December 11, 2020, 10:00 AM
Newmark announces it has advised on the sale of 14335-14475 NE 24th Street, Bellevue, Washington. Known as “Overlake 520,” the buildings that total 145,914 square feet are in the 520 Corridor submarket of Seattle’s prolific Eastside.
Newmark’s Co-Head of U.S. Capital Markets Kevin Shannon, Managing Director James Childress, Director Jeffrey Hodson and Associate Director Rachel Jones cooperated with Vice Chairman Nick Kucha to represent the seller, Swift Real Estate Partners. The Newmark team represented Swift through all stages of the marketing, due diligence and sales process. The property sold to a partnership between Innovatus Capital Partners, LLC and Lincoln Property Company.
“The 520 Corridor submarket is one of the most dynamic Eastside submarkets with average asking rents up 2.3 percent year over year. Vacancy including Microsoft is 6.6 percent with overall Eastside vacancy at 5.1 percent,” said Kucha. “Recent lease commitments and expansion from Facebook in the Spring District, Google in Kirkland, Amazon in the Bellevue CBD and Facebook Technologies along Willows Road continue to drive rents higher, making suburban office investments very attractive.”
Overlake 520, a fully leased project with staggered rollover, is located in a submarket that is experiencing continued growth and strong fundamentals stemming from proximity to Microsoft’s massive campus redevelopment and the Eastlink Light Rail connecting the greater Eastside to Seattle. Overlake 520 feautures on-site amenities with a fitness center and miniature market, as well as walkability to restaurant and retail amenities.
Hodon added, “Overlake 520 has benefitted from Microsoft vendors and contractors with an on-site Microsoft shuttle stop, as evidenced by longer term tenancies common at the property. Today, the property enjoys a 100% leased rent roll and is comprised of investment-grade tenancy, with limited rollover in the first three years offering investors durable in-place cash flow.”
Located east of Seattle across Lake Washington, Bellevue and the rest of the “Eastside” submarkets have seen a remarkable increase in investment activity in the past five years, according to Newmark Research. The Eastside set a record in 2019 with $4.2 billion in office sales, nearly doubling the previous high set in 2018. 2020 year-to-date sales hit $1.7 billion, which is already 10.7 percent higher than the five-year average from 2014-2018. The average price per square foot for office sales has risen by roughly 80 percent since 2015, with one fourth-quarter transaction exceeding $1,000 per square foot, the first time any Eastside office building has topped that mark (50K+ SF buildings).
According to Newmark Research, the outlook remains promising with technology giants Amazon, Microsoft, Google and Facebook projected to add roughly 40,000 jobs to the Puget Sound economy over the next five years, the bulk of which will be in Bellevue, Redmond and Kirkland.
About Newmark Group, Inc. (NASDAQ: NMRK)
Newmark Group, Inc. 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, Newmark brings 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 2019, Newmark Group, Inc. generated revenues in excess of $2.2 billion. To learn more, visit nmrk.com or follow @newmark.
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