Panattoni, the developer behind the Des Moines Creek Business Park, reached an agreement with Bentall Kennedy to sell the ground lease on two lots owned by the Port of Seattle. Bentall Kennedy paid $43,583,452 or $86.78 per square foot for Phase III, according to public documents, and roughly another $20 million for the other lot, accordion to sources with knowledge of the details. Public documents show records for both sales, however only the Phase III information is available at this point in time.
The agreement between Panattoni and Port of Seattle, which was completed in May 31st of 2016, outlined a 55-year lease with two options to extend the lease for 10 years. Bentall Kennedy has taken over that agreement for Phase III, which will run until May 30, 2071.
When fully completed, the Des Moines Creek Business Park will be a total of 1.6 million square feet, sprawled across 87 acres, according to Sierra Construction, which is working on the development. Phase III, located at 2361 and 2141 211th St., includes two industrial buildings totaling 502,194 square feet and is anticipated to receive LEED Silver Certification. CollinsWoerman is working as the architect on the project.
Chicago-based LaSalle Investment Management acquired Phase I of the development in December of 2016, which is comprised of three buildings. LaSalle paid $68 million or about $124 per square foot for the roughly half million square feet of industrial space. When LaSalle purchased Phase I, the lease had a term of 53.4 years with two 10-year extension options. The fixed ground lease has a 10 percent increase every five years.
The Federal Aviation Administration will move into Phase II, a 300,000 square foot Class A office headquarters. The phase of development sits on a 21.72 acre site and has a LEED certified shell and LEED Gold tenant improvements. The development also includes a 70,765 square foot floor plate on the first floor and a 57,246 square foot floor plate on the upper four levels. There’s a 100 person conference room and a 3,500 square foot cafeteria, plus 1,200 parking stalls. This phase is anticipated to be completed in the second quarter of 2018.
Panattoni was not immediately available for comment on the transaction.
