Sunset North Portfolio

SUNSET2
Bellevue, WA
Active Investment

NRSF: 464,295
Acquisition Date: 03/31/2016
Status: Active

Sunset North is a Class A three office building campus located in the I-90 Corridor submarket in Bellevue, Washington near Seattle. The Property is strategically situated near the intersection of I-405 and I-90 and is one block away from the Eastgate Transit Center, providing convenient access to downtown Bellevue, the Seattle CBD, and other major business centers in Puget Sound. Among the highest-quality office properties in the I-90 Corridor submarket, the complex has attracted an impressive mix of tenants.

Opportunity

  • All-in investment basis is well below the estimated replacement cost.
  • The property is well-positioned to take advantage of rising tenant demand and rents in the Eastside market, which has a high concentration of tech companies that are drawn to the highly educated and seasoned workforce, appealing neighborhoods, and nationally ranked public schools.
  • Capture value at rollover as in-place rents are significantly below market.
  • The acquisition includes 7.2 acres of developable land, which provides additional upside to the cash-flowing portfolio of operating assets.

Value Enhancement Strategy

  • Enhance value at rollover at rates consistent with the tightening market.
  • Engage the tenant representation brokerage community and target buildings that cannot address specific tenant requirements such as the demand for large blocks of space within the market.