January 27, 2022 12:00 PM
Newmark announces it has facilitated the sale of a development site, known as Four 106, in Bellevue, Washington for $95 million.
Newmark Co-Head of U.S. Capital Markets Kevin Shannon and Executive Managing Director Ken White, in cooperation with Executive Managing Director Tim O’Keefe, represented the seller, The Fana Group, in the transaction. The undisclosed buyer intends to immediately start development of the project.
“The Eastside market continues to be blessed with robust job growth in the office using sector despite the headwinds created by the pandemic,” said Shannon. “New office product is justified and warranted which is why capital is attracted to ground up office development in Bellevue “
O’Keefe added, “The Fana Group permitted a first-class office design to augment the Key Bank Building they will continue to own next door. In addition to the new office building, the buyer will be constructing a Pavilion Blvd in the current parking lot that will benefit the city as well as the buildings.”
Located at NE 4th Street & 106th Ave NE, the property is situated on a .93-acre lot with a vacant 40,332-square-foot office building. The buyer plans to develop a 21-story, 481-305-square-foot office tower with an eight-level below-grade parking garage.
According to Newmark Research, the Puget Sound office market continued its steady recovery during the fourth quarter of 2021, with several positive indications that 2022 will bring not only stabilization but growth. The region saw its second consecutive quarter of positive net absorption, totaling 772,798 square feet for the quarter.
This trend is expected to continue in 2022 as tenants begin to occupy spaces leased amidst the uptick in transactions during the second half of 2021. Asking average rents increased to $44-65per square foot, up 1.5% for the quarter and 5.1% year over year. The development pipeline remains full, with 9.9 million square feet underway. During 2021, Puget Sound was the fourth most active sales market in the country with office transactions totaling $6.1 billion in 2021, a 38.7% increase year-over-year.
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 $2.5 billion for the trailing twelve months ending September 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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