November 10, 2021 12:00 PM
Newmark announced that it has completed the sale of Bellevue Terrace, a 72,218-square-foot, Class A office building located at 3633 136th Place SE in Bellevue, Washington for approximately $29.4 million, or $406 per square foot. The property was sold by Swift Real Estate Partners, a vertically integrated investor focused on West Coast value-add office and industrial properties.
The seller was represented by Newmark Co-Head of U.S. Capital Markets Kevin Shannon, Vice Chairman Nick Kucha, Executive Managing Directors Rob Hannan and Ken White, Senior Managing Director Michael Moll and Directors Jeffrey Hodson and Rachel Jones in partnership with the local leasing team of Executive Managing Director Joe Lynch and Senior Managing Director Dan Harden who will continue to lease the asset on behalf of the new buyer.
“The property garnered strong interest from both institutional and private capital, demonstrating that the Eastside continues to be one of the nation’s most desirable office markets,” said Kucha.
“This sale represents the sixth office sale in suburban Bellevue in just over five months, a testament to the markets liquidity and capital’s desire to own office product here,” said Moll. “With only a 5.9% vacancy rate in the I-90 Corridor, this investment offers significant income upside and attractive future stabilized cash-on-cash returns from the lease-up of the remaining vacancy.”
Bellevue Terrace is a three-story, Class A office building with a lower-level parking garage. The building is situated on approximately 3.7 acres of land. Originally built in 1982, the asset underwent an extensive renovation starting in 2017 with the seller investing approximately $3.2 million in tenant improvements, cosmetic renovations and base building upgrades.
With its location near the intersection of Interstate 405 and Interstate 90, Bellevue Terrace offers accessible freeway access and excellent visibility. The property also offers convenient access to mass transit via the Eastgate Park and Ride located just five minutes away. The property is also proximate to restaurants, hotels, residential homes and shopping venues including Factoria Mall and Eastgate Shopping Center.
According to Newmark Research, the Puget Sound office market regained solid footing during the third quarter of 2021, recovering to pre-pandemic levels. Increased leasing activity and declining sublease availability resulted in positive net absorption of over 1.0 million square feet, a level not seen since third-quarter 2019. The rising demand for office space was fueled by employees returning to the office and the addition of new jobs.
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. Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. Newmark generated revenues in excess of $2.2 billion for the trailing twelve months ending June 30, 2021. Newmark’s company-owned offices, together with its business partners, operate from over 160 offices with approximately 6,200 professionals around the world. To learn more, visit nmrk.com or follow @newmark.
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