Flynn Lands Big First Tenant for East Valley Office Center

RENTON, WA-Flynn Properties has landed a 90,000-sf tenant for Landmark, a 275,000-sf office complex here that it acquired vacant last summer for $10 million or $36 per sf. Previously known as the East Valley Office Center, the property consists of two four-story, 137,000-sf office buildings at 1600 Lind Ave. SW, adjacent to Interstate 405 at the SR 167, two of the busiest roads in the region.The tenant, Hasbro subsidiary Wizards of the Coast Inc., is relocating from Valley Office Park, which is located across the street. Wizards signed a lease of more than 10 years for all of the third and fourth floors and portions of the first and second floors of the Landmark West building. The negotiated lease rate on the deal is not being released by the parties involved. The triple-net asking rate for the space was $12 per sf per year. The deal included an undisclosed tenant improvement allowance.Trammel Crow brokers Cleita Harvey and Michael Dalton represented Wizards in the transaction. Michael George of Colliers International has the leasing assignment for the property. George tells GlobeSt.com the lease represents the largest office deal for South King County in the past 24 months. Since purchasing the property, Flynn Properties has added several new amenities to the West building, including conference rooms, a fitness center with a separate aerobics room, an interior dining area, and fountain courtyard. A child care center also will be added to the building in the near future, George says. Flynn Properties GM Mike Benoit could not be reached Thursday for comment. “The new amenities…were major contributing factors to this successful transaction,” he says in a prepared statement. San Francisco-based Flynn Properties owns and managed 1.4 million sf of office space on the West Coast. Company president Greg Flynn also is the largest franchisee of the Applebee restaurant chain in the nation. His holdings include 14 restaurants in Washington State. Current class A triple-net asking rates in the Renton market range from $12 to $17 per sf. When Flynn acquired the East Valley Office Center, it said it would invest an additional $10 million in the property. Including that expense, its cost basis in the property would still be just $72 per sf. Even if its cost basis rises to $100 per sf, basic math says it could still fill up the building at $10 per sf and have an investment with a 10% capitalization rate.