August 2, 2019 Puget Sound Business Journals
Lake Washington Partners paid $39 million the three-building Creeksides at Centerpoint office campus in Kent, King County records show.
NAI Puget Sound Properties
By Marc Stiles – Staff Writer, Puget Sound Business Journal
Lake Washington Partners paid $39 million for an office campus in Kent, King County records show.
The Issaquah-based buyer bought the three-building Creeksides at Centerpoint, which totals 218,425 square feet, from Portland-based Menashe Properties. This is Lake Washington Partners’ entry into the South King County office market.
“Creeksides represented an opportunity to not only buy one of the Kent Valley’s highest quality office parks but it also offered us a prime opportunity to enter Seattle’s thriving and fast-growing Southend office submarket,” Lake Washington Partners President Jordan Lott said in a news release.
The property (20415 72nd Ave. S.) last sold six years ago for $26.5 million. But the most interesting comparison is the property’s sale in 2006 when the campus went for $40 million. This signals the Southend office market’s pricing is back at pre-recession levels.
Lake Washington Partners paid $39 million the three-building Creeksides at Centerpoint office campus in Kent, King County records show.
NAI Puget Sound Properties
Built in 1984 and renovated in 2000, Creeksides is 97 percent leased to multiple tenants, including Naverus — GE Aviation, two state agencies, Blue Nile and Iron Bow Technologies.
The submarket last quarter saw an additional 312,300 square feet of space absorbed, meaning the market is expanding. It will take a hit, however, when Recreational Equipment Inc., moves its headquarters from Kent to Bellevue next year.
The Southend’s low rents are attracting companies from Seattle and Bellevue. Last quarter, the average annual asking rate was $29.55 a square foot versus $37.62 and $41.31 on the Eastside and in Seattle, respectively, according to NAI Puget Sound Properties.
The vacancy rate was 12.7 percent. The Eastside and Seattle’s rates were under 5 percent.
Creeksides has amenities like a market, conference centers, and it’s 6.5 miles from Seattle-Tacoma International Airport.
“We plan to invest in the property to further enhance the building’s amenities. We are exploring a new fitness center, more on-site food and beverage options, improved common areas and EV chargers,” Lott said.
Lake Washington Partners was represented in negotiations by Mike George and Scott Sulman of NAI Puget Sound Properties. Lott and his family own SanMar Corporation, an apparel wholesaler, which Lott’s dad Marty founded in 1971.