By Jack Stubbs
As cities in the Puget Sound region continue to expand, investors and developers continue to demonstrate interest in commercial assets further out from the downtown cores, as another recent sale indicates.
On June 13th, the Bellgrove Professional Building sold for $14.9 million, or approximately $503 per square foot, according to King County records. The buyer was Sankalpa LLC, an entity based in Seattle, and the seller was Seattle-based Henbart LLC, a real estate company that develops, owns and manages commercial and residential properties throughout the Pacific Northwest.
The Bellgrove Medical Building, located at 1515 116th Ave. NE in Northwest Bellevue, is a three-story property built in 1979 that totals 29,609 net square feet, according to public documents. According to the property listing on Broderick Group’s web site, there are currently 2,381 square feet available for lease across two floors in the building.
Broderick Group did not respond to an emailed request for comment about the recent transaction.
According to the property description, some of the primary features of the building include recently-upgraded interior and exterior common areas and a state-of-the-art HVAC system.
Sitting within Bellevue’s main hospital/medical corridor, the asset is located proximate to various other medical properties including the Overlake Hospital Medical Center, Group Health Bellevue Medical Center and the new Children’s Hospital Clinic and Surgery Center.
Bellevue’s Central Business District and surrounding areas have been garnering increasing interest over the last couple of quarters, with development opportunities and commercial transactions attesting to what is a dynamic office market at present.
In late May, Pacific Coast Capital Partners (PCCP) sold the Evergreen Office Park, a Class A, two-building, 88,642-square-foot office park located at 10940 and 11000 NE 33rd Place. PCCP sold the property for $32.15 million, or about $363 per square foot, to SmartCap Group.
Along with the recent sale of the Evergreen Office Park property, SmartCap Group has been active further afield in the Puget Sound region over the last few months as well. In early February, the company spent $14.9 million to acquire the Quadrant I-5 Corporate Park Building A, a 74,974 square foot office building located in the the growing area of Everett, which is the largest city in Snohomish County.
Sales like that of the Evergreen Office Park in Bellevue—a property whose neighbors include technology giants like Facebook, Google, Amazon and Microsoft—are occurring at a time of growth for the Eastside more generally, according to Joe Lynch of NKF, who represented the seller in the transaction.
“The greater Eastside has a 4.01 percent vacancy rate; the lowest level since [fourth quarter 2000]. NKF is tracking over 6.2 million square feet of demand with only 2.1 million square feet of supply,” said Lynch at the time of the transaction in May. “The 520 Corridor, where Evergreen Office Park is located, has consistently been one of the strongest performing Eastside submarkets, making it a prime investment opportunity.”