Bellevue-based Pine Forest Properties, the commercial development and investment company owned by the Burnstead family, one of Puget Sound’s premier home builders, purchased the two building Bellevue Corporate Center from Boston-based TA Associates for $20 million, or roughly $220 per square foot, according to public records. TA Associates has owned the two buildings since April of 2010 when they purchased them from Forster City, Calif.-based Legacy Partners for $27 million. The two buildings are located at 3350 & 3460 161st Ave. SE in Bellevue.
Pine Forest has been involved in a recent sale in Redmond of a similarly-sized asset. It sold the five-building, West Willows Technology Center to Kent-based Alaskan Copper & Brass Company for $33 million, or approximately $201 per square foot. Pine Forest had owned the Redmond buildings since 2007, when it purchased them from Foster City, Calif.-based Legacy Partners.
The Bellevue properties are considered Class B buildings. They are two-story structures that were constructed in 1982. The tenants in the buildings are a mix of technology and financial services firms. E-Financial and 4Brokers are two of the tenants, and another one is DataSphere Technologies, a mobile and online program developer for small businesses that helps them reach local consumers.
The Eastside office market has seen a resurgence over the last 12 months or so. Overall demand on the Eastside is strong from credit tenants, and new construction is now mostly full with very little new product scheduled to be delivered in the next two years, according Broderick Group’s second quarter of 2017 Eastside Office Market Overview. However, the second quarter also saw signs of weaker tenants filing bankruptcies and arranging to shed excess space resulting in the sublease inventory increasing to its highest level since 2010.
However, the report sees a relatively stable and strong Eastside market through the next 18 months as current tenant demand remains high with very little inventory coming online coupled with some market rightsizing.