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LAKE OSWEGO, OR-Nine months after purchasing the suburban class A office building while it was still under construction, Schnitzer Northwest has found an anchor tenant for its 5800 Building, an 88,000-sf, four-story development off Kruse Way. Kaiser Foundation Health Plans has signed a five-year lease for the building’s third and fourth floors, which total 45,358 sf of leasable space.

Suzi Morris, Bellevue, WA-based Schnitzer’s investment manager, confirmed the lease for GlobeSt.com, but reveal neither the lease rate or any concessions Kaiser was given as an enticement to sign on for the space. The asking rate for the space was $29 per sf, full service, but Kaiser is believed to have signed for a couple of dollars less than that, which would put the value of the deal in the $6 million range.

Schnitzer Northwest LLC picked up the property in January along with the neighboring 6000 Meadows for $40 million, or about $200 per sf. Unlike 5800, however, the 113,000-sf 6000 Meadows came 95% leased to Salomon Smith Barney, Harza Engineering, Star Mountain Home Funding and several other tenants. Each building has underground parking, and a two-level parking garage lies between the two buildings.

The seller was a limited partnership of Philadelphia-based Berwind Property Group and Seattle-based Langley Associates called Kruse Way Office Associates. That group acquired the raw land for the buildings in Jan. 1998 for $5.16 million, according to Oregon Title, and then hired Perlo McCormack Pacific to construct the office buildings.

The money for Schnitzer’s Kruse Way purchase came from the sale of three of the four buildings at Schnitzer’s 1.5-million-sf Northcreek Technology Campus III in Bothell, WA. AT&T reportedly paid somewhere in the vicinity of $70 million for 417,000 sf.

Gene Bentley and Chris Johnson of Norris Beggs & Simpson brokered both sides of acquisition for Schnitzer, and Johnson has since had the listing assignment for the 5800 and 6000 along with partners Bill Smith, Keith Young and Jeff Borlaug. Donn Sullivan of Grubb & Ellis represented Kaiser Foundation in the lease transaction.

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