Transactions clear the way for next phase at The Round
As city of Beaverton leaders incorporate the office building it purchased earlier this year at The Round at Beaverton Central into its developing 2012-13 budget, the sale of four buildings considered key to the complex's revitalization is now complete.
Real estate firm Jones Lang LaSalle on May 17 announced it completed the purchase of two properties, including four buildings at The Round, for a total of almost $22 million.
The city of Beaverton purchased the 105,000-square-foot South Office Building, anchored by a Coldwell Banker real estate brokerage, in early April for $8.65 million.
Also through Jones Lang LaSalle, Portland-based ScanlonKemperBard Companies just completed the $13.25 million purchase of a three-building, 160,000-square-foot section of the The Round on Southwest Millikan Way.
The properties consist of a 121,032-square-foot office building, which are 72 percent leased, whose major tenants include 24-Hour Fitness and Anthem College, as well as a parking garage. The transaction also includes the Crescent Promenade, which includes 24,447 square feet of ground-floor retail space beneath condominiums facing a landscaped plaza.
Paige Morgan, vice president of Jones Lang LaSalle, said the transaction clears the way for the city and ScanlanKemperBard to work toward helping The Round fulfill its potential as a mixed-use development.
'This was an incredibly complex assignment, with lots of moving parts due to the long, troubled nature of the development," Morgan said, "but these successfully executed transactions now provide a solid platform for the city and its development partners to move forward and complete the vision for The Round."
City officials and leaders, meanwhile, are working to determine the best use of the South Office Building, which Mayor Dennis Doyle said gained five new tenants just last week.
One of the possibilities being discussed involves moving city government offices from the overcrowded City Hall on Griffith Drive to floors three and four of the building. Municipal court and police department facilities would not likely be part of a relocated City Hall, as feasibility studies indicated the South Office Building did not meet U.S. government safety and security standards for courts and public safety agencies.
One of the key incentives for purchasing the building, city officials said, was eliminating an annual $400,000 lease - for up to 33 years - to house the city-owned Central Plant, which supplies heating, cooling and hot water to The Round complex.
"The reason we're buying the building is to get out from under the $400,000 annual lease," city Finance Director Patrick O'Claire said earlier this year.