SOURCE: Equastone

May 01, 2007 11:37 ET

Equastone Completes Second Acquisition in Oregon

SAN DIEGO, CA -- (MARKET WIRE) -- May 1, 2007 -- Equastone has closed its second acquisition in Oregon in 2007 with the purchase of a $68 million portfolio of assets located within the AmberGlen Business Center. The AmberGlen portfolio is located in the heart of the Sunset Corridor in Hillsboro, Oregon, home to a large concentration of high-tech and biotech companies such as Intel, Planar Systems, Cascade Microtech, Genentech and SolarWorld. Equastone represented itself in the transaction and the seller was represented by John Kohnstamm, Jeff Falconer and Mike Nye of Capacity Commercial Group.

The portfolio includes eight Class A and B office and R&D buildings, built in phases between 1984 and 2002, totaling 536,501 square feet, as well as a fee simple interest in a land parcel which is improved with a 22,000 square foot office/R&D building. With the AmberGlen acquisition, Equastone has now acquired 700,000 square feet of office and R&D property in the greater Portland market this year.

Jeff Schindler, Chief Investment Officer, said, "This portfolio is a classic value-added investment opportunity located in a market that is recovering from the tech downturn of 2001. Based on the low acquisition price and strong leasing activity, we are confident that we can achieve our targeted returns for our investors. With each building located on a separate parcel, numerous exit strategies are available. The fully leased properties will be sold off immediately and the partially vacant assets will be fixed, leased and sold when stabilized."

Ron Lack, Executive Vice President, responsible for asset management of Equastone's assets in Oregon, said, "New investment by major companies in the Sunset Corridor will drive growth for smaller companies. We expect current occupancy levels to improve significantly due to recent and projected growth in the Sunset Corridor, including SolarWorld's recent purchase of an existing 422,000 square foot property and Genentech's planned facility on 75 acres. Combined, these projects are expected to add a total of 1,250 employees to the immediate area and $700 million of direct investment."

Lack adds, "Many existing and potential tenants in the Sunset Corridor require smaller, turnkey office space in the 5,000 - 10,000 square feet range, and AmberGlen is well-positioned to meet this demand. Seventy five percent of the vacancies in the portfolio are spaces less than 12,000 square feet. Based on the high cost to build new multi-tenant office buildings with smaller suites, we project future supply of such space to be limited enabling AmberGlen to maintain high occupancy levels at higher rental rates."

Equastone intends to acquire $1 billion of office and flex properties throughout the United States over the next year and is actively seeking acquisition opportunities. California, Oregon and Washington investment offerings should be directed to Chris Stai at cstai@equastone.com. All other investment offerings should be directed to Jeff Schindler at jschindler@equastone.com. Equastone and its affiliates currently have offices in San Diego, Denver and Houston, and own properties in California, Arizona, Colorado, Nevada, Louisiana, Texas and Oregon.

Equastone is a real estate investment firm specializing in opportunistic, value-added and core-plus real estate investments. Equastone manages investment capital on behalf of Equastone Real Estate Funds, which are private equity funds for high net worth and institutional investors. For more information call Mykel Sprinkles at 858-812-3261 or visit www.equastone.com.

Contact Information

  • Contact:
    Todd Backus
    Blue Horse & Trumpet
    P: (619) 459-2574
    E: Email Contact