Deschutes Brewery buys building

Deschutes Brewery paid $1.85 million this week to buy an office building near its Bend brewery, a move that has company officials hinting at long-term expansion plans there.

The 12,000-square-foot building at 975 S.W. Colorado Ave. is just down the road from Deschutes Brewery’s production center. And it’s the second building Deschutes has bought near its brewery in two years.

In January 2012, the company purchased a smaller building, at 696 S.W. Colorado Ave., in between the brewery and the newly acquired space. That first building was converted into the brewery’s sales and marketing office.

Deschutes Brewery now owns three buildings and a warehouse on 13.5 acres near its headquarters at Colorado and Simpson avenues.

The company doesn’t have any short-term plans for the new office space, Peter Skrbek, Deschutes Brewery’s chief financial officer, told The Bulletin in an email. It’s almost completely occupied by tenants, including a small medical office, accounting and financial advisory businesses.

But it could come into play in the coming years — if Deschutes Brewery continues growing.

“We thought it was of strategic benefit to acquire the property since it is contiguous to our site,” Skrbek wrote, “and will afford us some flexibility as we refine the master plan for potential future expansion of our brewing operations.”

In addition to the brewery and two office buildings on Colorado Avenue, Deschutes also owns a large warehouse on Shevlin Hixon Drive, behind the brewery building.

The company has aggressively targeted new markets outside of Central Oregon and the Northwest in recent years. In 2013, Deschutes has expanded into Illinois, Iowa and the Philadelphia area. Its beer sells in 22 states and two Canadian provinces, according to its website.

In May, Deschutes added five new fermentation tanks, increasing the amount of beer it can brew annually to 14.2 million gallons or 460,000 barrels.