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1/27/20
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ALCO Investment Company bought Redmond Heights Center, a 126.5k sf industrial/office flex property in the Seattle submarket of Redmond, WA. The property, located in the rapidly growing Eastside Washington market, approximately 15 miles from Downtown Seattle, was sold by Wakefield Redmond Heights. It is currently fully leased to 13 tenants.
Although we don’t have the sale price, we do know that the purchase was financed with $18.75 mil in acquisition financing arranged by Carl Riggins at Continental Partners. The 10-year fixed, non-recourse loan, was rate locked at 3.25% with a 30-year amortization schedule and stepdown prepayment. The loan is sized to 1.40x debt service coverage ratio at the start rate, equating to a 60% loan-to-value on current rents. The Redmond Heights Center is currently fully leased to 13 tenants.
“This acquisition presented the sponsor with an opportunity to benefit from the increasing appetite for office space throughout greater Seattle,” explains Riggins, who notes that the majority of new office construction in the area is preleased, at rates of 81% in Seattle proper and 87% in the Eastside submarkets. “This particular property has the unique appeal of consisting of industrial space as well.”
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