Microsoft Campus Leasehold Interest Buy Exemplifies Eastside Appeal
Seattle’s Eastside market may be the strongest U.S. office market as of now, say brokers involved in the sale of a leasehold interest in the Advanta Edge Campus. The 601,081-square-foot office campus, located in the I-90 Corridor submarket in Bellevue, is fully leased to the Microsoft Corporation through September 2023.
Of the $174.5 million in total capital improvements, Microsoft has funded more than $120 million or $205 per-square-foot of out-of-pocket capital to enhance the building’s electrical and mechanical infrastructure, telecommunications backbone, interior finishes and build-out to a level well above typical class-A office standards.
Talon Private Capital and an undisclosed institutional real estate manager acquired the asset.
Newmark’s Kevin Shannon, Nick Kucha, Rob Hannan, Ken White, Michael Moll and Rachel Jones in cooperation with local market experts Tim O’Keefe and Joe Lynch represented the undisclosed seller.
“New spec office construction is warranted and Advanta Edge offers a massive basis advantage for Talon and Prudential compared to replacement cost rents in the unlikely event that Microsoft doesn’t renew,” says Shannon.
The property was developed in 2008 by Schnitzer West and designed by architect CollinsWoerman.