By Lisa Brown
March 3, 2020 4:00 AM EST
BELLEVUE, WA—Following the sale of the 297,508-square-foot Lincoln Executive Center to PCCP LLC and Urban Renaissance Group LLC a couple of months ago, the campus name was changed to Cascade Yard, a tribute in part to the site’s history as Dobbins Lumber Yard in the mid-1900s. Additionally, the name change corresponds with the opening of The Yard, the project’s new 3,700-square-foot amenity center.
Highlights of The Yard include indoor and outdoor seating; fitness center, shower and locker rooms; training/conference facilities; and a cafe operated by Walla Walla Farms. Apart from the amenities center, recent improvements to the campus include renovated lobbies, and upgraded building systems and elevators.
Cascade Yard is located at 3380 146th Place SE along the Interstate 90 corridor, near the intersection of Interstate 405. The state’s largest Park and Ride is one block away.
“The Eastside is a desirable investment location supported by a handful of nationally and regionally strong tenants which have driven vacancies to historic lows and created upward pressure on rental rates,” said Dorian Farhang, vice president with PCCP. “All together, Cascade Yard presented an attractive opportunity to recapitalize a substantially improved asset with a best-in-class local operator, benefit from the current leasing momentum and participate in an exceptionally strong Eastside office market.”
The six-building 14-acre campus was constructed in 1984, and includes three mid-rise and two single-story class-A office buildings as well as the new stand-alone amenity building. The buildings are nearly fully leased.
“We’ve long believed Cascade Yard is a great asset in a great location that is attractive to today’s technology-oriented office worker,” said Patrick Callahan, URG founder and chief executive officer. “That worker is accustomed to an amenity-rich collaborative environment.”
PCCP and URG anticipate exploring a master development plan with Bellevue that would add additional office space to the project. Zoning changes by Bellevue in 2017 as part of the Eastgate comprehensive plan update permitted additional height and floor area ratio.
Seattle-based URG and real estate investment firm Miller Global Properties were the sellers of Cascade Yard. The acquisition was PCCP and URG’s second joint venture in 2019 following the recapitalization of Seatac Office Center in Seatac, WA.
“We look forward to advancing new opportunities at this site and believe our efforts here to inspire and connect people through spaces will greatly benefit our tenants and be competitive in the broader Bellevue office market,” Callahan tells GlobeSt.com.
New jobs have not only created demand in the office sector, but also increased demand for close-in housing. According to the Washington State Office of Financial Management, Seattle alone has added nearly 50 new residents per day since 2015. With job growth expected to continue, albeit at a slower pace and with a tolerable amount of new construction underway (currently at 6.7 million square feet, 81% pre-committed), the near-term outlook for the regional office market remains cautiously optimistic, according to a report by Kidder Mathews. Developers continue to take note with a wave of new office construction, which has recorded healthy levels of pre-leasing thanks largely to tech giant pre-commitments.
