AMB Building 83% Full with Alliance Door Lease

WILSONVILLE, OR-AMB Property Corp.’s Wilsonville Distribution Center is now 83% leased thanks to a new 50,000-sf, five-year lease by Alliance Door Products LLC. The Washington-based manufacturer is new to the Portland market and plans to occupy the space at the end of the month, according to Trammell Crow Co., which handled both sides of the transaction.Located near Interstate 5 at 29899 SW Boones Ferry Rd., the publicly traded industrial REIT’s 250,000-sf building was delivered in May 2003 at a cost of $11.9 million. According to SEC filings, AMB estimated stabilization of the property by March 2004 and plans to sell the property by early 2005. Dave Ellis and John Fettig of Trammell Crow Co. represented AMB in the lease negotiations. Scott Kappes, also with Trammell Crow Company, represented Alliance Door. None of the parties involved would comment on the negotiated lease rate, however; other local brokers tell GlobeSt.com deals for newer industrial space in the area are being signed at rates right around $0.33 per sf per month. The asking rates at Wilsonville Distribution Center is $0.35 per sf.”The market appears to be firming up,” Ellis tells GlobeSt.com. “We’re coming to closer to asking rates and there are fewer concessions.”In February, EuroBest Foods signed a 3.5-year lease for 77,000 sf in the building that commenced this month. The company is reportedly expanding from a location in Tualatin. In October, Nike Inc. signed a one-year lease for 80,000 sf in the building that it is using to warehouse surplus inventory. Looking ahead, Ellis says he is in discussions with a group for the remaining 42,000 sf of availability in the building.Wilsonville Distribution Center features a 26-ft ceiling height, 74 dock doors, eight grade doors, cross-dock loading capabilities and truck staging areas. The building is one of five buildings AMB owns in the Portland market. The other four, totaling about 160,000 sf, are located at AMB’s Cascade Business Center in Tigard, OR. Local brokers tell GlobeSt.com that AMB has been looking to package its Portland properties into a larger portfolio sale.