Several companies such as MJR Development and Steelwave have been selling off some office space in Bellevue, Mercer Island-based Keeler Investments Group, an investment company of early stage, private equity and real estate opportunites, decided it was time to do the same with one of its properties, as well. Keeler sold off its Sweeney Conrad Building at 2606 116th Ave NE in Bellevue to the Pacific Cataract and Laser Institute (PCLI) for $13.5 million or about $380 per square foot. Jeff Chaney, senior vice president at Kidder Mathews represented the buyer in the deal.
The Sweeney Conrad building PCLI now owns is a two-story, Class A, wood frame building that was constructed in 2000 by Bellevue-based Underwood Gartland Development. The building is 35,553 square feet with parking at a rate of 3.74 per 1,000 square feet. According to a press release from Kidder Mathews, PCLI will occupy the entire first floor of the building and Sweeney Conrad, a public accounting firm, will remain as a tenant in the building.
Buildings smaller than 50,000 square feet may be worth more vacant than full
“Demand for owner user buildings in the Bellevue area is high. Buildings smaller than 50,000 square feet may be worth more vacant than full given the fact that, due to fast rising rents and low interest rates, there are many tenants in the market looking to own their own real estate,” said Chaney in the release.
Pacific Cataract and Laser Institute already has one location in Chehalis, which serves as the company’s head office and, according to the group’s website, provides a homelike atmosphere to minimize anxiety for patients undergoing eye surgery. The group operates 17 facilities in six states including a number of other facilities across Washington in Bellevue, Bellingham, Kennewick, Olympia, Silverdale, Spokane, Tacoma, Vancouver and Yakima. They are also in Alaska, New Mexico, Montana, Idaho and Oregon.
Keeler Investments Group lists the Bellevue property as a recent investment, though it has just sold. The company acquires properties in office, retail, mixed-use, multifamily, flex and industrial, and development sites, according to its website. Additionally, the group said they typically don’t acquire properties that require a flip. In the last 10 years, the group has acquired or managed more than 500,000 square feet of commercial properties and 700 acres of land.
There have been a number of recent office transactions in the Bellevue market this year, including the MJR Development sale in March, which sold the Belle-View Office Park to a Hong Kong-based developer Create World America for $19 million or approximately $330 per square foot. Again in March, Parker Smith & Feek sold off two Bellevue office buildings for $16 million or $303.82 per square foot. In February, Steelwave sold off the Evergreen Office Park for $21.45 million or $242 per square foot to Los Angeles-based PCCP.