(To read more on the TIC market, click here.)
BEAVERTON, OR-Woodside Corporate Park has changed hands for $67.48 million. Publicly held PS Business Parks sold the master-planned 13-building, 580,000-sf campus to a group of tenant-in-common investors and a value-add fund, both of which were represented by Santa Ana, CA-based Triple Net Properties LLC.
The overall business park is 75% leased. Triple Net's SVP of acquisitions Steve Corea tells GlobeSt.com that the piece that went to the TIC is 87% leased and the piece bought by the value-add fund is 59% leased. According to local industry sources, Triple Net's bid was well above that of the competition, whose initial bids ranged from $62 million to $64 million.
"In order to get the deal, we created a contract in a little less than two days," Corea says. In addition to the quick contract, a big part of the deal was a 91,000-sf lease of the so-called Columbia building by Nike, which has its world headquarters across the street. The existing lease for the building was expiring, Corea says.
Other major tenants include IBM, which leases 180,000 sf in two buildings (but does not occupy all the space); Grass Valley Group, which leases 55,000 sf; and Watermark Paddlesports (Yakima Racks), which leases 35,000 sf.
The Columbia building, along with Greystone I and other well-leased buildings were bought by the TIC group, which was looking for less risk. Greystone II, Greystone III and other more vacant buildings went to the Triple Net's Value Fund 2003 along with a vacant four-acre development parcel. Greystone III is a 48,000-sf office building that was completed in 2001 and has never been leased.
Triple Net represented itself in the transaction. PS Business Parks was represented by Grubb & Ellis, including Kevin Shannon out of Los Angeles and Brad Fletcher, Dave Squire and David Hill out of Portland. Going forward, Grubb & Ellis has the leasing assignment and GVA Kidder Mathews has the property management assignment.
Last October, Nike inked a six-year lease for another building within Woodside that was part of the 52-acre former IBM campus that Atlanta-based Wells REIT acquired in October 2003. In addition to 355,000 sf of buildings, Wells acquisition included about 32 acres of excess land, about half of which was sold to Nike concurrent with the lease deal.
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