Seattle-based Urban Renaissance Group and Miller Global Properties of Denver on Thursday said they’ve sold Lincoln Executive Office Center in Bellevue to a new partnership of PCCP and URG.
King County posted a sales affidavit showing the price was $114.5 million, or about $34 million more than what URG and Miller paid for the six-building, 14-acre property in 2016. The price increase stems, in part, from the office park’s proximity to the state’s largest park-and-ride lot as well as the owner’s ability to redevelop the 1980s-era property into a much denser asset.
The acquisition is the second joint venture between PCCP (Pacific Coast Capital Partners) and URG in the last year following the recapitalization of SeaTac Office Center.
As part of the deal the 297,500-square-foot property at 3380 146th Place on the north side of Interstate 90 has been renamed Cascade Yard. It’s a tribute to the site’s history as Dobbins Lumber yard.
Miller and URG renovated building lobbies and systems and added an amenities center with conference and training facilities, a fitness center and a café that Walla Walla Farms operates. The office park is 96 percent leased as it was when work on the upgrades started just over two years ago.
Under zoning the city approved in 2017, buildings up to 12 stories tall could be built. Currently, the tallest buildings are four stories.
Los Angeles-based PCCP and URG said they anticipate exploring a master development plan with the city to add office space.
I-90 is the Eastside’s second largest office market after the Bellevue central business district. Average annual direct asking rents in the third quarter along the interstate were $39.86 per square foot compared to $52.77 a foot in the central business district, according to JLL.
Among the office users in the Eastgate area are Intellectual Ventures, Microsoft and Samsung.
Image courtesy of URBAN RENAISSANCE GROUP
Puget Sound Business Journal – Marc Stiles, Staff Writer