South Center is a 342,000-sf development owned by UBS Realty Advisors and tenanted by the likes of US Bank (40,000 sf), PGE (28,000 sf) and Pixelworks (24,000 sf). The lease brings the multi-building development to 91% occupancy in a market averaging closer to 85%.
For UBS, the lease deal means there will be only three months of down time for its gym space, which was relinquished by Bally's Total Fitness in April. For business owner Myron Nelson, the transaction gives his growing fitness chain its first Westside location. Insignia/ESG has the leasing assignment.
Managing Director Coby Holley handled both sides of the transaction. Holley tells GlobeSt.com Bally's decided to let its lease run out after about 10 years because it had two other nearby locations, in Lake Oswego and Wilsonville.
Nelson was attracted to the site due to the captive audience at the business park and the dense surrounding residential communities, says Holley, adding that because the space had been a fitness club and didn't need significant tenant improvements, it was able to provide Nelson a more favorable lease rate.
Nelson opened his first club in Oregon City in 1987. The Tualatin location will be Nelson's seventh location.
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