By Meghan Hall
Well-placed Eastside assets are still continuing to trade for top dollar, even after nearly a year of struggle against the COVID-19 pandemic. In a transaction that closed today, New York City-based Vanbarton Group purchased the Millennium Corporate Complex in Redmond for $217 million. The seller was TPG Group, according to public documents.
The Registry first reported on Vanbarton’s intentions to buy the property for $215 million in November. The property is located at 18200-18700 NE Union Rd. in Redmond. Constructed between 1991 and 2001, the complex sits on nearly 30 acres. Its six buildings are all between two to three stories in height and includes 537,000 square feet of office space.
Major companies, including Microsoft, Nintendo and Honeywell are tenants. The in-place rents in the complex will allow the new owner a way to add value to the property in the future. Rents were at 21 percent below market when the property was put up for sale in August with an average remaining lease term of 4.8 years. TPG purchased the property back in the summer of 2018 for $153.5 million, or about $286 per square foot. At the time, TPG bought the asset from TH Real Estate, who sold the complex on behalf of TIAA Real Estate Account.
Vanbarton’s decision to purchase the Millennium Corporate Park comes nearly a year after the firm first entered the Puget Sound market. in 2019, the company acquired 901 Fifth Ave., a an office tower, for $305 million, as well the Danforth, an apartment tower, for $212 million.
Overall, 2020 has been proven a slow year for investment, with investment volume 23.7 percent of 2019, according to a third quarter report released by Colliers International. However, other sales have closed, including the sale of Spring District’s Building 2 for just under $379 million, and the sale of 801 3rd Ave. in downtown Seattle for $127 million. Major tech companies, notes Colliers, are still making major real estate decisions in an effort to solidify their presence in a rapidly growing market. While fundamentals are likely to remain slow until mid-2021, Colliers predicts the Puget Sound market will recover, with the Eastside markets leading the way.