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Net-Leased Building Trades Hands for $126 Per SF

HILLSBORO, OR-Publicly traded Bedford Property Investors of Lafayette, CA pays $9.8 million for a 78,000-sf headquarters building here that is net leased to a single tenant.

By Brian K. Miller | Updated on August 09, 2004

HILLSBORO, OR-Bedford Property Investors Inc. acquired a 78,000-sf building here that is net leased to a single tenant. The purchase price of $9.8 million, or $126 per sf, includes the assumption of $7 million in existing debt.The building is located in Portland’s Sunset Corridor at 20010 NW Tanasbourne Dr. Bedford SVP Stephen Silla was not available for comment. In a prepared statement, Bedford says its first-year un-leveraged yield will be 10.5% but does not name the tenant or the length of its lease. A Web search suggests the building is the headquarters for Kentrox, a provider of high-speed network access equipment.”The purchase of this asset reflects our continued confidence that the high tech market in Portland’s Sunset Corridor will stabilize,” states Bedford chief executive Peter Bedford. In April, Bedford paid $19.4 million for Suntech Corporate Park, a two-building 126,809-sf office/R&D complex also in Hillsboro that is fully leased by Santa Clara, CA-based Sun Microsystems and locally based Merant Corp. At the time, Bedford said the property should generate a first year cash yield of 9.89%. The Suntech acquisition, partially funded with the proceeds from Bedford’s recent preferred equity offering, marked the company’s first operating property in the Portland market since it sold Twin Oaks Business Park and Twin Oaks Tech Center several years ago. Bedford acquired 5.2 acres at Southshore Corporate Park in Northeast Portland in 2002, but has yet to develop the property.

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