By Meghan Hall
After years developing centrally located properties near downtown Seattle, major life sciences developer Alexandria Real Estate Equities has turned its sights to a new submarket: Bothell. In a deal that closed on February 23rd, Alexandria purchased the Canyon Park Business Center for $200 million. San Francisco-based SteelWave and PCCP were the sellers, according to Snohomish County public records.
Located at 1629 – 1930 220th Street SE, 22121 – 22125 17th Avenue SE, 22021 – 22122 20th Avenue SE, and 22333 – 22522 29th Street SE, the asset traded in 2018 for $145.5 million. The master-planned campus includes 17 different buildings and accommodates a variety of uses such as office, medical office, bio-technology, warehousing and manufacturing, among others. In all, its buildings total 637,346 square feet and is situated on 51 acres.
11 of the 17 buildings on the campus are situated at the front of the business park, within close proximity to Interstate 405 and Highway 527, as well as the area’s surrounding amenities. Hotel and retail businesses such as Thrashers Corner Shopping Center, are directly adjacent and available to business park tenants, as well as an adjacent park and ride. The property also includes three on-site cafes and an on-site LA Fitness. A mile away is Centennial Park, a 54-acre wildlife park.
The transaction comes just mere months after Pasadena, Calif.-based Alexandria made another big investment into Bothell. In November, the firm paid a total of $121.9 million for multiple office assets on Monte Villa Parkway, as well as Monte Villa Farms. The properties are just minutes away from the Canyon Park Business Center.
In recent years, Bothell has become a hotbed for life sciences activity, and investors are keen to get in on the action. In 2020, the Puget Sound was classified as one of the fastest growing life science markets in the country, according to CBRE, with its life science cluster growing by four percent. At the end of the fourth quarter, Bothell had about 2.7 million square feet of office space in its market, and a vacancy rate of 13 percent. The entire Eastside, which has remained relatively stable during the pandemic, had a vacancy rate of 6.9 percent.
For properties on the Eastside like Canyon Park Business Center, there is a silver lining: CBRE was tracking 109 requirements totaling 2.6 million square feet at the end of the fourth quarter. 40 of those were new tenants with requirements, and on average, tenants were looking for around 15,000 square feet of space. With new tenants entering the market and investors like Alexandria actively seeking out opportunities, CBRE predicts that 2021 will see a more active Puget Sound market.