By Jon Peterson
Seattle-based Talon Private Capital has chosen to move out of its portfolio the 171,205 square foot office building in Tukwila called Riverview Plaza. The pricing guidance on the transaction is set at $34 million, or just under $200 per square foot, according to sources aware that the property is up for sale.
The property owner has selected the Seattle office of CBRE Capital Markets to be the listing agent on the transaction. Among those working on the transaction are Tom Pehl and Paige Morgan, both executive vice presidents at the firm, and Charles Safely, senior vice president. CBRE declined to comment when contacted for this story.
Talon had acquired the property for $22.2 million in September 2016, according to public records. The most likely buyer to make a run at buying the property would be private capital sources. There could also be some institutional capital offers to make an offer for the asset. These investment groups would likely consider the property as a value-add investment opportunity.
Riverview Plaza has three buildings with a total occupancy of roughly 80 percent. The first building totals 48,217 and is located at 16040 Christensen Road. This three-story building was constructed in 1981 and has a current occupancy of 73 percent. Riverview Plaza 2 is located at 16000 Christensen Road with 46,418 square feet over three stories. It has a current vacancy of 13 percent and was developed in 1982. Riverview Plaza 3 was constructed in the same year. Its address is at 16300 Christensen Road with 76,570 square feet on three stories. This building has a current occupancy of 80 percent.
There are a total of 45 tenants in the property. The largest tenant in the property is Wilbur Ellis, which occupies 31,000 square feet or roughly 18 percent of the total space in the property. The current leases in the property have an average weighted lease term of 2.8 years.
The property has demonstrated leasing demand during the COVID-19 pandemic. Since 2020, there have been 22 leases executed totaling 80,000 square feet, and the property has had 70 percent tenant retention over that period.
Riverview Plaza has also seen strong rental rate growth since 2020. The rent has grown roughly 15.9 percent over the past 24 months. The property now has 34,125 square feet of available space to rent with five of the 12 vacant suites in market-ready condition.
Talon has invested an additional $3.2 million into the property recently for upgrades. This work has included building and tenant improvements and building out market-ready spaces. The parking ratio in the 8.7-acre asset is 3.1 spaces per 1,000 rentable square feet.