By Kate Snyder
A vacant office building in Bellevue’s Eastgate neighborhood traded hands recently, signifying that investors continue to be attracted to the city. The 61,218 square foot building was sold for $18 million, or approximately $294 per square foot, according to King County property records. The buyer was an entity affiliated with Intracorp, a homebuilder with offices in Seattle and Vancouver, British Columbia. The seller was an entity affiliated with Bluesun Bellevue LLC.
Located at 3190 160th Ave. SE, the property was leased for decades by the Washington Department of Ecology but is now vacant, according to marketing information from Cushman & Wakefield, which was the exclusive advisor for the property. The two-story building was constructed in 1982 and sits on 3.67 acres of land. The site is adjacent to the westbound Interstate 90 on and off ramps.
Pat Mutzel with Cushman & Wakefield’s Private Capital Group in the Puget Sound in collaboration with Jeffrey Cole, Jeff Chiate, Bryce Aberg, Mike Adey, Nico Napolitano and Zach Harman of the firm’s West Coast Capital Markets Group represented the seller, a private, high net worth investment group, in the transaction. Notably, Mutzel also advised the sale of the property in December 2019 for a price of $16.3 million.
“This is a well-positioned site in the I-90 Corridor that is easily accessible via I-90 or I-405 and offers flexible zoning to enable a variety of investment options, including as a value-add office play or a residential redevelopment that is walkable and/or very close to employment, amenities, and freeways,” said Senior Director Pat Mutzel. “The Eastside is a suburban market known for its technology and innovation along with the presence of several major companies, which has driven greater demand for housing, especially in the longer-term. These adaptive re-use sites help bridge the gap between a weak office market and the need for housing communities in a scarce land market.”
Official plans for the site have not yet been announced, according to information from Cushman & Wakefield, but the buyer may execute shorter-term leases at the existing office building until able to finalize their redevelopment strategy.
Intracorp was founded more than 45 years ago, according to the company’s website. The firm has residential properties in various stages of development in Seattle, Shoreline, Newcastle, Bellevue and Redmond, as well as other cities throughout Washington, Texas, Hawaii and Canada. The company focuses on the development of both single family homes and multifamily residences. In addition to locations in the Pacific Northwest, the firm also has offices in Newport Beach, Calif., and Austin, Texas.
“From intimate townhomes to iconic gateway towers to apartment residences, we take pride in adding value to not only the homes we build, but also the communities we build in, and work to bring unique opportunities to our homeowners, residents and partners,” the firm’s website states.
Bellevue has seen a steady stream of sales transactions involving office properties.
Earlier this year, a 114,000 square foot building on the city’s west side traded hands for $35 million, or approximately $307 per square foot, according to previous reporting from The Registry. The buyer was an entity affiliated with Felton Properties, Inc., and the seller was an entity affiliated with Lionstone Investments. The property, called the Bellevue Gateway I building, is located at 11400 SE 8th St. and sits on about 9.3 acres.