By Meghan Hall
The Bothell submarket is continuing to heat up, with yet another office transaction closing before the end of March. In a deal that just recently recorded, Miami-based Rialto Capital Management purchased the Highlands Campus Tech Centre for $53,218,162.50. The seller was an LLC affiliated with Equus Capital Partners, based on information from Snohomish County public records.
The property is located on 30th Drive SE. Built between 1999 and 2000, the three-building complex totals 201,866 square feet of space and is situated on 13.9 acres. The buildings are broken down into one, two-story office structure and two, two-story flex and research and development spaces.
Equus Capital originally purchased the property in December of 2018 for $33.55 million, according to previous reporting by The Registry. At the time, Equus acquired the asset from Investcorp, an alternative management investment company.
“With more than 30 life science companies, Bothell has gained a reputation as the hub of life science and biotechnology in the Seattle area,” states Equus of the development on its website.
In recent months, investment has been pouring into Bothell, and nearly one-third of the submarket’s inventory is expected to trade before mid-year, according to brokers familiar with the market. Within Bothell, office vacancy currently sits at 11.5 percent, and companies are quickly discovering the Eastside City as a healthy life sciences cluster.
“In Bothell, investor’s insatiable appetite for life science product and conversions has reduced the supply of office square footage in that submarket – creating a potential imbalance with demand that could lead to declining vacancy rates and increased office rents,” a first quarter report released by Broderick Group explains.
In recent months, Alexandria Real Estate purchased the Canyon Park Heights Office Center from Nicola Wealth Real Estate for $45 million, or about $313 per square foot. The building was 90 percent leased to Molina Healthcare of Washington. Alexandria also acquired the Canyon Park Business Center for $200 million in February. In January, TPG Real Estate sold its North Creek Parkway Center for $62.1 million. The buyer was Newport, Calif.-based Peregrine Realty.
With no new construction on the way and demand continuing to grow, it is expected that the Bothell submarket will continue to tighten, making it just one of several cities on the Eastside that are safe havens for investors.