PSB Talks Cornell Oaks in Q4 Report

PORTLAND-In one of the biggest deals of 2001 in Oregon, PS Business Parks in November acquired the 12-building, 685,000-sf Cornell Oaks Corporate Park and its remaining 24 acres of developable land for $88 million– a $17.5 million discount from months earlier when PS and Talcott Realty first sat down around an asking price of $105.5 million.

In its fourth quarter report released Wednesday night, the Glendale, Calif.-based REIT didn’t detail why it walked away from the deal after Sept. 11 or why it returned several weeks and ultimately negotiated a discount of more than 16% The company did, however, update its shareholders on the current vacancy rate, upcoming lease expirations and the percentage of the property leased by anchor tenant Intel.

The park is located at the gateway to the greater Portland region’s high-tech “Silicon Forest.” The development consists of one office building (63,000 sf) and 11 flex-space buildings 622,000 sf). PS says the park is approximately 95% occupied with 5% of the leases measured by square footage expiring through December 31, 2002. The park’s largest tenant, Intel Corp., occupies 237,000 sf or 35% of the park.