By Jack Stubbs
Just a few days after its sale of two properties within the four-building Bellevue Business Park, Medina, WA-based Par 5 Investments recently made a large-scale acquisition in Redmond, King County records show, through an entity named Par 5 Willow Ridge Tech Center LLC.
On December 18th, Par 5 Investments spent $61.9 million to acquire a three-parcel commercial property—on which sit two high-tech Class A office properties totaling 225,450 square feet—in a transaction which marks the company’s latest statement of intent in the Puget Sound region. The seller of the property was Redmond-based Reez Properties Inc.
The sale included three separate parcels located at 13245 NE 123rd St. and 12034 and 12277 134th Court NE, according to public documents. The first parcel includes Building B of the Willows Ridge Tech Center, which is a two-story high-tech office/industrial property that totals 36,450 square feet. The second property, located at 12034 134th Court NE, sits on roughly 11 acres and totals 189,000 square feet across three stories. The third parcel comprises four acres of vacant commercial land.
According to Google Maps, the larger of the two properties is current occupied by Zetron Inc., a telecommunications equipment supplier, while electronics manufacturer Kymeta Corporation is a tenant at the smaller building.
According to Broderick Group’s listing for Willows Ridge Tech Center, some of the property’s primary amenities include desirable Class A office/tech space in the revitalizing Totem Lake/Kirkland area, high-tech HVAC systems and convenient access to I-405 from NE 124th St.
The property is roughly four miles north of downtown Redmond, sitting close to the Willows Road corridor, along which several properties have changed hands over the last few quarters. In late November, The Roxborough Group acquired the four-building, 248,000 square foot Quadrant Willows Corporate Center for $73.6 million, or roughly $297 per square foot, from Philadelphia-based Equus Capital Partners.
In early 2019, San Francisco Graymark Capital acquired a 79,000 square foot commercial property—Building C of the Willows Commerce Park—for $19 million, or approximately $240 per square foot, from CA-based commercial real estate investment firm Menlo Equities.
In another demonstration of continued demand for high-tech/flex office space in the city of Redmond, Kent-based Alco Redmond Heights LLC spent $37.5 million—around $296 per square foot—to acquire the five-building Redmond Heights Tech Center from Bellevue-based Wakefield Properties.
Esterra Park, a 30-acre master planned community just off of State Route 520 at 15300 NE Turing St., is set to become one of the region’s next great live-work hubs upon completion, with 2,600 apartment homes and 245,000 square feet of Class A office space ultimately slated for development. On December 16th, PGIM Real Estate spent $14.3 million to acquire a three-acre development site—also known as Block 2A/2B of Esterra Park—for $14.3 million from USL2 Overlake Village Center LLC.
Esterra is also located within the Overlake Village Masterplan, which states that the area is ripe for development, with more than 48,000 jobs in the neighborhood. The City of Redmond is also anticipating to add more than 5,000 new homes and 25,000 jobs before 2030, with potential for the city’s growth also expected to continue in coming quarters.