By Jon Peterson
Costa Mesa, Calif.-based Rich Uncles, a crowd-funding real estate investment platform, has paid $29 million, or just over $298 per square foot, to acquire the 97,191 square foot Sammamish Park Place office building in Issaquah, according to sources that track the sale of office buildings in the greater Seattle market.
Rich Uncles is known as a private real estate investment trust. The seller of the property was Onward Investors, a commercial real estate investment trust based in Minnesota. This company was represented in the sale by the CBRE office in Seattle. CBRE declined to comment when contacted for this story.
The asset sold is located at 22011 Southeast 51st Street. The property is 100 percent leased to Costco Wholesale for the next seven years. The tenant uses the property for its own office space. The asset is located a half-mile from Costco’s world headquarters campus; it was initially constructed in 1987 and renovated in 2018.
There has been a significant amount of new investment placed into the property recently. One part of this was $1.2 million of capital improvements, which included two new HVAC rooftop units, refurbished VAV boxes, upgraded HVAC controls, window sealing, landscaping, sidewalks and parking lot sealing and striping. There has also been over $3 million invested into new lobby and tenant improvements throughout the entire building.
The asset sold is a two-story office/flex building. The total site area of the property is 4.67 acres. The asset also has a 425-stall parking operation.
Eastside office market as part of a total Seattle market is producing strong market fundamentals. There are active tenant requirements of 3.2 million square feet. Over 400,000 square feet of absorption occurred this year during the second quarter. The region now has a direct vacancy rate of 8.3 percent, and the rental rates in the region are rising past historical highs.