The Class A complex consists of four separate buildings ranging from two to five stories, with a total of 275,000 sf. The addresses are 10210, 10220 and 10230 NE Points Dr., and 3933 Lake Washington Blvd.
According to a Grubb & Ellis market report for year-end 2000, the Kirkland vacancy rate was the tightest in all the Eastside sub-market a 0.2%. The average rate for the entirety of Eastside cities was 2.3% and was beginning to show signs of its vulnerability to problems in the high-tech sector. In the fourth quarter, sublease space jumped from 63,253 sf to 445,915 sf. The highest rate was Bothell/Woodinville at 4.4%, while the Bellevue CBD was marked at 2.6%.
The G&E report says rent rates the Eastside rose in the fourth quarter about 7% brining the average to $34.32. Rates being received from tenants in the Plaza at Yarrow Bay have likewise increased, with the asking price about $32/sf.
Tom Abbott, senior director of the financial services group at the Seattle office of Cushman & Wakefield is one of the brokers handling the sale on behalf of Seattle-based HAL, a private investment company. As to why HAL is liquidating the holding at this point in time, all Abbott would say was, "They've owned it for a number of years." HAL Real Estate Investments is an investment arm of HAL Holding N.V., the former owner of the Holland America cruise ship line. A company spokesperson was not immediately available for comment.
Abbott declined to discuss the asking price for the four buildings, but sources in the know about Eastside real estate are speculating it could be in the vicinity of $300/sf. Factored into the speculation is the property's prime location near State Route 520, as well as the high-quality of the buildings themselves. The factor that remains undefined – and the one capturing the most attention – is the affect of the market itself.
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