November 2, 2015

URG and Iron Point pay $47M for SeaTac campus and plan upgrade

Courtesy Robert Steele [enlarge]

Urban Renaissance Group and Iron Point Partners said they acquired SeaTac Office Center, an office park near Seattle-Tacoma International Airport, for $47.1 million.

The property is at 18000 Pacific Highway S. It has three buildings that were built between 1974 and 1980, with about 550,000 square feet.

Two of the buildings are 12 stories with 210,000 square feet and 225,000 square feet respectively. The other is a four-story, 115,000-square-foot structure.

A press release said the complex is 62 percent occupied, with tenants involved in travel, aviation, government, international trade and air-freight.

URG CEO Patrick Callahan called SeaTac Office Center the only “institutional-quality high rise campus” in the Southend.

“With core downtown markets experiencing increased rental rates and decreased vacancies, we expect this location will experience significant future demand, especially with Sea-Tac airport's anticipated growth of 40 percent over the next 10 years,” Callahan said in a statement.

The complex has a gym with showers and lockers, a full-service deli and a 13 Coins restaurant.

URG and Iron Point plan to upgrade building systems and exteriors, and add modern features and materials.

URG has not picked an architect or contractor for the renovation.

HFF represented the seller, which a spokesperson for URG said was ScanlanKemperBard Cos. SKB, which is based in Portland, paid $79.2 million for the building in 2008.