Saturday, October 30, 2010

Adidas' Seeking $90 Million Sale Leaseback of Portland HQ

Portland Business Journal - October 29, 2010

Adidas America Inc. has put its North Portland headquarters up for sale.

The company is looking for a buyer that will lease the eight-year-old, 320,000-square-foot campus back to it for 10 years, according to a flyer announcing the property’s availability.

"There are several business and financial reasons we are considering a sale-leaseback transaction, the most important being that it would free up funds which we can reinvest in our brand, employees and community in which we operate," said spokeswoman Lauren Lamkin, in an e-mail. "Adidas remains committed to continuing our strong local presence in Portland.”

Officials with the Seattle office of Jones Lang LaSalle Americas Inc., the real estate services firm offering the property, could not be reached for comment.
The campus, which includes five office buildings and an athletic facility, has a market value of nearly $88.8 million, according to Multnomah County property tax records.

According to the flyer, Adidas would pay $15 per square foot in rent, including 2 percent annual escalators, providing the eventual buyer with first-year operating income of $4.8 million.

Adidas bought the site of Beth Kaiser hospital at 5055 N. Greeley Ave. in 1999.

The $90 million development opened in 2002, allowing the company to consolidate its offices in Northeast Portland and Beaverton. Sphere: Related Content

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