The 18th floor of ODS is currently occupied by Copper Mountain Trust, which signed a lease in 1999 that ran through October 2006. Wright Runstad, which manages the building for majority owner Oregon Dental Services, allowed the investment advisory to buy out the remaining term on its lease at a discount and then used the proceeds to land Foster Pepper. The law firm will get a steeply discounted rate for three years Copper Mountain bought out of, and then the rate will quickly ramp up to market rate, which for newer class A view space is currently in the range of $16.50 per sf per year, triple-net.
Copper Mountain bought out its lease at 601 SW Second Ave. in order to move in with its new owner, Union Bank of California, which is located five blocks to the west in the Union Bank of California Tower at 707 SW Washington St. Information was not immediately available on how much space Copper Mountain would be moving into at UBC Tower.
Michael Silvey, the head of Foster Pepper's real estate group, tells GlobeSt.com the law firm was looking to upgrade its Downtown location as well as expand, while remaining on a single floor and close to the courtrooms. Silvey says the firm had been shopping the market for 18 months and was entertaining offers for space in several other buildings when the Copper Mountain opportunity came along.
"It was serendipitous, so we jumped at it," says Silvey, explaining that it not only fit the bill as far as class, floor plate, finish and lease rate, but also it was developed and is managed by Wright Runstad, which the law firm represents. "It's nice to go to a client."
Silvey says the law firm had looked at moving to the building when it was developed in the late 1990s, but the timing wasn't right with its existing lease. Now, with three years of heavily discounted rent, "it will allow us time to expand and be ready to spread that eventual increase over more lawyers."
As far as building out its new offices, Silvey says Copper Mountain had done some nice work to the space and they were able to save a good portion of it, including the light wood finish and a large coffee room with views of the West Hills. "Our staff is just going to love it," says Silvey, who expects to be able to build out the space without having to spend more than the tenant improvement allowance provided by Wright Runstad. "A lot of it was open bay so it provides us with a pretty blank canvas; we plan to keep it clean and make it look nice but not ostentatious."
Foster Pepper was represented in the transaction by Mark Fraser of Colliers International. Joe Vaughn of Norris Beggs & Simpson represented Wright Runstad.
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