By Jack Stubbs
On Tuesday, February 19th, two Class A buildings in the Kirkland 405 Corporate Center sold for $35.7 million, or just around $273 per square foot, according to King County records, with the properties trading hands between two California-based companies. The buyer was The Roxborough Group, a privately-held real estate firm headquartered in San Francisco. The seller shares the same address in El Segundo as Barings LLC, a global financial services firm. The transaction was recorded on February 20th.
The sale was for two three-story properties, located at 11332 and11410 NE 122nd Way, which total 130,585 square feet, according to public documents. The first property, named Building A-1, was built in 1994 and totals 65,469 square feet, while the second A-2 asset was built in 1990 and totals 64,116 square feet. The two properties sit on just over four acres of land.
According to Colliers International’s listing of the property, some of the highlights of the buildings at the Kirkland 405 Corporate Center include easy access to Interstate-405, covered and surface parking and a potential for generous tenant improvements on-site.
It is not entirely clear how much space is available in the two properties. According to Google Maps, some of the current tenants in Building A-1 include IBM and Compass Construction Management, while occupants of the second building include The Software Revolution Inc. and The Mine, a professional services company.
The assets are approximately four miles north of downtown Kirkland and five miles northwest of Redmond.
Founded in 2013, The Roxborough Group focuses on opportunities in opportunistic, value add and transitional real estate assets, high yielding real estate debt, real estate related operating businesses, and high quality, lower risk and longer duration real estate investments, according to the company’s web site. Roxborough’s capital comes from a combination of institutional sources as well as high net worth individuals and family offices.
Headquartered in Hartford, Connecticut, Barings is a $303 billion-plus financial services firm that is dedicated to meeting the evolving investment and capital needs of its clients and customers, according to the company’s web site. The company looks to provide innovative solutions and access to differentiated opportunities across public and private capital markets.
In March of 2017, the $6 million to acquire the land for the 195-unit The Triangle apartment development project in Redmond located at 16540 Redmond Way, which was completed in third quarter 2018.
The recent sale of the two buildings at the Kirkland 405 Corporate Center indicate that demand in the city north of Bellevue and across Lake Washington from Seattle continues, and there were several notable transactions in late 2018. In mid-November, Los Angeles-based real estate investment company Clarion Partners acquired the four-building Plaza Yarrow Bay office property in Kirkland—located at 3933 Lake Washington Blvd. NE—for $134.5 million, or approximately $480 per square foot, from LA-based Kilroy Realty.
And in early January, a 19,500 square foot Buick GMC auto dealership in Kirkland sold for $10 million, with Alco Investment Company acquiring the property from an entity based in Bellevue. The auto dealership is less than one mile and right across Interstate-405 from The Village at Totem Lake—located at 12601 120th Ave. NE—which is an approximately 400,000 square foot mixed-use lifestyle center set to open in late 2019 that will eventually include 45,000 square feet of retail and restaurant space, a 35,000 square foot luxury movie theater and 650 luxury apartments.