Feds Filling Out 1201 Lloyd

PORTLAND-Albeit more than two years after completion, the time for 1201 Lloyd has come. Including 121,000-sf taken down in five new leases revealed yesterday afternoon, nearly 80% of the 222,777-sf Lloyd District building has been leased since the start of the year. Vacancy in the building is now down to about 10%.The General Services Administration is responsible for four of the five newest leases, and the Contractors Bonding and Insurance Corp. is responsible for the other. The other major tenant is Integra Telecom, which last month occupied 51,000 sf it leased in January.When the building was completed without any signed tenants in March 2002, the Lloyd District’s overall class A vacancy rate jumped from 3.75% to 20.5%, the highest in the CBD at that time. The building’s first tenant was Oregon Title, which took 3,000 sf in September of that year. In May 2003, the GSA inked a 6,477-sf lease in the building on behalf of the Bureau of Indian Affairs.The size and length of each of the five new leases were not provided in the announcement by the property’s leasing brokerage, CB Richard Ellis, and the specific brokers involved (Dan Swift and Lana Baldock) could not immediately be reached for comment. GlobeSt.com will update this story as more information becomes available.According to the GSA’s website, it has about 169,000 sf worth of leases in the CBD that expire in the third and fourth quarters of 2004. The expiring leases are in four different buildings: One Main Place (101 SW Main St./72,408-sf lease); Congress Center (1001 SW Fifth Ave./57.446-sf lease); Forum Building (525 NE Oregon St./24,278-sf lease); and Market Square (1515 SW Fifth Ave./14,524-sf lease). The Contractors Bonding and Insurance Corp. is currently located at Hollywood Square, a 26,781-sf office building at 1827 NE 44th. One source tells GlobeSt.com that the GSA’s interest in the building may be due in part to the fact that it was built after new standards for steel construction were implemented in the wake of the 1994 Northridge (California) earthquake. “The GSA has said if it is going to sign a big lease, it is going to sign them in a something built with the new improved steel construction standards,” says the source. “There are only eight buildings in the city that meet that requirement.” Of those eight buildings, the GSA has recently leased space in three of them: 1201 Lloyd, ODS Tower and the Brewery Blocks.1201 Lloyd is owned by a partnership comprised of New York-based Island Capital Group and Transworld Properties, headquartered in Houston. Island Capital was formed in July of last year by Andrew Farkas, the chairman and founder of Insignia Financial Group, and other principals of that firm who were the original developers of the building in partnership with Transworld. Island purchased Insignia’s ownership interest in 1201 Lloyd at the time Insignia was sold to CB Richard Ellis, in July of last year.