By Meghan Hall
Blackstone Group subsidiary EQ has let go of another Bothell, Wash., asset: Seattle Genetics’ new office at Canyon Park Commons. The sale of the property was announced Monday by Newmark Knight Frank and is the second disposition in just over a month for EQ in Bothell. At the end of January, EQ sold the two-building Canyon Pointe Campus — currently home to T-Mobile — for $51 million to New York-based TPG Real estate.
Canyon Park Commons traded for $63 million, according to Snohomish County public documents, or about $305 per square foot. The buyer was City Office REIT, Inc., an internally-managed real estate company focused on acquiring, owning and operating office properties in metropolitan areas in the Southern and Western United States. The three-building property is located within the Canyon Park Business Center.
NKF Co-Head of U.S. Capital Markets Kevin Shannon, Vice Chairman Nick Kucha, Executive Managing Director Ken White, Senior Managing Director Michael Moll and Director Bill DeLacy represented EQ in the deal.
“Bothell remains one of the more robust office markets in the Puget Sound due to its concentration of high-tech industries including life sciences, medical device manufacturing, aerospace, telecom, and utilities,” said Shannon at the time of the Canyon Pointe Campus sale. “Improving office market fundamentals have been a key factor in increasing liquidity in this suburban submarket.”
Seattle Genetics signed a nearly 207,000 square foot lease in the three buildings in September 2018, according to sources with knowledge of the transaction. The buildings are located at 2500, 2530 and 2300 223rd St. SE.
Canyon Park Commons I is comprised of 44,680 square feet; Canyon Park Commons II totals 68,370 square feet; and the Commons III building comprises 93,271 square feet. The rental rate for the three buildings is around $22 per square foot, according to previous reporting done by The Registry. AT&T occupies the Canyon Park Commons IV building.
The Canyon Park Commons is a few minutes’ drive from downtown Bothell and is near the North Creek Trail. It is easily accessible via State Route 527 and Interstate 405. The area has garnered interest over the past year as firms such as JM2t Properties LLC and CP Investment have bought up various office developments in the area.
“Capital continues to be attracted to Bothell due to its yield and price per square foot, relative to other submarkets on the Eastside,” said Shannon in a press release detailing the Canyon Park Commons sale.
City Office REIT currently owns 64 office buildings with a total of approximately 5.7 million square feet of net rentable area in markets from Portland and Seattle to San Diego and Tampa. The firm searches for markets that possess favorable economic growth trends, growth populations with above-average employment growth and large, international, national and regional employers. According to its sites, City Office REIT concentrates ownership among local real estate operators as opposed to large institutional investors.