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Park Cashes In on Komatsu Property

HILLSBORO, OR-Multimillionaire Raymond Park sells Komatsu Silicon America's 420,000-sf former silicon wafer plant here for $22 million just two years after paying a small fraction of that for the property.

By Brian K. Miller | Updated on October 02, 2006

HILLSBORO, OR-Komatsu Silicon America’s 46-acre, 420,000-sf chip plant here has changed hands for $22 million. The new owner is a joint venture of Benaroya Co. and Real Property Investors, two Seattle-based companies that plan to re-brand and lease up the vacant building to multiple tenants. The seller was Raymond Park, a multimillionaire who acquired the property two years ago from Komatsu along with another 48 acres of contiguous, undeveloped land.

The building is located on Northwest Evergreen Road west of Shute Road. Komatsu began developing the property in 1996 with a silicon-wafer coating facility that was going to be supplied with wafers made at Komatsu plants in Japan and Taiwan. That same year, confident that demand was strong enough to justify it, Komatsu began construction of the $500-million wafer-making facility 12 months ahead of schedule. It was preparing to open the plant in 1998 when the semiconductor industry tanked. The property was never put to its intended use, though its office and warehouse space has been partially utilized over the years.

Komatsu originally listed the property for sale at $80 million. Immediately prior to Park acquiring the property the list price was down to $40 million, or about $5 million more than its book value. The negotiated sale price to Park was $5 million “plus other consideration” that was never revealed but it is believed to have related to 3,000 acres in Arizona that Komatsu leases from Park Corp.

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