KBS and Sterling Bay acquired the lower five floors of the historic Meier & Frank Building in Downtown Portland for $54M from Macy's and are planning a redevelopment into creative office and retail space. Macy's will remain open in the location through the holiday season and into early 2017, after which the buyers will start renovation work, reports the Portland Business Journal.

The upper floors of the building aren't part of the deal. Those floors house The Nines hotel, owned by Pebblebrook Hotel Trust, which acquired that part of the building in 2004 for more than $81M. Newport Beach-based KBS is no stranger to the Portland market; just this summer, the company bought the Commonwealth Building in Downtown Portland for $69M. Other Oregon holdings include ADP Plaza in Portland and the Triangle Corporate Park III in Tigard. [PBJ]