Schnitzer Northwest Puts Meadows Buildings Up for Sale

LAKE OSWEGO, OR-Schnitzer Northwest LLC has hired a team of brokers to sell the Meadows, two class A buildings here with 198,000 sf of rentable space and a 4% vacancy rate. Located near Interstate 5 in the Kruse Way submarket, the buildings are two of the top suburban office properties in the region.

Bellevue, WA-based Schnitzer Northwest picked up the buildings in January 2001 for $40 million, or about $200 per sf. At the time, the 110,000-sf 6000 Meadows was 95% leased but the 88,000-sf 5800 Meadows was still under construction and without any early tenant commitments.

At that time, Portland-based Norris Beggs & Simpson, which brokered the acquisition, was handed the leasing assignment for 5800 Meadows. It would take nine months to land the building’s first tenant, but it was a big one, as Kaiser Foundation Health Plans signed a five-year, $6-million lease for the building’s top two floors (45,707 sf). In April 2002, with the building 50% leased, the leasing assignment was handed to Buzz Ellis of Portland-based Doug Bean & Associates, who has pushed the building’s occupancy to over 97%.