In explaining the purchase, Koll managing principal Alan Airth says the occupancy rate for the northwest submarket is approximately 98% with no new construction planned. "The result of these tight market conditions--combined with the increasing redevelopment of existing industrial properties into mixed and residential uses near The Strip--is strong demand to lease space in projects like East Sahara Commerce Center," he says.

Koll currently owns and manages some 3.1 million sf of existing multi-tenant, light industrial and suburban/garden office space concentrated in the Western US. In addition, the company has a large joint venture acquisition pending.

As part of its 16-month-old joint venture with the Public Employee Retirement System of Idaho, it is acquiring a portfolio of 12 office properties in Arizona, Colorado and Texas totaling approximately 1.74 million sf. The portfolio is being purchased for $273 million from AmeriVest Properties Inc., the Denver-based real estate investment trust that approved a plan of liquidation in May. The deal includes the assumption of $126 million in debt.

The portfolio transaction is expected to close on a property-by-property basis beginning in mid-August as AmeriVest receives approvals from its mortgage lenders. When the property sales close, the Koll/Per venture will have invested equity capital of more than $200 million and hold total assets of approximately $500 million.