Seattle’s Corporate Campus East III Sells for $84M

American Assets Trust has purchased the Corporate Campus East III for $84 million from a partnership between Ares Management LLC and SteelWave. The four-building office campus is located in Bellevue, Washington, between Seattle and Redmond in the 520 corridor.

Corporate Campus East III is located on 12 acres at 3001, 3005, 3009 and 3015 112th Avenue NE in Bellevue. The four-buildings have a combined 160,508 square feet of rentable building space, and the buildings are 83% leased with an average remaining lease term of six years. Previous ownership had completed a renovation on the property, including upgrades to interior and exterior common areas and exterior plazas and building systems.

The 520 corridor is an active office submarket with a 6.5% vacancy rate, according to research from Newmark, and it is particularly popular among FAANG+M companies. In the last two-and-a-half years, rents in the areas have increased 20%. Office construction is also beginning to take off in the submarket. In May, Skanska announced plans to break ground on its newest project, an office building titled The Eight in Bellevue, Washington. The project represents the city’s first speculative office building development within the past six years. The 25-floor, class-A office tower will comprise 540,000 square feet. The Eight will feature 7,000 square feet of open public space, 12,000 square feet of ground floor retail space and an additional 1,200-square-foot retail pavilion.

In addition, Hines is partnering with Benenson Capital Partners and USAA Real Estate to develop a new mixed-use property in Downtown Bellevue. The property—which Hines says will serve as a gateway to the downtown area—will feature 1.2 million-square-feet of office space, 400 apartment units and 90,000 square feet of retail. The development is located on 7 acres with access to a light rail station that will give the property access to Downtown Seattle, Seattle-Tacoma International Airport and Microsoft’s headquarters in Redmond.

Newmark brokers Kevin Shannon, Rob Hannan, Ken White, Michael Moll, Nick Kucha, Joe Lynch, Dan Harden and Rachel Jones represented Ares Management LLC and SteelWave in the sale of Corporate Campus East III.