Grosvenor Americas has acquired 11 Class A office buildings in the Seattle, WA suburb of Bothell from owner/developer Schnitzer West, LLC for USD167.5 million.
The investment, with a total of 712,460 square feet of office space, is located within the 125-acre Schnitzer North Creek office campus. Schnitzer West will continue to provide onsite property management. CBRE represented the seller.
“This transaction significantly increases Grosvenor Americas’ investment holdings in the Puget Sound region and furthers our strategy of investing in gateway markets with highly educated and well-trained work forces,” says Michael Beattie, chief Investment Officer, Grosvenor Americas. “We believe the area will experience higher growth than many parts of the US over the next several years, and this acquisition provides the opportunity and exposure.”
“Seattle’s Eastside submarket continues to absorb significant amounts of office space, resulting in the lowest vacancy rate of the five regional market areas,” says James Delmotte, Senior Vice President, Investment, Grosvenor Americas. “Controlling a critical mass of office space in Bothell will allow us to actively manage our tenants’ changing space needs.”
"We are excited about our new partnership with Grosvenor and we look forward to continuing our role managing the North Creek properties on their behalf," says Pete Aparico, Investment Director, Schnitzer West. "Given the strong economic conditions in the Bothell area and broader Puget Sound region and the growing demand for Class A commercial office space, the North Creek properties represent a tremendous investment opportunity for Grosvenor."
The 11 institutional grade buildings acquired by Grosvenor Americas are part of Schnitzer North Creek’s 24 office buildings totalling more than 1.1 million SF. The campus was built around the North Creek stream, providing extensive green space and natural surroundings. The property, just a 20-minute reverse-commute drive from downtown Seattle, enjoys direct access to I-405 and is just minutes from both I-5 and SR-522.
While this is Grosvenor Americas’ first office property acquisition in the Puget Sound region, the company owns (wholly or in joint ventures) nine multifamily communities with 1,954 rental apartments and townhomes in the Puget Sound region as well as 195 apartments in the San Francisco Bay region, and 92 live/work rental units in Vancouver, BC. In addition, Grosvenor Americas has developed or acquired extensive office, retail, mixed-use, and industrial property throughout the US and Canada.