The Beaverton-based software maker signed on for 4,500 sf on the second floor of a five-story, 90,000-sf office building, one of three that are slated for the $80-million retail, commercial and residential project. The company is slated to occupy the space in April.
The Galois lease and another small lease with a psychologist leaves about 16,000 sf to lease on the second floor as well as all of the 22,000-sf fourth and fifth floors. The first floor is leased by Coldwell Banker and the third floor is master leased by the developer Dorn-Platz, which has set up an executive suites operation.
Dorn-Platz of Glendale, Calif. paid $2.3 million last summer for the rights to 8.5-acre development that had stood half built and rusting since 1999. The seller was the City of Beaverton and Enron Microclimates, which gained control of the property in bankruptcy court after the original developers, Selwyn Bingham and Sylvia Cleaver, ran out of money.
Dorn-Platz has since finished developing the office building and is completing two connected residential buildings. In January, the developer will break ground on a third multi-level structure that will include ground-floor retail, parking and around 50 more condominium units. Two more office buildings totaling 250,000 sf also are planned. The region's light rail line cuts through a circular courtyard that divides the development.
"The Round is starting to gain back some credibility lost when it was just sitting there, unfinished," says Buzz Ellis of Doug Bean & Associates, who holds the office leasing assignment. "I expect smaller local Beaverton companies to drive the first phase."
The annual full-service asking rate for space in the office building is $22.50 per sf, but asking rates have fallen since then and the deals being signed in the Sunset Corridor are typically 10% to 25% off asking rates when concessions such as free rent and above-standard tenant improvements are factored in, according to a recent Grubb & Ellis report.
Don Drake of Melvin Mark Cos. represented Galois in the lease negotiation. He could not immediately be reached for comment.
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