PCCP, LLC recently announced that it has formed a joint venture with Align Real Estate to acquire the six-story, 110,372-square-foot Class A Pacific Tower office property within the central business district of Bellevue, WA. The property is 95 percent occupied and includes ground-floor retail and a three-level parking garage consisting of 315 stalls. The acquired property consists of the bottom six floors of a 23-story tower, the top 17 stories are residential condominiums.
“This is our first joint venture with Align, a firm specializing in value-added office development throughout the Pacific Northwest and California,” said Erik Flynn, managing director with PCCP. “Bellevue Pacific offers us an opportunity to increase the asset’s revenue through value-add improvements including a lobby renovation and aesthetic upgrades to the tenant floors that are designed to enhance the building’s prominence in the marketplace and ultimately attract long-term tenants.”
Built in 1995, the property is located at NE 2nd Avenue, between 106th and 107th Avenues. It includes 24 Hour Fitness, Opus Bank, TIAA-CREF as well as other tenants. Over the past several years the property has been amidst a rapidly transforming neighborhood with new hotel, mixed-use, residential, and retail developments occurring on each side of the property.
Bellevue, the business center of the Eastside of Seattle, continues to see the highest growth in rental rates in its submarket with premium buildings experiencing average rental rate growth of 12.7 percent in 2014. Rental rate growth projections through 2015 are expected to reach approximately 8 percent with continued growth over the next four years.
Eastdil Secured represented both the buyer, as well as the seller, LaSalle Investment Management.