Seattle, Wash., July 26, 2019 – Seattle-based commercial real estate firm Urban Renaissance Group LLC (www.urbanrengroup.com) (URG) and real estate investment firm Iron Point Partners, LLC (IPP) today announced that they have sold the 548,704 sq. ft. SeaTac Office Center in SeaTac, Wash. to a partnership between San Francisco-based PCCP, LLC and URG.
Located at 18000 Pacific Highway South across from the Seattle Tacoma International Airport and within walking distance of the SeaTac/Airport Link Light Rail station, URG and IPP purchased the campus in October 2015 at 62 percent occupancy and made significant investments in the asset—including adding new amenities, modern and up-to-date cosmetic materials, updating and adding conference rooms, upgrading and expanding the fitness center, upgrading building systems, and making exterior improvements. These investments returned the asset to Class A and, as a result, more than 90 percent of tenants renewed their leases since 2015.
“Given the great location of this asset, and significant office rent increases in the Seattle/Bellevue markets, there is continued and growing demand for office space near the airport and light rail, URG was very interested in remaining in ownership,” said URG Founder and Chief Executive Officer, Patrick Callahan. “We’re also very pleased to be reinvesting in this asset with PCCP.”
Built between 1974 and 1980, the three-building SeaTac Office Center complex includes two 12-story North and South Towers at 225,000 and 215,000 sq. ft. each, and a four-story, 110,000 sq. ft. low-rise building. Currently more than 94 percent occupied, tenants include Alaska Airlines, Lynden, TSA, the Port of Seattle and 13 Coins.
As part of the sale, URG will recapitalize and invest with PCCP at SeaTac Office Center with plans to expand tenant amenities and improve common areas which will continue to differentiate SeaTac Office Center as the premier office asset in the Southend.
New York-based Newmark Knight Frank Capital Markets (NKF) is the investment sales broker representing the seller. NKF Co-Head of U.S. Capital Markets Kevin Shannon, Vice
Chairman Nick Kucha, Senior Managing Director Michael Moll, and Directors James Childress and Bill DeLacy represented URG and IPP.
“The Southend market of Seattle is seeing renewed positive momentum,” said Kucha. “We are continuing to see office tenant migration from the Central Business District and the Eastside,
to lower cost alternatives. At the same time, transit-oriented office projects like STOC are the first to benefit. With ample onsite parking and the Link Light Rail connecting directly to the
Seattle CBD, tenants can easily get to and from downtown.”
“URG successfully repositioned this asset by enhancing the common area amenities, increasing occupancy and lease term, and improving the terms of the ground lease,” said Shannon. “They were able to capitalize on the inherent demand from airport office users as well as tenants migrating from higher rent markets like Seattle.”
