By Jon Peterson
Beaverton-based Tektronix has placed on the market for sale the 84-acre office campus development in Beaverton known as Tech Beaverton. The asset could be sold in the potential price range of $110 million to $120 million, according to sources that are tracking the sales process of this property, and it represents a major opportunity for long-term investment and development that could see further evolution of this Portland submarket.
Tech Beaverton is located inside Silicon Forest, a technology and innovation cluster west of Portland. The property is located near Nike’s world headquarters, and also in proximity to office buildings occupied by Apple, Microsoft, Intel and Maxim Integrated. The campus is located adjacent to the Millikan Way Max Light Rail Station, which gives workers in the area significant transportation access to all of the metropolitan Portland area.
The property totals roughly 537,000 square feet of office, which includes the West Office Campus, the Center Campus and a new Built-to-Suit campus. The existing improvement area totals 756,327 square feet and the total potential improvement area can be as large 2.1 million square feet.
The campus is located at 13475 SW Karl Brawn Drive, and Tektronix is likely to keep 16 acres of the property for its office and manufacturing space. One of the potential outcomes of the sale would include a new 140,000-square-foot building that the seller would like to be developed on its behalf and for future use. There may also be an opportunity for the seller to lease back roughly 84,000 square feet for around three years. There is a lot of flexibility, and the seller is marketing the project for some or all of it to be sold.
There will likely be three types of buyers interested in the campus, according to industry sources familiar with the property. One may be a user that would employ a portion of the office campus for its own space needs. A second group would be comprised of national development and investment firms interested in this type of occupancy in a growth market. The other type could be wealthy family offices that are looking to invest in real estate.
Most of the infill development opportunity is located at the Center Campus location of the property. This land could be used for a mixed-use type of development that could include up to 2,000 multi-family units and some type of office or industrial uses.
Tektronix is a company that designs and manufactures test and management solutions. The property in Beaverton is used for its US headquarters operation. The company has hired Colliers to be the listing agent on the sale. The lead person working on the sale is Bob Gilley, an executive vice president in the firm’s San Francisco office for the company. He is working on the marketing efforts with Brad Idleman, also an executive vice president in the firm’s San Francisco office, and Kevin Moul and Andy Zighelboim, both executive vice presidents with Colliers in San Jose. Mike Thomas, a senior vice president in Colliers’ Portland office is on the team, as well.