SKB Acquires Class A Office at Sea-Tac International Airport for $79M
Posted on: Tuesday, 8 January 2008, 12:00 CST
ScanlanKemperBard Companies, LLC has acquired a 532,430 square-foot class A office complex adjacent to Seattle-Tacoma International Airport for $79.2 million. The Portland, Ore.-based real estate merchant banking firm paid $79.2 million for the development, which is 87 percent leased to the Port of Seattle, Mitsui, Boeing, Northwest Airlines and Lynden. SKB will call the property Sea-Tac Office Center.
Fronting Highway 99 directly across from the airport, the development is comprised of two 12-story structures, one two-story building above a 100,000-square-foot parking garage, and abundant surface parking. The complex has views of the airport, Mount Rainier, Olympic Mountains and is near major hotels and a variety of restaurants.
"We will be making some targeted improvements to the property to maximize the return from its highly visible location and the submarket's favorable market dynamics," says SKB chief executive Robert Scanlan. "The airport itself is growing and vacancy in the airport submarket is falling thanks to strong net absorption."
Current office vacancy in the 876,000-square-foot Sea-Tac Airport submarket was under 10 percent as of the end of the third quarter, according to CB Richard Ellis. Demand is expected to continue to grow along with the airport. Construction is underway for both a third runway and light rail service from Downtown Seattle.
"Sea-Tac Office Center represents 65 percent of the rentable office space in close proximity of the airport and fills a unique niche as the only Class A asset in the area," says SKB president Todd Gooding. "Recent lease renewals by Boeing, Northwest Airlines and Lyndon are evidence of a strong commitment to the project. This marks our return to the Seattle market after selling Jefferson Square in 2003. We are bullish on Puget Sound in 2008 and are confident of debt commitments for our equity allotment to the area."
The purchase brings SKB's 2007 acquisition total to just under $600 million. Other 2007 investments include San Francisco Giftcenter and Jewelrymart ($95 million); Pacific Park Plaza in Honolulu ($85 million); Lincoln Center in downtown Denver ($45.5 million); two office towers in Oakland and Berkeley, Calif., ($61.5 million); a multi-state medical office portfolio ($76 million); and a multi-state retail portfolio ($43.14 million).
About ScanlanKemperBard Companies
Founded in 1993, SKB acquires industrial, retail and office properties in the Western United States. For additional information, contact SKB at 503-220-2600 or visit www.skbcos.com.
Source: Business Wire
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