The third-party logistics company took the remaining 100,000 SF in Building B, bringing it to full occupancy, and 50,000 SF in building A, which leaves a remaining availability of 288,125 SF. The lease term is less than three years in duration. The lease rate was not immediately available. The asking rate for the space is $0.33 on the shell with a $0.65 surcharge for office, of which the new lease requires only 1,000 sf.
Packaging Services was represented by Matt Stevenson of Colliers International. MEPT was represented in the transaction by Dave Ellis and John Fettig of Trammell Crow Co., which developed RCC I and RCC II, a fully-leased, 402,000-sf building that will be expanded to 600,000 sf sometime this year. Both buildings are built on land that was leased long-term from the Port of Portland.
RCC I benefits from a clear height of 35 feet. Most facilities these days max out at 30 feet, but during construction TCC added five feet to the complex in an attempt to lure Dollar Tree. Ultimately, Dollar Tree decided it needed more space, acquiring 58 acres in Southwest Washington and developing a 650,000 sf distribution facility, but TCC ended up with a more marketable building.
Fettig tells GlobeSt.com that the 288,125 sf still available at RCC I is the largest contiguous space in a modern building in the metro area. Unlike many older facilities, RCC I can accommodate today's longer trucks and wider trailer widths as well as the industry's higher stacking requirements. "Due to the higher ceilings and the modern sprinkler systems, 80,000 sf on a modern building is the same as 100,000 sf in an older building," says Fettig.
Represented by Seattle-based Kennedy Associates Real Estate Counsel, MEPT is a $3-billion collective investment fund whose primary beneficiaries are union pension funds. MEPT secured land for RCC I in December 2001, signing a $4-million, 55-year lease for 23 acres near Terminal 6.
Less than a year later, in October 2002, before even one tenant had been signed for RCC I, MEPT dropped another $5.6 million for control of another 27 acres in the Port's Rivergate Industrial District in order to negotiate a lease deal with Georgia-Pacific, which ultimately pre-leased the 402,000-sf first phase of RCC II.
RCC I stayed vacant until after it was completed. Shortly thereafter, however, TCC secured the first tenant for the project; Schneider Resources Inc., a division of Green Bay, Wis.-based freight hauler Schneider, leased 50,000 sf in the smaller building. Schneider has been the only tenant in the complex until now, however; with more activity being seen and RCC I one of the most modern buildings in the region, it stands to reason that the building will see its share of deals in 2004.
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