Washington Real Estate Holdings president Craig Wrench tells GlobeSt.com the property's 15 useable acres hold a 179,000-sf industrial building with 15,000 sf of office space, parking for 660 vehicles and a pre-loaded building pad that can accommodate another 45,000-sf building.
"Our strategy for this property is complicated," explains Wrench. "We are going to look for tenants." Colliers International brokers Gregg Riva, Derek Heed and Rex Noffsigner have been handed the leasing assignment.
On a more serious note, Wrench says this acquisition is exactly the kind of property the company and its investors like to purchase. "This is in the strike zone of our strategy of buying surplus assets from corporate sellers," he says. "We were attracted to this property because of the dynamics of the sale process as well as the ability of the building to be easily multi-tenanted."
Indeed, Wrench says the building was originally designed to be multi-tenanted and will divide nicely into anywhere from seven to 10 spaces. Finding another single user would be the easiest way to lease up the building, but multi-tenanting the building is in some ways the more profitable approach, says Wrench, adding that he has already seen "a reasonable amount" of interest in the property.
Regardless, he should be able to be competitive with lease rates, having purchased the property for less than $36 per sf, an amount well below the cost of developing new space. To boot, there should be an increasing number of tenants looking for space in the region, given The Boeing Co.'s recent decision to assemble the 7E7 jetliner at its Everett plant.
Washington Real Estate Holdings is an operating company whose major shareholder is the Washington State Investment Board. The company was represented in the acquisition by Noffsigner. Al Hodge and Paul Jerue of Bellevue, WA-based Broderick Group had the disposition assignment.
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