KBS has sold Triangle Corporate Park III, a five-story, 127,504 square-foot Class A office tower in Tigard, Oregon.
The property was purchased by a fund managed by DRA Advisors in a joint venture with Prescott Partners for approximately $27 million.
KBS originally purchased Triangle Corporate Park III in 2005. Built in 1999 and with a history of institutional ownership, the asset today consists of 127,504 square feet of office space, a competitive 4.0 per 1,000 parking ratio and access off the Interstate 5 at the intersection of the Tigard and Kruse Way submarkets.
The confluence of Tigard and Kruse Way is an exceptionally active suburban office market, contributing to steady high occupancy at the property, noted Brent Carroll, asset manager for Triangle Corporate Park III and senior vice president of KBS.
“The Tigard and Kruse Way submarkets have consistently been ranked as the best suburban markets in the Portland area, demonstrated by consistent rent growth and strong leasing activity,” said Carroll. “As KBS identified this strength early on, Triangle Corporate Park III has been very well occupied during our ownership, experiencing numerous expansions and renewals among tenants over time.”
Triangle Corporate Park III is strategically located in Washington County, less than 15 minutes from downtown Portland, part of Multnomah County. Suburban Portland has seen a significant up-tick in leasing activity recently. The asset’s location offers accessibility to downtown Portland while enjoying a favorable business environment.
“The Portland market has been experiencing a recent shift in demand from the urban core to the suburbs by active office tenants,” said Gio Cordoves, Western regional president for KBS. “This asset is successfully positioned amidst the metro’s most highly sought-after suburban locations.”
“Triangle Corporate Park III’s capitalization on tenants actively seeking high-quality buildings in amenitized locations that are safe, clean, and easily accessible to their employee base made the property extremely attractive to us,” said Dan Goldman, Managing Partner of DRA Advisors.
Nick Kucha, along with James Childress, Jeff Hodson, and Kellen Kollmorgen from Newmark represented KBS in the sale of Triangle Corporate Park III.
“As one of the only Class A office buildings in the Tigard Triangle, this property has consistently set new rates for the submarket,” said Kucha. “Office investors who have been watching the suburban Portland market continue to grow have had this property in their sights for years.”
Attorneys Bruce Fischer and Caroline Pricher, and paralegal Amanda Kennedy of global law firm Greenberg Traurig, LLP’s Orange County office represented KBS as legal counsel in the disposition.
“We were very pleased to represent KBS in this significant strategic transaction, which is an example of needed superior office assets in suburban markets,” said Fischer, Greenberg Traurig’s Chair of the West Coast Real Estate Practice and Co-Managing Shareholder of the Orange County Office, who led the Greenberg Traurig team representing KBS.
Triangle Corporate Park III is located at 13221 SW 68th Parkway in Tigard, Oregon.