More of Amberglen Goes to Market

HILLSBORO, OR-Principal Real Estate Investors has put another piece of Amberglen back on the market. The Des Moines-based company has hired a California brokerage firm to market a 209,000-sf four-building flex portfolio leased to Intel and MacAfee.

PREI acquired the 21-building, 1.2-million-sf Amberglen Business Center in November 2004. In August 2005, it sold off 536,500 sf for $54.82 million. The asking price for the next tranche is reportedly $28 million, or about $132 per sf.

Local brokers tell GlobeSt.com that PREI acquired Amberglen because it liked the product and the recovering market, but never wanted to have that much space in one development in one submarket. The portfolio came to market several months ago without a price but a call for offers didn’t produce the right number, so they are trying again with a price.

The Intel-leased buildings are 10420 Von Neumann Dr. (62,981 sf), 1365 NW Amberglen Pkwy. (52,600 sf) and 1385 NW Amberglen Pkwy. (52,600 sf). The MacAfee-leased building is 20460 Von Neumann Dr. (42,000 sf).

In May 2005, GlobeSt.com reported that Principal had inked a blend-and-extend deal with Intel. At the time, industry sources told GlobeSt.com that in exchange for Intel extending its lease commitment out to 2010, PREI dropped its triple-net rental rate from more than $1.00 per sf per month back to market, which at the time was around $0.85 per sf.

Keith Young of GVA Kidder Mathews represented Principal in the transaction and Brad Fletcher of Grubb & Ellis represented Intel. Neither could be reached Friday for comment on the current offering. The head of the firm with the disposition assignment–Bill Palmer of Sacramento-based Palmer Team Inc.–did not return phone calls seeking comment.