By Meghan Hall
Eastside office assets are continuing to lure interested investors as employers increasingly consider returning to the office. In a deal that closed on Friday, the Cascade Business Park in Issaquah traded for $36.1 million. According to public records, the seller was Bellevue-based Sterling Realty Organization, while the buyer was a limited liability company based in North Bend, Wash.
The property is located at 1145 Newport way NW. The six-building complex was originally constructed in 1980 and includes 95,943 square feet of space, based on information from SRO’s website. The property sits on nearly seven acres, and features a mix of office, warehouse and flex space.
“[The property is] locally owned, well maintained, and an ideal location for businesses needing the flexibility of both office and warehouse space,” state marketing materials for the asset.
The property is easily accessed via Interstate 90 and is adjacent to the Issaquah Commons shopping center anchored by Target, Starbucks and Hobby Lobby. The Tibbetts Valley Park is also a short walk away.
Investors and commercial real estate professionals have expressed optimism for the Eastside office market heading into 2021, with some in the industry noting “bursts” of activity as major tenants move forward with their plans for growth. Issaquah has become an attractive hub for both companies and investors: In February, REI Co-Op selected a 69,000 square foot building at 2005 Poplar for its first satellite office. In March, an 18,700 square foot office building along NW Maple Street traded for $11.2 million. The buyer was a private investor.
Across the wider Eastside submarket, “2021 is off to a great start with no signs of investment activity slowing down,” notes a report released by Broderick Group. The brokerage firm notes that every asset that is up for sale is currently garnering both significant interest and tour activity. Other significant sales to close early this year includes Alexandria Real Estate’s acquisition of both the Canyon Park Heights Office center for $45, as well as Alco Investment Company’s purchase of Redmond East Business Campus for $80 million, Willows Commerce Business Park for $140 million and Canyon Park East for $75 million.
Looking ahead, Broderick Group is confident that investment from both commercial real estate entities and well-known technology firms will bolster the Eastside office market, allowing for continued growth post-pandemic.