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Archon Pays $77M for Corporate Park

KENT, WA-The seller, G REIT, acquired the four-building, 436,000-sf office development in 2003 for about $55 million.

By Brian K. Miller | Updated on October 24, 2006

KENT, WA-Archon Group has paid G REIT $77.52 million for Centerpoint Corporate Park, a four-building, 436,000-sf office development here that is about 70% occupied. Major tenants include Patient Accounting Service Center, Alaska Airlines and Noridian. The class A property was built in 1985 and renovated in 2000. The sale closed last week.

In an SEC filing Monday, G REIT said Archon originally had the property under contract for $77.8 million. The downward adjustment was made after further inspection of the property in September, according to the filing. G REIT paid $54.22 million for the property in December 2003; it was 67% leased at the time.

As of the end of 2005, the property’s physical occupancy was 66.8% and the annual rent per occupied square foot was $15.75. Annual rent from the property was $4.58 million, according to an SEC filing.G REIT, which is liquidating its portfolio, says the sale generated net cash proceeds of $33.7 million after paying off debt associated with the property as well as closing costs and other transaction expenses. Transaction costs included a property disposition fee of $1.16 million and a sales commission of $465,000 (0.6% of sales price).

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