Historic Post Office Plaza in downtown Bend sold for $4.3 million
Close to asking price for nearly 90-year-old building; new owner plans to keep architecture intact
BEND, Ore. (KTVZ) -- The historic downtown Bend building known as Post Office Plaza recently sold for $4.3 million to new owners who plan upgrades but to keep its familiar architecture in place, sale participants said Thursday.
That's close to the $4.4 million asking price when it went on the market in late summer.
The 19,352-square-foot building, located at 777 NW Wall Street, has maintained its location in the heart of Bend’s historical district since 1932, having served as the community's post office for a half-century, and since then as office space.
Compass Commercial Real Estate Services brokers Howard Friedman, CCIM, Jay Lyons, SIOR, CCIM and Grant Schultz represented the seller of the property. Brian Fratzke, CCIM and President with Fratzke Commercial Real Estate Advisors Inc., represented the buyer.
The previous family owned the historic landmark since 1998. Friedman worked with the family from the very beginning, later bringing Lyons and Schultz to the table.
The property offered a rare opportunity to own a piece of downtown Bend history. Interest was strong out of the gate, with an offer made after a short time on the market.
“This trophy, historic downtown property is a landmark in downtown Bend,” Friedman said. “It is one of the last and oldest remaining properties that were not razed for development over the last century, like the Pilot Butte Inn, the Crane Shed or the A.M Drake Lodge. The purchase of the property by a quality buyer will ensure its legacy in Central Oregon.”
The buyer, Deschutes Opportunity Commercial Redevelopment, LLC, plans to redevelop the site, while keeping its historical architecture intact, the brokers said.
The three-story building originally consisted of a 4,000-square-foot foundation, with one of the levels below grade. An addition was constructed in the 1980s, bringing the square footage up to the 19,352 square feet it is today.
“The buyer completed an in-depth due diligence process to confirm the highest and best use for the property," Fratzke said. "Several options were considered, including housing and hotel options, upgraded executive offices, and retail uses.
"As the buyer is originally from Oregon, they wish to improve the building by enhancing its historic features while providing a high-class asset to the downtown core of Bend,” he added. “Our community should be excited to see the upgrades and changes, beginning in 2021.”
The Old Bend Post Office was constructed by the Public Buildings Program to reduce unemployment and to stimulate the economy.
Its architectural style reflects a modern and classical style, with its ornamental elements on the east side of the building.
The reinforced concrete construction was considered unusual for the Bend area at the time and therefore deemed luxurious by the locals. The building is listed on the National Register of Historic Places.
"The building has stood the test of time, through the Depression era and the recent COVID pandemic," the announcement said. "Today, it stands as a reminder of our past and the hope for future progress."
