunity Zone and Enterprise Zone.
“We are excited to expand our redevelopment efforts into the greater Portland area” said Adam Kovacs, Executive Vice President at Commercial Development Company, Inc., “Our acquisition of this retired plant is the first step to repurposing the property and moving it back into productive use – the site has phenomenal development potential and we are eager to see the economic benefits this transaction brings to the region.”
CDC is currently evaluating all development options and will be meeting with local economic leaders to find end users who could benefit from the large amount of land available and prime location. Additionally, the site has heavy power, easy proximity to the I-5 transportation corridor, and potential for both rail access and significant water rights.
“I am thrilled that such an experienced and proven corporate partner has seen the vast potential in the Newberg mill property. The site has been unproductive for far too long and we all look forward to the coming transformation. For the region, the repurposing of this property will result in the creation of a center for economic vitality. For Newberg, the redevelopment will result in expanded recreational, economic and employment opportunities for residents and visitors alike,” said Mayor Rick Rogers.
“This site represents a tremendous opportunity for not only Newberg and Yamhill County but the surrounding region to create jobs now and well into the future. Newberg is perfectly positioned between Portland and Salem,” said Philip Higgins, Principal Broker at Pacific Crest Real Estate Advisors. “Large format 100-plus acre industrial sites are a rarity in our land-constrained market, and this brownfield redevelopment will be a meaningful win for our local and regional economy. I’m excited to be working with CDC/ELT, with their long history of successful and transformative projects and their commitment to transforming brownfields into productive projects.”
“Yamhill County and the City of Newberg have so much to gain from the sale of the defunct mill site. We stand to have a legacy site cleaned up; we stand to gain excellent jobs in the community. With our county’s strong manufacturing base and this large-scale industrial site, I anticipate that we will attract additional successful businesses to the site and build our community’s resilience. I am so excited,” said County Commissioner Casey Kulla.
Initial redevelopment activities will include permitting, removal of universal waste, sale of equipment, and demolition of most of the buildings and infrastructure on site. CDC expects the site to be fully demolished and ready for redevelopment by late 2021.
Following more than 90 years of operations, the 220-acre industrial campus was used to produce paper for newspapers, brown paper bags, and corrugated carboard. The Newberg plant officially closed in January 2016.
