By Jon Peterson
An existing office building and a mixed-use development site are up for sale in the Redmond market, according to sources familiar with each asset.
The Redmond Technology Center is an office asset that is 101,728 square feet in size, and it is located at 18300 Redmond Way The second asset is the mixed-use site called City Center Redmond project, which is located at 16135 Northeast 85th Street.
Redmond Technology Center is listed with the Bellevue office of Kidder Mathews. Andy Miller, senior vice president/partner in this office, who is one of the leads on the sale of this property, did not return several phone calls seeking comment for this story.
Transwestern has been the owner of this property since June 2016. The real estate investment firm had paid $30.25 million, or just over $297 per square foot, for the property at that time.
This complex is considered a core asset, with present occupancy at 93 percent. The property has gone through a successful lease up of the building to a variety of tech and professional service companies including Pushpay, Denali, Sogeti and STI. The leases with these tenants will be in place for the next several years. These rents are estimated to be 17.4 percent below market on a weighted average basis at the time of the rollover.
The property does have nearby amenities that many of these types of tenants are looking for. Its within walking distance to many retail services including a 12-tenant retail center anchored by a 60,000 square foot Whole Foods.
The Redmond office market has become very tight. The Eastside city’s vacancy has dropped to 1.5 percent, its lowest level since the fourth quarter of 2000. There is every indication that rents should continue to increase with no new construction of additional office space on the horizon.
City Center Redmond is a shovel-ready mixed-use development site located just north of the city’s downtown core and in proximity to other mixed uses, and it is connected to the north and south of the city block by public transit options, as well. The listing agent on the sale is the Seattle office of CBRE. Jon Hallgrimson, executive vice president with CBRE who is leading the sales efforts, did not respond to several phone calls seeking comment for this story.
There are three potential options for this development, according to the property flyer. Option 1 is for 425 residential units and 41,000 square feet of retail. Option two is for 317 residential units, 107,230 square feet of office and 41,000 square feet of retail. The final option is for 217 residential until 216,500 square feet of office and the same amount of retail space.
The location of the site is placed within the heart of downtown Redmond. The project would be within a few bocks of Redmond Town Center, which is a major retail center anchored by Macy’s that has a total of 110 stores and restaurants.