In Portland, Ore., an investor who paid nearly $4 million for property to be used as a storage facility for wine, has raised some eyebrows due to the building’s poor condition. But the developer is confident the money is worth it and he believes in the beauty of the building and of the success to come.
When big-wig developer Rick McClish from California first found the building, it was so run down it looked ready to fall over. The facility is located in Southeast Portland’s industrial district which has a long way to go to become a desirable location. But McClish thinks that even though the building, at 111 S.E. Belmont St. is in the center of the worn-down Central Eastside Industrial District, it is an area that he feels is ready to take off. And in response to an inquiry into why he’d dive into such a large investment, he said the economy will rebound.
“It was a labor of love,” McClish told the Oregonian of his decision. “At times it was mind altering.”
The unit, named the Rose City Storage & Wines Vaults, is not your ordinary storage unit. It features 849 storage units, including a full basement of wine lockers maintained at the optimum climate. The basement also features a community tasting room. The upper floors are carpeted and are decorated in replicas of Southeast Portland street signs. Open wooden beams give the building a rustic feel that reminds visitors that the building was originally built in 1921 as the Jones Cash Store. Early in 2010, the building was placed on a list of recognized buildings by the National Trust for Historic Preservation.
The work done to renovate the building has been immense with McClish saying “I took the plunge. I’m a 60-year-old guy who gets easily bored. … I saw this as an economic opportunity. Inner Southeast is rapidly changing. There’s been lots of rebuilding and renovation. It’s turned out to be a popular area for the younger crowd. There’s a demand for storage. Plus, I know the wine industry. My company has built more than 400 of them over the years.”
But as costs mounted, McClish said the $3.8 million investment kept him up at night.
To McClish’s benefit, the wine industry has seen exponential growth during the past 20 years. Wine storage has been and will remain in demand in Portland. The wine vaults Oregon has, McClish said, will appeal to individual collectors, as well as the restaurant owners who can get deals buying in bulk, but don’t have a place to put it.
The correct storing wine temperature does not have rapid fluctuations. A good temperature is 55 degrees Fahrenheit, but some fluctuation of between 50 degrees and 57 degrees should be okay. Wide swings in temperature will harm the wine. Having too high a temperature will age the wine faster so it won’t get as complex as it might have and can also “cook” a wine until the fruit character becomes blunted, resulting in flat aromas and flavors. Having too low a temperature will slow the wine’s maturation.
Higgins, Devin. “Chillin’ It. Hillsboro’s Henningsen Cold Storage is Earning High Marks as a Vino Warehouse.” Portland Tribune. Dec.1, 2010.
Hallman, Jr., Tom. “Southeast Portland: Nearly $4 million for a Storage Unit?” OregonLive.com. Dec. 13, 2010.