By Jack Stubbs
As the second quarter of 2021 approaches, it seems that interest remains in the Puget Sound region’s outer lying cities, as a recent sale in Issaquah demonstrates.
On March 16th, an office building located at 1055 NW Maple St. in Issaquah’s Newport neighborhood sold for $11.2 million, according to public documents. The buyer was DWP 1055 NW Maple Street LLC, an entity affiliated with John De Lanoy based in Seattle. The seller was Swanby Investment Group LLC, an Idaho-based entity affiliated with Ednetics Inc.
Located adjacent to the Issaquah Commons shopping mall, the two-story, Class B office building totals 21,311 square feet, according to a flyer from Kidder Mathews. The building, which was built in 1996 and renovated in 2010, has a typical floor size of 9,350 square feet and also includes 43 surface parking spaces.
The property is 87 percent leased to Ednetics, which provides technology solutions for K12, libraries, higher education, and government clients, according to the flyer. Ednetics has occupied its space for the past eight years and experienced significant growth throughout that time numerous large government contracts throughout the Pacific Northwest and has a new five-year lease in the building with annual rental increases of 2.5 percent. In addition, the rents are slightly below market, so they provide an opportunity for the new ownership to increase cash flow over a longer hold.
The property is proximate to Cascade Business Park, a six-building, 96,000 square foot complex that is currently occupied by tenants including Vantage Capital Advisors and Tempest Technologies.
The property is roughly one mile north of downtown Issaquah and about ten miles southeast of Bellevue via Interstate-90.
Along with the recent sale of the asset located at NW Maple Street, Issaquah has seen some notable activity in recent weeks. In late February, REI Co-Op announced that it had identified and selected a 69,000 square foot property—located at 2005 NW Poplar Way— as the first of its future satellite offices in Issaquah as part of its new hybrid work model.
“We believe the future of work is much more fluid,” said Chris Putur, REI’s executive vice president of technology and operations, in a press release at the time of the announcement. “We’re building the future around the work that needs to get done, and creating flexible, agile and inclusive ways to deliver innovation for our customers – and we no longer believe we need a traditional office model to do so.”
The new office space, which sits between Lake Sammamish Park and Cougar Mountain Wildland Park, is the first of several planned satellite offices throughout the Puget Sound region.
The Kidder Mathews team that worked on the sale included Jason Rosauer, Patricia Loveall and Rob Anderson.