Dealmaker: Transwestern Investment Group Sells Redmond Technology Center for $38M

Transwestern Investment Group, Dallas, sold Redmond Technology Center in Redmond, Wash., on behalf of one of its managed funds. 

The Puget Sound Real Estate Registry reported Sterling Realty Organization, Bellevue, Wash., paid $37.6 million for the 101,695-square-foot office building at 18300 Redmond Way.

Anchored by Pushpay Ltd., the Class A Redmond Technology Center is currently 93 percent occupied by six tenant firms with staggered lease maturities. The 2008-vintage property includes exposed-ceiling creative workspace in most tenant suites, a two-story lobby and a high-tech fitness center.

The Redmond submarket has seen the strongest performance among Eastside Seattle submarkets over the past 12 months. Since 2010, more than 4,000 multifamily units and 22,000 single-family homes have delivered with an additional 1,300 multifamily units currently approved and permitted.

Seattle’s office market remains among the strongest in the U.S. Facebook’s virtual reality division, Oculus, occupies more than 885,000 square feet in the area. And Microsoft Corp. is headquartered in Redmond and controls 15 million square feet in the submarket. Microsoft recently announced plans to expand and renovate its main office campus to accommodate an additional 8,000 employees in addition to its 47,000-person head count currently in the market. This drove vacancy down to just 1.5 percent at the end of the second quarter, the lowest level since fourth quarter 2000.

Kidder Mathews, Seattle, represented Transwestern Investment Group in the transaction and provides building management and leasing services.