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| Redmond Heights Center, Redmond, WA |
Redmond, WA – Continental Partners,
a commercial real estate investment banking firm, has successfully secured
$18.75 million in financing to facilitate the acquisition of the Redmond
Heights Center, a 126,545 square-foot industrial/office flex property in the
Seattle submarket of Redmond, Washington.
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| Carl Riggins |
The asset is located in the rapidly growing Eastside Washington market,
approximately 15 miles from Downtown Seattle, which is experiencing extremely
high demand for office space, notes Riggins.
“This acquisition presented the sponsor with an opportunity to benefit from the increasing appetite for office space throughout greater Seattle,” explains Riggins, who notes that the majority of new office construction in the area is preleased, at rates of 81% in Seattle proper and 87% in the Eastside submarkets.
“This acquisition presented the sponsor with an opportunity to benefit from the increasing appetite for office space throughout greater Seattle,” explains Riggins, who notes that the majority of new office construction in the area is preleased, at rates of 81% in Seattle proper and 87% in the Eastside submarkets.
“This particular property has the unique appeal of consisting of industrial
space as well. Through conducting extensive market research, we were able to
communicate the true long-term value of the asset to potential lenders.”
According to Riggins, Redmond Heights Center’s rents were more
than 25% below market at the time of acquisition, with substantial tenant
rollover in the first three years.
This provides a tremendous opportunity for the buyer to organically increase revenue through renewals and new leases over time. The challenge was finding a lender who shared the same vision as the borrower with regard to the rent potential, rather than solely focusing on the current lease terms.
This provides a tremendous opportunity for the buyer to organically increase revenue through renewals and new leases over time. The challenge was finding a lender who shared the same vision as the borrower with regard to the rent potential, rather than solely focusing on the current lease terms.
Contacts:
Micaela Fehrenbach / Elisabeth Manville
(949) 438-6262
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