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LAKE OSWEGO, OR-Equity Office Properties Trust has found an anchor tenant for Kruse Woods V, its new 184,000-sf class A office building in the Portland region’s Kruse Way submarket located just east of Interstate 5 in Lake Oswego.

Northwest Evaluation Association, a non-profit membership organization committed to helping K-12 school districts meet assessment goals, has signed a lease for 80,487 sf on the second through fifth floors of the building, which was delivered earlier this month. The company will relocate to the building in December from about 30,000 sf in PacTrusts nearby Tigard Triangle Building.

The lease rate on the transaction is not being revealed by the parties involved, however; the full-service asking lease rate for space in the building is $28.50, and local brokers say that given the submarket’s high occupancy the asking rate will at least be close to the average rate over the life of the lease. Lynda Clarke, Equity regional vice president of management and leasing, tells GlobeSt.com that the rate includes a $20 per sf tenant improvement allowance, which she says is really closer to $25 per sf given the fact that Equity’s buildings are delivered with more infrastructure than most other buidlings.

Situated on a 6.3-acre site, the eight-story building features a two-story atrium, stone-framed entrances, hardwood detailing and covered surface parking. Including a 13,000-sf lease signed earlier this year with mortgage lender Lime Financial, the building is now about 50% leased. Lime will be located on the sixth floor of the building. Left to be leased are the first floor, the rest of the sixth floor and the seventh and eight floors, says Clarke.

The rest of Equity’s 15-building, 1.2 million-sf Kruse Way portfolio is 90% leased, says Clarke. Equity had some leasing competition from Schnitzer Northwests 5800 Meadows building, but Clarke says that has been largely leased up in the past eigtht months, leaving Kruse Woods V as one of few options for larger contiguous space, which is what attracted an expanding Northwest Evaluation Association. The nonprofits lease includes options for additional expansion space, says Clarke.

Greg Hume, of Hume Myers Tenant Counsel, represented the Northwest Evaluation Association in the transaction. Matt Cole, Leasing Representative, represented Equity Office. Equity served as developer and construction manager for Kruse Woods V. The general contractor and architectural firm on the project were C. Schiewe & Associates and Group Mackenzie, respectively.

As for future development, Clarke says Equity has entitlements for three more buildings in the submarket. Clarke says any new development will be timed to meet the market.

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