The two-story, two-year-old tilt-up was about 40% leased at the time of sale and is built out as 100% office. The buyer, the Northwest District Council of Assemblies of God, is relocating its headquarters from Everett into the building's remaining space. Insignia Kidder Mathews is expected to get the property management assignment.
Cushman & Wakefield brokers Tom Bohman and Brian Toy represented Quadrant in the transaction. Jeff Chaney of Insignia Kidder Mathews represented the buyer. Chaney tells GlobeSt.com that the purchase price was $6.5 million but was reduced at closing by $35 psf for all unimproved space in the building
Bohman tells GlobeSt.com part of the Northwest District Council's interest in the property was its location, close to I-90 and Highway 18, giving it easy access to its memebr organizations throughout the state. Since the building was bigger than they needed, Bohman says another appealing factor was that all the space the church doesn't yet need was already leased.
The price didn't hurt matters, either. Bohman describes the sale price as "very aggressive" but reflective of the market, which is suffering from double-digit vacancy rates. "(Quadrant) was ready to sell," Bohman says, "And from an owner-user perspective, it is a great time to be buying properties."
Mark Rowe, senior development manager at Quadrant, tells GlobeSt.com that the property had been on the market since last summer. He adds that 35 of the business park's 89 acres have now been sold off and developed or vice versa. Quadrant and Cigna joint venture own no more buildings in the park, he says, but still control the remaining acreage, which is building permit ready. Any new near-term development, of course, will be based on demand, says Rowe.
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