Bellevue's Sunset North Sold for $155M

M-M Properties, in partnership with a large unnamed institutional investor, has completed the acquisition of a three-building, 464,000 square foot office campus in Bellevue, Washington for $155.3 million. The property, known as Sunset North, was sold by a fund managed by Beacon Capital Partners; Beacon originally acquired the property in 2007 as part of a $6.35 billion, 39 property portfolio from Blackstone Group. The deal includes the three buildings at at 3120-3180 139th Ave. S.E., a parking lot and two adjacent vacant lots, according to property records. CBRE's Institutional Properties team represent the seller in the transaction with assistance from the Broderick Group. Terms of the deal were not disclosed.

"We are excited to add Sunset North to our expanding institutional investment portfolio," said Ken Moczulski, CEO of M-M Properties. "Following our October 2015 acquisition of the Sawgrass Centre office portfolio in Fort Lauderdale, the acquisition of Sunset North continues our geographic diversification into high-quality institutional assets."

"Sunset North is among the highest-quality office properties in Bellevue's I-90 corridor," added Tom Pehl, a senior vice president with CBRE Capital Markets. "The complex's unobstructed views of the downtown Seattle skyline and Olympic Mountains and easy access to downtown Bellevue and downtown Seattle have attracted an impressive mix of tenants."

Built in 1999-2000, Sunset North was developed jointly by Wright Runstad & Company and Equity Office Properties Trust. Wright Runstad started the 83-acre Sunset Corporate Campus, which includes Sunset North and three other buildings, in 1990 with Obayashi America Corp. as its financial partner. Obayashi later purchased Wright Runstad's interest in other sections of the campus, but Wright Runstad retained rights for the remaining three building sites, partnering with Equity Office when development began in 1998. The office park was designed by the award-winning firm of Zimmer Gunsul Frasca and features polished Canadian Gold granite, a state-of-the-art energy management system, and an on-site fitness center with showers and deli. Sunset North is currently 99% leased and anchored by The Boeing Company.

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