Corporate Campus East III is a 154,765-square-foot four-building campus located in Bellevue.

BELLEVUE, WA—Corporate Campus East III, a four building 154,765-square-foot office campus, recently sold for $55.25 million. The buyer was a joint venture with Steelwave and Ares Management.

The seller, TA Realty, was represented by Newmark Knight Frank’s co-head of US capital markets Kevin Shannon, vice chairman Nick Kucha, executive managing directors Rob Hannan and Ken White, senior managing director Michael Moll and director Bill Delacy. The buyer was self-represented.

The campus’ location on 11.74 acres at 3001, 3005, 3009 and 3015 112th Ave. NE is just three minutes from the downtown Bellevue central business district, a submarket that has experienced unprecedented growth and record-setting rents. The asset is also well-located along the 520 Corridor, which connects Seattle to Redmond, home to Microsoft’s world headquarters.

“The 520 Corridor is currently experiencing an incredible fundamental improvement with a 2.5% office vacancy rate and minimal new product in the pipeline. The rents continue to rise due to increasing tenant demand with no signs of a slowdown,” said Shannon.

Indeed, the Puget Sound office market continued to surge in the second quarter, with average asking rents increasing to $38.79 per square foot, up 4.4% compared with the first quarter, according to a report by Newmark Knight Frank. Overall vacancy in the region dropped to 7.6%, down 50 basis points from the previous quarter and down 180 basis points year-over-year.

NKF says there was 1.469 million square feet of net absorption in the quarter, and the ongoing construction boom delivered 980,449 square feet of class-A office product. Leasing activity was strong, up more than 1 million square feet compared with the first quarter, largely because of massive leases signed by technology companies in the Central Business District, Lake Union and Bellevue CBD submarkets, the latter being the location of Corporate Campus East III.

“Seattle enjoys arguably the strongest suburban office sales market in the nation,” Shannon tells GlobeSt.com. “There is an abundance of capital for both stabilized and value-add profile suburban office assets that recognizes that the tremendous market trajectory is likely to continue.”

Corporate Campus East III was built in the mid-1980s and underwent a major renovation in 2015. The property is 90% occupied by a diverse mix of tenants and offers a cafeteria, plaza, canopies, outdoor benches and seating areas, and ample parking.