By Meghan Hall
Assets around the Puget Sound continue to trade hands. In another deal, Seattle’s Northgate Executive Center sold for $72.3 million, or about $365 per square foot. An entity affiliated with the Los Angeles County Employee Retirement Association (LACERA) sold the building, while the buyer is a limited liability company connected to Vancouver, B.C.-based Nicola Wealth. The deal closed just today, according to public records.
The property is located at 115 NE 100th St. According to CommercialCafe, the Class B building was originally constructed in 1974. In all, the asset totals 198,051 square feet and sits on just under 6.7 acres of land.
The asset sits within the Northgate neighborhood and is surrounded by commercial businesses. Northgate Station, a shopping center anchored by tenants like 24 Hour Fitness, Nordstrom Rack and Barnes & Noble, is just blocks away. Other businesses in the area include Roosevelt VIsion, Green Lake Health Center, and North Seattle College.
While the transaction is a sign of hope for the region, Seattle’s office market still faces many challenges in the wake of COVID-19 and the appearance of the Delta variant. The health of the market ultimately depends not just on investor activity, but tenants’ demand for space. Availability continued to increase slightly during Q3, according to Savills Research, but the number of leases signed also continued to climb. The number of leases solidified reached its highest total since the fourth quarter of 2019, with leasing across the region totaling 1.5 million square feet. This represents a 38 percent increase over last quarter.
Savills notes that sublease transactions make up a “good portion” of leasing activity. However, overall availability still stands at 19.5 percent. Looking ahead, the rise of vaccine mandates combined with FDA approval will likely encourage companies to return to the office, notes Savills. Additionally, Seattle boasts a high level of innovation and job growth, which is likely to drive long-term growth and expansion.