Sunset North Portfolio

SUNSET2
Bellevue, WA
Historical Transaction

NRSF: 464,295 SF
Acquisition Date: 3/31/2016
Total Capital: $157.5 million
Equity Invested: $79.1 million
Status: Sold
Realized Multiple: 1.7x
Realized IRR: 20.4% (projected)

Sunset North Portfolio (Sunset North) is a Class-A, three building campus located in the I-90 Corridor submarket of Bellevue, Washington. MMP acquired the office campus in March 2016. Sunset North is four miles from Bellevue CBD, 10 miles from Seattle CBD, and less than a mile from Bellevue College which is the third largest college in the state with an annual enrollment of 31,200 students. The asset is located near the intersection of I-405 and I-90, two of Puget Sound’s primary highways, and one block away from the Eastgate Transit Center, which is the largest park and ride in the state of Washington.

In 1Q 2018 the anchor tenant agreed to an early termination of its lease, leaving a block of 200,000 SF of available space. The termination, which was a strategic move initiated by MMP, provided a unique opportunity to backfill the space at more favorable lease terms. MMP was able to successfully backfill all the space, increasing Sunset North’s occupancy from 55% in 1Q 2018 to 99% in 1Q 2019.

In September 2019, MMP sold Sunset North to Kennedy Wilson for $227 million. Due to the Firm’s success with the asset, Kennedy Wilson has retained MMP as Property Manager.