A staggering real estate transaction in Portland, Oregon, has laid bare the dire state of the city's commercial property market. HMH, a publisher and education technology company, sold the seven-story Everett Building for a mere $11 million on April 13, as reported by The Oregonian.
Just over a decade ago, in 2015, NWEA, a nonprofit education research group, purchased the same building for $47.3 million. The nearly 77 percent decline in value can be partly attributed to the COVID-19 pandemic, which accelerated the shift to remote work, reducing demand for office space. Additionally, Portland's notorious homeless crisis and its reputation as a hotbed for protests have further deterred investors.
The office building, located at 121 N.W. Everett St in the Old Town neighborhood, was acquired by Central City Concern, a social services nonprofit focused on substance abuse and recovery. The organization has renamed the property the Larry and Pamila Naito Recovery and Employment Center.
The property's value peaked sharply before entering a steady decline. Originally developed in 1999 for $20 million as the Port of Portland's offices, it was sold to Washington Holdings, a real estate investor, in 2008 for $29.2 million. NWEA began its tenure at the property in 2015 before being acquired by HMH in 2023. According to the outlet, the research group transferred the property to HMH as part of the deal.
Central City Concern purchased the building at its lowest price ever, despite claiming it remains in excellent condition. 'We felt it critical to maintain our roots in Old Town, so when the opportunity presented itself with this building, we took it,' Laura Recko, a spokesperson for the nonprofit, told The Oregonian. 'The building is in excellent condition and contains a lot of amenities.' Recko added that the new facility will enable the company to serve more clients, expand program offerings, and provide more space for both clients and staff.
Other office buildings in Portland have suffered similar fates. Notably, the Big Pink building, one of the city's largest office spaces, sold for $45 million in 2025 after previously selling for roughly $375 million in 2015, a decline of nearly 90 percent. Similarly, Northwest Portland's Montgomery Park was purchased for $33 million in 2024, losing about 87 percent of its value from its 2019 sale.
The transaction has sparked mockery and commentary online. On Reddit, one user wrote: 'Prime commercial real estate being owned and occupied by a substance abuse and recovery business is peak Portland.' Another added: 'The death spiral has started and sadly there is no fix.' A third commented: 'A commercial real estate bloodbath has been inevitable since Covid forced people to work from home, and everyone realized WFH was superior in almost every measure. Sucks for those heavily invested in office buildings, but the new owners of these things are getting a great advantage from the big reset.'
