By Meghan Hall
While the number of commercial property sales across the Puget Sound has slowed to a trickle since the end of 2019, there are some investors still keen on moving forward with their deals. In a transaction that closed on March 24th, the Woodinville Medical Center traded hands for $15.7 million, or about $464 per square foot. According to public property documents, a private buyer associated with William Larson of Bellevue purchased the parcel via Property Ventures WMC LLC. The seller was MRM Woodinville Medical LLC, an entity that shares its address with Seattle-based InCity Properties, who manages the building.
The property is located at 17000 140th Ave. NE in Woodinville, which is located northeast of downtown Seattle. Parcel data shows that the building was originally constructed in 1991 and totals 33,820 square feet. The lot size itself is even larger, at 71,438 square feet.
According to InCity Properties’ website, the firm has managed the building since July of 2017. As of this writing, InCity Properties had not returned The Registry’s request for comment. InCity also manages the Woodcreek Business Park, an 85,000 square foot complex, and the Loud Technologies Building, an 89,000 square foot industrial complex. Both are also located in Woodinville.
A fourth-quarter commercial office report released by Colliers—the most recent report available—described 2019 as a “year to remember,” with technology firms driving a record-breaking year in terms of both leasing and large transactions in the local Puget Sound market. The end of 2019 saw The Summit trade for $756 million, Bravern I & II trade for $585 million, and f5 Tower sell for $458 million.
Since then, deal volume has slowed, with commercial property sales often involving smaller residential properties or commercial properties valued in the tens of millions, if not less, due to a variety of factors, including new excise tax laws and uncertainty caused by the coronavirus. How the regional investment market will fare in the second quarter remains to be seen as investors evaluate whether to pursue acquisition opportunities throughout the region.