SKB will call the complex Sea-Tac Office Center. The project, which is 87% leased, consists of two 12-story structures, one two-story building above a 100,000-sf parking garage, and abundant surface parking. The complex, situated near major hotels and a variety of restaurants, features views of the airport, Mount Rainier and the Olympic Mountains. It fronts Highway 99 at 18000 International Blvd., directly across from the airport, and is occupied by a roster of tenants including the Port of Seattle, Mitsui, Boeing, Northwest Airlines and Lynden Transport.

SKB is taking possession of its new asset at a time when demand for office space is expected to continue to grow along with the airport. Construction is under way for both a third runway and light rail service from Downtown Seattle.

Current office vacancy in the 876,000-sf Sea-Tac Airport submarket was under 10% as of the end of the third quarter, according to CB Richard Ellis. SKB president Todd Gooding points out that the firm's newly acquired complex "represents 65% of the rentable office space in close proximity to the airport and fills a unique niche as the only class A asset in the area."

Gooding adds that recent lease renewals by Boeing, Northwest Airlines and Lynden are evidence of a strong commitment to the project. The acquisition marks SKB's return to the Seattle market after selling Jefferson Square in 2003. "We are bullish on Puget Sound in 2008 and are confident of debt commitments for our equity allotment to the area," Gooding says.

The seller of the complex was not disclosed, but industry sources indicate that SKB bought the property from Kilroy Realty, a Los Angeles-based office REIT, in a deal that was brokered by Eastdil Secured.