Pacific NW Properties, which owns 2.5 million sf of industrial and suburban office space, assembled the 3.96 acre site in 2003. It held four old homes at the time. The redevelopment will include two-story concrete buildings, one about 35,000sf and the other about 50,000 sf, along with a parking structure. The buildings will have a brick skin and lots of glass.
PNWP partner Paul Gram tells GlobeSt.com the smaller building is slated for completion in December, the other next February. Depending on final cost of the project, the annual full service asking lease rate will be somewhere between $27.50 and $28.50 per sf per year. Brokers Dave Squire, Eric Haskins and Brandon Frank with Grubb & Ellis has the leasing assignment.
"Tigard Triangle and Kruse Way are the most sought after office submarkets in the metro area," says Gram, who hopes to attract larger tenants are seeking a class A suburban location and signage on Interstate 5. "There are few large blocks of space available at a competitive price."
Indeed, with vacancy in the mid single digits, the largest blocks of existing available space in the Kruse Way-Tigard Triangle area are smaller than 10,000 sf. Moreover, compared to new space under construction right on Kruse Way by Equity Office Properties Trust--for which the asking rate will be at or above $30 per sf--PNWP's project is the lower cost alternative. Dave Squire, Eric Haskins and Brandon Frank are the leasing agents for the property.
In July 2005, EOP broke ground for Kruse Oaks II, its first new development on Kruse Way since 2003. The five-story 107,490-sf class A office building will rise on a 4.89-acre site in the Kruse Woods Corporate Park. EOP expects to deliver the steel-frame building in the fall of 2006. When Kruse Oaks II is complete, EOP will own and manage 1.6 million sf in 18 buildings in the Kruse Way submarket, giving it a 70% market share.
The following month, two office buildings in the area changed hands. Five Centerpointe, which sits up on Kruse Way, sold for $222 per sf ($25.2 million), and Triangle Corporate Park III, located immediately south of PNWP's development site, sold for $258 per sf ($34.3 million).
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