Boise Cascade to Sell and Leaseback HQ Office Building

The Idaho Statesman - February 18, 2006

Boise Cascade Co. said Friday it will sell its five-story 300,000-square foot headquarters at 1111 West Jefferson to local developer Rafanelli & Nahas and then lease back up to three floors to house its 540 Boise area employees. Terms of the Boise Cascade deal were not revealed Friday.

But area real estate experts said Boise Cascade stands to get a good price for its headquarters, thanks to a recent runup in Treasure Valley real estate values. Ada County Assessor Bob McQuade said the building and the land it sits on was assessed at $19.8 million in 2005.

News of the sale was not unexpected. Boise Cascade announced last year that it was exploring various options for its headquarters, including a sale. Industry observers say an increasing number of U.S. companies are choosing to rent rather than own in order to cash in on the increased value of their property. The deal is expected to close March 9.

Boise Cascade's exit from the real estate business means it will be able to concentrate on its core businesses of wood products and paper manufacturing, said a company official. "We wanted to concentrate on those businesses, and not worry about managing real estate," said Boise Cascade spokesman Mike Moser. Sphere: Related Content