Newmark Represents Providence in $84 Million Disposition of 477,000-Square-Foot Office Portfolio in Renton, Washington

December 29, 2022 9:00 AM

Newmark[1] announces it has arranged the sale of Southgate Campus, a two-building Class A office campus totaling 268,000 square feet and Valley Office Park, a four-building 209,000-square-foot office park, in Renton, Washington. Seattle Children’s Hospital purchased the assets for a total of $84 million.

Newmark Executive Managing Director Garth Hogan and Co-Head, U.S. Capital Markets Kevin Shannon, in cooperation with Senior Managing Director Cavan O’Keefe, represented the seller, Providence, in the transaction. The buyer was Seattle Children’s Hospital. Newmark’s Hogan has worked with Providence for over five years, brokering multiple transactions on their behalf regionally.

“The sale is a great example of an ongoing Providence initiative to monetize non-strategic assets to reposition capital for future growth and reinvestment,” said Hogan “This marks the 20^th asset our team has sold for Providence since 2018, and we greatly value our partnership.”

“This sale continues to show the strength and growth of the Renton market for medical and office users, along with investors who see Renton as one of the most active submarkets in the region,” O’Keefe added.

“This move is in alignment with our desire to move further toward a hybrid work model, aimed at increasing flexibility, enhancing collaboration, and providing a more modern experience for our caregivers,” said B.J. Moore, CIO and Executive Vice President of Real Estate Operations and Strategy for Providence. “We’ve redesigned several administrative spaces, creating more shared workstations and collaboration rooms in buildings on the Renton campus. Though multiple organizations were interested in purchasing our property, we chose Seattle Children’s because their mission aligns closely with our own, and we’re excited about their plans to create greater access to care for pediatric patients, who are a vulnerable population.”

Southgate Campus is comprised of two buildings, Southgate I, located at 2201 Lind Avenue SW, totaling 114,186 square feet and Southgate II, located at 2001 Lind Avenue SW, totaling 160,853 square feet. The campus also includes a vacant land parcel. Southgate is conveniently located between Seattle, Bellevue and Tacoma along I-405 and minutes from numerous restaurants, retail amenities and hotels including access to multiple lakeside and riverfront parks.

The Valley Office Park, located at 1801 Lind Ave SW, is the current local headquarters for Providence and also includes a new Pacific Medical Group multi-specialty clinic.

[1] Dba Newmark Knight Frank in California

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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 of approximately $3.1 billion for the twelve months ending September 30, 2022. Newmark’s company-owned offices, together with its business partners, operate from approximately 180 offices with nearly 6,700 professionals around the world. To learn more, visit nmrk.com or follow @newmark.

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