Principal Financial Flipping AmberGlen Buildings

BEAVERTON, OR-Principal Financial Group is looking to sell off a good portion of AmberGlen Business Center, a 21 building, 1.2 million-sf business park with 36 undeveloped acres that it picked up in November for $114 million. The Des Moines, IA-based company has retained GVA Kidder Mathews to sell off 500,000 sf in nine buildings for $60 million. GVAKM vice presidents Keith Young and Monte Haynes have the disposition assignment. Offers are due April 20. “The long and the short of it is the fund within principal that bought the property — there were a number of funds within principal that wanted it — didn’t want that much exposure in one market,” Young tells GlobeSt.com. “They didn’t want $114 million in one asset.”The largest business park in the state, AmberGlen includes 10 flex-office buildings, six class A office buildings and four class B office buildings. Seven of the eight buildings being sold are two- and three-story class A and B office buildings being offered on a fee-simple basis, and the eighth is a single-story flex building on a ground lease. The seven multi-story buildings range between 63,764 sf and 74,605 sf. The single-story building is 20,648 sf. The buildings are being offered as a portfolio, but may be sold individually or in smaller sub-portfolios. “The best deal may not be the highest price,” says Young.The three class A multi-story buildings — 2430 (63,764 sf/1998), 2345 (63,764/1998) and 1195 (72,242 sf/2000) — are 100% leased, as is the single-story building. The 2430 building is leased through 2012 to Cascade Microtech. The 2345 building is leased to Cascade as well as four or five other tenants, and the leases with some of those tenants come due in 2008, says Young. The 1195 building is fully leased to Planar Systems Inc. through 2010.The other four buildings — 1600 (74,605 sf), 19545 (72,676 sf), 1400 (70,309 sf) and 1100 (65,210 sf) — all are class B office buildings with substantial vacancy that were built in the 1980s. The least vacancy is in the 1600 building, which is 62% leased. The most vacancy is in the 19545 building, which is 20% leased. The 1400 building is actually owned by OHSU and is being co-listed with Cushman & Wakefield, says Young.”We’ve gone out to investors around the country and received a ton of response,” says Young. “There are some guys who want the whole thing and others who just want either the fully-leased properties or the value-add properties.”