By Meghan Hall
Los Angeles-based Preylock Real Estate Holdings has swept up the 90 North Business Park, formerly home to Boeing, in Bellevue. 90 North, which is comprised of four buildings located at 3255, 3265, 3156 and 3067 160th Ave. SE., sold for a total of $117 million, or around $461 per square foot, across three separate transactions according to King County public documents. The seller on the deeds is listed as Chicago-based Walton Street Capital, who acquired the asset in a joint venture with Talon Private Capital in 2017 for $35.75 million.
Together, the four buildings total 253,857 rentable square feet and were developed by Boeing in the early 1980s. Boeing vacated 90 North around the time that Talon and Walton Street Capital acquired the property, and the two firms sought to reposition the asset as a multi-tenant corporate campus with amenities such as a health and fitness studio, conference facility and central plaza.
Buildings One and Two, which total 92,937 and 92,572 square feet, respectively, sold in individual transactions for $43 million apiece in the $460 per square foot range. Buildings Three and Four, which are 34,210 and 34,128 square feet, respectively, were sold together for $31 million. In all, the property totals just under 20 acres.
The property is located in a part of town well-known to tech companies; currently, Microsoft, Boeing and Verizon are located in the immediate vicinity, with other companies like Amazon not far away in Bellevue’s Central Business District.
Preylock also owns Newport Corporate, a nearly one million square foot class A corporate campus that is 95 percent leased to T-Mobile. To date, the real estate acquisition and management company has more than $1.8 billion of assets under its management. The firm was founded in 2016 and targets high-quality commercial assets at a discount to replacement cost, as well as core-plus stabilized investments.
Preylock’s acquisition of the campus for almost quadruple of the 2017 trade only indicates how hot the Bellevue and Eastside market has become. According to a third quarter market report released by the Broderick Group, Eastside assets are garnering top dollar. During the third quarter, several office parks also traded: the four-building Corporate Campus East III sold to SteelWave for $55.25MM, while Sunset North was acquired by Kennedy Wilson for an incredible $227 million. The brokerage firm predicts that a flurry of transactions will close out the year, before a new progressive excise tax is implemented in 2020.