By Meghan Hall
Located northeast of Seattle, the town of Bothell is beginning to attract developer interest as seen in the most recent sale of North Creek Tech Center IV at the end of April. The 61,175 square foot office building, located at 19807 North Creek Parkway, sold to Mercer Island, Wash.-based Hill Investment Company for $17.382 million or about 284 per square foot, according to King County property documents. The seller of the property, listed as North Creek Tec LLC, is an entity associated with CCD Enterprises and Sylvia Mcintosh of Bothell.
According to a Wallace Properties flyer, the building is 100 percent leased to a National Credit Tenant for 20 years. The two-story building was constructed in 1987 and is close to Interstate 405 and Beardslee Crossings. Numerous other companies, such as Google’s Bothell office at 11831 North Creek Pkwy N., Tetra Tech and Cocrystal Pharma, Inc, are all located nearby. AT&T’s Bothell 8 office is also located just up the road at 20205 North Creek Pkwy. The University of Washington’s Bothell campus is ten minutes away by car.
The acquisition will add to Hill Investment’s growing portfolio throughout the Puget Sound. According to the firm’s website, Hill Investment was founded in 1968 currently owns and operates more than 3.7 million square feet of industrial, office and retail space.
Interest in office space in Bothell has grown and ended the first quarter of 2019 with a vacancy rate of 6.2 percent, states Kidder Mathews’ Seattle Office Market Report. The Bothell and Kenmore submarkets saw a healthy 145,289 square feet of absorption, while the Northend office market in general saw 50 new lease deals over the course of the first few months of the year. The notable sale in Bothell during the quarter was the sale of Canyon Pointe Buildings A and B for $51 million, or $292 per square foot for the 174,546 square foot complex. T-Mobile has since leased both buildings as Bothell’s tech cluster continues to emerge.
“The Northend submarket continues to attract smaller office tenants looking for housing proximity and affordability. With a current average rent quote of $26.74 per square foot per year, it is 30 to 35 percent more affordable than the average rent quotes for Seattle and the Eastside,” states Kidder Mathews in its report. “Overall, this is a stable market that continues to show incremental improvement as smaller businesses expand and new construction remains in check.”