By Meghan Hall
After just under two years of ownership, Graymark Capital has sold off a Redmond office building—and at a healthy mark-up. In a transaction that closed on December 22nd, Graymark sold Willows Commerce Park Building C for $35.5 million, or just under $449 per square foot. The buyer is Dallas, Texas-based Invesco, based on public property records.
The asset is located at 9805 Willows Rd. and sits within the four-building Willows Commerce Park in Redmond. Built in 1999, the asset totals 79,072 square feet and is considered a high-tech and flex space. The entire business park sits on 11 acres and totals 421,415 square feet.
Graymark originally purchased Building C for $19 million, or about $240 per square foot, in January of 2019. At the time, the firm acquired the asset from Menlo Equities, a private commercial real estate firm based in Menlo Park, Calif. According to Graymark’s website, the building’s current tenant has 18 months of lease term remaining. Rents in the building are about 25 percent below market rate, providing upside for Invesco when the lease rolls. The building is currently leased to Wyndham Hotels, headquartered in Orlando, Flor.
Graymark Capital acquires and manages institutional quality real estate in markets across the Western United States, focusing on metros such as San Francisco, Silicon Valley, Portland, Seattle and Hawaii. Since 2012, Graymark has purchased 25 office, R&D, life sciences and industrial properties. Combined, its portfolio represents more than 2.7 million square feet of space and more than $1.1 billion of value. The company has invested more than $5 billion in real estate transactions over the past decade.
Invesco Real Estate is one of the world’s largest real estate managers, and invests directly in property and publicly traded real asset securities. Worldwide, the firm manages $1.2 trillion in assets as of November 2020, and has on-the-ground presence in 25 countries. Invesco has made several major investments into the Puget Sound in recent years, including its $585 million acquisition of the Microsoft-leased Bravern Office Commons in Bellevue. In June of 2018, the company paid $268.4 million to acquire the six office buildings within the Redmond Town Center, not far from Willows Commerce Park.