Schnitzer Lands 45,358-SF Tenant for 5800 Meadows

LAKE OSWEGO, OR-Nine months after purchasing the suburban class A office building while it was still under construction, Schnitzer Northwest has found an anchor tenant for its 5800 Building, an 88,000-sf, four-story development off Kruse Way. Kaiser Foundation Health Plans has signed a five-year lease for the building’s third and fourth floors, which total 45,358 sf of leasable space.

Suzi Morris, Bellevue, WA-based Schnitzer’s investment manager, confirmed the lease for GlobeSt.com, but reveal neither the lease rate or any concessions Kaiser was given as an enticement to sign on for the space. The asking rate for the space was $29 per sf, full service, but Kaiser is believed to have signed for a couple of dollars less than that, which would put the value of the deal in the $6 million range.

Schnitzer Northwest LLC picked up the property in January along with the neighboring 6000 Meadows for $40 million, or about $200 per sf. Unlike 5800, however, the 113,000-sf 6000 Meadows came 95% leased to Salomon Smith Barney, Harza Engineering, Star Mountain Home Funding and several other tenants. Each building has underground parking, and a two-level parking garage lies between the two buildings.