Home Commercial Entity Associated with MJR Development Buys Tacoma Office Asset for $41.25MM

Entity Associated with MJR Development Buys Tacoma Office Asset for $41.25MM

By Meghan Hall

Local real estate investors continue to remain active in the market, even as competition for commercial real estate has increased over the years. In a deal that closed just before Christmas, Kirkland, Wash.-based MJR Development acquired a downtown Tacoma office asset for $41.25 million, or about $198 per square foot. The seller was an entity associated with Richard Getty, a private investor based in Tacoma.

The asset is located at 1145 Broadway Plaza. According to a listing by North Sound Commercial, the office building was originally constructed in 1985 and totals 208,404 square feet. It rises 15 floors and has 72 parking spaces.

The property is also located at the heart of downtown, near shops and restaurants like Steel Creek AMerican Whiskey Co., The Old Spaghetti Factory, and others. Interstate 705 is also nearby, as is the Port of Tacoma.

MJR Development is a commercial real estate development firm, and the company has properties from Lynnwood to Olympia, according to its website. In addition to office, its portfolio includes retail, residential, industrial and mixed-use properties.

Despite investor activity, the future of office is hotly debated amongst those in the commercial real estate industry as COVID-19 cases continue to surge. The biggest obstacle for office space is employer decisions to postpone a return to the office, especially among major tech firms. Amazon, Facebook, Google and Apple have all postponed their return to work schedules until 2022, and a third quarter report from Cushman & Wakefield estimates about 40 percent of the global workforce has returned to the office, leaving room for improvement.

At the end of the third quarter, the Puget Sound office market had a vacancy rate of about 10.1 percent, compared with the 6.3 percent rate reported a year ago. However, on a positive note, absorption was up, hitting a positive 670,794 square feet. According to Cushman & Wakefield, new construction delivering to market fully leased was a major factor in the market’s momentum during the third quarter. Additionally rental rates have increased 2.7 percent, another positive sign for the market.