The seller, Key Technologies, has leased back 20,000 sf for five years for an undisclosed term, but the move still represents a 110% expansion in terms of space, and Regence says it will add 200 employees in the region over the next three years. Key Technologies Inc. is the Walla-Walla based Tech firm that bought SRC Vision, which owned the building and is the tenant in the leaseback agreement. SRC makes high-tech scanners for different kinds of quality control.

Mark Watson of Cushman & Wakefield's Portland office represented Regence in the transaction and also has the disposition assignment for the company's existing Medford address. The three-story building is located at 2067 Commerce Drive, adjacent a city-owned parking garage and across the street from a multi-tenant office building. The asking price is $2.85 million, not including a nearby surface parking lot that serves as parking for the building.

The original asking price for Regence's new building was $5 million. Regence's first offer for the property last fall was rejected, after which a speculative buyer tied it up subject to a lease. The lease was never signed, however, and Regence reentered the picture and again tied up the property around the first of January. The sale closed around the end of March.