By Meghan Hall
Just several months after placing a key Bellevue asset on the market, Kennedy Wilson has found a buyer. The developer and owner originally put the Eastgate Office Park up for sale in February and is expected to close imminently on its sale. The property will sell for $125 million, or about $446 per square foot, to American Assets Trust, Inc.
According to a statement from American Assets Trust, the company expects to pay for the property in cash. The finality of the transaction is subject to customary closing conditions.
The property is located at 15325, 15355, 15375 and 15395 SE 30th Place. It was first developed in 1984 and 1985, and the four-building complex covers 14 acres of land. Combined, the buildings total just under 280,000 square feet of space. When the property was posted for sale, The Registry originally reported that guidance was around $125 million.
Kennedy Wilson had originally acquired the property for Kennedy Wilson Real Estate Fund V, its commingled fund. The Registry’s reporting found that the fund manager was in a position where it needed to dispose of the property, as the fund was approaching its closure. Kennedy Wilson had acquired the property for $74.8 million, or just over $267 per square foot, in April of 2016, according to public records.
At the time the property hit the market, the asset was 99 percent leased. Four major tenants occupy the property including Hasbro, which occupies a 32,344 square foot lease, Seagull Scientific, which takes up 27,825 square feet, ValueOptions, which is in for 18,332 square feet, and Capital Benefit Services for 16,059 square feet. The average remaining lease term is around 2.9 years, and 75 percent of the rent is expected to roll within the next five years.
The current leases are also about 15 percent below market, according to estimates, meaning that American Assets Trust, Inc. will see upside in the future due to upcoming leasing opportunities.
Kennedy Wilson also placed Corporate Campus East, also in Bellevue, on the market. The asset is a three-building office complex located at 3025-3075 112th Avenue NE. Totaling 137,000 square feet, Kennedy Wilson was marketing the property for sale with a guidance pricing of around $60 million, or about $438 per square foot.
Corporate Campus East is 93 percent leased, with nearly a third leased to microsoft. Rents are about 25 percent below market, according to sources, and new ownership could add another 50,000 square feet to the property. The complex has not yet been sold, according to a public records search.