September 13, 2019 — Newmark Knight Frank (NKF) has announced it has completed the sale of Sunset North, a three-building, 464,062-square-foot office campus located at 3180, 3150, and 3120 139th Avenue SE in Bellevue, WA. The property is 99 percent leased to nine tenants including Intellectual Ventures and Arenanet.
NKF’s Co-Head of U.S. Capital Markets Kevin Shannon, Vice Chairman Nick Kucha, Senior Managing Director Michael Moll, and Executive Managing Directors Rob Hannan and Ken White represented the seller, a joint venture of M-M Properties and an institutional investor. The buyer, Kennedy Wilson, was self-represented. NKF’s David Milestone and Brett Green represented the buyer in securing new acquisition financing.
Built in 1999 and 2000, Sunset North’s three five-story buildings are LEED Silver Certified. The property features a fitness facility with locker rooms and showers, a deli and outdoor seating areas. The seller recently completed in excess of $22 million in tenant improvements and building upgrades and executed on more than 270,000 square feet of leasing activity since early 2018.
“The ownership did a terrific job repositioning and stabilizing this asset,” said Shannon. “The result was a weighted average lease term of over eight years which produced outstanding cash-on-cash returns for Kennedy Wilson especially in today’s debt market.”
Moll added, “This was an extremely competitive marketing process partly driven by the strong leasing fundamentals within the I-90 submarket and the significant disparity in current rents when compared to the Bellevue CBD. With such a lack of available space, capital clearly recognizes the continued rental upside in the market.”
Sunset North is situated in the I-90 corridor of Seattle’s Eastside market which has grown to be the hotbed for innovation in the business services, software, technology and wireless industries and home to companies including Microsoft, Costco, Expedia, T-Mobile USA, and Nintendo of America, among others. The property is located near the intersection of Interstates 90 and 405 and offers direct access to the Bellevue Central Business District.