By Meghan Hall
Bellevue remains a hot market for office investment, and another asset has traded hands. In a deal that closed just today, Unico Properties has acquired 110 Atrium for $143.2 million, or about $609 per square foot. The seller of the property, according to public records, was ScanlanKemperBard (SKB).
The asset is located at 110 110th Ave. NE, right outside of Bellevue’s Central Business District. The Class A office building was originally constructed in 1981 and totals 235,000 square feet. A marketing brochure by CBRE indicates that the building can accommodate users between 2,043 rentable square feet and 136,597 rentable square feet. A typical floorplate within the building totals 33,500 square feet.
Building amenities include an outdoor terrace, conference and board rooms, and a fitness center with showers and lockers. Tenants also have access to the on-site Avanti market, tenant event programs, and a third floor atrium with breakout space, lounge areas and Wi-Fi access.
“The outdoor terrace features spectacular views of the Cascades, and Mt. Rainier. Whether you’re looking for an open space to brainstorm and collaborate or a quiet nook to hide away and create, 110 Atrium has it all,” states the brochure.
The property is easily accessed via Interstate 405 and is blocks from Bellevue Plaza and Bellevue Downtown Park. Retailers ranging from Whole Foods to Target, as well as a number of major employers, call downtown Bellevue home.
SKB originally purchased the property in the fall of 2018 for $111.22 million, or about $472 per square foot. The acquisition marked SKB’s re-entrance into the Puget Sound market after disposing of most of its Seattle assets several years earlier. At the time, the company had intended to hold the asset for six years and had a targeted internal rate of return (IRR) of about 15 percent, according to information on its website.
It is unclear why SKB has decided to dispose of the property earlier than intended. At the end of the second quarter, those within the commercial real estate industry were touting Bellevue as the region’s “boomtown” with deal velocity and development continuing to accelerate. A report released at the end of the second quarter by Broderick Group noted that six office projects totaling more than five million square feet will be delivered in three years’ time. Bellevue’s central business district had a vacancy rate of eight percent at the end of the second quarter, with vacancy projected to sit at five percent by the end of 2022. Rental rates, due to increased activity, are expected to rise about five percent.