Three Building Complex Outside Seattle Changes Hands
The Highlands property was purchased with a 97% leased rate, but that percentage is expected to fall shortly to approximately 70% due to pending lease expirations, Equus Partners reports.
BOTHELL, WA—An affiliate of Equus Capital Partners, Ltd. has acquired the Highlands Campus Tech Center in the Seattle suburb of Bothell, WA for an undisclosed price from Investcorp.
The purchase of the three-building, 201,766-square-foot office and flex complex was made on behalf of Equus Investment Partnership XI, L.P. (“Fund XI”), a fully discretionary value-add equity fund managed by Equus that opened for investment in July 2018. Equus Capital maintains its headquarters in Newtown Square, PA.
Kevin Shannon, Nick Kucha, and Bill DeLacy of Newmark Knight Frank represented the seller, Qatar-based Investcorp, in the transaction. Investcorp’s North American headquarters is based in New York City.
The Highlands property was purchased with a 97% leased rate, but that percentage is expected to fall shortly to approximately 70% due to pending lease expirations, Equus Partners reports.
The Highlands was built in 1999-2000 and is situated on 13.9 acres. The Highlands campus consists of one- two-story office building and two- two-story flex R&D buildings with a parking ratio of 3.5 spaces per 1,000 square-feet.
“We are excited to add The Highlands Campus Tech Centre to our existing Eastside Seattle portfolio. Given the dearth of available space throughout the eastside market, Bothell has seen a recent surge in demand supported by the technology, life-science, aerospace, and communications industries. The Highlands Campus Tech Centre represents an attractive investment opportunity for our firm in a growing sub-market within one of the most dynamic markets in the country,” says Robert Butchenhart, VP of Equus.
He adds the company intends to reposition the property through planned physical improvements as well as “releasing the pending vacancy into an increasingly tight Eastside rental market.”
Located within Canyon Park, the complex is in close proximity to the Seattle Genetics headquarters, the largest life sciences company in the State of Washington. With more than 30 life science companies, Bothell is now considered a hub of life science and biotechnology in the Seattle area. In addition, Eastside Seattle enjoys employment concentration among fast growing industries such as software, aerospace, technology, and wireless communications. The strong tenant demand from these companies, paired with the limited availability of development sites, create a positive outlook for continued rental rate growth, the company reports.
Earlier this month, Equus Capital Partners, Ltd. announced he sale of Raintree Corporate Center, a two-building institutional-quality office complex totaling 345,417 square-feet in Scottsdale, AZ for $91.7 million. The property, 93% occupied at the time of sale, was originally acquired in 2015 on behalf of a joint venture managed by Equus, and was sold to an affiliate of Cypress Office Properties and Oaktree Capital.