Newmark announces it has completed the sale of the leasehold interest in Advanta Edge Campus, a 601,081-square-foot, state-of-the-art office campus located in the I-90 Corridor submarket in Bellevue, Washington. The campus is fully leased to the Microsoft Corporation (S&P: AAA) through September 2023.
Newmark’s Co-Head of Capital Markets Kevin Shannon, Vice Chairman Nick Kucha, Executive Managing Directors Rob Hannan, Ken White, Senior Managing Director Michael Moll and Director Rachel Jones, in cooperation with local market experts, Executive Managing Directors Tim O’Keefe and Joe Lynch, represented the undisclosed seller. Talon Private Capital and an undisclosed institutional real estate manager acquired the asset.
“We believe Seattle’s Eastside market may be the strongest office market in the nation at this time,” said Shannon. “New spec office construction is warranted and Advanta Edge offers a massive basis advantage for Talon and Prudential compared to replacement cost rents in the unlikely event that Microsoft doesn’t renew.”
The property, designed by architect CollinsWoerman, was developed in 2008 by one of the Pacific Northwest’s leading commercial developers, Schnitzer West. Of the $174.5 million in total capital improvements, Microsoft has funded over $120 million ($205 PSF) of out-of-pocket capital to enhance the building’s electrical and mechanical infrastructure, telecommunications backbone, interior finishes and build-out to a level well above typical Class A office standards. Microsoft is ranked number one in World’s Largest Software Company, number three in 2019 for the World’s Most Valuable Brands by Forbes and 75% of the Fortune 500 uses Microsoft Cloud.
The property is approximately five miles south of Microsoft’s international headquarters in Redmond. The site provides convenient regional transportation access via nearby Interstates 90 and 405. With large tech tenants like Facebook, Amazon, Google, and T-Mobile rapidly expanding and absorbing a large percentage of new construction, the Bellevue market is expected to remain supply constrained.
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate services, with a comprehensive suite of investor/owner and occupier services and products. Our integrated platform seamlessly powers every phase of owning or occupying a property. Our services are tailored to every type of client, from owners to occupiers, investors to founders, growing startups to leading companies. Harnessing the power of data, technology, and industry expertise, we bring ingenuity to every exchange, and imagination to every space. Together with London-based partner Knight Frank and independently owned offices, our 18,800 professionals operate from approximately 500 offices around the world, delivering a global perspective and a nimble approach. In 2020, Newmark generated revenues in excess of $1.9 billion. To learn more, visit nmrk.com or follow @newmark.
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