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PORTLAND, OR-LaCrosse Footwear is moving its headquarters here from the neighboring City of Gresham without ever leaving Southshore Corporate Park, a 230-acre industrial park that straddles 185th Avenue, the border between the two cities. Currently located in a 55,000-sf space on the Gresham side of the park, the publicly held maker of performance boots for working, hunting and hiking has signed a 10-year lease for a yet-to-be-built 144,690-sf building on the Portland side of the park.
The move will net LaCrosse about $750,000 in government subsidies. The money will come in the form of two forgivable loans from the Portland Development Commission. The PDC's Bob Alexander tells GlobeSt.com that one of the loans will come from the PDC's Quality Jobs Program and the other from its Economic Opportunity Fund. The loans will be forgiven if the company meets certain wage and employment requirements, he says.
The going net rental rate for new industrial shell space in the area is in the mid $0.30s per sf per month. LaCrosse will be paying around that rate on 117,690 sf of warehouse-distribution space plus an estimated $.70 per sf per month surcharge for 27,000 sf of mezzanine office space. Alexander says LaCrosse's total investment in the entire space over the life of the lease will be about $15.4 million, or $0.88 per sf.
Brokers Tony Reser and Tom Talbot of GVA Kidder Mathews have the marketing assignment for the park. Reser could not be reached Thursday afternoon for comment. In addition to the forgivable loans, Talbot tells GlobeSt.com that the PDC helped expedite permitting process for the building, such that work is already underway at the site. The move is slated for mid-June 2006.
The park was developed by San Francisco-based Catellus Development Corp., which was acquired by Denver-based ProLogis in a $5.5-billion transaction that closed in September. The LaCrosse deal was mid-way through negotiations when the merger occurred. Talbot says the transition was surprisingly smooth. The lease soaks up another 7.9 acres, leaving 27 acres, or about 10% of the park, still to be sold off.
LaCrosse Footwear developed footwear for work and outdoor users. The company's Danner and LaCrosse brands are used by people in law enforcement, agriculture, firefighting, construction, industry, military services and other occupations. The company is traded on Nasdaq.
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