By Meghan Hall
After several years of ownership, Newport, Calif.-based Peregrine Realty Partners has sold an office asset in the growing Bothell submarket. In a transaction that closed mid-January, the North Creek Parkway Center traded for $62.1 million and according to public documents, the seller is affiliated San Francisco-based TPG Real Estate.
The property is located at 11804-18916 North Creek Parkway and includes six buildings. Built between 1986 and 1987, the buildings total 205,707 square feet. Four of the buildings are one-story, while the remaining buildings are two-story. When Peregrine acquired the asset, the property included 72 percent office space, 17 percent lab space and 11 percent warehouse space.
The buildings themselves are situated on 13.52 acres of property with 654 surface parking spaces. The campus itself is located within the 52-acre North Creek master-planned business park. Nearby companies include Brooks Applied Labs, Lundbeck Seattle Biopharmaceuticals and Google’s Bothell campus.
Peregrine Realty initially acquired the asset at the end of 2017 for $36.5 million, buying the asset from KBS Capital Markets Group. KBS had initially purchased the property in August of 2008 for $41.114 million.
The property’s new owner, TPG Real Estate, currently has about $6 billion in assets under current management. According to the firm’s website, TPG invests in all major property types and takes a value-add approach to investing, targeting assets across North America and Europe.
The Eastside office market remained relatively stable through the end of the fourth quarter, with just three blocks of space larger than 100,000 square feet available to lease. According to an end of year report released by Broderick Group, the Bothell submarket had a vacancy rate of about 14 percent and annual growth came in at 5.8 percent.
Strong fundamentals have meant that a number of trades in the Bothell market occurred in recent months, including Alexandria Real Estate’s acquisition of Monte Villa Farms and Monte Villa Parkway for $121.9 million. Nearly a year ago, Kennedy Wilson purchased Canyon Park East, another business park, for $54.625 million. While 2020 was a more muted year for the submarket, Broderick Group has dubbed Bothell and other Eastside markets as a “safe haven” for investors looking for long-term success.