Nike Leases Building, Buys Excess Land Adjacent Campus

BEAVERTON, OR-Nike has leased a three-story building across from its world headquarters campus here and is in the process of purchasing adjacent developable land, according to sources familiar with the transaction. The land and building are part of the 52-acre former IBM campus that Atlanta-based Wells REIT acquired last October for $38.4 million.The former IBM campus is located in what is known as Woodside Corporate Park, which is situated directly across the street from Nike world headquarters. Wells’ acquisition included three two-story tilt-up office buildings totaling 220,000 rentable sf that are net leased to IBM; one vacant three-story office building (105,000 sf); one small warehouse building (about 30,000 sf) that also is vacant; and, 31.8 acres of excess developable land that local sources have said could hold another 500,000 sf of flex-office product. Brad Fletcher, managing director of Grubb & Ellis’ Portland office, represented Nike in its lease and purchase negotiations, and previously represented IBM in its sale of the property to Wells REIT. Buzz Ellis and Ben McInnis of Doug Bean & Associates represented Wells REIT in its deal with Nike.None of the parties involved in the Wells-Nike deal would discuss the transactions with GlobeSt.com, but other local sources with knowledge of the deal tell GlobeSt.com it includes a six-year or seven-year lease for the vacant 105,000-sf office building (1345 SW Burlington Dr.) and a purchase contract for about half (15 or 16 acres) of the developable land. No one could speak specifically to the value of the lease deal, but sources did say Nike will make significant improvements to the building. Regarding the land sale, according to a Wells’ SEC filing it paid $9.4 million for the developable land it acquired, or slightly more than $6.78 per sf. Local brokers say Nike had reached an agreement with IBM to purchase a portion of the property in late 2002, but ultimately decided not to move forward.