By Jon Peterson
Bellevue-based JM2T Properties is now marketing for sale the 42,276 square foot Canyon Park Office Center in Bothell located at 22232 17th Avenue Southeast. The potential price point on the sale could hit close to $14 million, according to sources that are familiar with the sale of the asset.
The seller has selected the Seattle office of CBRE to be the listing agent on the transaction. Tom Pehl and Lou Senini, both senior vice presidents at the firm, are leading the sale efforts. CBRE declined to comment when contacted for this story.
JM2T has been the owner of the office building for the past 18 months. The investor had paid $9 million for the property in Match of 2018, according to industry sources. One of the factors in putting the property up for sale now is that the asset has no vacancies.
The fully leased property has a combination of 16 tenants that are a mixture of professional services firms. The firms in the property include Philips Healthcare, a dentist office, counselors, a bank, mortgage companies and accounting firms. No single tenant occupies more than 14 percent of the building. Around 25 percent of the tenants in the building have occupied space in the asset for over eight years. The average remaining lease term for companies in the property is two and a half years. Rents in the property on average are 10 percent below market.
The likely types of capital that would be interested in the property would include private capital, according to sources familiar with the greater Puget Sound office investment market. This could include a mixture of high net-worth individuals and 1031 Exchange investors.
Canyon Park was first developed in 1990. It covers a total of two acres of land. Some of the amenities in the property include on-site shower facilities, which could provide useful if employees want to ride their bikes to work, reserved and unreserved parking and two electric vehicle charging stations. The parking operation for the property includes 146 on-site stalls of which 53 are covered stalls on the first level of the building.
The office building is within walking distance to many desirable amenities. Cedar Grove Park is less than a mile east of the asset. There also are many retailers nearby including Starbucks, Bartell Drugs, LA Fitness, Chase Bank and McDonalds.
The Bothell office market has a current total vacancy of 14.6 percent, according to data compiled by CBRE for its second quarter 2020 report. The sub-market has buildings that total 2.6 million square feet with a weighted average asking rent for Class A space of $34 per square foot.