Boeing Sells 150,000-SF Office Building for $90 per SF

AUBURN, WA-Boeing Realty Corp. has sold the fully leased 150,000-sf Auburn 239 office building here for $13.5 million. The new owner is the Fana Group, a Seattle-based company that owns a variety of real estate located mostly in the Toronto area.Built in 1991, Auburn 239 is a two-story tilt-up office building located at 1102 SW 15th St., directly across from the Auburn SuperMall and adjacent to Highways 18 and 167. The building is located within the two-building Auburn 400 Business Park.The buyer’s broker, Mike Hemphill of The Andover Group tells GlobeSt.com that Boeing Realty last year was prepared to sell the building vacant until he brought in Zones Inc. to lease 71% of the building last fall and The Boeing Co. ultimately decided to lease back the remainder. As a fully leased building, Auburn 239 fetched its asking price of $90 per sf. Had it been vacant, it would have been worth less than half that, says Hemphill. Backing that up, the vacant 275,000-sf East Valley Office Center in Renton recently sold for $35 per sf.Zones Inc. is an online and catalog reseller of computers and computer accessories. Brokers Stuart Williams, Ann Chamberlin and Bill Pollard of Bellevue-based Pacific Real Estate Partners represented Boeing Realty in both the lease negotiations and the sale. Hemphill represented both Zones and Fana. Fana Group’s VP of finance Mike Chase says Fana acquired the asset for its “strong anchor tenant, recent remodeling, access to … restaurants and shopping, and its convenient location between Seattle and Tacoma.”Williams says the other building at Auburn 400, Auburn 240, is a vacant 30,000-sf high-tech industrial facility built in 1992 that remains available for lease or sale. The asking sale price is $2.1 million, or $70 per sf, according to officespace.com.