By Jack Stubbs
A two-building office complex in Snohomish County recently changed hands between two out-of-state real estate investment companies for a significant sum.
Late last week on Thursday, March 15th, Connecticut-based Westport Capital Partners, an independent firm that specializes in opportunistic real estate investing, acquired the two-building Redstone Corporate Center, which totals approximately 329,964 square feet, for $70.8 million, according to public records filed with Snohomish County. The seller of the property was Los Angeles-based PCCP, a real estate finance and investment management firm that focuses on commercial real estate debt and equity investments.
PCCP is making a significant profit on the property that it acquired in October 2013, when the company bought the two-building complex for approximately $52 million from Pearlmark Real Estate Partners (Building I sold for $31.05 million while Building II sold for $21.028 million).
Managing Directors Lori Hill and Stuart Williams led the JLL team on the sale.
The Redstone Corporate Center is a Class A office complex comprised of two buildings. Building I, located in Lynnwood, sold for $46.1 million, or approximately $223 square feet, while Building II in Mountlake Terrace sold for $24.7 million, or approximately $208 per square foot, according to Snohomish County records.
Neither the buyer nor the seller responded to calls for comment about the transaction in time for the publishing of this story.
JLL is the leasing broker for the two office buildings. According to the property’s listing on loopnet.com, Building I totals 206,200 square feet and Building II totals 118,438 square feet.
Building I, located at 19020 33rd Ave. W. in Lynnwood, is a six-story office building built in 2002 that features 40,000 square foot floor plates, according to the property’s marketing flyer. Building II, located at 6100 219th St. SW. and built in 1999, is a five-story structure that features 30,000 square foot floor plates.
Both of the buildings feature concrete and steel construction with a brick and glass curtain wall exterior as well as state-of-the-art electrical and mechanical system, according to the property’s marketing flyer. Building I features four levels of below-grade parking while Building II features three levels of below-grade parking. Additionally, both properties include an on-site building management office and zoning that allows for office, medical/dental or postsecondary school uses, according to the flyer. There are approximately 28,700 square feet available across five suites in Building I and 30,320 square feet available in Building II.
According to Google Maps, Building I is currently occupied by Charles Schwab and Old Republic Title, while Building II is currently occupied by various tenants including Mountlake Terrace City Hall, Money Management International, Galvin Realty Law Group and Cascade In-Home Care.
Building I—which sits adjacent to Alderwood Mall and Lynnwood Square, two prominent retail centers in the area—is roughly three miles to the north of Building II, which sits just north of Mountlake Terrace. Both properties are within half a mile of access to Interstate-5.
Founded in 2005, Westport specializes in opportunistic real estate investing and focuses on generating risk-adjusted returns through value-added transactions, operating partnerships and domestic and international development opportunities, according to the company’s web site. The company operates offices in Wilton, Connecticut; Los Angeles, California; Bozeman, Montana; and London, England.
PCCP, founded in 1998, provides commercial real estate debt and equity capital for middle-market real estate markets throughout the U.S. Since the company’s inception, PCCP has raised, invested and managed over $12 billion of institutional capital and has approximately $6.4 billion of assets under management, according to the company’s web site.
PCCP has been active in the Puget Sound real estate market in recent months. On February 8th, 2018, the company announced that it had formed a joint venture with Panattoni Development Company, Inc. for the development of Glacier Peak, a 201,509 square foot industrial warehouse building on a 10-acre site in Everett, WA. In August 2017, the company announced that it had provided an $80 million senior loan to a joint venture between Geolo Capital and former Touchstone principals Douglas Howe and Shawn Parry for the refinance of the Thompson Hotel and Sequel Apartments located in downtown Seattle, according to the company’s web site.