Home Commercial Tanasbourne Commerce Center in Hillsboro, Oreg., Hits the Market

Tanasbourne Commerce Center in Hillsboro, Oreg., Hits the Market

Tanasbourne Commerce Center, Hillsboro, Oregon, Tokyo Electron, Nike, Kaiser, CBRE, Portland
Courtesy of CBRE

By Meghan Hall

Three fully-leased single-tenant buildings in Hillsboro’s Sunset Corridor have been posted for sale. According to an offering memorandum obtained by The Registry, the Tanasbourne Commerce Center is up for grabs. Guidance pricing was not immediately available.

The three-building complex is located at 3300 NE 83rd Ave., 3175 NE Aloclek Dr., and 3188 NE Aloclek Dr. The buildings were constructed between 1986 and 1995 and range in size from 28,889 square feet to 54,500 square feet. The buildings also sit on about 12.5 acres of land. 

“Tanasbourne Commerce Center is one of the premier office properties within the Sunset corridor, offering a unique combination of an exceptional location, true credit tenants and a high-quality image,” explains the offering memorandum. 

The buildings were last sold in March of 2016 when the previous owner, Meriwether Partners, sold the asset for $31.1 million after about five years of ownership. Currently, an institutional real estate fund owns the property.

The Tanasbourne Commerce Center is fully leased. Building A, the largest, is leased to Tokyo Electron; Building C, which is about 49,462 square feet, is leased to Kaiser. The smallest building is leased to Nike. All tenants have AA credit ratings, and leases are expected to expire in 2027, 2025 and 2026, respectively. 

“Tanasbourne Commerce Center offers a strong, secure and growing cash flow with an average remaining lease term of five years,” the offering memorandum states. “The Property’s fully-leased buildings provide a balanced rollover schedule with outstanding yield protection and the opportunity to enhance net operating income as below market leases roll over in an accelerating office market climate.”

Over $7 million in building system upgrades and tenant improvements have occurred since 2017, including a $3.2 million renovation by Tokyo Electron. Nike also completed a $1 million improvement to their building after recently renewing their lease. With minimal capital improvements needed and current office replacement costs reaching $350 per square foot, the offering memorandum states that the property provides investors the opportunity to acquire the asset with solid pricing when compared to replacement costs.

The property is well-located within a hub of major commercial activity. The OM explains that recently, Hillsboro market was one of the few areas with positive absorption during the first quarter of 2021. Washington County, where the Tanasbourne Commerce Center is located, is the second largest county in the state of Oregon. The area has one of the fastest growing population bases as well as an educated workforce; Washington County is also known for its pro-business climate and cheap power–both perks for landlords.

Recently, several leases have been signed by Microsoft and Lattice Semiconductor, and Nike recently renewed their lease for their 267,000 square foot space at the Evergreen Corporate Center, as well. Other major companies, including Apple and Hitachi, are continuing to expand in the area. Intel has invested over $3 billion into their Ronler Acres facility, and its “Mod3” will add 1.1 million square feet to the campus. 

The presence of such companies has put Hillsboro at the “center” of the cloud computing industry, and has put upward pressure on rents. Since 2011, with companies competing for space, rents have grown about 52 percent.

Other countries in the area include Colubmia, Synopsys, ThermoFisher Scientific and others. Downtown Portland is located about 14 miles away, while the Hillsboro and Portland airports are also within proximity of the site.

The offering memorandum notes that the “Hillsboro submarket is one of the most sought after suburban locations in Portland,” and submarkets have seen “exceptional growth over the past decade.” This growth is expected to continue in the future.

As of this writing, CBRE had not yet returned The Registry’s request for comment.