By Jon Peterson
With significant commercial transactions across the greater Puget Sound region continuing early into 2022, some investors are looking to dispose of properties that do not meet their investment criteria going forward. Los Angeles-based Hudson Pacific Properties is one of them, and the investment company has just placed on the market for sale the 179,985 square foot Northview Center office property in Lynnwood located at 20700 44th Avenue West. This information was stated by the public real estate investment trust in its 2021 fourth quarter earnings report. There has been no pricing guidance established at this time.
The investor has awarded the listing for the sale to the United States Capital Markets Team of Newmark. One person working on the sale is Kevin Shannon, co-head of US Capital Markets for the company. He works out of the company’s office in Los Angeles. Newmark declined to comment when contacted for this story.
Hudson Pacific chose to sell Northview Center because it deems the asset as one that is not part of the company’s overall strategy going forward. “We decided to market Northview Center for sale because it doesn’t have the right long-term strategic fit for our portfolio. It’s a single asset located in Lynnwood, well outside of our core market in downtown Seattle, which is where we’ve grown our Class A office portfolio of more than 2.5 million square feet,” says Mark Lammas, president of Hudson Pacific Properties.
Northview Center as an office building is now 69.5 percent leased, as stated by the seller in its fourth quarter 2021 earnings report. The annualized base rent per square foot is $23.67.
The seller has not disclosed what it paid for the Lynnwood property. “We haven’t disclosed the fully allocated purchase price for this asset, since it was purchased as part of a larger four-building office portfolio in July 2013. The purchase price for the entire portfolio was $368.6 million, net of credits, before closing costs and prorations,” said Lammas.
Snohomish County public records indicate that Hudson Pacific purchased the asset in July of 2013 for $48.5 million, or just under $270 per square foot.
The other properties that were part of the portfolio buy included the First & King property, a two-building 472,881 square foot waterfront property located in the Pioneer Square submarket of downtown Seattle. The other asset was Met Park North Property. This was a 189,762 square foot building located in South Lake Union.