June 23, 2021 10:30 AM
Newmark Knight Frank (“Newmark”) announces it has arranged the sale of Corporate Campus East, a three-building multi-tenant office campus located in Bellevue’s 520 Corridor, for $62 million.
Newmark’s Co-Head of Capital Markets Kevin Shannon, Executive Managing Directors Rob Hannan and Ken White and Senior Managing Director Michael Moll, in cooperation with Vice Chairman Nick Kucha, represented the seller, an LLC associated with Kennedy Wilson. The buyer was Lake Washington Partners.
“The Bellevue office market has performed with tremendous resiliency through the pandemic, making it one of, if not the most, desirable office investment markets in the nation,” said Shannon. “As the world reopens, capital continues to be drawn to Bellevue and the surrounding Eastside submarkets due to the superb array of diverse economic drivers propelling the region.”
The three-building campus, located at 3025, 3055 and 3075 112th Avenue NE, consists of 136,592 rentable square feet and is 93% leased to a diverse tenant mix, including anchor tenant Microsoft. The 8.96-acre site maintains additional floor area ratio with pending approvals for additional office development. The property recently underwent a $3 million capital repositioning, which included lobby remodels, bathroom renovations, exterior paint and the addition of an outdoor patio and seating. Additional property features include premier signage, flexible floorplates, ample parking and excellent regional access.
The 520 Corridor connects Seattle to Redmond, home to Microsoft. The property effectively lays equidistant between the two, occupying a highly strategic Eastside location. Eastside, the region’s most urban market outside of Seattle, offers transit-oriented options, live-work communities, walkable restaurants and shopping, bike paths, parks and campus-style settings.
The 520 submarket currently boasts a direct vacancy rate of 7.5% while rental rates have surged approximately 20% over the last ten quarters, according to Newmark Research. FAANG+M tenants continue to migrate east and grow their footprints on the Eastside, which will likely continue to drive market fundamentals in favor of landlords.
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Our comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, growing startups to leading companies. In 2020, Newmark generated revenues in excess of $1.9 billion. Newmark, together with London-based partner Knight Frank and independently owned licensees, operates globally from approximately 490 offices with 19,300 professionals. To learn more, visit nmrk.com or follow @newmark.
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