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BELLEVUE, WA-Locally based Wallace Properties has acquired the Washington Park office development in Bellevue from Seattle-based Unico Properties for $11.05 million. The 70,312-sf, two-building property is 96% leased.

Washington Park is a suburban office property that fronts Interstate 405, Bel-Red Road and 116th Avenue NE near Overlake Hospital. Local brokers tell GlobeSt.com the asking price for the property was $11.5 million. Two years ago, when Unico first tried to unload the building, the asking price was $13.5 million.

Wallace Properties CEO Robert Wallace tells GlobeSt.com that Mike Wood of Portland, OR-based Norris Beggs & Simpson’s Bellevue office sourced a five-year, 60% acquisition loan from Manufacturer’s Life Insurance Co. of Canada that carries an interest rate of 4.94%. Wallace figures his cash-on-cash capitalization rate at 10%.

“We like the market, we understand it, and we are pretty happy with the deal,” says Wallace. “And if you’re Unico you’re thinking you bought it for a whole lot less, got good cash flow out of it and got it leased up with rents above market; it’s a good time to sell.”

The property’s largest tenant is Sunterra Resorts, which leases around 24,000 sf. Crawford & Co. leases another 10,000 sf, as does Life Center Northwest. All told, the property has about one dozen tenants. Wallace says the lease rolls are fairly nicely staggered and run for a number of years. “The hair on it is that the leases were negotiated at a time when rents were higher than today,” says Wallace. “The question is where will they be when the time comes to renew.”

Wallace Properties has a management portfolio of about two million sf, about 40% of which the company owns. Wallace says his company is in an “aggressively acquisitive” cycle, primarily targeting grocery-anchored shopping centers in the Pacific Northwest that are priced under $20 million.

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